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The Legal Affair

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No Right to Lock Public Property Over Payment Disputes: Orissa High Court Rejects Contractor’s Plea Against Ex-Parte Order

No Right to Lock Public Property Over Payment Disputes: Orissa High Court Rejects Contractor’s Plea Against Ex-Parte Order

Introduction:

In Nrusingh Charan Muduli v. State of Odisha & Others, the Orissa High Court was confronted with a dispute that lay at the intersection of contractual grievances and public law obligations. The case was adjudicated by Justice Sanjeeb Kumar Panigrahi, who examined whether a contractor could lawfully resort to self-help measures—such as locking a public stadium—to compel payment of alleged dues.

The petitioner, a contractor engaged in the construction of the Mahapurush Shree Achyutananda Mini Stadium in Cuttack district, claimed that despite completing the work and incurring substantial additional expenses, the government authorities failed to release his dues. Frustrated by repeated inaction, he locked the stadium, effectively restricting public access.

This act prompted local authorities to initiate proceedings, leading to an ex-parte order by the Sub-Divisional Magistrate (SDM) under Section 152 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), directing removal of the obstruction. Challenging this order, the petitioner approached the High Court, alleging violation of natural justice and lack of consideration of material facts.

The case thus raised critical questions regarding the limits of self-help remedies, the enforceability of contractual claims against the State, and the balance between individual grievances and public interest.

Arguments by the Petitioner:

The petitioner’s case was rooted in the claim of financial injustice and administrative apathy. He argued that he had been entrusted with the construction and development of the Mini Stadium and had fulfilled his contractual obligations in good faith.

According to the petitioner, the estimated cost of the project was approximately ₹1.27 crore, but he had received only ₹82 lakh towards running bills. In addition, he claimed to have undertaken extra work at the oral request of government officials prior to the inauguration, incurring an additional expense of around ₹60 lakh.

Despite repeated requests and representations, the final bill was not released, leaving him in a precarious financial position. The petitioner submitted that he had incurred debts for labour and materials and was facing severe hardship, both financially and mentally.

In this backdrop, the petitioner justified his act of locking the stadium as a measure of last resort. He contended that his actions were driven by necessity and aimed at drawing attention to his legitimate claims.

Challenging the SDM’s order, the petitioner argued that it was passed ex-parte without affording him an opportunity of hearing, thereby violating the principles of natural justice, particularly the rule of audi alteram partem.

He further contended that the SDM failed to consider the underlying cause of his actions—namely, the non-payment of dues by the authorities. According to him, the order was arbitrary and unsustainable as it ignored the material facts and circumstances of the case.

The petitioner thus sought quashing of the impugned order and recognition of his grievances, asserting that the authorities’ inaction had compelled him to take extreme steps.

Arguments by the Respondents:

The State, represented by its counsel, strongly opposed the petitioner’s claims and defended the legality of the SDM’s order.

The respondents emphasized that the Mini Stadium was a public property situated on government land and intended for public use. Any obstruction to its access, they argued, directly affected the rights of the public and could not be justified under any circumstances.

It was submitted that the petitioner’s act of locking the stadium amounted to taking the law into his own hands. Regardless of the alleged dues, the petitioner had no legal authority to restrict access to public property.

The respondents relied on the report of the Block Development Officer (BDO), which confirmed that the stadium had been completed but was locked by the petitioner, thereby preventing its use.

They argued that the SDM, acting within his jurisdiction under Section 152 of the BNSS, had rightly passed the order to remove the obstruction in order to restore public access.

Addressing the petitioner’s contention regarding violation of natural justice, the respondents submitted that the urgency of the situation justified immediate action. The obstruction of a public facility warranted prompt intervention, and the SDM’s order was necessary to prevent further inconvenience to the public.

The respondents also contended that the petitioner had alternative legal remedies available for recovery of his dues, including approaching appropriate forums or initiating civil proceedings. His decision to resort to self-help measures was neither lawful nor justifiable.

Court’s Judgment:

The Orissa High Court undertook a careful examination of the facts and legal principles involved in the case.

At the outset, the Court acknowledged the petitioner’s grievance regarding non-payment of dues. It noted that the BDO’s report indicated that certain amounts were indeed pending. However, the Court made it clear that the existence of a monetary claim does not entitle a person to take coercive measures.

The Court firmly held that self-help remedies of the kind adopted by the petitioner are impermissible in law. Justice Panigrahi observed that allowing such actions would set a dangerous precedent, enabling individuals to bypass legal processes and disrupt public order.

“The Petitioner cannot resort to self-help or coercive measures to enforce a monetary claim,” the Court stated, emphasizing that disputes relating to payment must be resolved through lawful means.

The Court further observed that the Mini Stadium was a public property, and the petitioner’s act of locking it amounted to an unlawful obstruction of public access. Such conduct, the Court held, cannot be justified even if the petitioner’s claims are genuine.

Addressing the challenge to the SDM’s order, the Court found no illegality or infirmity in the action taken. It held that the SDM had acted within his powers under Section 152 of the BNSS to remove an obstruction affecting public property.

On the issue of natural justice, the Court acknowledged that the order was passed ex-parte. However, it held that in the facts of the case, the urgency of restoring public access justified immediate action. The petitioner’s conduct was admitted, and there was no dispute regarding the obstruction caused.

The Court emphasized that the principle of audi alteram partem is not absolute and may be relaxed in situations requiring urgent intervention to protect public interest.

Importantly, the Court clarified that the petitioner’s remedy lies in pursuing appropriate legal proceedings for recovery of his dues. It granted him liberty to approach the competent forum for this purpose.

In conclusion, the Court dismissed the petition, upholding the SDM’s order and reiterating that individuals cannot take the law into their own hands, particularly when public property and public interest are involved.