Petitioner sought directed payment for levy rice supplied to Food Corporation of India. Bench held that payment is due from FCIS, not the State, and dispute is subject to arbitration. Petition dismissed.
No direction issued to the State of Punjab; writ petition disposed of.
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C.W.P. No. 3824 of 2001 [ 1 ]
IN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH
C.W.P. No. 3824 of 2001 Date of Decision: February 19,2014
M/s Amrit Rice and General Mills, Bikhi Wind..... Petitioner
Versus
Director Food and Civil Supplies.and another ...Respondents
Coram: Hon'ble Ms. Justice Ritu Bahri
Present: None for the petitioner.
Ms. Anu Pal, AAG, Punjab.
RITU BAHRI, J. (Oral)
The petitioner firm in the year 1997-98 had delivered 751.5 quintals of rice to the Assistant Manager (Depot) Food Corporation of India Bhikhi Wind. A total stock valuing to `600400.00 was received by the representatives of the aforesaid Corporation and its purchase bills are annexed with the writ petition as Annexure P-3.
The petitioner sent a representation dated 6.4.1999 (Annexure P5) to the respondents to make the Kaur Rupinderpayment as per Section 7(3) of the Punjab Rice Procurement 2014.02.28 11:00 I attest to the accuracy and integrity of this document Chandigarh
C.W.P. No. 3824 of 2001 [ 2 ]
(Levy) Order, 1983. As per the amount worked out by the Chartered Accountant the total amount comes to 1007102.51 (6 lakh for levy rice and `4 lakh as interest).
On notice, reply has been filed by the respondents. As per the information given to the respondents there is an Arbitration Clause where the dispute with regard to payment can be referred to the Arbitrator. The Agreement is with the Food Corporation of India and there is an Arbitration Clause where the claim with regard to payment can be settled between the parties. The payment has to be made by the Food Corporation of India who has not been made a party in this writ petition.
At this stage, no order can be passed in favour of the petitioner. As the petitioner's claim can only be settled by way of invoking the Arbitration Clause and since the payment has to be made by the Food Corporation of India, no directions can be issued to the State of Punjab.
The writ petition is disposed of.
( RITU BAHRI ) JUDGE
19.2.2014 rupi
Kaur Rupinder 2014.02.28 11:00 I attest to the accuracy and integrity of this document Chandigarh
3 issues framed by the court
Whether the writ court can direct the State of Punjab to make payment when the Food Corporation of India is the actual debtor and the dispute is subject to an arbitration clause.
Whether the petitioner is entitled to directed payment for levy rice and interest without invoking the arbitration mechanism.
Who is the proper authority to settle the claim arising from the supply of rice to the Food Corporation of India.
M/s Amrit Rice and General Mills
Director Food and Civil Supplies
Ritu Bahri
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
