Supreme Court Asks UP Congress Committee To Deposit Rs 1 Crore For Stay Of Recovery Of ₹2.66 Crores Dues To UPSRTC

The Supreme Court on Friday (January 19) directed that the recovery of Rs 2.66 crores from the Uttar Pradesh Congress Committee (UPCC) towards the dues to the Uttar Pradesh State Transport Corporation(UPSRTC) will remain stayed subject to the condition of the UPCC depositing Rs 1 crore within four week.  Pertinently, the dues were for using the buses and taxis of the UPSRTC for its political purposes between 1981-89, the period during which the Congress party was in power in the State. 

The Court was hearing a special leave petition filed by the UPCC against the judgment delivered by the Allahabad High Court in October last year directing the party to clear the UPSRTC dues with interest at the rate of 5% from the due date within three months.

While issuing notice on the UPCC's Special Leave Petition, the Bench comprising Justices Surya Kant and K. V. Viswanathan said that the Court will explore the possibility of appointing an arbitrator to determine and ascertain the actual liability of the petitioner. "Meanwhile, subject to petitioner depositing a sum of Rs 1 crores within a period of four weeks, without prejudice to the rights of both parties, the further recovery shall remain stayed..,” the Court ordered.

The High Court bench comprising Justice Vivek Chaudhary and Justice Manish Kumar passed the judgment noting that the UPCC exercised its dominant position and utilized public property for its political purposes.  

Essentially, UPSRTC's stance before the High Court was that between the years 1981 and 1989, vehicles like 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. The bills were regularly raised and were liable to be paid.

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.

Further, the High Court said that even though the amount is not recoverable under the provisions of the Act of 1972, 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.

At the commencement of today's hearing, Senior advocate Salman Khurshid, appearing for the UPCC, submitted that even though the High Court has stated that there can be no recovery under the 1972 Act however, by way of discretionary powers, it held that the amount should be paid.

At this juncture, Justice Kant asked if public transport could be used for political parties for political rallies without payment.

To this, Counsel strongly replied in negative and averred "Certainly it cannot be. All we are saying in this case is what the government's responsibility and (to what extent) what the political party's responsibility is...If a political party has a contract, it must pay on the basis of that contract." 

Moving further, Khurshid pleaded that this could be decided only by the way of a trial.

However, the Bench was not convinced, given that the matter had been prolonged enough. Thus, the Bench suggested exploring the possibility of arbitration. The Counsel also acceded to the same. Accordingly, the Court passed the above-mentioned order.

Case Title: UP Congress Committee (I) Vs State of UP., SLP(C) No. 828/2024

Click Here To Read/Download Order