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1. Grievance of the petitioners is with regard to orders dated 25.10.2021, 02.11.2021 and 01.12.2021, Annexures P/8, P/12 and P/14 respectively, by which orders the petitioners have been denied allotment of paddy for milling.

2. In brief, the facts as stated are that petitioner No. 1 is a Rice Sheller having an independent Sheller, and is also a partner with a 5% share in petitioner No 2 i.e Kuber Rice and General Mills, Mullanpur. The petitioners applied online for allotment of paddy under the Custom Milling Policy of 2021-2022, which was refused by order dated 09.10.2021 (Annexure P-4) by the District Controller, Food, Civil Supplies and Consumer Affairs, Ludhiana (W). The orders have been challenged on the grounds that the same were passed without giving opportunity of hearing or 1 of 13 calling for comments in respect thereto, on the grounds that the District Manager, Markfed, Ludhiana had informed that M/s K.P. Rice Mills (Lessee) was defaulter of MARKFED Procurement Agency of around `06.50 crores and that ownership of M/s K.P. Rice Mills, Mullanpur was with M/s Kuber Rice and General Mill, Mullanpur and, therefore, allotment may not be made to M/s Kuber Rice and General Mill, Mullanpur, for the Kharif year 2021-22, and secondly that Sh. Manjit Singh, Sh. Iqbal Singh and Sh. Rohit Kumar partners of M/s Kuber Rice and General Mill as well as Mills itself i.e. M/s Kuber Rice and General Mills did not satisfy the CIBIL score in terms of Clause 4 (g) of the Punjab Custom Milling Policy for KMS, 2021-22 (hereinafter referred to as "CMP 2021-22"). In fact, one of the partners, namely Sh. Iqbal Singh did not satisfy the said clause as he had low CIBIL Score of 546, whereas the minimum CIBIL was to be beyond 600.

3. It is further pleaded that as per Clause 4 (g) of the CMP 2021- 22, each individual/partner of a Mill is required to have a CIBIL score of 600, whereas the Mill is required to have a score of less than 6. A complaint was received from one Harmeet Singh resident of Jagraon alleging that Manjit Singh partner of M/s Kuber Rice and General Mills, Mullanpur, was a defaulter of the banks. Sh. Rohit Kumar, partner of M/s Kuber Rice and General Mills, Mullanpur, brought it to the notice of the authorities that two partners of M/s Kuber Rice and General Mill, Mullanpur, namely Manjit Singh and Iqbal Singh, were abroad and the entire responsibility of M/s Kuber Rice and General Mill, Mullanpur was on him and that all the guarantees of M/s Kuber Rice and General Mill, Mullanpur had been given 2 of 13 by M/s Arya Industries i.e. petitioner No.1. However, vide order (Annexure P/4 ) dated 09.10.2021 petitioner No. 2 was declared a defaulter on the ground that M/s K.P. Rice Mills, a lessor of M/s Kuber Rice and General Mills was a defaulter of Markfed the procurement agency for the year 2013- 2014, and since M/s Arya Industries was a partner of M/s Kuber Rice and General Mills, therefore, by virtue of Clause 7 (c) of the Custom Milling Policy 2021-2022, it too would not be eligible for allotment of paddy. Both the Shellers were declared as defaulters for the allotment year of 2021-2022. On appeal, the Director-cum-First Appellate Authority, Department of Food, Civil Supplies and Consumer Affairs, Punjab, set aside order Annexure P/4 dated 09.10.2021 and remanded the matter to the District Allotment Committee, Ludhiana, to proceed afresh in the matter after complying with the principles of natural justice and granting an opportunity of hearing.

6. Mr. Chetan Mittal, Senior Advocate appearing on behalf of the petitioners herein would contend that the reason for passing of impugned order (Annexure P/14) holding the petitioners ineligible for allotment is on the ground that M/s Kuber Rice and General Mills have taken M/s K.P. Rice Mill on lease, which is factually incorrect as it was M/s K.P. Rice Mill which took M/s Kuber Rice and General Mills on lease, and, therefore, the entire order proceeds on a wrong assumption and is liable to be set aside on this short ground alone. It is, however, clarified by the learned Senior Counsel that the observation with regard to M/s Kuber Rice Mills having taken M/S K.P. Rice Mills on lease was subsequently corrected vide corrigendum dated 03.12.2021. Learned Senior Counsel contended that the second ground on which the impugned order was passed is that one of the partners of petitioner's No.2 does not fulfill the CIBIL requirement in terms of Clause 4(g) of the CMP 2021-22. It is pointed out, that the impugned order notices the fact that M/s Kuber Rice and General Mills is not a defaulter as it has always delivered milled rice in time, but it could not have been allotted paddy in the first place, since it is lessee of M/s K.P. Rice Mills which was a defaulter and had owed approximately ₹6 Crores to 4 of 13 Markfed. It is submitted that the CIBIL score of the Mill is 2 and only one of the partners is shown as having a less CIBIL Score i.e. 546. It is submitted that the land of the Mill is mortgaged as collateral with PUNSUP. It is submitted that there are several owners of Mills with a low CIBIL score who have been allotted a procurement agency and, therefore, alleged discrimination.

7. It is further argued that a complaint had been made by the partners of M/s Kuber Rice and General Mills against Mr. Jasvir Singh of M/s Rajoana Rice Mills, who had been leased M/s Kuber Rice and General Mills while the partners were in Canada, inter-alia on the ground that he had subleased the premises of M/s Kuber Rice and General Mills to M/s K P. Rice Mills without any authority, and on the basis of forged documents had got paddy allotted to M/s K. P. Rice Mills. In the complaint, it was stated that Mr. Jasvir Singh had embezzled a large quantity of paddy and Markfed had been informed about the theft. It was feared that because of the misdeeds of Mr. Jasvir Singh, their Sheller i.e M/s Kuber Rice and General Mills should not be treated as a defaulter for the purpose of milling for the crop year 2014-2015. It is submitted that on the complaint filed, the matter was investigated by Chairman CVC cum Additional Director, Civil Food Supplies & Consumer Affairs Punjab, who came to the conclusion that M/s Kuber Rice and General Mills should not be made to suffer on account of misdeeds of others. DFSC Ludhiana was to satisfy himself about the role of M/s Kuber Rice and General Mills fairly, and to take a decision about allotment of the Sheller to any procurement agency for the crop year 2014- 2015. It is argued that since then paddy is being allotted to the Sheller and 5 of 13 there is no default at all on its part.