( 1 ) NOTICING two conflicting views on interpretation of Section 13 (1) of the Food corporations Act, 1964, (37 of 1964) ( the said Act for the sake of brevity) these matters have been referred to a Full Bench by a learned Judge of this Court.

( 2 ) THE Parliament enacted the said Act to provide for the establishment of Food corporations for the purpose of trading in food grains and other foodstuffs and for matters connected therewith and incidental thereto. Paragraph 3 of the statement of objects and Reasons of the said Act reads: statement of Objects and reasons: xxx xxx xxx (3) the Corporation will engage itself primarily in the purchase, storage, movement, distribution and sale of foodgrains. Provision has also been made in the Bill enabling the corporation to deal in other foodstuffs if considered necessary by the Government. The corporation may also discharge certain incidental functions as provided for in the Bill in consultation with the Central government. xxx xxx xxx"

( 3 ) SECTION 3 of the said Act provides for establishment of Food Corporation of India, which is a body corporate having perpetual succession and a common seal with power, subject to the provisions of the Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue and be sued.

( 4 ) SECTION 6 of the said Act deals with "management". Section 7 speaks about the constitution of the Board of Directors. Section 13 provides for the "functions of corporation", which reads:"13. Functions of Corporation; (1) Subject to the provisions of this act, it shall be the primary duty of the corporation to undertake the purchase, storage, movement, transport, distribution and sale of foodgrains and other foodstuffs. (2) Subject as aforesaid, the corporation may also, with the previous approval of the Central govemment,- (A) promote by such means as it thinks fit the production of foodgrains and other foodstuffs; (B) set up, or assist in the setting up of, rice mills, flour mills and other undertakings for the processing of foodgrains and other foodstuffs; and (C) discharge such other functions as may be prescribed or as are supplemental, incidental or consequential to any of the functions conferred on it under this act. "

( 5 ) THE petitioners herein are owners of wheat roller flourmills, established under the licence granted by the Government, as SSI units. The mills are engaged in the manufacture of wheat products like maida, ravva and atta, etc. Allegedly, they are dependant upon the respondents for obtaining supply of wheat for carrying on their business. In the year 1986, a liberalized policy has been taken by the Central government and the surplus stocks of wheat were distributed freely. The said policy changed from time to time. Since August 1988 a policy was evolved whereby tenders were to be invited from the wheat roller flourmills for purchase of wheat lying in the f. C. I. Depots/centres.

( 6 ) PURSUANT to an advertisement inviting tenders for purchase of 500 metric tones of wheat, the petitioners submitted their tenders. They paid earnest money specified therefor, but allegedly without any reason the tenders were cancelled on 17-6-1989. Writ Petitions vide W. P. No. 8757 and 8658 of 1989 were filed by the petitioners questioning the said cancellation of tenders and by a common judgment, Mr. Justice sardar Ali Khan directed the petitioners to approach the Central Government for supply of wheat regularly at uniform rates under the provisions of the said Act. The respondents were also directed to dispose of the applications within three weeks from the date of filing of applications by the petitioners. The respondents were further directed to keep in view the overall duty cast upon them in terms of Section 13 of the said act.

( 7 ) IT is alleged that though the petitioners have approached the Central Government and made a representation on 12-10-1989, no order thereupon has been passed.

( 8 ) THE respondents have is