M/S BHAGRA RESORTS PVT LTD v. THE STATE OF HP AND OTHERS
CWP/13709/2026 · 2026-08-21
Jyotsna Rewal Dua
body2026
DailyLaw.ai
[ 2026 DAILYLAW 19673 (HP) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 19673 (HP) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
CWP No.13709 of 2026
Decided on: 21.08.2026 ------------------------------------------------------------------------------------- M/s Bhagra Resorts Pvt. Ltd. & Ors
…..Petitioners
Versus State of H.P. & Ors.
....Respondents ------------------------------------------------------------------------------------- Coram Ms. Justice Jyotsna Rewal Dua Whether approved for reporting?1 For the Petitioners: Mr. Ajay Kumar, Sr. Advocate with Mr. Vinay Kumar, Advocate.
For the Respondents: Mr.Anup Rattan, Advocate General with Ms. Menka Raj Chauhan, Deputy Advocate General, for respondents No. 1, 3 to 5.
Mr. Raman Jamalta, Advocate, for respondents No. 2 and 6.
------------------------------------------------------------------------------------ Jyotsna Rewal Dua, Judge
This writ petition has been filed for the grant of following substantive reliefs:-
“a. Writ of Certiorari or such other appropriate writ, order or direction by quashing/setting aside the order dated 3.1.2026 (Annexure P-9) passed by Respondent No.4 and award dated 18.1.2016 (Annexure P-6) passed by Respondent No.5 being
1Whether reporters of print and electronic media may be allowed to see the order? Yes.
2 arbitrary, capricious, perverse and unjust, in gross violation and utter contravention to fundamental principles of natural justice, fair play and audi alteram partem and further ignoring, violating and flouting the provisions under the Himachal Pradesh Co-operative Societies Act, 1968 and Rules made thereunder. b. Writ of Mandamus or such other appropriate writ,
order or direction thereby directing the Respondents to settle the Loan Account of Petitioners as per the extension of the One Time Settlement Scheme-2024 (Annexure P-12) notified by the Bank vide notification dated 24.03.2026 and as per approval and sanction letter dated 19.02.2025 (Annexure P-14).”
The matter was taken up on 11.08.2026, when
learned counsel for respondent No. 2 and 6 was directed to have instructions regarding extending benefit of the One Time Settlement (OTS) Scheme 2024 (Annexure P-12) dated 24.03.2026 up to 30.09.2026 to the petitioner.
2.
Pursuant to above, learned counsel for the respondents No. 2 and 6 placed on record instructions dated 14.08.2026 from the Managing Director of the respondent-Himachal Pradesh State Cooperative Bank Limited. These instructions succinctly describe the gist of the case as also the previous litigations between the parties on the subject matter. Relevant portion of office instructions reads as under:-
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“Hon'ble Court vide its
order dated
18.03.2025, directed the borrower to give
undertaking to pay the amount within 90
days commencing from 19.02.2025. Annexure
‘J’ Colly. Borrower filed the undertaking on 25.03.2025,
but still failed to comply with the same. Hon'ble High Court vide its order dated
27.05.2025 directed the borrower to deposit at
least 50% of the settlement amount on or
before 20.06.2025, but they failed to do so.
Annexure ‘K’ Hon'ble High Court allowed the CWP filed by
the bank vide its order dated 08.12.2025 and
order dated 12.07.2019, passed by the
Additional Registrar (Administration) Co-
operative Societies H.P. was quashed and set-
aside and he was directed to decide the
appeals) afresh on merits as preferred by the
private respondents and the petitioner-Bank.
Hon'ble Court in its judgment has stated that
despite passage of six months' time, nothing
was done by the private respondents, which
shows their conduct. For several years, they
have delayed the case repeatedly and have
failed to pay the public money to the
petitioner-Bank well in time. Annexure ‘L’ Additional Registrar (Administration) Co-
operative Societies H.P. vide its order dated
03.01.2026 decided the appeal afresh and
dismissed it, affirming the arbitral award
dated 18.01.2016. In the mean while, petitioners challenged the
order dated 08.12.2025 before the Hon'ble
Supreme Court by filing SLP(C) No. 519/2026
in December 2025. 4 Hon'ble Supreme Court vide its order dated
30.01.2026, directed the petitioners to pay
25% of the settlement amount i.e Rs. 6,50,00,000/- within 15 days and the balance
amount of the settlement amount was to be
paid on or before 31.03.2026. Petitioner filed
an affidavit in compliance to the said order,
but they failed to comply with their affidavit. Annexure ‘M’ Colly. Hon'ble Supreme Court dismissed the SLP
filed by the borrower vide order dated
15.04.2026, stating that no good ground to
interfere with the impugned order passed by
the High Court was found. Annexure ‘N’
The petitioner has made promises /commitments before all courts from Registrar Cooperative Societies to Hon'ble Supreme Court of India and filed undertaking to pay the amount but did not comply with any of its commitment and court order. The petitioner has no honour towards Hon'ble Court but just buying time to avoid repayment of loan which was advanced to them more than 20 years back. The Respondent bank has been dragged to different forums against its duty bound right of recovery of Public Money. Respondent Bank has no faith on borrower and her request, to repay the OTS amount as prayed in the present petition. As per undertaking/affidavit filed before Hon'ble Supreme Court, petitioner has undertaken to deposit Rs. 6.50 Crore out of which petitioner has paid Rs.1.625 Crore and not deposited balance of Rs. 4,87,50,000/-. Annexure ‘O’
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In compliance to court order dated 11.08.2026 regarding extending the benefit of OTS scheme, Bank is ready to consider case of petitioner if balance amount i.e. Rs. 4,87,50,000/- is paid by them within 15 days, before Registry of Hon'ble Court or in the bank. You are, therefore, requested to apprise the Hon’ble High Court of H.P. accordingly.”
As per above office instructions, the petitioner had given an undertaking / affidavit before the Hon’ble Apex Court to deposit Rs.6.50 Crores, out of which, petitioner has paid Rs.1.625 Crores but has not deposited balance amount of Rs.4,87,50,000/-. The instructions are also to the effect that respondent-bank is ready to consider the case of the petitioner for extending the benefit of OTS Scheme in case the entire balance amount, i.e. Rs. 4,87,50,000/-, is paid by them within 15 days either before the Registry of this Court or in the bank.
3. Learned senior counsel for the petitioners under instructions submits that the petitioners are ready and willing to deposit the entire balance amount of Rs. 4,87,50,000/- with the respondent-bank to avail the benefit of OTS, but the time period for the same be extended till 10.09.2026. 6
Learned counsel appearing for the respondent bank is agreeable for this extension of time.
The petitioners have also filed affidavits of Sh. Surya Kant Bhagra (petitioner No. 3) and Smt. Prabha Bhagra (petitioner No. 2) for self and as General Power of Attorney for petitioner No. 1. In these affidavits, the petitioners have given an undertaking for depositing the balance amount i.e. Rs. 4,87,50,000/-, either before this Court or with respondent No. 2-bank by 10.09.2026.
4.
Keeping in view the office instructions dated 14.08.2026 and the submissions made by learned counsel for the parties, petitioners shall be at liberty to deposit the balance amount of Rs. 4,87,50,000/- with the respondent- bank on or before 10.09.2026. Till such time, no coercive action shall be taken against them. In case of petitioners’ failure to deposit the aforesaid amount by the scheduled date, the respondent-bank shall be at liberty to continue with the execution proceedings, statedly pending before respondent No. 6 in accordance with law and to avail all other legal remedies for recovery of the amount lawfully due from the petitioners to the respondents.
7
This writ petition stands disposed of in the above terms.
Pending miscellaneous application(s), if any, also to stand disposed of.
Jyotsna Rewal Dua August 21, 2026
Judge R.Atal