M/S. Radhika Rice Industries vs. The State Of Telangana

Held

The Court held that the impugned order of the 4th respondent needed to be set aside on the condition that the petitioner delivers 4151.38 Qtls of paddy or its equivalent rice or equivalent value thereof to the respondents. The Court reasoned that since the petitioner was willing to rectify the alleged misappropriation, the rejection of their application was not justified. The ratio decidendi is that if a petitioner is willing to compensate for the alleged default or misappropriation, the authorities should reconsider their application for allotment, provided the condition is fulfilled. Consequently, the Court directed that upon the petitioner fulfilling the condition, the respondents should supply paddy to the petitioner for milling purposes on the same terms as others, and thereafter, the petitioner should deliver equivalent rice to the Government. The writ petition was allowed to this extent.

Facts

The petitioner, M/s Radhika Rice Industries, filed a writ petition challenging the order of the 4th respondent (District Collector, Civil Supplies, Suryapet) dated December 21, 2019, which rejected their application for allotment of CMR Paddy for the Kharif season 2018-19. The rejection was based on the ground that the petitioner had misappropriated 4151.38 Qtls of government paddy allotted for milling. The petitioner sought a direction to allot paddy on par with other rice millers. The petitioner's GSTIN is 36A4LF8016Q1ZG. The petitioner was ready to deliver the misappropriated paddy or its equivalent value.

Key Issues

1. Whether the action of the 4th respondent in rejecting the application for allotment of CMR Paddy for Kharif 2018-19, vide proceedings dated December 21, 2019, was illegal, arbitrary, and violative of principles of natural justice under Articles 14, 19, and 21 of the Constitution of India? Petitioner's contention: The petitioner argued that they were ready to deliver the 4151.38 Qtls of paddy or its equivalent rice or monetary value of Rs. 73,53,966/-. They sought to be treated on par with other rice millers in Suryapet and Nalgonda districts. Respondents' contention: The respondents, through their counter affidavit and submissions, reiterated the grounds mentioned in the impugned order, which was the alleged misappropriation of government paddy.