FOOD CORPORATION OF INDIA Vs. AGRAWAL TRADERS
LAWS(ALL)-1990-11-36
HIGH COURT OF ALLAHABAD
Decided on November 30,1990

FOOD CORPORATION OF INDIA Appellant
VERSUS
AGRAWAL TRADERS, ANOOPSHAHR Respondents

JUDGEMENT

G.D.Dube - (1.) -These two appeals raise similar questions of law and facts. The common arguments have been advanced in respect of these two cases by learned counsel for the parties. Hence these appeals are decided by this common judgment. F.A.F.O. No 515 of 1975 arises from a judgment in original suit no 181 of 1971 M/s. Agarwal Traders and others v. Food Corporation of India, New Delhi and others.
(2.) THE other Appeal No. 516 of 1975 arises from original Suit No. 152 of 1974; Nawal Kishore v. Food Corporation of India and others. THE defendants in both the suits are common. In original Suit No. 181 of 1974, the plaintiffs had prayed for realisation of Rupees 27,574-57 P. It has been alleged that the plaintiffs had been acting as Agents of the Food Corporation of India (hereinafter referred to as the Corporation). While acting as Agents, they had made purchases of food- grains from 21st April, 1971 to 23-8-71. According to the allegations, the plaintiffs were entitled to various commission? towards commission of agents, Commission of Arhatia and other charges regarding lodging, packing etc. of the bags. It has been alleged that the Food Corporation employees had deducted huge amounts towards commission and had also not paid some lodging and packing charges etc. according to the agreement. A notice was sent on 2-12- 1971 which was served on the defendants on 3rd and 4th December, 1971. On receipts of this notice, some inquiry was conducted by Sri Abdul Qaiyum, Senior Manager of the Corporation. The plaintiffs gave another notice on 26-12-1972 when they did not receive any response from the defendants. This was served on the defendants near about on 1-3-1912. It was contended in paragraph 9 of the plaint that even though the notices were served, the Corporation did not ask the plaintiffs to get the matter adjudicated by an arbitrator. On the other hand, they submitted the matter to the Central Bureau of Investigation for investigation after the conclusion of departmental inquiry in the matter. The plaintiffs had sent a final notice on 26th March, 1973 to the Corporation authorities, when the matter was not settled, they filed suit on 18-4-1974
(3.) IN Original Suit No. 162 of 1974 also the dispute relates between the plaintiffs as agents and Corporation as the principal. He had alleged that, according to the agreement the sole plaintiffs had purchased food-grains from the stockists from 18th April, 1971 to 31-8-1973. On these purchases, he ought to have been paid commission and other charges, the details of which are alleged in Suit No. 181 of 19/4. It is not necessary to repeat them. It was pleaded that contrary to the terms of agreement, the Corporation had made wrongful deductions towards commission and packing charges etc. The plaintiffs had given notices on 2-12-1971 and 16-2-1972 which were served on the Corporation. IN this case too the plaintiffs had alleged that despite notice the defendants had neither asked the plaintiff to go for arbitration. No of for was made to refer the matter to arbitration. Therefore, the plaintiffs gave last notice on 26th March. 1973. Thereafter they filed suit on 15-4-1974 for realisation of Rs. 45,482'36 P.;


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