In a consequential directive arising out of a prolonged enforcement proceeding, the Madhubani Court has issued notice to the Madhubani Collectorate, mandating the payment of ₹4.17 crore to Kolkata-based Radhe Krishna Exports Pvt. Ltd. within a period of fifteen days. The Court has categorically stated that failure to comply will result in the auction of immovable properties belonging to the Collectorate, including premises currently housing key district administrative offices.
The dispute pertains to an agreement entered into between Radhe Krishna Exports Pvt. Ltd. and the Pandoul Cooperative Spinning Mill, a government-managed entity located in the Pandoul block of Madhubani district. Under the terms of the agreement, the company was to provide capital and raw materials, while the State-operated mill was to undertake production. The mill was subsequently shut down in 1997.
In August 2014, the then Justice Ghan Shyam Prasad of the Patna High Court, while adjudicating the matter in Ratan Kumar Kedia, Director, M/s Radhe Krishna Exports Pvt. Ltd. vs. Cooperative Spinning Mill Pandoul, Bihar Government and others, directed the respondents to make payment of ₹28.90 lakh towards advance, ₹2.70 lakh as compensation, and ₹1.80 lakh towards additional expenses, failing which an interest at the rate of 18% per annum would accrue.
Following non-compliance with the High Court’s directions, Radhe Krishna Exports Pvt. Ltd. initiated execution proceedings in the Madhubani Court in 2016 (EXEC.-3/2016), seeking enforcement of the arbitral award and recovery of the total dues, which had substantially increased due to the stipulated interest.
The Court, upon considering the submissions and the pendency of payment for over a decade, directed the Madhubani Collectorate to clear the outstanding amount, now totalling ₹4.17 crore, including accrued interest. A public notice, in compliance with the court's directive, has been affixed at the entrance of the Madhubani Collectorate, explicitly warning of the auction of its premises.
The Court has ordered that “payment must be made within 15 days to the decree-holder, Radhakrishna Exports Private Limited, based in Kolkata.” The notice further stipulates that, in the event of default, “immovable properties of the Collectorate shall be subject to auction.”
The enforcement order has led to administrative disquiet, given the Collectorate’s occupancy by senior officials, including the District Magistrate and Superintendent of Police. At the time of publication, no official statement had been issued by the concerned authorities.
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