P. KALAIYARASAN, J.

The present writ appeal is to challenge the order of the learned single Judge, dated 17.07.2012 made in W.P. No. 21095 of 2011.

2. The averments of the respondents/writ petitioners in nutshell are as follows :

(i) The petitioners are rice millers in Union Territory of Puducherry. The second respondent had entered into statutory contract with the millers for procurement of single boiled rice, as per Clause 3 of Puducherry Paddy and Rice Procurement (levy) Order, 1996. The petitioners undertook to sell to the Government at the rate acceptable to both parties. The millers supplied single boiled rice under 50% levy system. On 18.08.2010, Government of Puducherry, issued G.O. Ms. No. 17, fixing the guidelines for the proper implementation of the levy system.

(ii) The Government directed in that G.O., as follows :

"(a) Food Corporation of India shall be agent to the Union of Puducherry for procurement of rice from rice millers.

(b) Levy procurement rice shall be at the rate fixed by Government of India from time to time for each season. FCI shall pay procurement price to millers.

(c) Licensed to rice millers shall delivery fifty percent of total production as mill levy to FCI. FCI shall make arrangement of procurement 61,000 metric tonnes of single boil rice as per specification approved by Government of India. The Millers also called upon to delivery 17,000 metric tones of single boiled rice for KMS 2009-2010.

(d) Committee was constituted to fix the mill wise target."

(iii) The Government of India, on 13.10.2010 informed the first respondent, the cost fixed for single boiled rice for the period 2009-2010. It had also fixed the rate for various States. The Millers expressed their difficulty in supplying at the rate fixed, as in the preparation of the single boiled rice, there is substantial wastage.

(iv) In response to their representation, the Government constituted a Committee. Consequence to the report submitted by the Committee, the Government issued G.O. Ms. No. 30, Department of Civil Supplies & Consumer Affairs, dated 05.01.2011. This Government Order notified the payment of incentive at Rs. 3.16/- per Kg to millers, who have deposited single boiled rice to FCI under 50% levy order. The term incentive is a misnomer and in reality it is compensation to recuperate the loss. The recommendation and its conclusion of the Committee specifically found that out turn for single boiled rice is 62.7% and for Grade A paddy is 60.7% as against the common paddy 68.7% and for Grade A paddy is 66.5% respectively. The second respondent also paid the amount, as per G.O.Ms.No.30, Department of Civil Supplied & Consumer Affairs, dated 05.01.2011.

(v) The first respondent had issued G.O.Ms.No.3, Department of Civil Supplies & Consumer Affairs, dated 18.08.2011, which is impugned in the writ petition, whereby the incentive given was withdrawn under Clause 4 of the G.O. Though, there is no change in the events between 05.01.2011 and 18.08.2011, the Government withdrew the incentive given to the millers. Once the purchaser and seller had agreed for a rate fixed, it is not open for the respondents to reduce it unilaterally.

(vi) The price fixed for the product cannot be reduced at the whims and fancies of the respondents. G.O.Ms.No.30, dated 05.01.2011 was issued only to alleviate the difficulties of the millers. The enhanced rate in the name of incentive was withdrawn without any notice to the petitioners, which offends all canons of natural justice, equity and fair play. Once the rates are fixed and implemented, as per the control order, it is not open to the Government to withdraw it. Therefore, G.O.Ms.No.3, dated 18.08.2011 is to be quashed.

3. The respondents in their counter contends as follows :

(i) The writ petition is not maintainable, as the petitioners are seeking to challenge the policy decision of the Government taken with the larger interest of the public. No vested right exists in favour of any individuals in th