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Key Points

A Madhubani court has ordered the Collectorate to pay Rs 4.17 crore to Kolkata-based Radhe Krishna Exports within 15 days or face auction. The dispute stems from a 2014 case involving a defunct government-run spinning mill. Despite clear orders, unpaid dues with interest have now ballooned to crores. Officials remain tight-lipped as the deadline approaches for this unprecedented situation.

Key Points: Madhubani Court Orders Collectorate to Pay Rs 4.17 Crore in 15 Days

  • Court threatens auction of Collectorate over unpaid dues
  • Rs 4.17 crore includes interest from 2014 case
  • Dispute linked to defunct Pandoul Spinning Mill
  • Officials silent as deadline looms
2 min read

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

Madhubani Collectorate faces auction threat over unpaid Rs 4.17 crore dues to Kolkata firm Radhe Krishna Exports, court gives 15-day ultimatum.

"Payment must be made within 15 days to the decree-holder, Radhakrishna Exports Private Limited – Madhubani Court Order"

Madhubani June 18

A Madhubani Court issued a notice to the Madhubani Collectorate, asking officials to pay Rs 4.17 crores in dues to Kolkata-based Radhe Krishna Exports Pvt Ltd within 15 days, or its immovable properties will be auctioned.

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

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Reader Comments

Here are 5 diverse Indian perspective comments for the news article:
R
Rajesh K.
Shocking how ₹33 lakh became ₹4.17 crore due to negligence! This shows why government departments need better financial management. The Collectorate is the heart of district administration - auctioning it would be disastrous for public services. Hope they resolve this quickly.
P
Priya M.
Typical bureaucratic delay costing taxpayers crores! 🤦‍♀️ The spinning mill case was from 1997 and still unresolved. Why do we accept such inefficiency? The Kolkata company waited patiently for years - they deserve their payment with interest.
A
Amit S.
As someone from Bihar, I'm not surprised. Our systems move at snail's pace until courts intervene. The 18% interest rate is fair - private companies can't wait forever. But auctioning Collectorate? That would set a dangerous precedent. Hope DM sahab finds a solution.
S
Sunita R.
The root problem is defunct cooperative mills. So many were shut in 90s leaving unpaid dues. Government should audit all such old cases before more crores are lost in interest. Meanwhile, pay Radhe Krishna Exports - they followed proper legal channel for 20+ years!
V
Vikram J.
Court's order is justified but impractical. Where will DM/SP offices function if Collectorate is auctioned? Better solution - deduct amount from district budget or take loan. This mess shows why we need faster dispute resolution systems for government contracts.

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