Madhubani: The Madhubani Collectorate has been served a court order for auction after failing to repay a longstanding debt of Rs 4.17 crore, in a case that has stirred the district administration.
The directive was issued by the court of Chief District Judge Anamika T, in response to Arbitration Execution Case No. 3/16 filed by Radha Krishna Exports Private Limited against Pandaul Cooperative Cotton Mill and others. The order stems from a 2012 arbitration ruling that awarded compensation to the petitioner but remained unenforced for over a decade.
In compliance with the court’s instruction, Civil Court Nazir Durganand Jha pasted an auction notice on the main gate of the Collectorate on Tuesday, triggering commotion among government staff and administrative officers. The notice grants the Collectorate a 15-day deadline to settle the dues, failing which the auction process will proceed.
According to the legal team representing Radha Krishna Exports, the claim pertains to capital and raw material investments made by company director Ratan Kumar Kedia in the Pandaul Cooperative Cotton Mill. Justice Ghanshyam Prasad, a retired judge of the Patna High Court, had ruled in 2012 that the company was entitled to the unpaid sum, including interest.
Despite the arbitration award, the Bihar government and the mill failed to release the payment, prompting the firm to seek legal enforcement through the district court in 2016. The recent order now authorises the auction of 10 kattha of Collectorate land, including a two-storey administrative building.
Naib Nazir Awadhesh Kumar and advocate Harishankar Srivastava were present during the notice’s posting. “If the amount is not cleared within the given time, auction proceedings for the identified portion of the Collectorate will commence,” said Nazir Jha.
Madhubani District Magistrate Anand Sharma claimed ignorance of the development, stating, “I have not received any official information on the matter yet. Appropriate steps will be taken once details are reviewed.”
