SC Directs Bihar And Jharkhand To Settle Their 13-Year Old “Trivial Non-Dispute” Over Delhi’s Bihar Niwas [Read Order]

The Supreme Court bench of Justices Madan B. Lokur and Deepak Gupta, on July 28, gave one more opportunity to the feuding States of Jharkhand and Bihar to settle their dispute over apportioning one of the Bihar Government’s guest houses, Bihar Niwas.

The bench asked the Chief Secretaries of Bihar and Jharkhand to come to Delhi for a personal discussion with the Secretary in the Ministry of Home Affairs and the Secretary in the Ministry of Urban Development on August 21.

In case, there is no settlement arrived at, the bench directed the two Chief Secretaries to be present in the Court, when the matter will be heard on August 22.

Reports suggest that the Union Home Ministry convinced Jharkhand to settle its claim on Bihar Niwas, in Chanakyapuri area of New Delhi, and accept compensation in lieu of it.   The Union Urban Development Ministry has been asked to work out the amount of compensation to be given by Bihar to Jharkhand.  Bihar, the reports said,  agreed to pay the compensation based on the bifurcation rules laid down by the Home Ministry.

The Bihar Reorganisation Act, 2000 allowed transfer of one-third of Bihar’s assets to Jharkhand, following the division of the State.  Jharkhand demanded one-third of the 32-room Bihar Niwas and 64-room Bihar Bhawan – both in Delhi.   The Bihar Government contested this claim, saying that Jharkhand has two addresses in Delhi – Jharkhand Bhawan in Vasant Kunj and a vacant plot near Connaught Place.  Jharkhand, however, found the property allocated to it did not have enough space, and pressed its claim on Bihar Niwas.

The UPA Government directed Bihar to give Bihar Niwas to Jharkhand under Section 60 of the Bihar Reorganisation Act, 2000, on October 31, 2001.  In 2004, Bihar moved the Supreme Court, by filing the Original Suit No.2.

On August 5 last year, the bench of Justices Madan B  Lokur and R.K.Agrawal had held: “This is a trivial non-dispute between two States. We are of the opinion that it is a matter that can be amicably sorted out across the table provided both the parties sit with an open mind.”  The bench recorded the then ASG, P.S.Patwalia’s statement that he would take the initiative to bring the Chief Secretaries of both the States to negotiating table, and sort out the matter amicably.

On October 28, last year, the bench of Justices Lokur and Adarsh Kumar Goel, expressed its unhappiness that the Chief  Secretaries of Bihar and Jharkhand have not been able to arrive at any settlement in spite of three opportunities given by the then Additional Solicitor General, Patwalia.

On March 20 this year, the bench of Justices Lokur and Deepak Gupta, asked the Secretary in the Ministry of Home Affairs to have more than one meeting with the Chief Secretaries, if necessary, but an effort should be made to finally resolve the matter.  The order shows that the Union of India had given a proposal, which was accepted by Jharkhand.  Bihar, however had given a counter proposal, which required to be examined by the parties.

On May 8, the bench expressed its exasperation thus: “The matter has been prolonged unnecessarily with one proposal after another. A final decision should be taken positively before the next date of hearing”.

On July 28, ASG, Maninder Singh has replaced Patwalia, who did not wish to renew his term as the ASG.  Harin P.Raval, Senior Advocate, appeared for Bihar, while Krishnanand Pandeya, AOR, appeared for Jharkhand.

Read the Order Here