Chhattisgarh High Court
Administrative and Public LawCommercial and Corporate Law

Backward Classes Commission cannot adjudicate private commercial disputes or direct recovery of quantified compensation.

DUSHYANT PRAKASH NAG vs STATE OF CHHATTISGARH

Chhattisgarh High CourtJUDGMENT: September 02, 20263 MIN READSOURCE JUDGMENT
Backward Classes Commission cannot adjudicate private commercial disputes or direct recovery of quantified compensation.. DUSHYANT PRAKASH NAG vs STATE OF CHHATTISGARH. Chhattisgarh High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant agreed to purchase a Preet Harvester Machine, Model No. 4949, from respondent No. 3 for ₹21,00,000. He paid ₹30,000 as advance on 31 July 2020 and the balance ₹20,70,000 through three demand drafts dated 9 September 2020. Although delivery was initially promised on successive dates, the machine was not supplied.

Source reference: paras. 4–5

On 22 October 2020, documents relating to a different model were allegedly provided, and the appellant was informed that the booked model could not be supplied for the agreed price.

Source reference: paras. 4–5

After approaching the police and allegedly being assaulted in connection with a proposed compromise, the appellant approached the Chhattisgarh State Backward Classes Commission.

Source reference: para. 6

Upon examining the statements and documents, the Commission recommended recovery of compensation from respondent No. 3 through the Collector, Durg, and payment of the amount to the appellant.

Source reference: para. 6

Respondent No. 3 challenged the Commission’s proceedings in WPC No. 598 of 2023. The learned Single Judge allowed the writ petition and quashed the proceedings on 17 June 2026. The appellant preferred the present intra-Court appeal against that order.

Source reference: para. 2
02

Issues

Whether the Chhattisgarh State Backward Classes Commission, exercising powers under the Chhattisgarh State Backward Classes Commission Adhiniyam, 1995, could adjudicate a private commercial dispute and direct recovery of a quantified amount from one private party for payment to another?

Source reference: para. 12

Whether the learned Single Judge was justified in quashing the Commission’s proceedings in their entirety, rather than modifying or remitting the matter for reconsideration?

Source reference: para. 18
03

Law Applied

The Court applied Section 9 of the Chhattisgarh State Backward Classes Commission Adhiniyam, 1995, under which the Commission’s functions are primarily advisory and recommendatory, including safeguarding the interests of backward classes, monitoring welfare programmes, tendering advice to the State Government, and performing assigned functions.

Source reference: para. 13

The statutory scheme does not confer jurisdiction on the Commission to adjudicate private commercial disputes or issue an executable order directing payment of a quantified sum by one private party to another.

Source reference: para. 14

The Court relied on All India Indian Overseas Bank Scheduled Castes and Scheduled Tribes Employees Welfare Association v. Union of India, (1996) 6 SCC 606, which establishes that the conferment of certain powers of a Civil Court for inquiry or investigation does not transform a Commission into a Civil Court or confer adjudicatory jurisdiction over rights and liabilities.

Source reference: para. 15

The substantive nature and effect of an order, rather than its description as a “recommendation,” determines whether it is adjudicatory and executable.

Source reference: para. 17
04

Reasoning

The dispute concerned non-delivery or alleged substitution of a harvester pursuant to a private commercial transaction between the appellant and respondent No. 3.

Source reference: para. 16

Although the Commission could inquire into grievances and make recommendations within its statutory mandate, it went further by determining a monetary liability, specifying the amount to be recovered, directing the Collector to recover it from respondent No. 3, and requiring payment to the appellant.

Source reference: paras. 6, 16–17

In substance, this amounted to adjudication and enforcement of a private monetary claim, powers not conferred by Section 9 of the 1995 Adhiniyam.

Source reference: paras. 16–17

The fact that the Commission’s decision was styled as a recommendation did not alter its operative character.

Source reference: para. 17

Since the proceedings were fundamentally beyond the Commission’s jurisdiction, the learned Single Judge was entitled to quash them in their entirety; modification or remittal was not warranted.

Source reference: para. 18
05

Holding

The Court held that the Chhattisgarh State Backward Classes Commission lacked jurisdiction to adjudicate the commercial dispute or direct recovery of a quantified amount from respondent No. 3 for payment to the appellant.

The learned Single Judge’s order dated 17 June 2026 quashing the Commission’s proceedings was affirmed.

Source reference: paras. 20–22

The writ appeal was dismissed as devoid of merit, with no order as to costs.

Source reference: paras. 20–22
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Linked provisions open on LawLens.

Adhiniyam, 19951

Section 9
Chhattisgarh High Court

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DUSHYANT PRAKASH NAGvsSTATE OF CHHATTISGARH

Chhattisgarh High Court · September 02, 2026

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