Bharat Rice And General Mills vs. Punjab Agro Foodgrains Corporation LTD And Anr

Facts

The petitioner, Bharat Rice and General Mills, filed a writ petition seeking directions for the release of Rs. 8,39,257/- along with interest for milling charges of rice for the crop year 2018-19. The respondent, Punjab Agro Foodgrains Corporation Ltd., submitted that during the crop year 2018-2019, paddy was allotted to the petitioner for milling. The petitioner was entitled to Rs. 15,69,307/- for milling charges, GST, security, gunny bag charges, driage, and custody & maintenance. Recoveries of Rs. 4,37,281/- were to be made from the petitioner for quality cut, interest on quality cut, security, TDS, and uses charges not received from FCI. This resulted in a net amount of Rs. 11,32,027/- payable to the petitioner. An amount of Rs. 3,38,274/- was already paid, and Rs. 2,31,323/- was recovered by FCI for transportation charges, a matter already addressed in a previous writ petition. The respondent stated that Rs. 5,62,430/- was payable to the petitioner as of February 4, 2021.

Held

The Court noted the respondents' submission that all undisputed payments had been released and that the remaining amount was withheld against recoveries. The respondents stated that an amount of Rs. 96,423/- was payable, but this was offset against a recovery of Rs. 1,05,045/- towards driage charges for KMS 2014-15. Since the respondents contended that all undisputed payments were released and the deduction was made to set off recoverable amounts from the petitioner, the Court found no further directions were required. The petition was disposed of as having been rendered infructuous. Liberty was granted to the petitioner to pursue alternate remedies against the recovery effected from them.

Key Issues

1. Whether the respondents have made all undisputed payments to the petitioner for milling charges for the crop year 2018-19, as contended by the respondents? The petitioner sought directions for the release of Rs. 8,39,257/- along with interest. The respondents, in their written statement, stated that after accounting for various charges and recoveries, Rs. 5,62,430/- was payable to the petitioner as of February 4, 2021. Subsequently, the respondents' counsel argued that differential amounts had been paid in installments, with only Rs. 96,423/- payable against the petitioner's claim. This remaining amount was withheld against a recovery of Rs. 1,05,045/- towards driage charges for KMS 2014-15. The core of the dispute revolves around the final amount due to the petitioner and the justification for withholding any remaining payment.