The Supreme Court on Friday directed that the recovery of Rs 2.66 crores from the Uttar Pradesh Congress Committee (UPCC) towards the dues to the Uttar Pradesh State Transport Corporation (UPSRTC) will remain subject to the condition of the UPCC depositing Rs 1 crore within four weeks.
Reportedly, the dues were for using the buses and taxis of the UPSRTC for its political purposes between 1981-89, the period during which the Congress party was in power in the State. The Supreme Court was hearing a special leave petition filed by the UPCC against the judgement delivered by the Allahabad High Court in October last year directing it to clear the UPSRTC dues with interest at the rate of 5% from the due date within three months.
Issuing notice on the UPCC’s Special Leave Petition, the Bench comprising Justice Surya Kant and Justice K. V. Viswanathan said that the Court will explore the possibility of appointing an arbitrator to determine and ascertain the actual liability of the petitioner. The Court ordered that subject to the petitioner depositing a sum of Rs 1 crores within a period of four weeks, without prejudice to the rights of both parties, the further recovery shall remain stayed.
The Allahabad High Court bench comprising Justice Vivek Chaudhary and Justice Manish Kumar passed the judgment noting that the UPCC exercised its dominant position and utilized public property for its political purposes.
The UPSRTC’s submission before the High Court was that between the years 1981 and 1989, vehicles like buses, taxis, etc were provided to the UPCC on the directions of the then Chief Minister and Minister concerned, who all belonged to the petitioner party. It mentioned that the bills were regularly raised and were liable to be paid.
In its order, the High Court bench noted that the State had initiated recovery proceedings against Congress in 1998 under the UP Public Moneys (Recovery of Dues) Act, 1972; however, the recovery proceedings stayed in November 1998, and the case remained pending for the past 25 years, without payment of bills.
Furthermore, the High Court said that even though the amount is not recoverable under the provisions of the Act of 1972, since the amount has not been paid for 25 years, the Court directed the UPCC to pay UPSRTC the entire due of Rs.266 lakhs along with an interest of 5% from the date it is due within a period of three months.
During the hearing today, Senior advocate Salman Khurshid, appearing for the UPCC, submitted that even though the High Court has stated that there can be no recovery under the 1972 Act however, by way of discretionary powers, it held that the amount should be paid.
Meanwhile, Justice Kant asked if public transport could be used for political parties for political rallies without payment. Responding, the Counsel strongly replied in negative and averred that certainly it cannot be. He added that in this case they are asking what is the government’s responsibility and to what extent, what the political party’s responsibility is. He further underlined that if a political party has a contract, it must pay on the basis of that contract.
Advocate Khurshid further pleaded that this could be decided only by the way of a trial. Nonetheless, the Supreme Court Bench was not convinced, given that the matter had been prolonged enough. Thus, the Bench suggested exploring the possibility of arbitration and the Counsel also acceded to the same. Consecutively, the Court passed the above-mentioned order.