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Orissa High Court orders State to deliver logs or pay market value after decades-long forest contract dispute

Shivam Y.

Udayanath Sahoo (Dead) represented by LRs. & Another vs. State of Odisha & Others - Orissa High Court directs State to deliver logs or pay market value in 50-year-old forest contract dispute, slaps ₹2 lakh exemplary cost.

Orissa High Court orders State to deliver logs or pay market value after decades-long forest contract dispute

In a dramatic order that cut through nearly fifty years of litigation, the Orissa High Court at Cuttack directed the State government to either supply timber logs promised under a decades-old contract or pay present market value to the heirs of a deceased forest contractor.

Read in Hindi

Justice Dixit Krishna Shripad, while pronouncing the verdict on September 8, 2025, expressed strong displeasure over the long delays and remarked that "delayed justice is an egregious form of human rights violation."

Background

The case has its roots in the 1970s. Two contractors, Udayanath Sahoo and R.S. Bhatia, had won forest leases in Karanjia division. A dispute between them reached the Orissa High Court and later the Supreme Court, which in 1992 recorded a settlement that required the State to identify and release timber. The idea was simple both contractors would share the wood and adjust earlier payments.

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But things were never that simple in practice. Environmental laws had tightened by then, especially with the Wildlife Protection Act and later the Forest Conservation Act. The State resisted cutting trees, citing ecological concerns. Instead of compliance, the contractors were pushed into one case after another contempt petitions, execution cases, and endless affidavits. Sahoo passed away during the long fight, leaving his legal heirs to carry forward the battle.

Court's Observations

The bench did not mince words about the State's conduct. "Court orders are not for photo framing, but for implementation," Justice Shripad observed. He rejected the State's argument that it was not bound by the compromise, pointing out that the Supreme Court’s order had specifically placed obligations on the government.

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On the State’s claim that the contract was frustrated by later forest conservation rulings, the Judge was unsparing. He reminded that both the Forest Conservation Act, 1980 and Wildlife Protection Act, 1972 were already in existence when the Supreme Court gave its order. Attempts to revive the same objection decades later,

the court said, were "nothing but an afterthought intended to defeat the decree, if not defraud the Decree Holders."

At the same time, the judge acknowledged practical difficulties of cutting live trees today. He hinted that execution courts must adapt and grant "substituted remedies" when primary relief is no longer workable.

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Decision

Balancing legality with practicality, the High Court ordered the State to act within three months. The options are:

  1. Supply logs equivalent to the settlement through the Orissa Forest Development Corporation, provided the decree holders clear any outstanding dues with 6% interest from 1997 or
  2. Pay present market value of such logs, after adjusting dues and interest;

Additionally, the State was slapped with ₹2 lakh in exemplary costs, to be recovered from officials responsible for dragging the case. The court also left scope for further applications if technical difficulties arise during execution.

With that, Justice Shripad closed the matter, leaving the decree holders with some hope of finally tasting the fruits of a legal battle that began in the 1970s.

Case Title:- Udayanath Sahoo (Dead) represented by LRs. & Another vs. State of Odisha & Others

Case Number:- Execution Case No. 2 of 1997

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