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1996 Supreme(SC) 1286
1996(7) Supreme 268
SUPREME COURT OF INDIA
A.M. Ahmadi, C.J.I., N.P. Singh and S.C. Sen, JJ.
Tapan Kumar Sadhukhan -Appellant
versus
Food Corporation of India & Ors. -Respondents
Civil Appeal No. 10685 of 1996
(Arising out of SLP (C) No. 17989 of 1993)
Decided on 20-8-1996
Counsel for the Parties :
For the Appearing Parties : G.L. Sanghi, Sr. Advocate, Ranjit Kumar, Ms. Sarla Chandra, Y.P. Rao, J. Gupta, R. Mukherjee, Ms. S. Mukherjee and Goodwill Indeevar, Advocates.
IMPORTANT POINT
The trading activity in rice and other foodgrains must be done keeping in view the obligation to improve public health.
Headnote:Constitution of India-Article 47 -Foodgrains trade-Disposal of sub-standard par-boiled rice-Public health would be jeopardised if such rice is consumed by members of public-FCI should upgrade the rice before sale-Guidelines should be evolved which would secure a foolproof system to ensure that sub-standard rice does not enter the market for human consumption before it has been upgraded and made fit for human consumption.
Held : The stocks found unsuitable for human consumption cannot be sold to any rice dealer and have to be disposed of for purposes other than human consumption in the manner prescribed by the Government. The stock that is found suitable again cannot be immediately used for human consumption for, as the expert report says, that can be so used only after being upgraded. (Para 13)
Further held : The next question is whether the upgradation can be left to the volition of the dealers or whether they should be bound by some further conditions in the matter. It is to be remembered that Article 47 of the Constitution directs the State to raise the level of nutrition and the standard of living and to improve public health. (Para 14)
The Food Corporation of India, i.e., respondent No. 1, is to secure a commanding position in the foodgrains trade of the country. Being an important factor in the market of foodgrains and being an agency of the State, it must conform to the letter and spirit of Article 47 of the Constitution. Such being the position of the respondent No. 1, the trading activity in rice and other foodgrains must be done keeping in view the obligation to improve public health. (Para 17)
There can be little doubt that if sub-standard rice is released and sold in the open market it would be highly injurious to the consumers. Public health would be jeopardised if such rice is consumed by members of the public. Poverty in our country is quite rampant and illiterate, ignorant and poor persons would not hesitate to consume such rice if sold at cheap rates. That would undoubtedly be exposing the poor to the risk of consuming sub-standard rice. A mere undertaking is no guarantee that the dealer will upgrade the rice before marketing the same. (Para 18)
It seems to us that the most ideal solution is that FCI should itself upgrade the rice before sale. A corporation dealing with such huge quantities of rice can certainly set up a plant to upgrade the sub-standard rice before release to the dealer. The concerned Ministry of the Government of India should seriously examine this proposal. If, however, the idea of FCI itself setting up a plant to treat the sub-standard rice is not feasible, the next alternative is that the concerned Ministry in the Government of India should evolve guidelines which would secure a foolproof system which ensures that sub-standard rice does not enter the market for human consumption before it has been upgraded and made fit for human consumption. We are particularly anxious because the consumers of such rice are likely to beople who are downtrodden and stricken with poverty. Such a segment of society needs the State s protection in this behalf. If a reasonable and safe arrangement cannot be worked out, the third alternative would be to use such sub-standard rice for any other purpose, such as, for cattle-feed, chicken-feed, etc. (Para 19)
JUDGMENT
A.M. Ahmadi, CJI.-Leave granted.
2. The present civil appeal arises out of an order of the Division Bench of the High Court of Calcutta dated 13.10.1993 vacating an interim order of injunction passed by a Single Judge of the same Court. The sequence of events upto the filing of the special leave petition may be narrated as under:
3. The Food and Supply Department of the Government of India issued instructions to the Senior Regional Manager, Food Corporation of India, West Bengal region, the respondent No. 2 herein, on 28.4.1986 regarding disposal of sub-standard par-boiled rice unacceptable to the Government of West Bengal through auction/tender. The Food & Supplies Department of the Government of West Bengal laid down certain conditions for disposal of such stocks of rice by the Food Corporation of India. The important conditions relevant for the present matter are as under :
"(1) All the stocks proposed to be auctioned should at first be jointly inspected by the Quality Control Staff of this department and the Food Corporation of India. Clear markings should be made on the stocks unfit for human consumption to prevent any mixture to these stocks with the stocks fit for human consumption.
(2) Sub-standard stocks should be sold to established cattle/poultry feed manufacturers only .
(3) Stocks for human consumption should be sold to licensed rice dealers only."
4. By a subsequent communication, the Department of Food & Civil Supplies substituted the word "sub-standard" appearing in para 2 of the aforesaid communication by the word "damaged". On 2.8.1993, the Food Corporation of India issued a tender notice inviting tenders from the registered/licensed rice dealers for sale of 11,683 M.T. of sub-standard rice. The relevant clauses of the tender notice dated 2.8.1993 are as under :-
"The above stock of rice is presently not fit for human consumption, so it will be subject to upgradation by the purchasers before issue for human consumption.
Out of the above quantity some stock in which the percentage of damaged grains are presently beyond PFA limits, which will have to be brought within the said limit by the purchasers as they are not fit for human consumption so long they remain beyond PFA limits. Tenderers shall have to give an undertaking to the effect that no stock will be issued for human consumption without upgradation and without bringing them in the PFA limits.
Stocks lying in S.R. Areas will have to be moved out of S.R. Areas by the purchasers after obtaining movement permit from Food & Supplies Department, West Bengal,
Tender documents containing details of terms and conditions for sale of sub-standard rice can be had from Commercial Division of F.C.I., 6, Royd Street, Calcutta-16, on payment of Rs. 100/- in cash from 6.8.93 to 17.8.93 between 11-00 AM to 2-00 PM."
5. Two licensed rice dealers who are respondents No. 6 & 7 in the present civil appeal filed writ petitions before the High Court challenging the tender notice as being violative of the West Bengal Rice and Paddy (Licencing & Control) Order, 1967 as amended from time to time and also being violative of the Government circular issued in that regard. The learned Single Judge of the Calcutta High Court made an interim order dated 3rd September, 1993 directing the Quality Control Committee of the Food Corporation of India to submit a report as to whether the rice which was the subject matter of the tender notice dated 2nd August, 1993 was capable of being upgraded for human consumption. Before submitting the report, the Quality Control Committee was also to invite the food technologists from the Central Government for their views. This interim order was challenged in appeal which was heard and disposed of by a Division Bench by an order dated 13.10.1993 which is the impugned order in this case. The injunctions issued by the Single Judge was vacated and detailed instructions to deal with the stock of rice were
