Jharkhand High Court Closes Contempt Case Against Excise Department Following Compliance Of Orders On Statutory Interest Payment To Brewery

The Jharkhand High Court has closed contempt proceedings initiated against the state government's Secretary, Department of Excise and Prohibition after noting that its orders pertaining to statutory interest payable to the petitioner Spencer Distilleries and Breweries (Pvt. Ltd.) were complied with.During the hearing on January 10 the counsel appearing for the petitioner company Shekhar Sinha said that now the statutory amount has been paid in favour of the petitioner and, as such, he does not want to press the instant contempt case as the grievance of the petitioner has been redressed. Justice Sujit Narayan Prasad in its order said, “Considering the aforesaid submission made by the learned counsel appearing for the petitioner and the order regarding payment of statutory amount having been complied with, this Contempt Case is closed and disposed of, as such.”The court thereafter dispensed with the personal appearance of Manoj Kumar, Secretary, Department of Excise and Prohibition. The contempt case arose after the respondents–including the State of Jharkhand, failed to comply fully with the High Court's earlier orders dated October 18, 2024, and November 22, 2024. These orders directed the refund of the petitioner's money along with statutory interest. While the principal amount was paid, the statutory interest was not paid in time, and so the petitioner filed contempt proceedings.The court had in its December 13 order criticised the respondents for their inaction and for the State to seek a clarification amongst its departments. The court was earlier informed that an opinion had been sought for payment of interest at statutory rates initially from the Law Department and other authorities, since, the Excise Laws do not provide as to what shall constitute the statutory interest. Thereafter a letter was sent to the Finance Department, which was also failed to clarify the matter. Then the concerned file was moved to the Law Department for clarification, and thereafter, the file is with the Advocate General. As soon as the matter is clarified, the same shall be paid at the earliest and as per the statute, it was then submitted. The court had however said, "Further, once the Court has passed an order directing the respondent to make payment of principal amount along with statutory interest, it is none of the business of the authority to seek clarification from moving the file from one table to another or from one department to another, rather, the same if having with any confusion, an application ought to have been filed before the Court of law for seeking permission but the said step has not been taken". The court also rejected the argument that the Excise Laws lacked clarity on statutory interest, The Court stated, “Herein, two show causes have been filed and in both the show causes filed by two different functionaries of the State of Jharkhand, the ground has been taken that they are not in a position to understand what is the meaning of “statutory interest” which itself suggests that the concerned opposite parties are willingly and deliberately not complying with the Court's order.” It had thereafter listed the matter on January 10 observing that it was "prima-facie" view that this was a case where the proceeding for contempt is to be initiated and had directed the Secretary, Excise and Prohibition Department, Govt. of Jharkhand appear in-person for framing of charge.With the payment of statutory interest now completed, the court closed the contempt case. Case Title: Spencer Distilleries and Breweries (Pvt. Ltd.) vs The State of Jharkhand and OrsLL Citation: 2025 LiveLaw (Jha) 4Click Here To Read Order dt. 13.12.2024Click Here To Read Judgement dt. 10.01.2025

Jharkhand High Court Closes Contempt Case Against Excise Department Following Compliance Of Orders On Statutory Interest Payment To Brewery

Bhavya Singh

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