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2023 Supreme(Ori) 140

IN THE HIGH COURT OF ORISSA AT CUTTACK
Arindam Sinha, J.
Maa Saraswati Shg – Appellant
Versus
State of Odisha & Ors. – Respondents
Writ Petition (C) No. 11 of 2019
Decided On : 19-01-2023

Advocates appeared:
M. K. Mohanty, Advocate, M. R. Pradhan, Advocate, T. Pradhan, Advocate, M. Mohanty, Advocate, G. N. Parida, Advocate, Y.S.P. Babu, Advocate, J. Pal, Advocate, C. Mohapatra, Advocate

The central legal point established in the judgment is the requirement of a food license under the Food Safety and Standards Act, 2006 for engaging in food business.

Headnote:

Self Help Group - Engagement Order - Food Safety and Standards Act, 2006, Section 31 - The court discussed the inspection reports of the petitioner and the opposite party, the requirement of a food license under the Food Safety and Standards Act, 2006, and the waiver of the security deposit clause in the engagement order.

Fact of the Case:

The petitioner, a Self Help Group (SHG), challenged the engagement order of the opposite party based on inspection reports and the absence of a food license.

Finding of the Court:

The court set aside the impugned engagement order and rendered the agreement void, allowing the petitioner to approach the authority concerned for engagement.

Issues: The main issues were the suitability of the opposite party for supplying Take Home Ration (THR) and the requirement of a food license under the Food Safety and Standards Act, 2006.

Ratio Decidendi: The court found that the opposite party did not meet the necessary requirements and that the waiver of the security deposit clause was not justified. It also emphasized the requirement of a food license under the Food Safety and Standards Act, 2006.

Final Decision: The writ petition was allowed, and the impugned engagement order was set aside and quashed, rendering the agreement void.

JUDGMENT

Arindam Sinha, J. - Petitioner says it is a Self Help Group (SHG). There was requirement for supply of Chhatua and with reference to letter dated 17th July, 2018, issued by the Collector and oral order for wholesome inquiry into all units of Pattamundai ICDS, there was inspection and joint report dated 31st August, 2018 made by the Child Development Project Officer (CDPO) and the Sub-Collector. Mr. Mohanty, learned advocate appearing on behalf of petitioner demonstrated from the report that his client was found to be a producing unit having infrastructure facilities available, as well as facilitates to address emergency and hygienic atmosphere. On such findings the CDPO and the Sub-Collector recommended his client. On the same inspection and by the same report it was found that private opposite party no.6, the SHG engaged, was found to not have a producing unit nor facilities available to address emergency nor hygienic atmosphere though infrastructure facilities were available. In the circumstances, view taken by the CDPO and the Sub-Collector in the report was 'not recommended'. He submitted, the report was obtained by his client upon making query under Right to Information Act, 2005.

2. A few days thereafter on 17th September, 2018, the Collector along with District Social Welfare Officer (DSWO), the CDPO and Sub-Collector were said to have again inspected available units for procuring Chhatua. Paragraphs 2 and 3 from the report respectively with reference to his client and opposite party no.6 are extracted and reproduced below.

    '2. MAA SARASWATI SHG:- THE SHG is situated in Balabhadrapur Village. Infrastructure and hygienic condition was good. All 12 members were present and the member list has been displayed in the board. Collector asked the members regarding their income generating activities. The grinding machine has been installed. The members told that they are preparing turmeric power, green gram, besan etc. One educated girl is also coordinating this group. The SHG has availed loan from bank for preparing the above mentioned items.

    3. MADANESWAR SHG:- THE SHG is situated in Madanpur Village of Madanpur GP. The formation date is 10/05/2004. The infrastructure facility is good and the SHG has installed all machineries such as grinding, roasting etc. for preparation of Chhatua but it is situated in the middle of the village. The collector interacted with the SHG. They told they are preparing turmeric Power, Chilly Power, Baddi, pampada and also displayed some items. From discussion it is ascertained that the SHG has availed 4 lakh loan for installing these machineries. They are 13 members out of 8 members belong to BPL families. '

He submitted, thereupon opposite party no.6 was engaged by impugned order dated 5th October, 2018. Agreement dated 9th October, 2018 engaging opposite party no.6 clearly stipulated, as an essential requirement that the SHG shall, before signing of contract, provide security deposit equivalent to 5% of total value of production of Take Home Ration (THR), Chhatua in a year. This essential condition was waived. Furthermore, his client clearly stated in paragraph 7 in the writ petition, private opposite party did not have food licence. He drew attention to paragraph 11 in the counter, deponent of which was the CDPO to submit, there is no denial. He relied on section 31 in Food Safety and Standards Act, 2006, which says, inter alia, no person will commence or carry on any food business except under a licence. He submitted, there be interference in setting aside impugned engagement order dated 5th October, 2018 and consequently said agreement executed pursuant thereto.

3. Mr. Babu, learned advocate, Additional Government Advocate appears on behalf of State. He had submitted, subsequent enquiry was conducted by the Collector along with the DSWO, CDPO and Sub-Collector. On their joint enquiry it was found that private opposite party no.6 was most suitable and hence, selected for supplying THR. It w

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