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Dillip Kumar Ray vs Orissa State Financial
2025 Latest Caselaw 3265 Ori

Citation : 2025 Latest Caselaw 3265 Ori
Judgement Date : 8 August, 2025

Orissa High Court

Dillip Kumar Ray vs Orissa State Financial on 8 August, 2025

Author: S.K. Sahoo
Bench: S.K. Sahoo
                IN THE HIGH COURT OF ORISSA, CUTTACK

                                     W.P.(C) No.5049 of 2008

An application under Articles 226 and 227 of the Constitution of
India
                                          -------------------------

        Dillip Kumar Ray                                .......                               Petitioner

                                                   -Versus-

        Orissa State Financial
        Corporation through its
        Chairman-cum-Managing Director,
        OMP Square, Cuttack and
        others.                 .......                                                    Opp. Parties


                 For Petitioner:                           -        Mr. Bansidhar Baug,
                                                                    Senior Advocate

                 For Opp. Parties:                          -       Mr. Avijit Patnaik, Advocate
                                                                    for opp. party nos. 1 & 2
                                                                    Mr. P.K. Nayak, Advocate
                                                                    for opp. party nos. 3 & 4
                                           -------------------------

P R E S E N T:

              THE HONOURABLE MR. JUSTICE S.K. SAHOO

                                                       AND

              THE HONOURABLE MR. JUSTICE S.S. MISHRA

-----------------------------------------------------------------------------------------------------------------------
Date of Hearing: 09.07.2025                                 Date of Judgment: 08.08.2025
-----------------------------------------------------------------------------------------------------------------------


S. S. Mishra, J.                           This writ petition has been filed by

the petitioner assailing the action of the Orissa State


                                                                                                 Page 1 of 26
 Financial Corporation (hereinafter referred to as "OSFC"

or "the Corporation") in proceeding with the sale of his

industrial unit under Section 29 of the State Financial

Corporations Act, 1951, and seeks quashing of the

consequential registered sale deeds executed in favour

of Opposite Party Nos.3 and 4. The petitioner also

seeks a direction to the Corporation to consider his One

Time Settlement (OTS) proposal and accept the same

in terms of the order dated 04.10.2005 passed by this

Court in W.P.(C) No.5324 of 2002.

2.        Mr. Bansidhar Baug, learned Senior Advocate

appearing for the petitioner, Mr. Avijit Patnaik, learned

counsel for opp. party nos. 1 & 2, Mr. P.K. Nayak,

learned counsel for opp. party nos. 3 & 4 have been

heard in extenso.

3.        The facts giving rise to the present writ

petition are not much in dispute. The petitioner had

availed an initial term loan of Rs.2,35,000/- in 1974

from the OSFC for setting up an Ice Factory and Cold




                                              Page 2 of 26
 Storage under the name and style "LA-Glace Ice

Factory and Cold Storage". Additional loans aggregating

Rs.1,12,000/- were disbursed from 1987 to 1993.

Although the latter loans were repaid, the original loan

remained unpaid, eventually leading to the account

becoming Non-Performing Asset (NPA).

4.          On 25.02.2002, OSFC issued a recall notice

under Section 30 of the Act, directing the petitioner to

clear his dues within 20 days, failing which the

Corporation would take recourse under Section 29 of

the SFCs Act, 1951. On 23.10.2002, OSFC took

possession of the mortgaged assets, including land,

building,    and   machinery,   and   issued   a    seizure

inventory.    Subsequent     notice   dated    20.11.2002

demanded repayment of Rs.13,56,150/-.

5.          The petitioner alleged that despite a pending

application for OTS in terms of this Court's earlier order

dated 04.10.2005, the Corporation proceeded to issue

a sale notice on 10.03.2008. Thereafter, without




                                                Page 3 of 26
 conducting    a   proper    auction,   the   Corporation

negotiated the sale of Lot No.1 and Lot No.2 properties

to Opposite Party Nos.4 and 3 respectively. Sale deeds

were executed on 26.03.2008 and 08.04.2008. The

petitioner was not served any notice of the negotiated

sale. Upon learning of the sale, the petitioner filed this

writ petition on 02.04.2008.

6.        Learned counsel for the petitioner submitted

that the impugned sale deeds were executed without

adherence to the statutory requirement of conducting a

public auction and without providing a reasonable

opportunity to the petitioner. It is submitted that the

sale under Section 29, bypassing Section 31 of the SFC

Act, is impermissible when the property is mortgaged.

It is further contended that since the mortgage was

created by deposit of title deeds under Section 58(f) of

the Transfer of Property Act, there was no registered

mortgage deed, yet the mortgage is valid and binding.




                                               Page 4 of 26
 7.           The petitioner further submitted that he was

never served with a notice for the negotiated sale and

that   the    property   was   undervalued   and    sold      at

throwaway prices to single bidders without competitive

bidding. The sale of Lot No.1 (land and building) was

for Rs.6,08,500/-, which was later resold, and the

building demolished, causing irreversible loss. The

petitioner relied on several decisions including:

   Karnataka State Financial Corporation            v.       N.
  Narasimahaiah and others, (2008) 5 SCC 176
    Subhransu Sekhar Padhi v. Gunamani Swain and
  others, AIR 2015 SC 542
    Gunamani Swain and others v. Orissa State
  Financial Corporation and others, AIR 2011 Orissa 83
    Prasana Kumar Rath v. Odisha State Financial
  Corporation & another, 2025 (I) ILR-CUT-507

             It is contended that these decisions prohibit

the sale of mortgaged assets under Section 29 of the

SFCs Act, 1951 without following due process and

uphold the borrower's right to challenge the arbitrary

action of the Corporation.

8.           Per contra, learned counsel for the OSFC

submitted that the petitioner was a chronic defaulter


                                               Page 5 of 26
 who failed to repay the dues for over three decades.

The   petitioner   was   given   several   opportunities,

including a final opportunity for settlement via OTS vide

communication dated 24.04.2006. However, he failed

to comply with the terms or deposit the upfront

amount, resulting in cancellation of the OTS.

9.        It is submitted that due notice was issued

and the seizure of the unit was lawful. The sale was

preceded by publication in "The Samaj" on 10.03.2008

and offers were received during the BLDC meeting on

19.03.2008. Since only one bidder applied per lot, the

properties were sold on "as is where is basis" in

accordance with law. Possession was handed over, and

registered sale deeds were executed on 26.03.2008

and 08.04.2008.

10.       Reliance is placed on Valji Khimji v. Official

Liquidator, reported in (2008) 9 SCC 299, to argue

that post-sale objections are not to be entertained

except on limited grounds like fraud, and also on

Jasbir Kaur v. Punjab SIDC and another reported in


                                                Page 6 of 26
 2001 SCC OnLine P&H 901, wherein Section 29 was

held to authorize the sale of mortgaged property for

recovery without recourse to Section 31.

11.       Mr. P.K. Nayak, learned counsel for the

opposite party nos.3 and 4 submitted that the conduct

of the petitioner is reprehensible. He was a persistent

defaulter. This could be inferred from the settlement

order dated 24.04.2006 issued by the Corporation and

the subsequent letter dated 07.07.2006 issued to the

petitioner by the Corporation calling upon him to show-

cause as to why the OTS offer shall not be withdrawn.

Despite multiple opportunities being given to the

petitioner, the petitioner never reverted back to the

Corporation,   rather   conveniently   ignored      all    the

correspondence.   Finally,   on   01.03.2007,     the     OTS

proposal was cancelled and the process for auction sale

was initiated. Mr. Nayak, learned counsel, has also read

out the auction sale notice published by the Corporation

in the popular daily "The Samaja". He has highlighted

the portion of the advertisement which reads as under:


                                                 Page 7 of 26
          "the   loanee(s)/Guarantor(s)/Mortgager(s)
         of the industrial assets/vehicles/collateral
         assets as advertised above are requested
         to appear in person or through their
         accredited   authorized   representative(s)
         before the DDAC/ BLDC meeting on the
         date, time and place mentioned in the said
         notice with their proposal for getting
         release the assets."

          The petitioner or anyone on his behalf did not

appear     before   the   Committee.     Therefore,      on

24.03.2008, the sale was confirmed. The petitioner filed

the writ petition without challenging the validity of the

auction sale.

12.        Mr. Nayak, learned counsel, also pointed out

that in between, the petitioner has indulged in the

unfair and fraudulent practice of alienating part of the

mortgaged property. He has relied upon the additional

affidavit dated 24.07.2024 filed by the opposite party

nos.1 and 2. The main thrust of the argument of Mr.

Nayak, learned counsel, is that once the auction sale is

confirmed, it is not open for challenge. He has pointed

out that, after confirmation of the sale, the opposite

party no.3 has constructed relics centre, mediation hall,


                                              Page 8 of 26
 science lab, guest house, kitchen room and school

hostel over the said land, where the students are being

provided free education, food and hostel. The opposite

party no.2 has in the meantime sold the said property

to number of persons and the property has changed

hands, and huge constructions have also taken place in

the said property.

13.       We have perused the entire record placed

before us and also carefully taken into account the

submissions made by learned counsel for both parties

before us. From the record, it is evident that the

present petitioner        has indeed not challenged          the

auction   notice     or    auction   sale   in   any   manner

whatsoever. However, after lapse of 13 years, the

petitioner sought an amendment to the writ petition to

challenge the Registered Sale Deed only after the sale

was duly conducted as per the provisions of law and the

subject property was handed over to the opposite party

nos.3 and 4. To appreciate this aspect, the prayer

made by the petitioner in the writ petition is important


                                                   Page 9 of 26
 to be reproduced for convenience. The prayer reads

thus:

                "To issue RULE NISI calling upon the
      Opp. Parties to show cause and if they fail to
      show cause or show insufficient cause issue
      appropriate writ, direction, or order quashing
      Annexures-2 and 9 series and the registered
      deed of transfer dated 26.03.2008 and
      08.04.2008 in favour of the Opp. Party Nos.3
      & 4 respectively and direct the OSFC
      authorities to take a decision on the OTS
      Application submitted by the petitioner and
      accept the same.
                 And further be pleased to pass
      appropriate    writ,   direction   and   order
      preventing the opp. Parties Nos.1 & 2 from
      disposing of the property of the petitioner's
      unit in favour of the opp. Parties No.3 & 4 or
      any other party in any manner."

14.       This is also eminent from the record that in

between, the nature and character of the property has

hugely changed, as the auction sale purchaser i.e. the

opposite party nos.2 and 3 have either sold the

property to many other purchasers or put it to good

use. Therefore, on the ground, the change that has

taken place assumes relevance for the purpose of

deciding the present case.




                                             Page 10 of 26
 15.        Learned counsels appearing for all the parties

have taken us to the pleadings and documents before

this Court from which it can be safely concluded that

none of the parties has indeed largely disputed the

factual aspect of the matter. Therefore, the only legal

issue remains to be decided in the present matter is

regarding invocation of Section 29 of the SFC Act by

the Corporation for the purpose of putting the land to

public auction instead of undertaking the rigors of the

procedure contemplated u/s 31 of the SFC Act, leading

to violation of the principle of natural justice.


16.        Mr.   Baug,    learned   Senior   Advocate,        has

vehemently submitted on the basis of series of case

laws that it was imperative on the part of the

Corporation only to resort to Section 31 of the SFC Act

for putting the mortgaged collateral land to the public

auction.   However,      the   Corporation   has    chosen          a

shortcut method by resorting the provisions of Section

29 of the SFC Act so as to deprive the petitioner from




                                                    Page 11 of 26
 being    heard   before   the   auction   sale.   For   ready

reference, Sections- 29 and 31 of the SFC Act are

reproduced below:

         "29. Rights of Financial Corporation in case
        of default.--(1) Where any industrial
        concern, which is under a liability to the
        Financial Corporation under an agreement,
        makes any default in repayment of any loan
        or advance or any instalment thereof [or in
        meeting its obligations in relation to any
        guarantee given by the Corporation] or
        otherwise fails to comply with the terms of
        its agreement with the Financial Corporation,
        the Financial Corporation shall have the
        [right to take over the management or
        possession or both of the industrial
        concern], as well as the [right to transfer by
        way of lease or sale] and realise the
        property pledged, mortgaged, hypothecated
        or assigned to the Financial Corporation.
        (2) Any transfer of property made by the
        Financial Corporation, in exercise of its
        powers [* * *] under sub-section (1), shall
        vest in the transferee all rights in or to the
        property transferred [as if the transfer] had
        been made by the owner of the property.
        (3) The Financial Corporation shall have the
        same rights and powers with respect to
        goods manufactured or produced wholly or
        partly from goods forming part of the
        security held by it as it had with respect to
        the original goods.
        (4) [Where any action has been taken
        against an industrial concern] under the
        provisions of sub-section (1), all costs,


                                                  Page 12 of 26
 [charges and expenses which in the opinion
of the Financial Corporation have been
properly incurred] by it [as incidental
thereto] shall be recoverable from the
industrial concern and the money which is
received by it [* * *] shall, in the absence of
any contract to the contrary, be held by it in
trust to be applied firstly, in payment of
such costs, charges and expenses and,
secondly, in discharge of the debt due to the
Financial Corporation, and the residue of the
money so received shall be paid to the
person entitled thereto.]
(5) [Where the Financial Corporation has
taken any action against an industrial
concern] under the provisions of sub-section
(1), the Financial Corporation shall be
deemed to be the owner of such concern, for
the purposes of suits by or against the
concern, and shall sue and be sued in the
name of [the concern].


31. Special provisions for enforcement of
claims by Financial Corporation.--(1) Where
an industrial concern, in breach of any
agreement, makes any default in repayment
of any loan or advance or any instalment
thereof [or in meeting its obligations in
relation to any guarantee given by the
Corporation] or otherwise fails to comply
with the terms of its agreement with the
Financial Corporation or where the Financial
Corporation requires an industrial concern to
make immediate repayment of any loan or
advance under Section 30 and the industrial
concern fails to make such repayment [then,
without prejudice to the provisions of
Section 29 of this Act and of Section 69 of


                                         Page 13 of 26
       the Transfer of Property Act, 1882 (4 of
      1882)], any officer of the Financial
      Corporation,     generally    or     specially
      authorized by the Board in this behalf, may
      apply to the District Judge within the limits
      of whose jurisdiction the industrial concern
      carries on the whole or a substantial part of
      its business for one or more of the following
      reliefs, namely:--
      (a) for an order for the sale of the property
      pledged,     mortgaged,    hypothecated    or
      assigned to the [Financial Corporation] as
      security for the loan or advance; or
      [(aa) for enforcing the liability of any surety;
      or]
      (b) for transferring the management of the
      industrial   concern    to  the  Financial
      Corporation; or
      (c) for an ad interim injunction restraining
      the industrial concern from transferring or
      removing its machinery or plant or
      equipment from the premises of the
      industrial concern without the permission of
      the   Board,    where   such    removal    is
      apprehended.
      (2) An application under sub-section (1)
      shall state the nature and extent of the
      liability of the industrial concern to the
      Financial Corporation, the ground on which it
      is made and such other particulars as may
      be prescribed."

17.       Reading of the aforementioned provisions u/s

29 make it abundantly clear that on failure of the

borrower (industrial concerned) to abide by the terms



                                                Page 14 of 26
 of   agreement   enter   with   the   Corporation,     the

Corporation has power under the Act to take over the

management or possession or both of all the industrial

concerned and not the property in question i.e. the

mortgaged property. However, Section 31 makes it

clear that, if the borrower fails to comply with the

terms of its agreement with the Corporation or the

Corporation requires the industrial concerned to make

immediate payment of the loan amount or the loan

amount advance under Section 30 and the industrial

concerned fails to make such payment, then without

prejudice to the provisions under Section 29 of the Act

and Section 69 of the Transfer of Properties Act, 1882,

any officer of the Financial Corporation authorized by

the Board may apply to the District Judge within the

limits of whose jurisdiction the industrial concerned

carries whole or substantial part of its business for an

order for sale of the property pledged, mortgaged,

hypothecated or assigned to the financial corporation as

a security for the loan or advance. The procedure


                                             Page 15 of 26
 contemplated under Sections 29 and 31 of the Act has

been widely discussed by various judgments of the

Hon'ble Supreme Court and different High Courts.


18.        It is no more res integra that for the purpose

of putting a mortgaged property up for public auction,

the Corporation is obliged to follow the procedure

contemplated under Section 31 of the SFC Act.


19.        Therefore, the first ingredient to be satisfied

regarding the applicability of procedure under Section

29 of the SFC Act or 31 of the Act is to ascertain as to

whether    the   property in subject was      mortgaged,

pledged, hypothecated or assigned to the Financial

Corporation in lieu of the loan or advance extended to

the industrial concerned or not. In the present case, the

petitioner could not place before the Court, despite

repeated    directions,   the   mortgaged    deed/pledge

document of the property in subject. The petitioner, by

taking us to different documents, intended us to draw

an inference that the land in subject was mortgaged. In



                                               Page 16 of 26
 absence of any mortgaged deed placed on record, it is

difficult to draw an inference on the basis of the

transactional documents to infer that the land was

pledged or mortgaged by the industrial concerned while

availing the loan or advance by the Corporation.


20.      Mr. Baug, learned Senior Advocate for the

petitioner, sought to infer the existence of a mortgage

in respect of Lot No.2 (the tank/pond) by relying upon

certain correspondences, including (i) the letter dated

23.10.2002 issued under Section 29 of the Act referring

to an alleged mortgage deed dated 03.12.1996 and

31.03.2000 and inventory list showing land mortgaged

to the Corporation, (ii) the letter dated 20.11.2002

addressed to the petitioner with copy to the alleged

mortgager, and (iii) subsequent notices addressed to

the petitioner with copies forwarded to Smt. Pramoda

Kumari Ray, reiterating the contents of the earlier

letters and describing her as the guarantor. However,

this Court, after hearing the matter and upon a careful




                                             Page 17 of 26
 perusal of the materials placed on record, found that

there was no registered mortgage deed produced nor

any definitive proof of creation of mortgage strictly in

accordance with Section 58(f) read with Section 59 of

the Transfer of Property Act, 1882. The so-called

mortgage was merely attempted to be established by

way   of   correspondence    and    not   through      any

substantive or conclusive legal instrument. Accordingly,

realizing the absence of proper proof of mortgage in the

eyes of law, this Court vide order dated 27.07.2023

directed the petitioner to produce valid proof of

mortgage in respect of Lot No.2. The said order was

passed in light of the insufficiency of the petitioner's

claim and the requirement of legal sanctity under the

Transfer of Property Act. The relevant portion of the

aforesaid order is extracted herein below:-


      "2. Mr. B. Baug, learned counsel appearing
      for the petitioner contended that the land
      (Lot-II), measuring Ac.0.790 dec. of the unit
      of M/s. Laa Glace Ice Factory and Cold
      Storage, Kalupadaghar, Khurda is a pond and
      the mortgaged property, showing undue



                                              Page 18 of 26
       haste, has been auctioned and sold on the
      very same day, i.e., 24.03.2008. It is further
      contended that as per the provisions
      contained in Section-29 of the State Financial
      Corporations Act, 1951, the mortgaged
      property, being a pond, cannot be auctioned
      or sold by the opposite parties.

      3. On perusal of the record, it appears that
      nothing has been placed on record to indicate
      that the said property, i.e., Lot-II is a pond
      and has been mortgaged. Therefore, learned
      counsel for the petitioner seeks time to
      produce relevant documents to satisfy this
      Court that Lot-II is a mortgaged property."

21.      Therefore, although we agree with the legal

proposition propounded by Mr. Baug that once the

property is pledged or mortgaged by the industrial

concerned with the Corporation even the failure on the

part of industrial borrower to make good the payment,

the mortgage or pledged property could only be dealt

with the procedure contemplated under Section 31 of

the SFC Act but not under Section 29 of the SFC Act. In

that regard, Mr. Baug, learned Senior Advocate, has

relied upon the following judgments :

(1)     Karnataka State Financial Corporation vs. N.
Narasimahaiah and others, reported in (2008) 5 SCC
176.


                                             Page 19 of 26
 (2)       Subhransu Sekhar Padhi vs. Gunamani Swain
& others, reported in AIR 2015 Supreme Court 542.
(3)       Gunamani Swain & others vs. Orissa State
Financial Corporation & others, reported in AIR 2011
Orissa 83.
(4)       Prasana Kumar Rath vs. Odisha State
Financial Corporation & another, reported in 2025 (I)
ILR-CUT-507.
        All the above judgments cited by Mr. Baug,

learned Senior Advocate on the question of applicability

of Section 31 of the SFC Act, are good law and are

binding. However, on the facts of the present case, the

applicability of the ratio laid down by the Hon'ble

Supreme Court and this Court, as cited above, is

distinguishable due to the lack of documentary support.

22.         It        is    found        from     the     record       that     on

10.03.2008, the public auction notice was advertised

through a widely circulated newspaper. The loanee/

guarantor/mortgager                 of    the     industrial    assets        was

requested        to        appear    in        person   or    through         their

representative             before        the     Branch      Level     Disposal

Committee Meeting on 19.03.2008. The petitioner

conveniently avoided the meeting to get the unit



                                                                     Page 20 of 26
 released or to give better offer than the prospective

buyers. Therefore, the Corporation had sold the assets

on    19.03.2008    for     a    sale   consideration       of

Rs.12,25,000/- for Lot-1 property in favour of one

Kalpana Mohapatra and Lot-2 property in favour of

Aurobindo Matruseba Trust for Rs.1,65,000/-. The

auction   purchasers      have   paid   the   entire     sale

consideration, took over the possession of the asset on

24.03.2008. One of the auction purchasers has now put

the land to use for its philanthropic purposes, whereas

the other auction purchaser has sold the property.

23.       In the judgment of the Hon'ble Supreme

Court in the matter of Valji Khimji and Company vs.

Official Liquidator of Hindustan Nitro Product

(Gujarat) Ltd. & others, reported in (2008) 9 SCC

299, it is held as under:

                  "30. In the first case mentioned
       above i.e. where the auction is not subject to
       confirmation by any authority, the auction is
       complete on the fall of the hammer, and
       certain rights accrue in favour of the auction-
       purchaser. However, where the auction is



                                                Page 21 of 26
        subject to subsequent confirmation by some
       authority (under a statute or terms of the
       auction), the auction is not complete and no
       rights accrue until the sale is confirmed by
       the said authority. Once, however, the sale is
       confirmed by that authority, certain rights
       accrue in favour of the auction-purchaser,
       and these rights cannot be extinguished
       except in exceptional cases such as fraud.


                  31. In the present case, the
       auction having been confirmed on 30-7-2003
       by the Court, it cannot be set aside unless
       some fraud or collusion has been proved. We
       are satisfied that no fraud or collusion has
       been established by anyone in this case."

              In the present case, the petitioner has

not even assailed the validity of the auction notice, as

apparent from the prayer made in the writ petition.

Therefore, the petitioner has indeed waived its right

and is now estopped from challenging the legality of the

recovery   adopted   by   the   Corporation    and      the

consequent auction conducted by it. The development

that unfolded in the present case changed the factual

scenario of the entire case. The Hon'ble Supreme Court,

in the matter of Arce Polymers Private Limited vs.

Alphine Pharmaceuticals Private Limited & others,



                                              Page 22 of 26
 reported in (2022) 2 SCC 221, has settled the law in

that regard.

24.       It is also reflected from the record that during

the follow-up action and inspection, it has been

discovered that the petitioner had already sold a

portion of the mortgaged land. The alienation of the

mortgaged land is duly recorded in the mutation

proceedings in favour of certain individuals from the

locality. It has come to light that the petitioner and his

mother have sold part of the mortgaged property by

executing the Registered Sale Deed dated 11.10.1999

in favour of one Sukanta Kumar Palai. The said

transaction includes 14 decimals of Plot No.132 and 22

decimals of Plot No.133, which is reflected in the

Record of Rights. Such alienation of the property by the

petitioner or at the instance of the petitioner is an act

of suppression of material facts before this Court. The

Hon'ble Supreme Court, in the case of K.D. Sharma

vs. Steel Authorities of India Ltd. & others,

reported in (2008) 12 SCC 481, has held as under:


                                               Page 23 of 26
           "In the case on hand, the appellant has not
       come forward with all the facts. He has
       chosen to state the facts in the manner suited
       to him by giving an impression to the writ
       court that an instrumentality of State (SAIL)
       has not followed doctrine of natural justice
       and fundamental principles of fair procedure.
       This is not proper. Hence, on that ground
       alone, the appellant cannot claim equitable
       relief. But we have also considered the merits
       of the case and even on merits, we are
       convinced that no case has been made out by
       him to interfere with the action of SAIL, or
       the order passed by the High Court."

         The law is well settled in this regard. It is

expected that every litigant should approach the Court

with clean hands. Concealment and suppression of facts

entails the petitioner to get no relief. This case is one of

such cases of suppression of facts before this Court.

25.         Reading of the documents, pleadings of the

present matter apparently gives an impression that the

development unfolded in the present case and the facts

entangled     are   largely   disputed   facts.   Therefore,

segregation of the admitted facts from those of the

disputed facts arising from the sequence of events

unfolded from the transaction ranging for about three



                                                  Page 24 of 26
 decades is a herculean task. The writ Court shall not

venture into the task of separating chaff from the grain.

In   Gunwant      Kaur    v.    Municipal     Committee,

Bhatinda reported in (1969) 3 SCC 769, the Hon'ble

Supreme Court observed that the Courts may decline to

entertain or grant relief in a writ petition if the subject

matter requires complex factual determination or where

the determination of disputed questions of fact is

needed. The Hon'ble Supreme Court held thus-

       "14. The High Court observed that they will
       not determine disputed question of fact in a
       writ petition. But what facts were in dispute
       and what were admitted could only be
       determined after an affidavit in reply was
       filed by the State. The High Court, however,
       proceeded to dismiss the petition in limine.
       The High Court is not deprived of its
       jurisdiction    to   entertain     a    petition
       under Article     226 merely     because       in
       considering the petitioners right to relief
       questions of fact may fall to be determined.
       In a petition under Article 226 the High
       Court has jurisdiction to try issues both of
       fact and law. Exercise of the jurisdiction is, it
       is true, discretionary, but the discretion
       must be exercised on sound judicial
       principles.   When     the    petition   raises
       questions of fact of a complex nature, which
       may for their determination require oral
       evidence to be taken, and on that account


                                                 Page 25 of 26
                                        the High Court is of the view that the
                                       dispute may not appropriately be tried in a
                                       writ petition, the High Court may decline to
                                       try a petition. Rejection or a petition in
                                       limine will normally be justified, where the
                                       High Court is of the view that the petition is
                                       frivolous or because of the nature of the
                                       claim made, dispute sought to be agitated,
                                       or that the petition against the party against
                                       whom relief is claimed is not maintainable or
                                       that the dispute raised thereby is such that
                                       it would be inappropriate to try it in the writ
                                       jurisdiction, or for analogous reasons."


                        26.                Having regard to the conspectus of the entire

                        discussions above, we are unable to grant any writ in

                        favour of the petitioner.

                        27.                The Writ is declined.

                                                                       ..........................
                                                                         S.S. Mishra, J.

S.K. Sahoo, J. I agree.

................................

S. K. Sahoo, J.

Orissa High Court, Cuttack Dated the 8th August, 2025/Subhasis Mohanty

Designation: Personal Assistant

Location: High Court of Orissa, Cuttack. Date: 13-Aug-2025 11:08:27

 
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