Bihar Drags ₹4.17 Crore Madhubani Collectorate Auction Dispute to Supreme Court Ahead of Hearing

A Bihar district administration faces the unprecedented liquidation of its own headquarters after the state failed to settle a ₹4.17 crore commercial dispute that has dragged through local courts for years.

The standoff peaked when court bailiffs marched into the Madhubani Collectorate and pasted public auction notices across the administrative building's main entrance. The government had ignored judicial deadlines. Now, the state apparatus itself faces the auction block.

At the center of the dispute sits an unpaid court decree totaling ₹4,17,24,559 awarded to Radha Krishna Exports Private Limited, a Kolkata-based firm. The commercial conflict stems from unresolved dues tied to Pandoul Cooperative Spinning Mills Private Limited in Madhubani district. For over twelve months, the state government sat on the judgment debt. It paid nothing.

The Anatomy of an Administrative Seizure

The judicial push began on June 17, 2025, when then Madhubani District and Sessions Judge Anamika T. directed the Bihar government to clear the ₹4.17 crore liability immediately. That order carried an explicit warning: settle the ledger, or court officers would seize and auction state property to satisfy the decree.

The state stalled.

Fourteen months slipped past without compliance. On August 27, 2026, Principal District and Sessions Judge Pawan Kumar Pandey cracked down, issuing an execution order under Execution Case No. 03/16—Radha Krishna Exports Private Limited vs Pandoul Cooperative Spinning Mills Private Limited and Others. Judge Pandey formally scheduled the public auction for November 5, 2026, at 10 am within the court premises.

When compliance remained zero, the court escalated. On October 1, 2026, Judge Pandey signed an expanded warrant carving out approximately one-fourth of the entire Madhubani Collectorate compound for liquidation.

Acting under direct judicial instructions, Nazir Awadhesh Kumar and Naib Nazir Vikas Kumar from the court's Nazarat department walked into the seat of district governance and affixed auction proclamations to the masonry. The notice stunned local bureaucrats.

Land Measurements and Execution Details

The physical parcel targeted for sale represents a substantial slice of the district’s governance infrastructure. The court attached 10 kathas of land out of a total administrative complex spanning 2 bighas, 5 kathas, and 67 dhurs, including the government office structures erected directly upon the plot.

Three successive auction notices—dated June 17, 2025, August 27, 2026, and October 1, 2026—failed to produce payment from Patna's treasury. Instead of releasing the funds, the state government scrambled legal teams to petition the Supreme Court of India for an emergency stay against the district court's execution machinery.

The Supreme Court originally listed the state's stay plea for November 7 before deferring the hearing to November 26. Until the apex bench rules, the auction notice remains pasted on the Collectorate gates—a stark reminder that sovereign administrative immunity ends where unfulfilled judicial decrees begin.