High Court Punjab-Haryana High Court

M/S B.I.D. Rice Mills vs Food Corporation Of India And … on 14 October, 2009

Punjab-Haryana High Court
M/S B.I.D. Rice Mills vs Food Corporation Of India And … on 14 October, 2009
CWP No.4994 of 2009                                               [1]

IN THE HIGH COURT OF PUNJAB                      AND HARYANA AT
                CHANDIGARH.



                               C. W. P. No. 4994 of 2009

                               Date of Decision: 14 - 10 - 2009



M/s B.I.D. Rice Mills                                   ....Petitioner


                               v.

Food Corporation of India and others                    ....Respondents



CORAM: HON'BLE MR.JUSTICE KANWALJIT SINGH AHLUWALIA

                               ***

Present:    Mr.Gurminder Singh, Advocate and
            Mr.Aman Bansal, Advocate
            for the petitioner.

            Mr.O.P.Goyal, Sr. Advocate with
            Mr.Hari Pal Verma, Advocate and
            Mr.Varun Sharma, Advocate
            for respondents No.1 to 4.

            Mr.Anil Kumar Sharma, Addl.A.G., Punjab
            for respondent No.5.

                               ***

KANWALJIT SINGH AHLUWALIA, J. (ORAL)

Counsel for the petitioner during course of argument has

projected that petitioner is aggrieved against the decision of respondent to

circulate name of petitioner’s mill in black list, for denying allotment of

paddy for milling in future and has prayed that communications Annexures

P9 and P12, which express intention of respondents to this effect be

quashed.

CWP No.4994 of 2009 [2]

Petitioner has referred to Annexure P6, agreement arrived at

between the petitioner and Department of Food, Civil Supplies and

Consumer Affairs, Punjab. Clause 6(g)(vii) of the agreement read as

under:-

“6(g)(vii) If a Police/Court case/arbitration case is pending

against the miller on account of embezzlement

relating to custom milling or levy Rice pertaining

to any crop year. However, if the miller clears the

default of the concerned agency along with penal

interest at the rates for the relevant year(s), he may

be considered for allotment without prejudice to

the outcome of the F.I.R./Court Case/Arbitration

Case pending against him.”

It is submitted that petitioner is ready and willing to deposit the entire

amount of default along with penal interest to Food Corporation of India

(hereinafter to be referred as, `FCI’). It is contended that the above said

provision make it crystal clear that even if a case FIR is registered, Miller

can continue to mill the paddy at the discretion of the allotment agency who

on behalf of FCI allot paddy. It is submitted that the petitioner has a right to

be considered for allotment of paddy even after registration of the FIR.

Mr.O.P.Goyal, senior counsel appearing for the FCI has stated

that CBI had recommended that for supplying rice beyond the prescribed

limit under Prevention of Food Adulteration Act and below rejection limit,

miller be black-listed. Referring to Clause 6(g)(vii) of the agreement,

Mr.Goyal has submitted that it only vest right in the miller to be considered

for future allotment of paddy. Whether to allot future work of milling or not
CWP No.4994 of 2009 [3]

is the absolute discretion of the FCI.

To controvert this, Mr.Gurminder Singh has submitted that the

object of Clause 6(g)(vii) is that infrastructure created for the milling should

not go waste and remain idle. Therefore, allotment agency or FCI can

evolve strict regulatory mechanism to ward off any future default on the part

of the miller.

Counsel appearing for the state agencies in connected matters

have contended that on behalf of the FCI, state agencies only allot paddy for

purposes of milling and final authority vest in FCI and as per the

communication of FCI based on recommendation of CBI, they had decided

not to allot work to the millers.

After hearing counsel for the parties, the present writ petition is

disposed of by observing that in case miller deposit the default amount

along with penal interest, as prescribed in Clause 6((g)(vii) reproduced

above, the authorities who are vested with absolute discretion, may

consider claim of the petitioner for allotment of work in future. It is

clarified that default amount along with penal interest is to be deposited to

the satisfaction of the FCI. The petitioner may approach the FCI for making

the payment of the amount due, in case such a request is made, the FCI shall

communicate to the petitioner, the amount which petitioner is liable to pay

within two weeks.

( KANWALJIT SINGH AHLUWALIA )
October 14, 2009. JUDGE

RC