IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
National Federation of Farmers Procurement, Processing and Retailing Cooperatives of India Limited - Petitioner
Versus
The State of Jharkhand, through the Chief Secretary and Ors. - Respondents
W.P. (C) No.1339 of 2021
Decided On : 01-03-2023
Quantity of paddy procured – Payment of appropriate amount – Filed for quashing/setting aside – Held, petitioner and respondents have their own contentions justifying the respective claims- They have made allegations and counter allegations against each other, undisputedly CMR of 57,892.81 quintals of paddy was not deposited with FCI - It appears to court that since in the process of procurement of paddy from farmers for delivery of CMR in godowns of FCI, various agencies i.e. PACCS/LAMPS, rice millers, petitioner, respondent no.4 and committees constituted to monitor paddy procurement process were involved, it is for fact finding body/forum to examine as to at which level fault/lapse had occurred - Aforesaid judgments relied upon by learned counsel for the petitioner are not applicable in facts and circumstance of present case since serious disputed questions of fact are involved in same which are of complex nature requiring laying of evidence for appropriate determination - Said exercise can only be done by a fact finding body/forum - Writ petition dismissed.
ORDER :
1. The present writ petition has been filed for quashing/setting aside part of the impugned order dated 24.11.2020 to the extent that the Managing Director, Jharkhand State Food Corporation (JSFC)-respondent no.4 has denied payment of appropriate amount against quantity of paddy procured by the petitioner from the farmers for which outstanding dues payable to the petitioner has already been accepted. Further prayer has been made for issuance of direction upon the respondent no.4 to make appropriate payment to the petitioner with respect to full amount paid by it to the farmers against the paddy procured in relation to the work executed under Kharif Marketing Season (KMS) 2016-17 undertaken pursuant to public contract issued for paddy procurement and agreement dated 2.12.2016 executed between the petitioner and the respondent no.6 in accordance with the order of the respondent no.2 as contained in memo no.4878 dated 1.12.2016 and the notification as contained in memo no.4877 dated 1.12.2016 issued by the respondent no.2 for constitution of Jharkhand Custom Milled Rice (Liability and Control) Order, 2016. The petitioner has also prayed for issuance of direction upon the respondent no.7- Food Corporation of India to make appropriate payment directly to the petitioner with respect to full amount paid by it to the farmers against paddy procured in relation to work executed under Kharif Marketing Season, 2016-17.
2. Learned counsel for the petitioner while explaining the factual background of the case submits that the petitioner was appointed as Paddy Procurement Agency by the State Government for Khariff Marketing Season 2016-17 with respect to Santhal Pargana Division and North Chotanagpur Division (excluding Ramgarh District) vide resolutions dated 27.09.2016 and 02.11.2016. In course of paddy procurement process, certain issues arose which hampered the paddy procurement work and delivery of Custom Milled Rice (CMR). The petitioner made several representations before the concerned respondent authorities, however, instead of redressing and resolving the issues, the respondent no.2 blacklisted the petitioner vide order dated 29.06.2017. Aggrieved by the said order, the petitioner moved this Court by filing a writ petition being W.P.(C) No.2166 of 2018, which was disposed of vide order dated 21.08.2018 and the order of blacklisting dated 29.06.2017 passed by the respondent no.2 was quashed.
3. It is further submitted that prior to issuance of the aforesaid order of blacklisting dated 29.06.2017 a resolution as contained in memo no.2670 dated 19.06.2017 was issued by the respondent no.2, whereby the earlier resolution as contained in memo no.3846 dated 27.09.2016 was amended to the extent that the authorized nodal agency for paddy procurement i.e. the respondent no.4 would make payments of procured paddy from the revolving fund available for paddy procurement to those farmers whose payments were not cleared by the petitioner and amount of such payment would be compensated to the respondent no.4 by the respondent no.7 from the amount to be paid by it for deposited custom milled rice. The duty to arrange lifting of paddy from concerned LAMPS/PACCS, delivery of CMR to godowns of FCI and receiving of payment from FCI was also transferred to the respondent no.4. Pursuant to the said resolution, the respondent no.4 cleared the payment of farmers to the extent of Rs.17.47 crores. The petitioner requested the concerned authorities to settle the dispute regarding payment of procured paddy so that a clear picture could be drawn in order to ascertain the status of the funds lying with the respondent no.4, rice millers and PACCS/LAMPS. Thereafter, a reconciliation report was prepared by the Senior Assistant Manager (Contract), JSFC, Ranchi showing transactions carried out between the petitioner and the farmers, PACCS/LAMPS, Rice Mills, FCI (prior to blacklisting of the petitioner) as well as between the JSFC and farmers, PACCS/LAMPS, Ric
Punjab National Bank and Others Versus Atmanand Singh and Others
Joshi Technologies International Inc. Vs. Union of India and others reported in (2015) 7 SCC 728
ABL International Ltd. & Another Vs. Export Credit Guarantee Corporation of India Ltd. & Others
The court established that state instrumentalities must demonstrate fair play in their actions and cannot arbitrarily withhold payments based on erroneous assumptions of responsibility.
While procurement agencies have the contractual right to relocate stocks and blacklist millers for embezzlement or contractual breach, blacklisting must be proportionate to the offense. Indefinite or....
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