Dismissed

The Bihar State Food And Civil Supply Corporation Ltd. v. Rajendra Dubey

Patna HC3 Dec 2024L.P.A/454/2024

Case brief

AI extract

What is this about?

The High Court dismissed a Letters Patent Appeal filed by the Bihar State Food and Civil Supply Corporation challenging a Single Judge’s order quashing a penalty imposed on a transporter for GPS tracking failures. The Court upheld the order, noting no goods were pilfered despite signal loss.

What did the court decide?

Dismissed Letters Patent Appeal.

The Bihar State Food And Civil Supply… — Contract and Commercial Disputes | Patna HC (2024)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Letters Patent Appeal No.454 of 2024 In

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Civil Writ Jurisdiction Case No.4178 of 2020

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======================================================

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The Bihar State Food and Civil Supply Corporation Ltd. Khadya Bhawan, R. Block, road No. 2, Patna through its Managing Director.

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The Managing Director, Bihar State Food and Civil Supply Corporation Ltd., Khadya Bhawan, Daroga Rai Path, R. Block, Road No. 2, Patna.

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The Deputy General Manager Transport, Bihar State Food and Civil Supply Corporation Ltd., Khadya Bhawan, Daroga Rai Path, R. Block, Road No. 2, Patna.

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The General Manager Public Distribution, Bihar State Food and Civil Supply Corporation Ltd., Khadya Bhawan, Daroga Rai Path, R. Block, Road No. 2, Patna.

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The Deputy General Manager (Modernization), Bihar State Food and Civil Supply Corporation Ltd., Khadya Bhawan, Daroga Rai Path, R. Block, Road No. 2, Patna.

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The District Manager, Bihar State Food and Civil Supply Corporation Ltd., Muzaffarpur.

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... ... Appellant/s

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Versus

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Rajendra Dubey Son of Paltan Dubey, Resident of Sakra Bazid, P.S. Sakra, District- Muzaffarpur.

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The State of Bihar through the Principal Secretary, Food and Civil Supplies Department, Government of Bihar.

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The District Magistrate, Muzaffarpur.

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... ... Respondent/s

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====================================================== Appearance : For the Appellant/s : Mr. Shailendra Kumar Singh, Advocate For the Respondent/s : Mr. Chitranjan Sinha, Sr. Advocate Mr. Sanjeet Kr. Advocate Mr. Ujjawal Bhushan, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE NANI TAGIA ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

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Patna High Court L.P.A No.454 of 2024 dt.03-12-2024 2/5

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Date : 03-12-2024

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Heard learned counsel for the parties.

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The appellant who is the Bihar State Food and Civil Supplies Corporation is aggrieved with the order of the learned Single Judge which interfered with the penalty imposed on the ground that the transporting vehicle; which was transporting grains under the PDS system, went offline and could not be tracked on its GPS, while on its way from Muzaffarpur to DPDS Sahebganj.

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An inquiry was conducted, in which it was found that the GPS had gone offline at various locations. It was also categorically found on inquiry that the entire goods, which was loaded at Muzaffarpur had been offloaded at TPDS Sahebganj. Despite this, on the basis of the show cause notice, the petitioner was imposed with a penalty at five times of the value of the goods transported.

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The learned Single Judge interfered with the penalty imposed on the finding that there is absolutely no reasoning in the impugned order and the reply to the show cause notice has not at all been considered. The respondent was also directed to refund the amounts deposited. The learned Single Judge has referred to a number of Supreme Court judgments

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Patna High Court L.P.A No.454 of 2024 dt.03-12-2024 3/5

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regarding the necessity to state reasons in an administrative order.

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The learned Senior Counsel who appeared for the respondent specifically pointed to the provisions under Clause 13 and 13.3 of the agreement to contend that the Corporation has the power to impose such penalty, on the basis of the presumption, as available from the agreement itself that, if the GPS installed vehicle was not found online, then during transportation of food-grains, there would be a presumption as to pilferage of food grains and penalty on economic rate will be imposed on the transport cum handling agent.

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We also heard Mr. Chitranjan Sinha, learned Senior Counsel for the respondents.

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We specifically extract Clause 13 and 13.3 of the agreement, which is produced as annexure P/3 in the writ petition.

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“13. Transporting agent shall provide load cell device on each vehicle before agreement for accurate measurement of required capacity. In case load cell and GPS got damaged while in operation the same shall be replaced by transporting agent immediately and under no circumstances the vehicle shall be used without GPS and load cell device for transportation of food grains and if vehicle is used without GPS and load cell device no transporting charges will be paid as well as penalty will also be

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Patna High Court L.P.A No.454 of 2024 dt.03-12-2024

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4/5

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imposed.

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13.3. During transportation of food grains by GPS installed vehicle not found in network while monitoring it will be presumed as pilferage of food grains and penalty on economic rate will be imposed on Transport-cum-Handling Agent. On repetition of the same appointment of the transporter shall be terminated.”

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There is no allegation in the present case that the load cell device was not working. The allegation, as we noticed at the outset, was only that the vehicle went offline during the transportation of the goods at various points; specifically 18 times. This was based on the report submitted by an agency which was appointed to monitor the transportation of foodgrains and also the signal emanated from the GPS, installed in each vehicle.

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The inquiry conducted by the Corporation itself indicated that there was no fault in the GPS and that it was due to the weak signal, that the vehicle had gone offline on many occasions. True, if there is any tampering with the GPS itself, then there could be a penalty imposed, but even in such circumstances, it cannot be related to the value of the goods, when it has been proved that there is no pilferage of goods and the entire goods transported has been off-loaded at the site of the

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Patna High Court L.P.A No.454 of 2024 dt.03-12-2024 5/5

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PDS distributor or the godown of the Corporation itself.

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We find absolutely no reason to interfere with

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the order passed by learned Single Judge and dismiss the appeal.

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(K. Vinod Chandran, CJ)

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Amrendra/Ranjan		(Nani Tagia, J)
AFR/NAFR
CAV DATE	NA
Uploading Date	05.12.2024
Transmission Date	NA

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Amrendra/Ranjan

The Bihar State Food And Civil Supply Corporation Ltd. v. Rajendra Dubey

Case brief

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The Bihar State Food And Civil Supply Corporation Ltd. v. Rajendra Dubey

Case brief

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