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2020 Supreme(P&H) 708

IN THE HIGH COURT OF PUNJAB AND HARYANA
Anil Kshetarpal, J.
Krishan Kumar - Appellant
Versus
State Of Punjab And Others - Respondent
Civil Writ Petition No. 7352 of 2020
Decided On : 23-06-2020

Advocates Appeared:
Akshay Bhan, Advocate, Shiv Kumar, Advocate, Anu Chatrath, Advocate, Deepali Puri, Advocate

Availability of alternative remedies, such as arbitration and civil suits, and the dismissal of a writ petition due to concealment of material facts.

Headnote:

Custom Milling - Allocation of Paddy - Punjab Custom Milling Policy for Paddy -Kharif 2019-2020 - Arbitration Clause - Alternative Remedy - Concealment of Facts

Fact of the Case:

The writ petitioner, owner of three rice mills, sought writs to quash an order, direct the respondents to allow milling of paddy, stop lifting of paddy, and provide documents. The petitioner claimed that paddy was illegally taken away and stored paddy was shifted. The respondents disputed these claims and highlighted pending civil suits and concealment of facts.

Finding of the Court:

The court found that the petitioner had an alternative remedy before the Arbitral Tribunal and had also availed civil suits. The court dismissed the writ petition due to concealment of material facts and the need for alternative remedies.

Issues: Concealment of facts, availability of alternative remedies, disputed claims of paddy ownership and storage.

Ratio Decidendi: The court emphasized the availability of alternative remedies, including the arbitration clause and pending civil suits, and the dismissal of the writ petition due to concealment of material facts.

Final Decision: The writ petition was dismissed, and the petitioner was directed to pursue alternative remedies.

JUDGMENT

Anil Kshetarpal, J. - Through the present writ petition filed under Articles 226/227 of the Constitution of India, the writ petitioner has made following prayers:-

"i) To issue a writ for quashing the order dated 14.3.2020 (P-2) passed by the respondent No.5 being illegal, arbitrary, unjust, violative of natural justice, violative of Custom Milling Policy of 2019-2020 and Article 21 of the Constitution of India.

ii) To issue a writ directing the respondents to allow the mills of the petitioner to mill the entire paddy lying in the mills and pay the damages to the petitioner rice mill for its harassment humiliation and huge losses caused by the respondents on account of lifting of the paddy in an illegal way.

iii) Further, to issue a writ that during the pendency of the above mentioned petition the lifting of paddy from the mills of the petitioners namely Surya Agro Foods, Baghapurana, Keshav Agro Foods, Baghapurana and Akshat Agro Foods, Baghapurana and also from lifting of the paddy privately purchased by the petitioner be stopped immediately.

iv) Further to issue directions to the respondents not to interfere into the matter of milling of private purchase paddy of the petitioner and not to create any hindrance in lifting of the parboiled and steamed rice and all by products of paddy of the petitioner.

v) Further to issue directions to the respondents not to interfere into the movement of the petitioner and entrance in the mills and to release the trucks and car of the petitioner illegally confined by the respondents.

vi) Further to issue directions to the respondents to provide all the copies of the documents to the petitioner including copies of agreements, physical verification reports and details of the paddy being lifted.

vii) To issue writ in the shape of mandamus directing the police authorities concerned to investigate the matter and register an FIR against the respondent No. 5 and 6 for stealing and embezzlement of the paddy."

2. The writ petitioner claims to be the owner of three Rice Mill ( Processing unit set to de-husk paddy into rice), namely (i) Surya Agro Foods, Baghapurana, (ii) Keshav Agro Foods, Baghapurana and (iii) Akshat Agro Foods, Baghapurana.

3. The writ petitioner submits that the aforesaid three rice mills have been allotted paddy for custom milling as per Punjab Custom Milling Policy for Paddy -Kharif 2019-2020 (hereinafter referred to as "the Policy"). At this stage, it would be appropriate to explain as to what does the term "custom milling" denote. Certain government agencies/public sector undertakings purchase paddy from the farmers as per the policy of the Government. The aforesaid paddy, so purchased, is then allotted to various rice mills for de-husking so as to take out rice from the paddy. In order to regulate the process of de-husking through various privately owned rice mills, a Policy is framed by the State of Punjab every year. The term "custom milling" means the process of getting the government paddy de-husked from privately owned rice mills on job work. For de-husking the government paddy, these rice mills are paid certain charges as agreed to. In other words, the paddy owned by the government agencies or public sector undertakings is got processed by allocating it for a job work to the privately owned rice mills. The allocation of the paddy is governed by contracts entered into between the parties i.e. government agencies/public sector undertakings on the one hand and the private rice millers on the other hand. The Policy or the contracts entered into with the Rice Mill owners are not statutory. The Policy notified each year contains standard clauses of the contract.

4. In the present case, it is the case of the petitioner that while allocating paddy for custom milling, agreements were entered into between the Punjab State Grains Procurement Corporation Limited (hereinafter referred to as "PUNGRAIN") and the writ petitioner for de-husking of the paddy in three different ric

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