Bihar: Madhubani Court orders Collectorate to pay Rs 4.17 crore within 15 days

Following a court order, the Madhubani Collectorate got a notice that said that its premises could be auctioned within 15 days, causing an uproar. The Collectorate hosts offices of the District Magistrate (DM), Superintendent of Police (SP), and other top district officials.

A notice has been posted at the gate of the Madhubani Collectorate as per the Madhubani Court's order. The Madhubani Collectorate has an outstanding due of 4.17 crore, including interest. Payment must be made within 15 days to the decree-holder, Radhakrishna Exports Private Limited, based in Kolkata. The Hon'ble Court issued this directive in the arbitration case EXEC.-3/2016.

The matter is related to the Pandoul Cooperative Spinning Mill located in the Pandoul block. In August 2014, the then High Court Justice, Hon'ble Ghan Shyam Prasad, passed an order in the case of Ratan Kumar Kedia, Director of M/s Radhakrishna Exports Pvt. Ltd. vs. Cooperative Spinning Mill Pandoul, Bihar Government, and others. The order directed the defendants to pay 28.90 lakh as advance payment, 2.70 lakh as compensation, and 1.80 lakh as additional expenses. It also ordered an 18% interest rate in case of non-payment within the specified time.

Since the order was not followed, the company filed a case in the Madhubani Court in 2016 to enforce compliance. The cooperative spinning mill was under government management and was shut down in 1997. At the time, an agreement was made between the company and the mill officials that the government would operate the mill, and the company would provide capital and raw materials.

If the payment of 33.44 lakh had been made in 2014, the amount would not have increased to 4.17 crore, and the auction of the Collectorate could have been avoided. However, officials are refraining from commenting on the matter. (ANI)