Chhattisgarh High Court

### MANDAMUS FOR REFUND OF QUASHED PENALTY RENDERED INFRUCTUOUS UPON ACTUAL RESTITUTION BY STATE AUTHORITIES

SANJAY SHADIJA vs STATE OF CHHATTISGARH

Chhattisgarh High CourtJUDGMENT: April 27, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner, proprietor of M/s Bhawani Aata Chakki, was subjected to proceedings under the Food Safety and Standards Act, 2006.

Source reference: para. 2

On 22.12.2023, the Additional District Magistrate (ADM), Janjgir, imposed a penalty of ₹50,000/-.

Source reference: para. 2

The petitioner deposited this amount on 15.02.2024 but subsequently challenged the order through an appeal.

Source reference: para. 2

On 29.01.2025, the Sessions Court, Janjgir-Champa, allowed the appeal and set aside the penalty.

Source reference: para. 2

Although the ADM Janjgir passed an order on 23.05.2025 directing the refund of the amount, the authorities failed to comply, prompting the petitioner to file this writ petition under Article 226 of the Constitution of India.

Source reference: para. 1-2
02

Issues

Whether the petitioner is entitled to a writ of mandamus directing the respondent authorities to refund the penalty amount after the original assessment order was quashed by an appellate court.

Source reference: para. 1 / para. 4
03

Law Applied

The court's jurisdiction was invoked under Article 226 of the Constitution of India, which empowers High Courts to issue directions for the enforcement of legal rights.

Source reference: para. 1

The proceedings were originally governed by the Food Safety and Standards Act, 2006, specifically regarding the imposition and subsequent quashing of administrative penalties.

Source reference: para. 2

The principle applied is that once a penalty order is set aside by a competent appellate authority, the state lacks a legal basis to retain the deposited fine and is obligated to refund it to the aggrieved party.

Source reference: para. 4
04

Reasoning

The petitioner argued that since the Sessions Court had quashed the penalty order dated 22.12.2023, the legal foundation for the ₹50,000/- deposit no longer existed.

Source reference: para. 4

During the hearing, the State counsel presented a subsequent development: the ADM Janjgir-Champa had issued an order dated 21.01.2026 effectively refunding the disputed amount to the petitioner.

Source reference: para. 5

The Court observed that the primary grievance of the petitioner was the non-compliance of the refund direction.

Source reference: para. 7

By comparing the relief sought with the State’s submission of completed payment, the Court determined that the cause of action had been satisfied during the pendency of the litigation.

Source reference: para. 7-8
05

Holding

The Court held that since the penalty amount had already been refunded to the petitioner via the order dated 21.01.2026, the grievance no longer survived.

Consequently, the Court dismissed the writ petition as infructuous.

Source reference: para. 8

No order was passed as to costs.

Source reference: para. 9
Chhattisgarh High Court

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SANJAY SHADIJAvsSTATE OF CHHATTISGARH

Chhattisgarh High Court · April 27, 2026

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