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Patna High Court

The District Manager Food And Civil Supply Corporation, AurangabadversusKrishna Devi

Decided
Disposal
DISMISSED

Holding

The appellate court held that the statutory power to continue a certificate proceeding against legal heirs must be exercised within a reasonable period and the eight‑year delay rendered the notice unlawful, so the single judge’s order was affirmed.

Summary

The appellant, District Manager Food and Civil Supply Corporation, appealed against a single judge’s order that quashed a notice seeking recovery of Rs. 27,04,433 from the legal heirs of a deceased certificate debtor. The deceased had been the in‑charge of a purchase centre and was alleged to have caused a shortage of 719.36 quintals of paddy, leading to a certificate proceeding initiated in July 2013. He died in October 2014, and the authorities only issued a recovery notice to his heirs in 2022, nearly eight years later. The appellant argued that Section 52 of the Bihar and Orissa Public Demands Recovery Act, 1914 permitted continuation of the proceeding against the heirs and that the amendment power under Section 11 was valid. The court held that while the statute allows continuation, it must be exercised within a reasonable period and is subject to the limitation provisions; the eight‑year delay was unreasonable and violative of the law. Consequently, the appellate court found no error in the single judge’s decision and dismissed the appeal.

Issues considered

  • Whether the single judge was justified in quashing the notice issued to the legal heirs under the Bihar and Orissa Public Demands Recovery Act, 1914.
  • Whether Section 52 of the Act permits continuation of a certificate proceeding against legal heirs after an inordinate delay.
  • Whether the amendment power under Section 11 of the Act can be exercised notwithstanding the limitation period.

Legislation cited

Subjects

  • public demand recovery
  • certificate proceeding
  • limitation period
  • legal heirs
  • statutory delay
  • Bihar law
  • continuation of proceedings

Judgment

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                        Letters Patent Appeal No.662 of 2024
                                          In
                    Civil Writ Jurisdiction Case No.4540 of 2023
     ======================================================
     The District Manager Food And Civil Supply Corporation, Aurangabad
     (Bihar State Food and Civil Supplies Corporation Ltd.,-Real Name)

                                                                ... ... Appellant/s
                                        Versus

1.   Krishna Devi Wife of Late Uma Shankar Thakur Resident of Village-
     Chhakiya, P.S. Tisiauta, District- Vaishali.
2.   Sanjeev Kumar Son of Late Uma Shankar Thakur Resident of Village-
     Chhakiya, P.S. Tisiauta, District- Vaishali.
3.   Rajeev Ranjan Son of Late Uma Shankar Thakur Resident of Village-
     Chhakiya, P.S. Tisiauta, District- Vaishali.
4.   Naveen Kumar Son of late Uma Shankar Thakur, Resident of Village
     Chhakiya P.S. Tisiauta, District Vaishali.
5.   The State of Bihar
6.   The District Magistrate Cum Collector, Aurangabad.
7.   The District Supply Officer Aurangabd.
8.   The District Certificate Officer, Aurangabad.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Appellant/s    :      Mr.Shailendra Kumar Singh, Advocate
     For the Respondent/s   :      Mr.Dhananjay Kumar, Advocate
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
             and
             HONOURABLE MR. JUSTICE RANJAN KUMAR JHA
     ORAL JUDGMENT
     (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

      Date : 25-06-2026

                   Heard learned counsel for the parties.

                  2. The present intra court appeal has been preferred

      against the order dated 02.05.2024 passed in C.W.J.C. No. 4540

      of 2023, whereby the writ petition preferred by the writ

      petitioners (respondent No. 1 to 4 herein) came to be allowed.
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                      3. The brief facts of the present case are that the

         husband of writ petitioner no. 1 (respondent no.1 herein) was

         appointed as Incharge Purchase Centre under Haspura Block in

         the year 2012 for procurement of paddy from farmers. He

         procured 92,976.23 quintals of paddy. It is alleged that he made

         available only 92,256.87 quintals of the procured paddy,

         resulting in a shortage of 719.36 quintals.

                      4. Consequently, a certificate proceeding, being

         Certificate Case No. 15 of 2013-14, was initiated on 29.07.2013

         against the husband of writ petitioner no. 1 (respondent no.1

         herein) for recovery of the alleged loss. During the pendency of

         the proceeding, he died on 29.10.2014.

                      5. Thereafter, a letter dated 16.08.2022 was issued

         seeking recovery of Rs. 27,04,433/- from the writ- petitioners,

         who are the legal heirs of the deceased. Aggrieved thereby, the

         petitioners filed the writ petition, which was allowed by the

         learned Single Judge by order dated 02.05.2024, the relevant

         part of the said order reads as follows:

                             4. In this particular case as seen from the record, the
                             initiation of the certificate proceedings are after a
                             lapse of more than nine years from the date of death
                             of the husband of the petitioner No. 1.
                             5. Admittedly, the period of limitation as prescribed
                             under Section 11 of the Bihar & Orissa Public
                             Demands Recovery Act, 1914 and also as per Article
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                             120 of the Limitation Act, 1963 is only ninety days.
                              6. Having regard to the above settled legal position,
                             the writ petition is allowed and notice before the
                             certificate officers is quashed.”


                      6. Learned counsel for the appellant submits that the

         learned Single Judge erred in allowing the writ petition without

         properly appreciating the facts brought on record in the counter

         affidavit and the provisions of the Bihar and Orissa Public

         Demands Recovery Act, 1914 (for brevity 'the Act').

                      7. It is submitted that the certificate proceeding was

         validly initiated against the original certificate debtor during his

         lifetime and remained pending. Upon his death, notices were

         issued to his legal heirs in continuation of the pending

         proceeding. Referring to Section 52 of the Act, it is submitted

         that a certificate proceeding can be continued against the legal

         heirs for realization of the public demand from the estate of the

         deceased certificate debtor.

                      8. Learned counsel for the appellant further submits

         that the original certificate debtor had already been served with

         notice under Section 7 of the Act and had filed an objection

         under Section 9 thereof. Pursuant to the order passed by this

         Court in C.W.J.C. No. 2523 of 2014, the Certificate Officer was

         required to consider the objection and proceed in accordance
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         with law. Therefore, the notices issued to the legal heirs were

         merely in continuation of the pending certificate proceeding and

         did not amount to initiation of a fresh proceeding. It is thus

         submitted that the impugned judgment proceeds on an incorrect

         appreciation of the factual and legal position and is liable to be

         set aside.

                      9. Per contra, learned counsel appearing on behalf of

         the respondents/writ petitioners submits that the learned Single

         Judge has rightly interfered with the recovery proceedings

         initiated against the petitioners. It is submitted that the husband

         of writ-petitioner no. 1 had died on 29.10.2014 and, after a lapse

         of several years, the authorities sought to recover the alleged

         dues from the legal heirs without following the procedure

         prescribed under law.

                      10. It is further submitted that the learned Single

         Judge, upon consideration of the facts and materials available on

         record, rightly granted relief to the petitioners and no error,

         either on facts or in law, has been committed warranting

         interference by this Court in exercise of its appellate

         jurisdiction.

                      11. The limited issue which arises for consideration in

         the present appeal is whether the learned Single Judge was
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         justified in interfering with the action of the appellant-

         Corporation in seeking recovery of the alleged dues from the

         legal heirs of the deceased certificate debtor and whether the

         impugned judgment warrants interference in exercise of our

         intra-court appellate jurisdiction.

                      12. We have heard learned counsel for the parties and

         perused the materials available on record.

                      13. The facts are largely undisputed. The certificate

         proceeding, being Certificate Case No. 15 of 2013-14, was

         initiated on 29.07.2013 against the husband of writ- petitioner

         no. 1(respondent no.1 herein) on the allegation of shortage of

         719.36 quintals of paddy. During the pendency of the

         proceeding, the original certificate debtor died on 29.10.2014. It

         is also not in dispute that thereafter no effective step was taken

         for    continuation        of    the    proceeding   against   the    legal

         representatives for a considerable period and the impugned

         communication seeking recovery from the writ petitioners came

         to be issued only in the year 2022.

                      14. At this juncture, it would be apposite to refer to

         Section 52 of the Bihar and Orissa Public Demands Recovery

         Act, 1914, which reads as under:

                             52. Procedure on death of certificate-debtor. - (1)
                             Where certificate-debtor dies before the certificate
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                             has been fully satisfied, the Certificate Officer may,
                             after serving upon the legal representative of the
                             deceased a notice in the prescribed form proceed to
                             execute     the     certificate   against   such   legal
                             representative and the provisions of this Act shall
                             apply as if, such legal representative were the
                             certificate debtor and as if such notice were a notice
                             under Section 7:
                             Provided that where the certificate is executed
                             against such legal representative, he shall be liable
                             only to the extent of the property of the deceased
                             which has come to his hands and has not been duly
                             disposed of; and, for the purpose of ascertaining such
                             liability, the Certificate Officer executing the
                             certificate may, of his own motion or on the
                             application of the certificate-holder compel such
                             legal representative to produce such accounts as the
                             Certificate Officer thinks fit.
                             (2) for the purposes of this Section, property in the
                             hands of a son or other descendant which is liable
                             under Hindu Law for the payment of the debt of a
                             deceased ancestor, in respect of which a certificate
                             has been filed, shall be deemed to be property of the
                             deceased which has come to the hands of the son or
                             other descendant as his legal representative.”


                      15. A plain reading of the aforesaid provision makes it

         manifest that the statute merely enables continuation or

         execution of a certificate proceeding against the legal

         representatives of a deceased certificate debtor. The liability

         fastened upon the legal representatives is not personal but is

         expressly restricted to the extent of the estate inherited from the
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         deceased.       The     provision,        therefore,    neither   creates     an

         independent liability against the legal heirs nor authorises the

         Certificate Officer to proceed against them dehors the procedure

         established by law.

                      16. The reliance placed by the appellant on Section

         52, in our considered opinion, is misconceived. The provision

         undoubtedly empowers the Certificate Officer to continue the

         proceeding against the legal representatives; however, such

         power is required to be exercised in accordance with law and

         within a reasonable period. Section 52 cannot be construed as

         conferring an unfettered or perpetual authority upon the State to

         revive proceedings against the legal heirs after remaining

         inactive for years together.

                      17. The principal contention advanced on behalf of

         the appellant is that in view of Section 52 of the Bihar and

         Orissa Public Demands Recovery Act, 1914, the certificate

         proceeding        could      validly         continue   against   the       legal

         representatives of the deceased certificate debtor. There can be

         no quarrel with the proposition that the death of a certificate

         debtor does not automatically terminate a pending certificate

         proceeding and that, in an appropriate case, proceedings may be

         continued against the legal representatives to the extent of the
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         estate inherited by them. However, the existence of such power

         does not answer the question involved in the present case.

                      18. Further, it would also be relevant to refer to

         Section 11 of the Bihar and Orissa Public Demands Recovery

         Act, which reads as follows:

                             “11. Power to amend certificate by addition,
                             omission or substitution of parties. - Subject to the
                             law of limitation the Certificate Officer may at any
                             time amend a certificate by the addition, omission or
                             substitution of the name of any certificate-holder or
                             certificate-debtor or by the alteration of the amount
                             claimed therein:
                             Provided that when any such amendment is made a
                             fresh notice and copy shall be issued as provided in
                             Section 7.”


                      19. The aforesaid provision empowers the Certificate

         Officer to amend a certificate by addition, omission or

         substitution of parties. However, the said power is expressly

         made “subject to the law of limitation”, thereby indicating that

         the legislature never intended such power to be exercised

         irrespective of limitation. The expression “subject to the law of

         limitation” necessarily requires the Certificate Officer to act

         within the period prescribed by the applicable law of limitation.

                      20. The learned Single Judge has held that the

         applicable limitation under Article 120 of the Limitation Act is
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         ninety days. Even otherwise, irrespective of the applicability of

         Article 120, the admitted delay of nearly eight years in initiating

         proceedings against the legal representatives remains wholly

         unexplained. Such inordinate delay cannot be countenanced in

         law.

                      21. The issue here is not the existence of power but

         the manner and time within which such power was exercised. It

         is a settled principle of law that even where a statute does not

         prescribe a specific period of limitation, statutory powers are

         required to be exercised within a reasonable period. In State of

         Punjab v. Bhatinda District Cooperative Milk Producers

         Union Ltd., reported in (2007) 11 SCC 363,                       the Hon’ble

         Supreme Court observed that in the absence of a prescribed

         limitation, jurisdiction must be exercised within a reasonable

         period. The relevant part of the said order reads as follows:

                             “18. It is trite that if no period of limitation has been
                             prescribed, statutory authority must exercise its
                             jurisdiction within a reasonable period. What,
                             however, shall be the reasonable period would
                             depend upon the nature of the statute, rights and
                             liabilities thereunder and other relevant factors.”


                      22. Again, in Santoshkumar Shivgonda Patil v.

         Balasaheb Tukaram Shevale, reported in (2009) 9 SCC 352,

         the Hon’ble Supreme Court observed that settled matters ought
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         not to be reopened after a long lapse of time and that statutory

         powers cannot be exercised after inordinate delay. The relevant

         part of the said order reads as follows:

                             “11. It seems to be fairly settled that if a statute does
                             not prescribe the time-limit for exercise of revisional
                             power, it does not mean that such power can be
                             exercised at any time; rather it should be exercised
                             within a reasonable time. It is so because the law
                             does not expect a settled thing to be unsettled after a
                             long lapse of time. Where the legislature does not
                             provide for any length of time within which the
                             power of revision is to be exercised by the authority,
                             suo motu or otherwise, it is plain that exercise of
                             such power within reasonable time is inherent
                             therein.”


                      23. Applying the aforesaid principles to the facts of

         the present case, we find that the original certificate debtor died

         on 29.10.2014. The appellant has not brought on record any

         material to show that prompt steps were taken for continuation

         of the proceeding against the legal representatives immediately

         thereafter. On the contrary, the record reveals that the recovery

         notice against the writ petitioners was issued only in the year

         2022, nearly eight years after the death of the original certificate

         debtor. No satisfactory explanation has been furnished for such

         prolonged inaction.

                      24. It is equally well settled that the liability of legal
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         representatives is not personal but representative in character

         and is confined to the estate inherited by them from the

         deceased. Proceedings against legal representatives, therefore,

         are required to be pursued strictly in accordance with law and

         within a reasonable period. Section 52 of the Act merely enables

         continuation of proceedings against the estate of a deceased

         certificate debtor; it cannot be interpreted as conferring an

         unrestricted or perpetual authority upon the State or its

         instrumentalities to proceed against legal heirs at any point of

         time irrespective of delay.

                      25. In the facts of the present case, the prolonged

         silence on the part of the authorities for several years after the

         death of the original certificate debtor and the subsequent

         attempt to recover the amount from his legal heirs in the year

         2022 cannot be said to be a valid exercise of statutory power.

         The delay is not only substantial but remains wholly

         unexplained.

                      26. Upon an independent examination of the record,

         we are, therefore, of the considered opinion that the impugned

         judgment does not suffer from any infirmity warranting

         interference by this Court. The appellant has not been able to

         demonstrate any error of law, perversity of finding, or
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                      misappreciation of the material on record which may justify

                      interference in an intra-court appeal.

                                   27. Accordingly, the appeal is devoid of merit and is

                      dismissed.

                                   28. Pending application(s), if any, shall also stand

                      disposed of.




                                                    (Sudhir Singh, J)


                                                (Ranjan Kumar Jha, J)
Sujit/-
AFR/NAFR                AFR
CAV DATE                NA
Uploading Date          01.07.2026
Transmission Date       NA


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