SC asks UP Congress to deposit ₹1 cr for hiring buses, taxis for rallies during 1981-1989

Senior advocate Salman Khurshid, appearing for the Congress, said the petitioner is assailing the findings of the high court as the total amount of ₹2.68 crore is disputed.

The Supreme Court on Friday directed the UP Congress to deposit ₹1 crore as arrear towards hiring buses and taxis from UPSRTC during 1981 to 1989, when the party was in power in the state, for ferrying supporters for political rallies and visits of then prime ministers Indira Gandhi and Rajiv Gandhi.

Supreme Court of India (HT File)

A bench of justices Surya Kant and KV Viswanathan issued notice to the Uttar Pradesh government and the UPSRTC on a plea of Uttar Pradesh Congress Committee (UPCC) and directed the party to deposit ₹1 crore within four weeks. “Meanwhile, subject to the petitioner depositing a sum of ₹1 crores within a period of four weeks, without prejudice to the rights of both parties, the further recovery of the amount shall remain stayed,” the bench ordered.

Senior advocate Salman Khurshid, appearing for the Congress, said the petitioner is assailing the findings of the high court as the total amount of ₹2.68 crore is disputed. Justice Kant said, “To contest the amount, if you file a civil suit, it will take another 20-30 years for adjudication. Then there will be first appeal, second appeal and other proceedings after the decree. Instead, we are thinking of appointing an arbitrator to determine the actual liability of the petitioner.”

Khurshid agreed to the suggestion of the bench. The bench further said that to establish the bona fide, it will direct the UPCC to deposit a certain amount of the total outstanding and proceeded to order for deposit of ₹1 crore. After the order was dictated, Khurshid requested the bench to reduce the amount to be deposited and increase the time-period of four weeks.

The UPCC had challenged the October 5, 2023, order of Lucknow bench of Allahabad High Court passed in a writ petition filed in 1998 challenging the recovery notice issued by Tehsildar, Sadar, Lucknow. The proceedings were initiated at the instance of the managing director of Uttar Pradesh State Road Transport Corporation (UPSRTC) which claimed that an amount of Rs.2,68,29,879.78 is due on the UPCC and it is entitled to recover. The high court has referred to various communications and bills and noted a letter dated April 2, 1981, of UPSRTC which showed that a bill of over Rs. 6.21 lakh was raised for ‘kisan’ rally organised by Uttar Pradesh Congress on February 16, 1981, and similarly another communication dated December 16, 1984, shows that a bill of ₹8.69 lakh is due for providing vehicles for ferrying people to pay homage on November 19, 1984, to the ashes of late prime minister Indira Gandhi. The high court has directed UPCC to pay to the respondents UPSRTC entire due of Rs.2.66 crore along with an interest of 5 per cent from the date it is due within a period of three months.

It had said that merely by stating that after change of government, due to political vendetta the amount is wrongly being recovered or taking a technical ground that amount cannot be recovered as arrears of land revenue, it can not be granted liberty to escape its liability to pay its bills.

The UPCC had initially taken a ground before the high court that the amount cannot be recovered under Section 3 of the U.P. Public Moneys (Recovery of Dues) Act, 1972, as there is 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 which would empower the corporation to recover the said sum under the 1972 law.