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IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD

THE HON’BLE SMT. JUSTICE T. MADHAVI DEVI

WRIT PETITION No.39022 OF 2025

DATE : 19.12.2025

Between:

M/s.Sri Laxmi Modern Rice and Oil Mill & another

…Petitioners

AND

The State of Telangana & 7 others

…Respondents

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

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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.

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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 5^th 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.

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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.

_____________________________

JUSTICE T. MADHAVI DEVI

Date: 19.12.2025

Note:

Issue CC by today

(B/o) dv

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HON’BLE SMT. JUSTICE T. MADHAVI DEVI

WRIT PETITION No.39022 of 2025

Date: 19.12.2025

dv

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