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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Anil Kshetarpal, J.
M/s Guru Nanak Agro Products & Ors. - Appellants
Versus
Union Of India & Ors. - Respondents
CWP No. 9258 of 2021 (O&M) and CWP No. 9267 of 2021 (O&M)
Decided On : 04-05-2021
Fortified Rice - Custom Milling Policy - Clause 20(f) of The Custom Milling Policy 2020-21, Clause 11 of the Model Agreement - The court upheld the decision of the Central Government to insist on the supply of fortified rice by rice millers, as it was in the public interest and aligned with the Directive Principles of the State Policy. The court found that the decision was within the purview of the Custom Milling Policy and the rice millers were contractually bound to deliver rice as per the specifications laid down by the Government of India. The court also noted that the rice millers had an alternative remedy through arbitration for any disputes with the State Government or its instrumentalities.
Fact of the Case:
The petitioners, rice millers in Punjab, challenged the insistence of the Food Corporation of India (FCI) to supply fortified rice after de-husking the paddy, as per the Central Government's decision. The petitioners argued that the obligation was beyond the scope of the Custom Milling Policy 2020-21 and was unreasonable.
Finding of the Court:
The court found that the decision of the Central Government was not unreasonable or arbitrary, as it was in the public interest and aligned with the Directive Principles of the State Policy. The court upheld the decision and dismissed the writ petitions, noting that the rice millers had an alternative remedy through arbitration for any disputes with the State Government or its instrumentalities.
Issues: The issues involved the insistence of the FCI on the supply of fortified rice by rice millers, the contractual obligations of the rice millers under the Custom Milling Policy, and the availability of an alternative remedy through arbitration for any disputes with the State Government or its instrumentalities.
Ratio Decidendi: The court held that the decision of the Central Government to insist on the supply of fortified rice was within the purview of the Custom Milling Policy and that the rice millers were contractually bound to deliver rice as per the specifications laid down by the Government of India. The court also noted that the rice millers had an alternative remedy through arbitration for any disputes with the State Government or its instrumentalities.
Final Decision: Both the writ petitions were dismissed by the court, upholding the decision of the Central Government to insist on the supply of fortified rice by rice millers. The court noted that the rice millers had an alternative remedy through arbitration for any disputes with the State Government or its instrumentalities.
ORDER
Anil Kshetarpal, J. - This order shall dispose of Civil Writ Petition No.9258 and 9267 of 2021. Learned counsel appearing for the parties are ad-idem that both these writ petitions involve identical questions of fact and law and therefore, can be disposed by a common order.1. At the outset, it may be noted that the learned counsels for the respondents have entered appearance pursuant to service of advance notice of the writ petitions and have come forward to address arguments. For convenience, the facts are being noticed from Civil Writ Petition No.9258 of 2021.
2. Through this petition, the petitioners pray for the following substantive reliefs:-
(I) Issue a writ especially in the nature of certiorari quashing the impugned Letter No.QC.19.R&D/Fortification of Rice/2019/PT dated 16.02.2021 (Annexure P-3) issued by the Respondent No.2, communicating therein to the General Manager(s), Food Corporation of India for procurement of fortified rice stocks by 28.02.2021 and in event of non-supply of the same, suspending the delivery of custom milled rice of Kharif Marketing Season 2020-21;
(ii) Further issue a writ in the nature of certiorari quashing the letter dated 24.02.2021 (Annexure P-5) issued by 4th respondent, for procurement of fortified rice stocks for distribution under ICDS/MDM in the states;
(iii) Further issue a writ in the nature of certiorari for quashing the letter dated 25.02.2021 (Annexure P-6) issued by the State of Punjab and consequent action of the respondents-Food Corporation of India including the State of Punjab in implementation of the impugnedletters dated 16.02.2021 (AnnexureP-3) and24.02.2021 (Annexure P-5) issued by the 2nd respondent inasmuch as the same is in contradiction of the Custom Milling Policy 2020-21.
(iv) Issue a writ in the nature of mandamus directing the respondents to accept of deliveries of custom milled rice of Kharif Marketing Season 2020-21 from the petitioners in view of the short time lines of the crop season immediately during the pendency of the writ petition with a further to allow the petitioners to complete their milling by granting an extension in the milling period."
3. The petitioners are rice millers in the State of Punjab. They are aggrieved by the insistence of the Food Corporation of India (for short FCI) to supply the remaining quantity of custom milled rice after fortification. In fortification, the rice derived after de-husking the paddy is required to be mixed with the fortified rice kernels which are manufactured by the Fortified Rice Kernels manufacturers in the State. It is not in dispute that there are number of fortified kernels manufacturers in the northern region and one among them is located in the State of Punjab. The Rice Millers are, additionally, being called to carry out the process of fortification.
4. Some facts are required to be noticed as below.
4.1 Every year, the State of Punjab through its instrumentalities, in order to contribute rice towards the central pool, procures paddy from the grain markets and allocates the same to the various privately owned rice mills for de-husking. For regulating such process, it issues a Cutsom Milling Policy each year. Hence, the government on 26.08.2020 circulated the policy for the year 2020-21. Along with the policy, there is a model agreement which every rice miller is required to sign as soon as the paddy for de-husking is allotted. Clause 20(f) of the Policy and Clause 11 of the Model Agreement read as under: -
"Clause 20(f) of The Custom Milling Policy 2020-21
While milling paddy, miller shall ensure that rice extracted out of paddy is as per norms and specifications fixed by GOI and shall deliver the rice at the storage depot of FCI as linked by its area Manager.
Clause 11 of the Agreement
The entire quantity of rice of all varieties delivered by the miller to the Government/Agency shall conform to the specifications laid down in the Levy Order 1983 (as amended from time to time), or in any other order or noti
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