Disposed

M/S Snk Transporting Company v. the Food Corporation of India

Kerala HC24 Jun 2021WP(C)/35188/2017

Case brief

AI extract

What is this about?

This case involved a bank guarantee dispute. The respondents filed a statement offering to release the guarantee if the petitioner issues a no demand certificate excluding pending civil claims. The court disposed of the petition directing the petitioner to submit such a certificate for immediate release.

What did the court decide?

Respondents to release bank guarantee immediately upon receipt of a no demand certificate from the petitioner excluding pending civil suit claims.

M/S Snk Transporting Company Vs the Food… — Contract and Commercial Disputes | Kerala HC (2021)

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WP(C) NO.35188 OF 2017

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE T.R.RAVI

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THURSDAY, THE 24^TH DAY OF JUNE 2021 / 3RD ASHADHA, 1943

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WP(C) NO. 35188 OF 2017

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PETITIONER:

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M/S SNK TRANSPORTING COMPANY PATTALATHUPALLI PURAYIDAM, NEAR FCI, KOLLAM-1, REPRESENTED BY ITS MANAGING PARTNER, M. KABEER KUTTY.

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BY ADVS. SRI.V.JAYAPRADEEP SRI.D.S.LOKANATHAN SMT.O.A.NURIYA

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RESPONDENTS:

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1 THE FOOD CORPORATION OF INDIA REPRESENTED BY ITS CHAIRMAN & MANAGING DIRECTOR, 16-20, BARAKHAMBA LANE, NEW DELHI-110001.

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2 THE DISPUTE GRIEVANCE REDRESSAL COMMITTEE REPRESENTED BY THE EXECUTIVE DIRECTOR (SOUTH), FOOD CORPORATION OF INDIA, 3, HADDOWS ROAD, CHENNAI-600006

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3 GENERAL MANAGER (KERALA)

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FOOD CORPORATION OF INDIA, KESAVADASAPURAM, PATTOM PALACE (PO), THIRUVANANTHAPURAM-695004.

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4 K.S. MOORTHY ASSISTANT GENERAL MANAGER, FCI ZONAL OFFICE, HADDOWS ROAD, CHENNAI-6.

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5 THE CHIEF MANAGER INDIAN BANK MAIN ROAD, KOLLAM-691 001.

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BY ADVS.SRI.VIVEK VARGHESE P.J., SC, FOOD CORPORATION OF INDIA

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SRI.S.EASWARAN, SC, INDIAN BANK

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.06.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO.35188 OF 2017

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JUDGMENT

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(Dated this the 24^th day of June, 2021)

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Heard Smt.Ann Susan George, learned counsel on behalf of the petitioner, Sri Vivek Varghese, learned counsel on behalf of respondents 1 to 3 and Sri S.Easwaran, learned Standing Counsel for the 5^th respondent .

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When the matter was taken up today, learned counsel for the 1^st respondent pointed out that a statement has been filed by the Divisional Manager, Food Corporation of India, Divisional Office, Ernakulam on behalf of respondents 1 to 3 stating that no recovery proceedings are pending against the petitioner and that the bank guarantee given by the petitioner can be released, if the petitioner produces a “no demand” certificate. The counsel clarified that the “no demand” certificate has to be issued by the petitioner to the effect that the petitioner does not have any demand against the Food Corporation of India. The counsel for

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the petitioner submitted that a civil suit is pending regarding certain claims made by the petitioner against the Food Corporation of India and that when such claims are pending, it would not be possible for them to issue a “no demand” certificate. At the same

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WP(C) NO.35188 OF 2017

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time, the counsel submitted that the writ petition can be disposed of recording the statement made by the Divisional Manager, Food Corporation of India, making it clear that the “no demand” certificate which is to be issued by the petitioner will not prejudice the rights of the petitioner in the pending civil suit.

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In the above circumstances, this writ petition is disposed of recording the statement dated 05.12.2020 filed on behalf of respondents 1 to 3. The petitioner shall submit a “no demand” certificate before the respondents stating that they have no demand against the Food Corporation of India, except the demand pending before the civil court. On receipt of such certificate, the respondents shall immediately release the bank guarantee as agreed in the statement.

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The writ petition is disposed of with the above observations.

Sd/-

T.R.RAVI

JUDGE

dsn

WP(C) NO.35188 OF 2017

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PETITIONER'S EXTS:

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EXHIBIT	P1 COPY OF THE	ORDER DATED 30.10.2017 OF R1
EXHIBIT	P2 COPY OF THE	WRIT PETITION WPC 17917/2017.
EXHIBIT	P3 COPY OF THE 17917/2017.	JUDGMENT DTD. 12.6.2017 IN WPC
EXHIBIT	P4 COPY OF THE TO R2.	LETTER DTD 21.08.2017 SUBMITTED
EXHIBIT	P5 COPY OF THE OF R2	REPORT DTD NIL OF THE MEMBERS
EXHIBIT	P6 COPY OF THE	REQUEST DTD 17.9.17 TO R2.
EXHIBIT	P6(A) COPY OF THE	POSTAL ACKNOWLEDGMENT CARD.
EXHIBTI	P7: COPY OF THE I.A.NO.661/2 COURT.	ORDER DATED 1.3.2018 IN 017 IN O.S.NO.31/2017 THE SUB
EXHIBIT	P8: TRUE COPY OF 2017	BILL ISSUED BY R1 FOR OCTOBER
EXHIBIT	P8(A): TRUE COPY OF DECEMBER, 20	BILL ISSUED BY R1 FOR 17
EXHIBIT	P8(B): TRUE COPY OF DECEMBER & J	BILL ISSUED BY R1 FOR ANUARY 2018
EXHIBIT	P8(C): TRUE COPY OF 2018	BILL ISSUED BY R1 FOR JANUARY
EXHIBIT	P8(D): TRUE COPY OF 2018	BILL ISSUED BY R1 FOR MARCH
EXHBIT	P8(E): TRUE COPY OF & 31.3.18.	BILL ISSUED BY R1 FOR 27.3.18
EXHIBIT	P8(F): TRUE COPY OF 16.4.2018	BILL ISSUED BY R1 FOR
EXHIBIT	P8(G): TRUE COPY OF 14.5.2018	BILL ISSUED BY R1 FOR

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WP(C) NO.35188 OF 2017

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EXHIBIT	P8(H): TRUE COPY OF BILL ISSUED BY R1 FOR MARCH 2018
EXHIBIT	P8(I): TRUE COPY OF BILL ISSUED BY R1 FOR 6.6.2018 & 8.6.2018
EXHIBIT	P8(J): TRUE COPY OF BILL ISSUED BY R1 FOR 5.6.2018 & 6.6.2018
EXHIBIT	P8 (K): TRUE COPY OF BILL ISSUED BY R1 FOR 16.6.2018 & 18.6.2018
EXHIBIT	P9: TRUE COPY OF ORDER DT.24.7.18 ISSUED BY R1
EXHIBIT	P10: THE RELEVANT PORTION OF THE TENDER CONDITIONS OF R1
EXIBIT	P11: COPY OF LETTER DT.29.12.2015
EXHIBIT	P12: COPY OF LETTER DT.27.11.2020 ISSUED BY THE 5TH RESPONDENT TO THE PETITIONER.

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RESPONDENTS' EXTS:

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EXT.R1(A):	TRUE COPY OF APPEAL IN FAO No.74/18 PENDING BEFORE THIS COURT.
EXT.R1(B):	TRUE COPY OF STAY ORDER DT.11.4.2018 IN IA.No.278/18 IN FAO No.74/18 OF THIS COURT.
EXT.R1(C):	TRUE COPY OF IA No.59/18 IN OS No.31/17 BEFORE SUB COURT, ALAPPUZHA.
EXT.R1(D):	TRUE COPY OF SANCTION ORDER NO.S&C.30(1)/2018 DT.19.9.2018 IN RESPECT OF RECOVERY OF INTEREST.
EXHIBIT R1(E):	TRUE COPY OF LETTER No.S&C.30(1)/2018 DT.15.11.2018 BY THE AREA MANAGER, FCI, DISTRICT OFFICE, ALAPPUZHA.

M/S Snk Transporting Company v. the Food Corporation of India

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M/S Snk Transporting Company v. the Food Corporation of India

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