Government Agency Faces Garnishee Order Dismissal, Granted Two-Week Appeal Window with Rs. 1 Lakh Cost Condition

HC of Calcutta dismissed writ petition challenging garnishee order against government agency. Court noted significant procedural delays and granted petitioner liberty to file appeals within two weeks, subject to paying Rs. 1 lakh cost. Appellate authority directed to consider merits of case if statutory formalities are complied with, potentially staying impugned orders.

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Issues: Impugned garnishee order, Delay in filing writ petitions, Non-payment by Government agency, Compliance of formalities

The High Court of Calcutta heard a writ petition challenging an impugned garnishee order passed in September 2022. The petitioner, a contractor for the West Bengal State Rural Development Agency, claimed that a substantial amount was due to them from the agency, but the GST authority had attached these dues instead of the petitioner's bank account. The petitioner also alleged that despite previous court orders directing payment by the government agency, no payment had been made, even after contempt proceedings were initiated. The advocate for the State agency argued that the petitioner had not followed the proper procedures for submitting claims against the agency in previous matters as directed by the court.

The Court noted a significant delay of over a year in filing the writ petitions, with the statutory period for filing appeals against the adjudication orders having long expired. Despite the petitioner's arguments and the issues raised regarding non-payment and compliance, the Court declined to grant immediate relief. Instead, the Court granted the petitioner liberty to file appeals against the impugned orders, with a condition that a cost of Rs. 1 lakh be paid in each appeal due to the delay in approaching the court. The appeals were to be filed within two weeks of complying with statutory formalities and making the required payment. If these conditions were met, the appellate authority would entertain the appeals and stay the impugned garnishee orders until the appeals were decided on their merits.

The Court clarified that the delay in the case was considered in light of exceptional circumstances. Consequently, the writ petitions were disposed of, with the specified directions and observations provided for the petitioner to pursue their appeals in accordance with the law.

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