1. Both the above referred petitions involved same point of law and the facts are also identical and as such I propose to dispose of the same by this common judgment.

2. Petitioners have challenged in these petitions order communicated to them by the Deputy Director Military Farms under Letter No 40131/MF (DB) Tribunal dated 16-11-1984 rejecting their claims in both the cases for revision of rates in respect of their contracts in regard to supply of buffalo milk to military farms, being illegal, arbitrary, unjust, based on extraneous considerations and contrary to the binding award/ recommendations and findings of the Tribunal appointed by respondent No. 1. In writ petition No 27 of 1985 the contract pertains to supply of buffalo Milk to military farms at Baramulla and Rajouri whereas in writ petition No 28 of 1985 it pertains to Military farms at Jammu and Srinagar.

3. Petitioners case is that sealed tenders were invited by the Dy. Director Military Farms Northern Command, respondent No. 6 herein, for and on behalf of the President of India for daily supply of buffalo milk to military farms for the period commencing January 11, 1980 and ending 30th Sept. 1982. They offered the lowest rates for said supply and after some formal negotiations milk contracts were sanctioned in their favour. The terms and conditions were duly signed by them and respondent No. 3. There was a revision clause in the said agreement which provided for revision of of rates in the manner contained in it and according to it a Tribunal was to be constituted for the said purpose who after hearing the parties had to determine the extent of the increase or decrease if any in the rates and make recommendations. Acceptance or rejection of recommendations of the Tribual in whole or in part without assigning any reasons and from the date as recommended by the Tribunal or from any other date was rested with the authorities mentioned in the agreement whose decision would have been final and binding on both the parties.

4. Petitioners further contention in the petition is that while they continued to operate the contract faithfully and successfully milk rates of buffalo milk and the expenses for procuring and supplying the same showed steep rise and abnormal upward trend right from the fourth quarter of 1981. No claim for revision of rates was, however, permitted to be made for any period up to May 23, 1981 The escalation in the price of buffalo milk even in public utility service such as Govt. milk plant in Punjab, registered increase of 40% ex-diary production centre. Adequate production and supply of buffalo milk not being available in the centers where the milk was to be supplied it was under stood that supplies had to be procured by them from Punjab and elsewhere and conveyed to these centers. They by addressing letters to the concerned authorities invoked revision clause in the agreement and requested the quarter master General, Army Headquarters to appoint appropriate Tribunal for determination and recommendation of increase in the rates to which they be found to be entitled. There was no response to the applications made by them. They sent telegraphic reminders followed by the confirmatory letters addressed to all the respondents herein and contended that the appointment of Tribunal was obligatory upon the Government and prayed for appointment of such Tribunal immediately. After few reminders from them the quarter Master General, Army Hqs. New Delhi issued two separate letters, both dated 24-11-1981 and appointed a Tribunal comprising of

1. Presiding Officer, Brig. J.S. Bains, Commander 71-Sub-Area;

2. Members.

a)Col. G.L. Luthra, DDMF, Northern Command;

b)Sh. H.U. Khan, Director Agriculture J&K Govt.

to examine their representations and to make award if justified for revision of rate of supply of milk Said Tribunal commenced its adjudication proceedings on or about Dec 15, 1981 at Udhampur They Submitted their detailed written claims on Dec. 23, 1981 Along with the

Click Here to Read the rest of this document