Allahabad HC Directs UP Congress Committee To Clear UPSRTC’s Dues Of ₹2.66 Crores For Using Its Vehicles During 1981-1989

The Allahabad High Court last week directed the Uttar Pradesh Congress Committee (UPCC) to clear Rs 2.66 crores (266 lakhs) due to the Uttar Pradesh State Road Transport Corporation (UPSRTC) for using its buses and taxies for its political purposes between 1981-89, the period during which the Congress party was in power in the State.

While passing the order, a bench of Justice Vivek Chaudhary and Justice Manish Kumar noted that the UPCC exercised its dominant position and utilized the public property for its political purposes, however, it did not pay the dues even when the bills were duly raised by the UPSRTC.

The bench also rejected the UPCC's argument that the amount is wrongly being recovered after a change of government due to political vendetta the amount as it held that it can not be granted liberty to escape its liability to pay its bill

"There is no doubt that the question of recovery of public money is involved in the present case, which is used for political purposes by the petitioner, therefore, the petitioner is bound to pay the said amount. The amount has been pending for around 25-30 years and is not cleared by the petitioner as yet," the Court remarked as it directed UPCC to pay the entire due of Rs.266 Lakhs along with an interest of 5% to UPSRTC from the date it is due within a period of three months.

Essentially, it was UPSRTC's case that between the years 1981 and 1989, the vehicles in the nature of buses, taxis etc. were provided to the UPCC on the directions of the then Chief Minister and Minister concerned, who all belonged to the petitioner party, for which bills were regularly raised and were liable to be paid by petitioner.

Interestingly, one of the bills was raised by UPSRTC for providing vehicles to the party for ferrying people to pay homage in 1984 to the ashes of late Prime Minister Mrs. Indira Gandhi.

However, though the party initially showed an inclination to settle the matter, however, it changed its stand with the passage of time and raised technical ground that the amount cannot be recovered under Section 3 of the U.P. Public Moneys (Recovery of Dues) Act, 1972.

It argued before the Court that since there was no agreement relating to any loan to be recovered as land revenue or advance or grant or relating to credit in respect of, or relating to higher purchase of goods sold to petitioner by UPSRTC, therefore, the said amount can not be recovered under the 1972 Act.

In its order, the bench noted that the State had initiated recovery proceedings against Congress in 1998 under the UP Public Moneys (Recovery of Dues) Act, 1972, however, the recovery proceedings stayed in November 1998 and the case remained pending for the past 25 years, without payment of bills.

The Court further noted that it was undisputed that the petitioner had utilized the services of vehicles of UPSRTC for its political activities and did not pay bills raised for the same. The Court also said that the matter involved a question of recovery of public money which was used for political purposes by the Party and hence, it was bound to pay the same

"Admittedly, U.P.S.R.T.C. is running on public money and provides services to public at large. No doubt it is a government corporation and is under total control of State Government. It is bound to comply with the direction of Chief Minister or the Minister concerned and, thus, was not in a position to refuse vehicle to political party which was running the Government."

Further, the Court said that even though, the amount is not recoverable under the provisions of the Act of 1972, however, since the amount has not been paid for 25 years, the Court directed the UPCC to pay UPSRTC the entire due of Rs.266 Lakhs along with an interest of 5% from the date it is due within a period of three months.

Case title - UP Congress Committee vs. State of U.P. and Others [WRIT - C No. - 3740 of 1998]

Case Citation: 2023 LiveLaw (AB) 366

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