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2023 Supreme(Gau) 1099

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
SUMAN SHYAM, J.
M/s Naba Gogoi – Petitioner
Versus
The State of Assam and Others – Respondents
W.P. (C) No. 4031 of 2023
Decided On : 26-09-2023

Advocates:
Advocate Appeared:
For the Petitioner: K.K. Mahanta.

Headnote:

National Food Security Act, 2013 – Sole Proprietorship Firm - Contract agreement – Transportation of foodgrains – Held, If impugned order is implemented, same would not only have serious adverse civil consequences upon petitioner but he may even be subjected to future proceedings involving penal provisions - Unless conclusions are drawn on basis of cogent materials available on record and charge is established in a proceeding conducted in accordance with law, an order, having serious adverse civil consequences upon petitioner, cannot be sustained in eye of law – There is not even an iota of evidence on record to suggest that writ petitioner had acted in violation of terms and conditions of contract – Writ petitioner is also not named in F.I.R – As such, having regard to facts and circumstances of case, Court is of opinion that there is no cogent basis for respondent No. 3 to issue impugned order against writ petitioner – Writ petition allowed

JUDGMENT :

SUMAN SHYAM, J.

1. Heard Mr. K.K. Mahanta, learned senior counsel assisted by Mr. M.H. Ansari, learned counsel appearing for the writ petitioner. Also heard Mr. B.J. Talukdar, learned senior counsel assisted by Mr. P.K. Medhi, learned Government Advocate, Assam appearing for all the respondents.

2. The instant writ petition is directed against the “undated order” passed by the Deputy Commissioner, Dibrugarh i.e. the respondent No. 3 herein inter-alia cancelling the contract agreement dated 09.02.2018 entered into by the respondent No. 3 as the 1st party the writ petitioner herein, a sole Proprietorship Firm, as the 2nd party, for transportation of foodgrains under the National Food Security Act, 2013 [NFSA, 2013].

3. The facts of the case, in a nutshell, are that on 09.02.2018 the respondent No. 3 had entered into a contract agreement with the petitioner for transportation of foodgrains from the FCI godown at Dibrugarh to the Wholesale Consumer Cooperative Societies i.e. WCCS as well as the Gram Panchayat Samabai Samiti (GPSS) Ltd. and thereafter, to the respective Fair Price Shop dealers in the Dibrugarh Municipality area and Naharkatia Town Committee area. The contract agreement dated 09.02.2018 envisages a two Tier transportation mechanism. Under Tier-I the contractor is required to transport foodgrains from the FCI godown at Dibrugrh to the godowns of WCCS/GPSS. Under Tier-II, the foodgrains were required to be transported from the WCCS/GPSS godowns to the doorstep of Fair Price Shops. According to the submissions made at the bar, although the original contract agreement dated 09.02.2018 was valid only upto 31.12.2018, yet, the contract was renewed from time to time and the writ petitioner was allowed to execute the orders of transportation under the same terms and conditions even for the subsequent years uptill the current year i.e. 2023.

4. According to the writ petitioner, the transportation of foodgrains allocated for the year 2023, from the FCI godown to the respective WCCS/GPSS was duly executed by him thus, completing the Tier-I level of transportation. However, due to non-availability of requisite orders/memos from the concerned WCCS/GPSS for the Tier-II transportation, the petitioner could not commence the work of transportations to the respective FPS, even though, as per the terms and conditions of the contract, he was required to transport the goods to the Fair Price Shop dealers within 15 days.

5. It appears that some malpractices on the part of some of the office bearers of a GPSS Ltd. was detected by the authorities and on 31.05.2023, an ejahar was lodged before the Officer-in-Charge, Rohmaria Police Station, Dibrugarh, District-Dibrugarh by the Inspector of Food, Civil Supplies and Consumer Affairs, Dibrugarh alleging foul play on the part of the Chairman and Secretary of M/S Rohmaria S.S. Ltd. leading to diversion of highly subsidized TPDS rice made available under the NFSA, 2013. Based on the aforesaid ejahar, Rohmaria P.S. Case No. 11/2023 was registered under Sections 120(B)/406/409/420 IPC read with Section 7 of the EC Act and the matter was taken up for investigation. During the course of investigation, the Chairman and the Secretary of the Rohmaria S.S. Limited were arrested by the police. The matter is currently under investigation. It appears from the materials available on record that the allegation is of diversion of rice bags from the godown of M/s Rohmaria S.S. Ltd. Situated thus, on 21.05.2023, the respondent No. 3 had issued a show cause notice calling upon the writ petitioner to show cause as to why, the contract agreement should not be terminated and the value of the diverted quantity of rice should not be recovered from him.

6. On receipt of the show-cause notice dated 21.05.2023, the writ petitioner had submitted reply on 27.05.2023, explaining his stand in the matter. While categorically denying his involvement in any unfair practice as has been alleged, the writ petitioner has stated

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