{"id":256846,"date":"2009-10-14T00:00:00","date_gmt":"2009-10-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-b-i-d-rice-mills-vs-food-corporation-of-india-and-on-14-october-2009"},"modified":"2015-03-25T16:47:24","modified_gmt":"2015-03-25T11:17:24","slug":"ms-b-i-d-rice-mills-vs-food-corporation-of-india-and-on-14-october-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-b-i-d-rice-mills-vs-food-corporation-of-india-and-on-14-october-2009","title":{"rendered":"M\/S B.I.D. Rice Mills vs Food Corporation Of India And &#8230; on 14 October, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">M\/S B.I.D. Rice Mills vs Food Corporation Of India And &#8230; on 14 October, 2009<\/div>\n<pre id=\"pre_1\">CWP No.4994 of 2009                                               [1]\n\nIN THE HIGH COURT OF PUNJAB                      AND HARYANA AT\n                CHANDIGARH.\n\n\n\n                               C. W. P. No. 4994 of 2009\n\n                               Date of Decision: 14 - 10 - 2009\n\n\n\nM\/s B.I.D. Rice Mills                                   ....Petitioner\n\n\n                               v.\n\nFood Corporation of India and others                    ....Respondents\n\n\n\nCORAM: HON'BLE MR.JUSTICE KANWALJIT SINGH AHLUWALIA\n\n                               ***\n\nPresent:    Mr.Gurminder Singh, Advocate and\n            Mr.Aman Bansal, Advocate\n            for the petitioner.\n\n            Mr.O.P.Goyal, Sr. Advocate with\n            Mr.Hari Pal Verma, Advocate and\n            Mr.Varun Sharma, Advocate\n            for respondents No.1 to 4.\n\n            Mr.Anil Kumar Sharma, Addl.A.G., Punjab\n            for respondent No.5.\n\n                               ***\n\nKANWALJIT SINGH AHLUWALIA, J. (ORAL)\n<\/pre>\n<p id=\"p_1\">            Counsel for the petitioner during course of argument has<\/p>\n<p>projected that petitioner is aggrieved against the decision of respondent to<\/p>\n<p>circulate name of petitioner&#8217;s mill in black list, for denying allotment of<\/p>\n<p>paddy for milling in future and has prayed that communications Annexures<\/p>\n<p>P9 and P12, which express intention of respondents to this effect be<\/p>\n<p>quashed.\n<\/p>\n<p id=\"p_1\"> CWP No.4994 of 2009                                                 [2]<\/p>\n<p>             Petitioner has referred to Annexure P6, agreement arrived at<\/p>\n<p>between the petitioner and Department of Food, Civil Supplies and<\/p>\n<p>Consumer Affairs, Punjab.       Clause 6(g)(vii) of the agreement read as<\/p>\n<p>under:-\n<\/p>\n<blockquote id=\"blockquote_1\"><p>             &#8220;6(g)(vii)   If a Police\/Court case\/arbitration case is pending<\/p>\n<p>                          against the miller on account of embezzlement<\/p>\n<p>                          relating to custom milling or levy Rice pertaining<\/p>\n<p>                          to any crop year. However, if the miller clears the<\/p>\n<p>                          default of the concerned agency along with penal<\/p>\n<p>                          interest at the rates for the relevant year(s), he may<\/p>\n<p>                          be considered for allotment without prejudice to<\/p>\n<p>                          the outcome of the F.I.R.\/Court Case\/Arbitration<\/p>\n<p>                          Case pending against him.&#8221;\n<\/p><\/blockquote>\n<p id=\"p_2\">It is submitted that petitioner is ready and willing to deposit the entire<\/p>\n<p>amount of default along with penal interest to Food Corporation of India<\/p>\n<p>(hereinafter to be referred as, `FCI&#8217;). It is contended that the above said<\/p>\n<p>provision make it crystal clear that even if a case FIR is registered, Miller<\/p>\n<p>can continue to mill the paddy at the discretion of the allotment agency who<\/p>\n<p>on behalf of FCI allot paddy. It is submitted that the petitioner has a right to<\/p>\n<p>be considered for allotment of paddy even after registration of the FIR.<\/p>\n<p id=\"p_3\">             Mr.O.P.Goyal, senior counsel appearing for the FCI has stated<\/p>\n<p>that CBI had recommended that for supplying rice beyond the prescribed<\/p>\n<p>limit under <a href=\"\/doc\/32969400\/\" id=\"a_1\">Prevention of Food Adulteration Act<\/a> and below rejection limit,<\/p>\n<p>miller be black-listed.   Referring to Clause 6(g)(vii) of the agreement,<\/p>\n<p>Mr.Goyal has submitted that it only vest right in the miller to be considered<\/p>\n<p>for future allotment of paddy. Whether to allot future work of milling or not<br \/>\n CWP No.4994 of 2009                                                 [3]<\/p>\n<p>is the absolute discretion of the FCI.\n<\/p>\n<p id=\"p_4\">             To controvert this, Mr.Gurminder Singh has submitted that the<\/p>\n<p>object of Clause 6(g)(vii) is that infrastructure created for the milling should<\/p>\n<p>not go waste and remain idle. Therefore, allotment agency or FCI can<\/p>\n<p>evolve strict regulatory mechanism to ward off any future default on the part<\/p>\n<p>of the miller.\n<\/p>\n<p id=\"p_5\">             Counsel appearing for the state agencies in connected matters<\/p>\n<p>have contended that on behalf of the FCI, state agencies only allot paddy for<\/p>\n<p>purposes of milling and final authority vest in FCI and as per the<\/p>\n<p>communication of FCI based on recommendation of CBI, they had decided<\/p>\n<p>not to allot work to the millers.\n<\/p>\n<p id=\"p_6\">             After hearing counsel for the parties, the present writ petition is<\/p>\n<p>disposed of by observing that in case miller deposit the default amount<\/p>\n<p>along with penal interest, as prescribed in Clause 6((g)(vii) reproduced<\/p>\n<p>above, the authorities who are vested with          absolute discretion, may<\/p>\n<p>consider claim of the petitioner for allotment of work in future.          It is<\/p>\n<p>clarified that default amount along with penal interest is to be deposited to<\/p>\n<p>the satisfaction of the FCI. The petitioner may approach the FCI for making<\/p>\n<p>the payment of the amount due, in case such a request is made, the FCI shall<\/p>\n<p>communicate to the petitioner, the amount which petitioner is liable to pay<\/p>\n<p>within two weeks.\n<\/p>\n<p id=\"p_7\">                               ( KANWALJIT SINGH AHLUWALIA )<br \/>\nOctober 14, 2009.                        JUDGE<\/p>\n<p>RC\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court M\/S B.I.D. Rice Mills vs Food Corporation Of India And &#8230; 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 &#8211; 10 &#8211; 2009 M\/s B.I.D. Rice Mills &#8230;.Petitioner v. Food [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-256846","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S B.I.D. 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