Patna High Court
M/S Riga Sugar Company Limited vs The Union Of India & Ors on 27 February, 2017
Author: Anjana Mishra
Bench: Anjana Mishra
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4438 of 2009
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M/S Riga Sugar Company Limited, at and P.O. Riga, District-Sitamarhi,
through its President Sri Amar Sharma son of Late Major B.R. Sharma.
.... .... Petitioner
Versus
1. The Union of India through the Secretary (Food), Ministry of Consumer Affairs
and Public Distribution (Department of Food and Public Distribution),
Government of India, Krishi Bhawan, New Delhi. 110001.
2. The Food Corporation of India, 16-20, Barakhamba Lane, New Delhi through
the Manager.
3. The General Manager (Bihar), Food Corporation of India, Regional Office,
Patna.
4. The Senior Regional Manager, Food Corporation of India, Arunachal Building,
Exhibition Road, Patna-800001.
5. The Area Manager, Food Corporation of India, District Office, Muzaffarpur.
.... .... Respondent/s
with
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Civil Writ Jurisdiction Case No. 4439 of 2009
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M/S Vishnu Sugar Mills Limited P.O. Vishnu Sugar Mills, P.S. and District-
Gopalganj, through its General Manager, P.R.S. Panicker.
.... .... Petitioner/s
Versus
1. The Union of India through the Secretary (Food), Ministry of Consumer Affairs
and Public Distribution (Department of Food and Public Distribution),
Government of India, Krishi Bhawan, New Delhi. 110001.
2. The Food Corporation of India, 16-20, Barakhamba Lane, New Delhi through
the Manager.
3. The General Manager (Bihar), Food Corporation of India, Regional Office,
Patna.
4. The Senior Regional Manager, Food Corporation of India, Arunachal Building,
Exhibition Road, Patna-800001.
5. The Area Manager, Food Corporation of India, District Office, Muzaffarpur.
.... .... Respondent/s
with
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Civil Writ Jurisdiction Case No. 13205 of 2010
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M/S Sasa Musa Sugar Works Ltd. At & P.O. Sasa Musa, District- Gopalganj
through its Factory Manager Jamaluddin, S/O Late Nehaluddin
.... .... Petitioner/s
Versus
1. The Union Of India Through The Secretary (Food) Ministry Of Consumer
Affairs And Public Distribution (Department Of Food And Public Distribution)
Government Of India, Krishi Bhawan, New Delhi- 110 001
2. The Food Corporation of India, 16-20, Barakhamba Lane, New Delhi through
the Manager
3. The General Manager (Bihar), Food Corporation of India, Regional Office,
Patna
Patna High Court CWJC No.4438 of 2009 dt.27-02-2017
P2/6
4. The Senior Regional Manager, Food Corporation Of India, Arunachal
Building, Exhibition Road, Patna-800001
5. The Area Manager, Food Corporation Of India, District Office, Muzaffarpur
.... .... Respondent/s
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Appearance :
For the Petitioner/s : Mr. Y.V. Giri, Sr. Advocate
Mr. Ashish Giri
For the FCI : Mr. Prabhakar Tekriwal, Sr. Advocate
Mr. P.K. Verma, Sr. Advocate
Mr. Shashidhar Jha,
Mr. Suman Kumar Jha
For Respondent No. 1 : Mrs. Kanak Verma
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CORAM: HONOURABLE JUSTICE SMT. ANJANA MISHRA
ORAL JUDGMENT
Date: 27-02-2017
In all these three applications, the issue involved appears to be
identical and are being disposed of together with the consent of the
parties.
2. The present writ applications have been filed seeking a
direction to quash the communications made by the Area Manager,
Food Corporation of India, District Office, Muzaffarpur, whereby the
request for refund of amount of supply of levy sugar for the period
1995-96 has been turned down by the Corporation with the simple
excuse that they would be taken up after the disposal of the S.L.P.
preferred by the Corporation against the judgment and order dated
30.07.2008passed by this Hon'ble Court in L.P.A. No. 380 of 2002.
3. Learned counsel for the petitioner submits that the present applications and their prayer was squarely covered by the decision of this Hon'ble Court passed in the case of Hari Nagar Sugar Mills Patna High Court CWJC No.4438 of 2009 dt.27-02-2017 P3/6 Limited, Mumbai through its Manager S.N. Poddar & Ans. Vs. Union of India & Ors. reported in 2008(4) BBCJ V-347. It is submitted that the aforementioned judgment has been rendered on the decision of the Apex Court in the case of Shri Malaprabha Coop. Sugar Factory Limited Vs. Union of India & Ans. reported in (1994) 1 SCC 648 which was subsequently clarified in the judgment between the same parties reported in (1997) 10 SCC 216 (Shri Malaprabha Coop. Sugar Factory Limited Vs. Union of India & Ans.). All these judgments in substance referred to the notification of 1995 which is also the subject matter of the dispute between the parties in the present writ application in which the 1995 notification was in dispute, facts were clarified by means of this judgment reported in (1997) 10 SCC (Shri Malaprabha Coop. Sugar Factory Limited Vs. Union of India & Ans.) wherein this Court specifically held as follows:-
"All these contentions except the last one were raised by the respondents earlier while the above batch of matters, the review applications and the applications for clarification were heard by this Court. All those contentions have been rejected and, therefore, it is really not open to the respondents to raise them again. It appears to us that the respondents, like an ordinary litigant, are trying to find excuses for not complying with the judgment of this Court merely because it is not palatable to them. The direction given by this Court in para 109 of the judgment is quite clear and does not lend itself to two interpretations or any confusion as contended by the respondents. In unambiguous terms this Court has directed the Government of India to take into account the liability of the manufacturer under clause 5-A of the 1966 Order as regards cane price and refix the price of levy sugar. Obviously, the price of levy sugar has to be fixed having regard to the factors mentioned in Section 3(3-C) of the Act and, therefore, this Court while giving the aforesaid direction also directed them to refix the price of levy sugar having regard to those factors also. The doubt or confusion, if any, appears to us to be the result of Patna High Court CWJC No.4438 of 2009 dt.27-02-2017 P4/6 unwillingness of the Government to give up its views and accept and implement the decision of this Court.
14. We, therefore, allow these applications and direct the Government to issue additional orders/notifications in terms of the directions given by this Court in the above-referred batch of cases."
4. Relying on the ratio adopted by the Apex Court, this Court while dealing with the same issue in the case of Hari Nagar Sugar Mills Limited (supra) has categorically held and issued directions in the following terms:-
"22. In the circumstances the conclusion would be that without any authority of law but on the basis of utter misconception, the Food Corporation of India wrongfully and illegally refused to pay price of levy sugar due and payable by it to the appellant for sale affected by the appellant to the Food Corporation of India during the sugar year 1995-96. The question is whether a Writ Court would assist the appellant in such a matter or it is required for the appellant to take recourse to the general law of filing a civil suit and thereupon to pursue the same.
25. For the reasons, as above, while we allow the appeal and set aside the judgment and order under appeal, we also allow the writ petition by declaring that withholding of any part of the otherwise admitted dues and claims of the appellants on account of supply of levy sugar to the Food Corporation of India during the sugar year 1995-96 on the ground that price of levy sugar sold and delivered by the appellant to Food Corporation of India during the sugar year 1975-76, 1976-77 and 1977-78 stood altered by the Notifications of 1995 or of 1999 is illegal. The Food Corporation of India is obliged to pay the same to the appellant without any demur forthwith and, at the same time, is obliged to compensate the appellant for the loss incurred by it for wrongfully withholding of the said amount, which can only be a quantified in the form of interest, which having regard to the facts and circumstances of case, we fix at 10% per annum. We hope and expect that the Food Corporation of India shall discharge its obligations as above within a reasonable time and, accordingly, to us, such reasonable time in no circumstances can stretch beyond three months from today."
Patna High Court CWJC No.4438 of 2009 dt.27-02-2017 P5/6
5. The matter traversed to the Apex Court where in S.L.P. (C) No. 29170 of 2008 with S.L.P. (C) No. 17933 of 2009 which was disposed of on 13.01.2016 and the Special Leave Petitions filed by the Food Corporation of India have since been dismissed. It is on the basis of this order that the petitioners are now seeking relief. The review petition filed after three years have also been dismissed.
6. It has been submitted on behalf of the petitioner that since the matter has reached its finality, the petitioner's case for refund should now be considered and the writ applications should be disposed of with appropriate directions.
7. Learned counsel for the petitioners submits that they are suffering recurring financial loss on the ground of non-refund of money and, therefore, their case for refund be disposed off expeditiously.
8. Learned counsel appearing on behalf of the Food Corporation of India and also the Union of India submit that after the disposal of the S.L.P. and the Review Application, the Food Corporation of India has now preferred a Curative Petition in the Apex Court which is numbered as Diary 1W-6198 of 2017. However, the fate of the said Curative Petition is yet to be decided.
9. In response to the aforesaid submissions by learned counsel appearing on behalf of the Food Corporation of India, learned counsel for the petitioner submits that since in the case of Hari Nagar Sugar Patna High Court CWJC No.4438 of 2009 dt.27-02-2017 P6/6 Mills Limited, this Court had directed for 10% interest as compensation, it would be advisable that the matter may not be lingered further and such delay would only be prejudicial to the State, if, at all, they do not succeed. Accordingly, he prays that the matter may be disposed of in terms of the orders passed by this Court which stands upheld by the Apex Court.
10. Having considered the contentions of the parties and also observing, that the matter has reached finality before the Apex Court, this Court does not see any reason, why the matter should be kept pending any further. Accordingly, it is directed that the Food Corporation of India should refund the amounts so claimed by the petitioners in the present writ applications within a period of three months in accordance with the directions as contained in paragraph no. 25 (including the compensation) of the case of the similarly situated and identical case of Hari Nagar Sugar Mills Limited.
11. The order is subject to the result of the Curative Petition.
(Anjana Mishra, J) Saif/-
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