The court held that authorities may consider the allotment of paddy by accepting a standard bank guarantee combined with an undertaking from the miller to recover penalties or shortfalls from the milling charges payable to them.

ORDER

In this writ petition, the petitioners are seeking to declare the action of the respondents in not allotting paddy for Kharif 2025-26 season inspite of petitioner making complete deliveries for Rabi 2019-2020, as illegal and arbitrary.

2. It is submitted that the petitioners have given bank guarantee of 10% for the allotment of paddy for the current season, but the same has not been considered by the respondents. With regard to delay in delivery of rice for Rabi 2019-20, it is submitted that the petitioners and others have already made representations to the authorities and the same is yet to be considered by the authorities and taking the said circumstance into consideration, this Court in W.P.No.35414 of 2024 dt.17.12.2024 had directed the respondents to consider the representations and take a decision thereon and also directed the respondents to consider the case of the petitioners in the meantime for allotment of CMR paddy for the current years subject to petitioners’ furnishing 10% of the bank guarantee as required under G.O.Ms.No.27, dt.29.10.2024. It is submitted that inspite of the said direction, the respondents are again insisting the petitioners for additional bank guarantee for shortfall in supply of CMR rice for the period 2019-2020 and hence, this writ petition has been filed.

3. Learned Standing counsel appearing for Corporation has forwarded the copy of the written instructions received by him, according to which in addition to the shortfall for Rabi 2019-2020, there was delay in supply of CMR rice for Rabi 2023-24 as well, and therefore, miller has to pay 25% penalty & 12% interest on the defaulted paddy in additional to 10% bank guarantee under G.O.Ms.No.17, dt.04.01.2025 for allotment of paddy for KMS 2025-26.

4. Learned counsel for the petitioners however, furnished a copy of the ‘No Due Certificate’ dt.14.10.2025 issued by the District Manager, TGSCSCL, Peddapalli to demonstrate that the balance CMR due for Rabi 2023-24 will be recovered from the milling charges payable to the miller. He further submitted that petitioners’ money is lying with the Corporation and if there is any delay in suplly of CMR on the part of the petitioners, they may recover the same from the amount payable to the petitioners and the petitioner is willing to give an undertaking to the said affect to the authorities.

5. In view of the above, this Court deems it appropriate to direct the 5th respondent to consider allotment of CMR paddy for Kharif 2025-26 to the petitioners by accepting the 10% of bank guarantee and also taking into consideration the undertaking to be given by them for retention of the monies payable to them towards the additional bank guarantee for the delay in delivery of CMR rice for Rabi 2023-24. The decision shall be taken within a period of one (01) week from the date of receipt of such an undertaking.

6. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, pending in this Writ Petition, shall stand closed.