Refund of un-utilized e-stamp certificates cannot be denied solely on the technical ground of limitation

Orissa High Court Orders Refund of E-Stamp Certificate to Utkal Builders. Technical ground of limitation deemed unsustainable; Collector directed to refund Rs.2,14,442 within 15 days

In a landmark judgment delivered by the Orissa High Court, Justice A.C. Behera ruled in favor of M/s. Utkal Builders Limited, directing the Collector of Khurda to refund Rs.2,14,442, equivalent to the value of un-utilized e-stamp certificates, within 15 days. The petitioner had initially faced rejection of their refund application on the grounds of limitation, having applied for the refund six months after purchase. 

The case, W.P.(C) No.29348 of 2024, filed under Articles 226 and 227 of the Constitution of India, challenged the refusal letter issued by the Collector, Khurda on 23rd April 2024. The petitioner argued that the refund was denied solely on technical grounds despite the stamp certificate being purchased for bona fide purposes.

In the judgment dated 17th October 2025, Justice Behera highlighted several precedents that emphasize the importance of not denying legitimate claims based on technicalities. Citing cases such as Ramesh Chandra Kalra v. Union of India and Bano Saiyed Parwaz v. Chief Controlling Revenue Authority, the court underscored that while limitation might bar the remedy, it does not affect the right itself.

The judgment reflects a broader legal principle wherein the State and its officers are encouraged to act as honest litigants, avoiding reliance on technical defenses that may defeat legitimate claims. The court referred to a range of judgments from different High Courts and the Supreme Court to establish that denying refunds on technical grounds fails to strike an equitable balance expected in fiscal or quasi-judicial determinations.

The court quashed the impugned order of the Collector, Khurda, which refused the refund solely on the ground of limitation. Justice Behera ordered the refund to be processed within 15 days from the date of communication of the judgment, thereby upholding the petitioner's right to the refund.

The case sets a precedent for similar disputes, reinforcing the notion that technical grounds should not hinder justice, especially where citizen claims are legitimate and just.

Bottom Line:

Refund of un-utilized e-stamp certificates cannot be denied solely on the technical ground of limitation, provided the purchase was for a bona fide purpose.

Statutory provision(s): Articles 226 and 227 of the Constitution of India, 1950

M/s. Utkal Builders Limited v. State of Odisha, (Orissa) : Law Finder Doc Id # 2796627