Contractual disputes must be addressed through arbitration remedies rather than judicial intervention under Article 226 unless exceptional circumstances exist.

Order :

Arvind Kumar Verma, J.

1. The petitioner has filed the instant writ petition challenging the recovery order dated 22/05/2025 issued by Respondent No.6, whereby the Respondent has directed/ordered the petitioner to deposit sum of Rs.72,95,954/-, failing which the said amount will be recovered from the Bank Guarantee /FDR deposited by the petitioner in lieu of Custom Milling of Paddy in the Kharif Marketing Year 2023-24.

2. By way of the instant petition, the petitioner is praying for the following relies:-

(i) That, this Hon’ble Court may kindly be pleased to set aside the impugned Recovery order dated 22.05.2025 issued by respondent no.6 for sum of Seventy Two Lakh Ninety Five Thousand Nine Hundred Fifty Four Rupees (Rs.72,95,954/-), being against the principle of natural justice and further direct the concerned respondent no.6 to accept the balance of CMR of 2057.127 Quintals (205.712 M.T.) of Kharif year 2023-24 in the light of notification dated 29.05.2025 issued by respondent no.3, in the interest of justice.

(ii) That, the Hon’ble High Court may further protect the petitioner from Recovery by respondents, either-by forfeiting/ confiscation of the bank guarantee/ FDR and Post Dated Cheques of the petitioner deposited as security with the bank for this Kharif year 2023-24 or by any other mode or manner, in the interest of justice.

(iii) This Hon’ble Court may kindly be pleased to grant any other relief(s)/ writ(s), order(s) in favor of the petitioner, which the Hon’ble Court deemed fit & just in the facts & circumstances of the case.

3. The brief facts of the case are that the petitioner for the purpose of Custom Milling Policy in the Kharif Marketing Year 2023-24, enter into a contract with the government and contract letter has been executed between District Marketing Officer, District Janjgir- Champa i.e. respondent no. 6 on behalf of Chhattisgarh State Co-Operation Association Limited as First party and the petitioner i.e. Second Party Sunil Kumar Dinkar (Proprietor- Raj Agro Industries), R/o Pamgarh, Tahsil-Pamgarh, District Janjgir Champa, C.G., under Chhattisgarh Custom Milling Instructions of the Government, C.G. Government, Department of Food, Civil Supplies and Consumer Protection, Ministry of Raipur Nava Raipur, under the instructions issued regarding custom milling of paddy procured in the year 2023-24.

4. As per the agreement, executed in accordance with the Chhattisgarh Government’s Custom Milling Instructions, the petitioner has uplifted Total 3250 Quintals of paddy (Fortified) i.e. (FCI Arwa-23570, Naan Arwa-8930) and non fortified 700 Quintals as per contract agreement clause between the parties the petitioner has to deposit 67% of custom milled rice of Arwa of FCI & Naan i.e. of total 21992.75 (FCI 15949.819 + 6042.931 (naan) + non-fortified 469 Quintals and with regard to which PDC cheques and Bank guarantee has already been taken from the petitioner.

5. The petitioner has already started depositing/submitting the custom milling rice day by day and till date he has completely deposited Naan Arwa custom milled Rice and out of FCI Arwa of 15949.819 Quintals, till date the petitioner has deposited 13892.692 Quintals and for remaining balance 2057.127 Quintals, the petitioner was and is ready and willing to deposit/submit the same within the extended time.

6. The grievance of the petitioner is that the Respondent No.3 is not accepting the balance of 2057.127 Qunitals of the petitioner even after the order of this Court passed in WPC No.823/2025 dated 10/02/2025 and instead the Respondent No.6 has issued recovery order dated 22/05/2025 and the balance of 2057.127 Quintals of CMR of 2023-24 has not yet been accepted by the Respondent No.6.

7. Learned counsel for the petitioner would submit that due to ar