SOUMEN SEN, RAVI KRISHAN KAPUR
Food Corporation of India – Appellant
Versus
Shree Tulshi Commercial Co. Ltd. – Respondent
JUDGMENT :
Soumen Sen, J.
1. The appellant is aggrieved by a decree for a sum little over 18.50 lakhs directed to be paid towards godown rents for 18 months.
2. Shorn of details, in or about October, 1976, the defendant nos. 1, 2 and 3 formulated a scheme to increase their hired storage capacity of Food Corporation of India (hereinafter referred to as “FCI”) by offering private parties guaranteed occupation of such godowns for three to five years, implying a mechanism to repay the loans that may be advanced by banks to private entrepreneurs availing the scheme out of the rent receivable. In order to achieve the purpose, the said Scheme provided for constructing of godowns for storing foodgrains and other food stuff by FCI, the nationalized banks and the defendant no.3 would meet the financial requirement of private parties. The commitment of the banks in the shape of financial assistance would be up to 75% of the money required, the balance 25% would be borne by the owners of the godowns and the defendant no.3 would give refinance assistance to banks to the extent of 80% of the loans given. The plaintiff availed of the scheme and constructed 20 godowns for the defendant no.1 at Burdwa
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