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2.The Senior Regional Manager of Tamil Nadu Civil Supplies Corporation, Thajavur Region [herein after shall be referred to as 'TNCSC'] has passed these impugned orders terminating the contract of these hulling agents, blacklisting them and also https://www.mhc.tn.gov.in/judis W.P(MD)No.15378 of 2014, etc., directing them to pay the cost of the rice as per the terms and conditions of the agreement. Clause 12 of the agreement enables TNCSC to terminate the contract, blacklist the mill and also to recover the cost of the rice, in the event if the hulling agents involve in any malpractice in hulling the paddy / resultant rice. The TNCSC procures paddy from the farmers and converts it into as rice by engaging private hulling agents and also through its modern rice mills.

3.The petitioners are such hulling agents engaged by the TNCSC. The respondent corporation officials have taken resultant rice samples from the petitioners' rice mills, subjected them for analysis and initiated action against them that the resultant rice, supplied by these petitioners, were already distributed under the public distribution system to the cardholders and it is not the resultant rice of the paddy supplied by the TNCSC to these petitioners. Therefore, the TNCSC issued show cause notice, which was challenged by the petitioners, wherein this Court allowed the writ petitions in their favour and the appeal preferred by the TNCSC was allowed by the Division Bench of this Court. Subsequent to the orders passed in WA(MD)Nos.1123 and 1174 to 1177 of 2013 dated 02.07.2014, the impugned orders came to be passed. https://www.mhc.tn.gov.in/judis W.P(MD)No.15378 of 2014, etc.,

12.Normally the paddy is converted into raw rice and par-boiled rice. The boiled rice is prepared by steaming the paddy. The TNCSC is adopting the double steaming process by steaming the raw paddy and this steamed paddy is soaked in water and soaked paddy is again steamed. The TNCSC claims that by this https://www.mhc.tn.gov.in/judis W.P(MD)No.15378 of 2014, etc., type of double boiling process, the nutritive value of the paddy is retained. Due to the double boiling, the colour of the rice is brown. By following this colour variation, the respondent Corporation identifies the PDS rice and the normal rice.

21.Clause 17 of the Chapter 12 reads as follows:

“17.The Regional head and the quality control head shall inspect the hulling centres at frequent intervals and verify the proper accounting of paddy issued for hulling. The inspection shall be critical and on the various stages of processing to avoid misappropriation of the corporation paddy and substitution of PDS rice by the Miller. The electricity consumption shall also be verified by the officials during the inspection to ensure actual hulling of corporation paddy in the hulling centres. Instructions should be issued to all the private hulling agents to fix digital tamper proof electrical metre in all the mills one for electricity and one fore Genset. Also the availability of digital tamper proof electric metre should be ensured by periodical https://www.mhc.tn.gov.in/judis W.P(MD)No.15378 of 2014, etc., inspection and report submitted to head office. The Senior Regional Managers / Regional Managers are allowed to permit the hulling agents of TNCSC for private hulling only in extraordinary circumstances of shortage of paddy in TNCSE supply on prior request from them after completely hulling of the TNCSC stock of paddy already lifted and after depositing the entire resultant rice due by the private huller.”