IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI CHEEMALAPATI, J.
Satyanarayana Rice Mill and Ors. – Appellant
Versus
The Union of India and Ors. – Respondent
Writ Petition Nos. 319, 5510, 15096, 20841 of 2020, W.P. Nos. 9048, 20838, 23400, 28327 of 2021, 6065, 22921, 22933, 23393, 22488, 32990, 33766, 33771, 33776 and 36980 of 2022
Decided On : 11-03-2024
ORDER :
RAVI CHEEMALAPATI, J.
1. The Writ Petition Nos.22933, 22488, 22921 and 23393 of 2022 are filed to quash the proceedings No.30/WP No.7854 of 2022-MLC, dated 13.06.2022, 16.06.2022 and 18.06.2022 and consequently direct the respondents not to claim any refund of amounts under the labour charges borne by the petitioners in respect of supply of rice to the respondents from the period 2009-2010 to 2013-14.
2. The Writ Petition Nos. 33766 of 2022, 33771 of 2022, 32990 of 2022, 33776 of 2022 and W.P.No.36980 of 2022 are filed to quash the orders passed by the Divisional Manager, Food Corporation of India, in File No.12(1)/incidentals/2021-22 dated 19.09.2022 demanding payment of alleged excess payment of Mandi Labour Charges to the petitioners during the period KMS 2009-10 to KMS 2013-14.
3. Writ Petition No.5510 of 2020, W.P.Nos.9048 & 23400 of 2021 and W.P.No.6065 of 2022 are filed to quash the proceedings of the General manager, Food Corporation of India, in letter No.Accts/19(60)/ 2019, dated 26.12.2019 and consequential proceedings of the Vice Chairman and Managing Director, Andhra Pradesh State Civil Supplies Corporation Limited together with notices issued by the District Manager, A.P.State Civil Supplies Corporation Limited, directing them to obtain No Due Certificate from the Divisional Manager of FCI, during the period KMS- 2008-2009 to KMS 2013-14, being illegal, arbitrary and without authority of law.
4. Writ Petition No.20838 of 2021 is filed to declare the action of Food Corporation of India in demanding payment of alleged excess payment of Mandi Labour Charges to the petitioners vide Proceedings File No.Proc/26(1)/2017-18/Vol-III(1), dated 27.08.2021 being arbitrary, high handed, unauthorized and ultra vires.
5. Writ Petition No.15096 of 2020 is filed for declaring the action of the District Manager, Food Corporation of India in issuing proceedings Lr.No.Proc/MLC/Rec.2.1.1(a)/2019, dated 04.01.2020 demanding the petitioner to pay the alleged excess payment of Mandi Labour Charges paid to the petitioner during the period 2009-10 to 2012-13, being illegal, without jurisdiction, time-barred.
6. Writ Petition No.20841 of 2020 is filed to declare the action of the Divisional Manager, Food Corporation of India in demanding payment of alleged excess payment of Mandi Labour Charges to the Rice Millers during the period KMS 2009-10 to KMS 2013-14 under proceedings No.Proc/Audit/ SLKM/2018, dated 20.10.2020,being arbitrary, whimsical, highhanded, barred by limitation and violation of rights guaranteed to the petitioners under Articles 14,19(1)(g) and 300A of the Constitution.
7. Writ Petition No.28327 of 2021 is filed to declare the action of Food Corporation of India in demanding payment of alleged excess payment of Mandi Labour Charges to the Rice Millers during the period KMS 2009-10 to KMS 2013-14 under proceedings dated 31.08.2021 and 27.08.2021,being arbitrary, ultra vires and violative of Articles 14,19(1)(g) and 300A of the Constitution.
8. Writ Petition No.319 of 2020 is filed to declare the action of Food Corporation of India in demanding payment of alleged excess payment of Mandi Labour Charges to the Rice Millers during the period KMS 2009-10 to KMS 2013-14 under proceedings dated 27.12.2019,being arbitrary, ultra vires and violative of Articles 14,19(1)(g) and 300A of the Constitution.
9. In as much as the challenge made in all these writ petitions is to the action of the Food Corporation of India in demanding the petitioners to pay back the alleged excess payment of Mandi Labour Charges to the Rice Millers during the period KMS 2009-10 to KMS 2013-14 by way of issuance of proceedings and the consequential action of the State Civil Supplies Corporation Limited in issuing notices to the Rice Millers requiring them to obtain 'No Due Certificate' from the Divisional Manager of FCI, during the period KMS-2008-2009 to KMS 2013-14, all these writ petitions are heard together and being dispose of by this common order.
10. The
CAG. In Arun Kumar Agarwal vs. Union of India and others reported in (2013) 7 SCC 1
Recovery of excess payments for Mandi Labour Charges requires concrete evidence; assumptions and conjectures are insufficient for legal demands.
(1) Public demand – Term ‘public demand’ is of wide amplitude and encompasses all arrears or dues.(2) Jurisdictional facts consist of a sequence of events or a bundle of circumstances – Relevant circ....
The court affirmed the validity of the exemption notification permitting contract labour in the FCI, highlighting adherence to previous judicial rulings as a matter of legal discipline.
The main legal point established in the judgment is the obligation of the State and FCI to directly procure paddy from farmers at the MSP to prevent distress sales and eliminate middlemen.
The main legal point established in the judgment is that the decision of the Central Government to insist on the supply of fortified rice by rice millers was within the purview of the Custom Milling ....
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