High court orders attachment of Himachal Bhawan in Delhi over unpaid dues, BJP says Sukhu govt fails to protect state’s properties

The court emphasised that determining accountability was essential, as the interest amount would be recovered personally from the guilty officers and employees. The court ordered that the inquiry be completed within 15 days and that the report be submitted during the next hearing, scheduled for December 6.

The two-page order stated, “Therefore, for the purpose of executing the award in question, this court orders the attachment of Himachal Bhawan, 27 Sikandra Road, Mandi House, New Delhi, and the execution petitioner may take appropriate steps for its auction.”

Advocates Viplav Sharma and Anirudh Sharma represented petitioner Seli Hydro Electric Power Company, while Additional Advocate General Pushpender Jaswal appeared on behalf of Himachal Pradesh.

Arbitration after power project fails to kick off

In 2009, the Himachal Pradesh government allotted a 320 MW power project to Seli Hydro Company in the Lahaul and Spiti district. The Border Roads Organisation was deployed to assist with the required road construction. According to the agreement, the state government was to provide basic facilities for the hydro company to start the project on time, but this did not occur.

As a result, the company filed a writ petition in the high court in 2017. The company’s lawyer argued that the lack of facilities forced the company to abandon the project and return it to the government. Subsequently, the government seized the upfront premium.

After hearing both parties, the court on January 13, 2023, ordered the government to return the Rs 64 crore upfront premium to the company. However, the government filed a letters patent appeal (an appeal made to another bench in the same high court against a decision made by a single judge).

However, a division bench stayed the order, conditional upon the respondents depositing the arbitration amount in court. When the respondents failed to deposit the amount, the division bench lifted the stay on July 15, 2024, upholding the single-judge bench’s decision.

Considering these facts, the court stated that since no interim order favoured the state, implementing the arbitration award was essential. The court said the government delayed depositing the award amount was accruing daily interest, which must be paid from the public treasury.

BJP blames Congress govt

Opposition BJP leaders, including Leader of Opposition (LoP) and former chief minister Jairam Thakur, criticised the Sukhvinder Singh Sukhu-led Congress government, accusing it of failing to protect the interests and property of Himachal Pradesh.

Opposition leaders also questioned the efficiency of the state’s law department, alleging that it failed to effectively present Himachal Pradesh’s case in court. Thakur said, “It is a sorry state of affairs in Himachal Pradesh. The government has failed to protect the interests of the people of our state. Himachal Bhawan in Delhi is the pride of every Himachali. The Himachal Bhawan in Delhi is another home for every person in the state who goes to the national capital. I fear that if the situation continues, our state secretariat, Vidhan Sabha building, etc., in Shimla will also be attached by the courts in various matters in the coming days.”

Speaking to reporters in Shimla on Tuesday, Chief Minister Sukhvinder Singh Sukhu said he had not yet reviewed the high court order, “The upfront premium is governed by a policy… In 2006, when the energy policy was formed, I was one of the architects of this policy…”

He added, “We had set a reserve price per megawatt on which companies bid. Arbitration decided the matter of the upfront premium, and our government challenged the arbitration order in the high court. As per the order, the government had to deposit Rs 64 crore as part of the Arbitration.”