State Backward Class Commission Is Advisory Body, Cannot Pass Recovery Orders In Commercial Disputes: Chhattisgarh High Court

The Chhattisgarh High Court has held that the Chhattisgarh State Backward Class Commission is an advisory and recommendatory body and has no jurisdiction to direct recovery of money in a commercial dispute. The Court observed that while the Commission's advice may ordinarily be binding on the State Government under the Chhattisgarh Rajya Pichhda Varg Aayog Adhiniyam, 1995, it cannot usurp the powers of a competent authority by issuing what is, in substance, a recovery order.Justice Amitendra Kishore Prasad was hearing a writ petition challenging a communication dated 23.09.2022 issued by the Chhattisgarh State Backward Class Commission. The petitioner had booked the sale of a harvester to respondent No.3 for Rs.21 lakhs, against which an advance of Rs.30,000/- was paid. As bank finance could not be arranged within the stipulated time and there was also a delay in delivery due to the COVID-19 pandemic, the transaction was not completed. Although the vehicle was made available for delivery after the respondent obtained finance, the respondent cancelled the transaction and thereafter lodged complaints before various authorities, including the Commission. The Commission directed the Collector to recover Rs.1,26,500/- from the petitioner and pay the amount to respondent No.3.The petitioner contended that the Commission had no authority to pass an order directing recovery of money and that its powers under the Adhiniyam, 1995, were merely recommendatory. Referring to Section 9 of the Chhattisgarh Rajya Pichhda Varg Aayog Adhiniyam, 1995, the Court observed that the functions of the Commission are essentially advisory and recommendatory in nature. It noted that although the Commission's advice is ordinarily binding on the State Government, the statute does not confer adjudicatory powers upon it. Relying on various precedents, the Court observed that conferment of certain powers of a Civil Court for the purpose of investigation or inquiry does not convert the Commission into a Civil Court. The Court held that the dispute before the Commission arose out of a commercial transaction relating to the sale of a harvester machine. By directing recovery of Rs.1,26,500/- from the petitioner and payment of the same to respondent No.3, the Commission had travelled beyond the scope of its statutory powers. The Court observed that such a direction could not be treated as a mere recommendation and amounted to an exercise of jurisdiction not vested in the Commission.“… the Commission, while dealing with a dispute arising out of a commercial transaction, directed recovery of ₹ 1,26,500/- from the petitioner and payment thereof to Respondent No. 3. Such a direction travels beyond the scope of the statutory powers vested in the Commission and cannot be treated as a mere recommendation,” the Court observed. Accordingly, the Court allowed the writ petition and quashed the proceedings of the Commission dated 04.02.2022.Case Title: Kamla Motors v. State of Chhattisgarh & Ors. [WPC No. 598 of 2023].Click Here To Read/Download Order

State Backward Class Commission Is Advisory Body, Cannot Pass Recovery Orders In Commercial Disputes: Chhattisgarh High Court

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State Backward Class Commission Is Advisory Body, Cannot Pass Recovery Orders In Commercial Disputes: Chhattisgarh High Court

Saksham Vaishya

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