R A PRASAD Vs. FOOD CORPORATION OF INDIA
LAWS(DLH)-1983-4-24
HIGH COURT OF DELHI
Decided on April 12,1983

R.A.PRASAD Appellant
VERSUS
FOOD CORPORATION OF INDIA Respondents

JUDGEMENT

AVADH BEHARI ROHATGI, J. -(Oral). - (1.)This case concerns the Food Corporation of India (the Corporation). This Corporation was established by the Food Corporation Act, 1964. Section 45 of the Act empowers the Corporation to frame regulations. In exercise of this delegated power the Corporation framed the Staff Regulations in 1971.
(2.)These corporate bodies exercise functions of a legislative nature delegated to them by legislative bodies. In essence they are subordinate legislative bodies, but in truth, they are what Lord Maugham described in Rowell vs. Pratt. (1938) AC 101 p. 113(1), as domestic bodies which the legislature has thought fit in the public interest to entrust with important statutory powers. The Food Corporation of India (Staff) Regulations, 1971 have the force of statute [See: Kailash Nath vs. State of U. P., AIR 1957 SC 799 (791) (2)].
(3.)in recent years the legislature has been creating these corporations in increasingly large numbers. They are created by Acts of Parliament. They are a typical form of organisation in the public sector business. The most important of these is this Food Corporation of India. It has offices throughout the length and breadth of the country. It is a commercial corporation and is required "to act on business principles having regard to the interests of the producer and the consumer" [S. 19(3) of the Act]. The main function of the Corporation is procurement, movement, storage and distribution of food grains. These functions involve multifarious operations throughout the length and breadth of the country. It is a service corporation. It serves the community at large.
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