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2025 DAILYLAW 126600 (ALL)

M/S ARYA RICE MILL TEHSIL SADAR CHANDAULI THRU. PROPRIETOR SMT. REKHA SINGH v. STATE OF U.P. THRU. PRIN. SECY. FOOD AND CIVIL SUPPLIES GOVT. LKO. AND 4 OTHERS

A227/1121/2025 · 2025-02-28

Pankaj Bhatia

body2025

Judgment text

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Neutral Citation No. - 2025:AHC-LKO:12260 Court No. - 7 Case :- MATTERS UNDER ARTICLE 227 No. - 1121 of 2025 Petitioner :- M/S Arya Rice Mill Tehsil Sadar Chandauli Thru. Proprietor Smt. Rekha Singh Respondent :- State Of U.P. Thru. Prin. Secy. Food And Civil Supplies Govt. Lko. And 4 Others Counsel for Petitioner :- Akhilesh Pratap Singh Counsel for Respondent :- C.S.C., Mahendra Pratap Singh Hon'ble Pankaj Bhatia,J. 1. Heard the counsel for the petitioner and Sri Mahendra Pratap Singh who appears for the opposite parties no. 2 & 3 as well as the learned Standing Counsel. 2. The facts, as arise from the petition, are that certain recoveries were issued against the petitioner and subsequently on account of an arbitration clause, the matter was referred before an Arbitrator. The Arbitrator did not find favour with the claims made by the petitioner and ultimately proceeded to pass an award against the petitioner. The said award was challenged by an application under section 34 before the Commercial Court, Lucknow and an interim application was also filed. On the said application, notices were directed to be issued on 30.01.2025 and it was provided that the question of stay shall be considered after all the parties have put in appearance. 3. It is argued by the counsel for the petitioner that in the meanwhile, the property of the petitioner's Mill was attached and the production of the Mill has come an end because of coercive measures adopted by the respondents. He argues that although, the dues can be recovered as arrears of land revenue, however, in terms of the provisions contained in Section 170 of the U.P. Revenue Code, there is no provision for stopping the functioning of the Mill as a mode of recovery. He further argues that suitable directions be issued for hearing of the injunction application. 4. The counsel for the respondents states that as the petitioner has himself moved an application proposing to deposit some amount, this court itself may decide the stay application without reverting the matter to the Commercial Court. 5. Considering the fact that the manner in which the functioning of the Mill has been stopped is neither sanctioned under section 170 of the U.P. Revenue Code nor can be resorted to for execution of an award under the Arbitration Act and also considering the concession of the counsel for the respondents, the present petition is disposed off with direction to the Commercial Court to decide the Section 34 application in accordance with law. Recovery in pursuance to the impugned award shall remain stayed subject to the petitioner depositing 50% of the amount within a period of one week from today. The said deposit shall be subject to the final outcome of the proceedings pending before the Commercial Court. 6. The writ petition stands disposed off with the said observations. Order Date :- 28.2.2025 VNP/- Digitally signed by :- VISHVANATH PRASAD SHUKLA High Court of Judicature at Allahabad, Lucknow Bench