JUDGMENT - THAKKER C.K., C.J.:---Rule. Mr. Iqbal Chagla, learned Senior Advocate with Mr. S.M. Gorwadkar, appear and waive service of rule on behalf of National Co-operative Consumers Federation of India Ltd. Mr. V.A. Gangal, learned Counsel, appears and waives service of rule on behalf of Food Corporation of India and Senior Regional Manager, Food Corporation of India, in all petitions. The matters have been taken up for final hearing.

2. In all these petitions, an action taken by the Food Corporation of India (FCI) and Senior Regional Manager (FCI), respondent Nos. 2 and 3 in Writ Petition No. 7468 of 2002, of giving contract to National Co-operative Consumers Federation of India Limited (Federation), respondent No. 1 in Writ Petition No. 7468 of 2002, is challenged. To appreciate the contentions raised in all the petitions, few relevant facts in the first petition i.e. Writ Petition No. 7468 of 2002 may now be stated.

3. Petitioner is a consumer of foodgrains for manufacture of flour from Food Corporation of India (hereinafter referred to as "FCI"). On 1st November, 2002, the first respondent-Corporation published an advertisement for sale of 70,000 M.Ts. wheat at Borivli and Manmad depots. The stock was "more than four years old" wheat. Respondent No. 2 intended to sell the said stock at the fixed rate of Rs. 621/- per quintal on "first come first served" basis which was to start from November 5, 2002 and to continue upto December 17, 2002. The petitioner being a bulk consumer from respondent No. 2 applied for the allotment of the said stock of wheat by offers dated November 16, 2002, November 26, 2002 and December 7, 2002 . He offered price of Rs. 628/- per quintal. It was the case of the petitioner that no decision was taken by respondent No. 2 on the offers made by the petitioner. The petitioner was surprised that respondent No. 1 offered to pay Rs. 621/- per quintal on December 5, 2002 and stock of 90,000 M.Ts. of wheat was offered to respondent No. 1 by respondent No. 2 on December 9, 2002. The said order is annexed at Exhibit-E to the petition. Certain conditions were imposed in the allotment letter; such as the allottee should deposit 10 per cent price of the indented quantities as an earnest money with the Senior Regional Manager, Maharashtra, within ten days from the issue of the allotment letter; to prepare weekly schedule so that entire lifting of goods from the depots could be completed within 90 days etc. It was stated that any default in depositing the cost of foodgrains or in lifting the quantities as per the schedule fixed would invite forfeiture of earnest money deposit without any notice and the remaining quantities would be offered to other buyers.

3. The petitioner stated that after few days of the receipt of the allotment letter, respondent No. 1 realised that the condition of deposit of 10 per cent of cost of goods was difficult to comply with. It, therefore, filed a petition being Writ Petition (St.) No. 48259 of 2002 in this Court for relaxation of condition of 10 per cent deposit as earnest money within ten days. The petition, however, was dismissed on December 18, 2002 holding that such a condition could be imposed by the Corporation. According to the petitioner, the last date for earnest money deposit was December 18, 2002. The respondent No. 1 failed to deposit the amount. The allotment order dated December 9, 2002 thus came to an end. The petitioner has stated that respondent No. 2 had issued orders to stop sale of wheat in open market in the State of Maharashtra on December 17, 2002. That decision was taken to benefit respondent No. 1 for clearing the stock sold to it with huge profits by creating artificial shortage of commodity in the State. The officers of the first respondent collected moneys from various private profit making traders and agreed to sell allotted stock with huge profit instead of making the same available to public at large through co-operative network. With the help of priva

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