SATISH CHANDRA, YASHODA NANDAN
R. K. Industries, Kashipur – Appellant
Versus
State of U. P – Respondent
JUDGMENT
Satish Chandra, C.J. - The petitioners are licensed millers. Under the U. P. Rice and Paddy (Levy) Order, 1968, they sold 60% of their production to the State Government on payment of the scheduled price mentioned in that control order. In the usual course of business, the petitioners sold the levy rice to the Government. After a while, the Government faced shortage of storage facility. The petitioners godowns were taken and the rice sold by the petitioners to the Government was kept in those godowns under lock and key of the Government departments. After some time, the rice so stored was despatched in accordance with the Government requirements. At the time oi despatch, it was discovered that there was loss in weight. The respondents held the petitioners responsible for this loss. They evaluated the loss and calculated the amount payable by the petitioners on that account. In due course, they started deducting the loss so determined from the payment that were to be made to the petitioners for the sale of the current stock of levy rice (at the rate of 60% of the current production). The petitioners felt aggrieved at this forcible deduction. They came to this Court with a pr
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