Patna High Court
The Managing Director, Bihar State Food and Civil Supplies Corporation Ltd.versusM/s Guptaji brothers Rice Mill Pvt.
- Decided
- Disposal
- DISPOSED
Holding
The appeal is disposed of as there is no reason to proceed given the respondent’s undertaking not to pursue the execution case.
Summary
The appellants, the Managing Director and District Manager of the Bihar State Food and Civil Supplies Corporation, appealed against Guptaji Brothers Rice Mill Pvt. and the State of Bihar. After an arbitral award was made, the respondent (the corporation) entered into a settlement, deposited approximately Rs.78,00,000 with the appellants and obtained a no‑objection certificate to resume its business. The respondent indicated it would not press the pending execution suit (Execution Case No. 150 of 2023) and would await the decision on the Section 34 application filed by the appellants challenging the award. The appellants argued that the pending Section 34 application should be heard and that the respondent should not be deprived of tagging merely because of the execution proceedings. The court, considering the respondent’s undertaking not to proceed with the execution case, found no reason to continue the appeal and disposed of it.
Issues considered
- Whether the appeal should proceed in view of the respondent’s settlement and undertaking not to pursue the execution case
- Whether the pendency of the execution suit bars the respondent from being considered for tagging
- Whether the Section 34 application under the Arbitration and Conciliation Act, 1996 should be heard before the execution proceedings
Legislation cited
Subjects
- Arbitration
- Section 34
- Execution proceedings
- Award enforcement
- Settlement
- No objection certificate
- Commercial appeal
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
COMMERCIAL APPEAL No.11 of 2024
======================================================
1. The Managing Director, Bihar State Food and Civil Supplies Corporation
Ltd. Khadya Bhawan, R. Block, Patna.
2. The District Manager, The Bihar State of Food and Civil Supplies
Corporation, District Rohtas.
... ... Appellants
Versus
1. M/s Guptaji brothers Rice Mill Pvt. Registered Office at Bank, through its
Director Sri Rajiv Ranjan Kumar, Son of Ganesh Prasad Gupta resident of
New Sidhauli, Dalmianagar, District Rohtas.
2. The State of Bihar through the Chief Secretary Government of Bihar, Patna.
3. The District Collector, Rohtas at Sasaram.
... ... Respondents
======================================================
Appearance :
For the Appellants : Mr. Anjani Kumar, Senior Advocate
Mr. Shailendra Kumar Singh, Advocate
For the Respondent State: Mr. S.Raza Ahmad, Senior Advocate, AAG-5
For the Respondent No.1: Mr. Jai Vardhan Narayan, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE MR. JUSTICE PRAVEEN KUMAR
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
Date : 04-02-2026
Heard learned counsel for the parties.
2. The matter has been heard at length. There are some
peculiar facts of the case. After passing of the award, which is
under execution, the respondent No.1 has entered into a kind of
settlement with the appellants. In this regard, the affidavits of the
respondent No.1 have been placed before this Court. It has also
been informed that the respondent No.1 had deposited a sum of
Rs.78,00,000.00 approximately with the appellants and has
Patna High Court COMMERCIAL APP No.11 of 2024 dt.04-02-2026
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obtained no objection certificate in order to restore its business
with the appellants.
3. Keeping in view these peculiar facts and
circumstances, learned counsel for the respondent No.1 submits
that for the present respondent No.1 would not press the execution
case being Execution Case No. 150 of 2023 pending before the
Court of learned Principal District and Sessions Judge, Rohtas at
Sasaram, and shall await the decision of the competent court on
the application under Section 34 of the Arbitration and
Conciliation Act, 1996 (for short ‘the Act of 1996’) preferred by
the appellants.
4. Mr. Anjani Kumar, learned Senior Counsel for the
appellants, submits that the appellants have challenged the award
before the competent court giving rise to Miscellaneous Case No.
101 of 2019 pending in the Court of learned Civil Judge (Senior
Division)-I, Civil Court, Patna. The next date fixed in the matter is
21.02.2026. The respondent No.1 has already entered appearance
in the said case, therefore, on the next date, he will make a request
to the court to hear and dispose of the application under Section 34
of the Act of 1996 at the earliest.
5. Mr. Jai Vardhan Narayan, learned counsel for
respondent No.1, submits that he will cooperate in hearing of the
matter before the court.
Patna High Court COMMERCIAL APP No.11 of 2024 dt.04-02-2026
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6. Mr. Jai Vardhan Narayan, Advocate, has brought to
the notice of this Court that only because the respondent No.1 has
filed the execution case, despite having a no objection certificate
in its hand, his firm is not being considered for tagging.
7. Mr. Anjani Kumar, learned Senior Counsel
representing the appellants, submits on the instructions of Mr.
Shailendra Kumar Singh, Advocate, that if the respondent No.1 is
otherwise entitled to be considered, he shall not be deprived of the
tagging only for the reason of pendency of the proceeding of the
execution case.
8. In the aforesaid view of the undertaking given by the
respondent No.1 not to proceed with the execution case for the
present, we find no reason to proceed with the present appeal.
9. This appeal is disposed of.
(Rajeev Ranjan Prasad, J)
(Praveen Kumar, J)
Pawan/-
AFR/NAFR NAFR
CAV DATE N/A
Uploading Date 05.02.2026.
Transmission Date N/A
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