- (1.) The writ petition is directed against the order dated 01.9.2003 passed by Licensing Officer/District Magistrate (Cold Storage) Bahraich (hereinafter referred to as "LOC") making determination of compensation to the tune of Rs.1,82,287/- in purported exercise of power under Section 24 of U.P. Regulation of Cold Storages Act, 1976 (hereinafter referred to as "Act 1976"), order dated 9.12.2004 passed by U.P. Cold Storage Tribunal, Lucknow rejecting petitioner's appeal and order dated 01.01.2005 passed by District Horticulture Officer, Bahraich requiring petitioner to deposit Rs.1,82,287/- pursuant to the aforesaid two orders dated 01.9.2003 and 09.12.2004.
(2.) The facts in brief giving rise to the present dispute are that the petitioner Cold Storage is situated at Asam Road, Bahraich. It is a partnership firm. The petitioner has been granted licence to run cold storage under the Act 1976. Between 23.3.2000 to 26.03.2000, petitioner received 397, 522, 225 and 41 bags of potatoes, which were stored in the cold storage in the name of Sri Abdul Gaffar Khan, Kasim, Hasim and Arif respectively (hereinafter referred to as "potato farmers"). At the time of storage of goods in petitioner's cold storage, potato farmers obtained certain amount by executing a Pronote, which according to the petitioner was the amount of loan advanced to them and was liable to be refunded to petitioner along with interest @ 24% p.a. Besides, a receipt was also signed by potato farmers acknowledging Pronote. It further says that the amount taken under the aforesaid Pronote shall be refunded by 30th October, 2000 whereafter the petitioner may recover the said amount by selling potatoes, and, the potato farmers shall have no claim thereupon. Copies of aforesaid Pronotes and receipts have been filed as Annexures 4 to 7 to the writ petition. The potato farmers did not return the money whereafter petitioner sold potatoes of these farmers sometime on and after December, 2000. One of the potato farmers namely Abdul Gaffar Khan sent a legal notice dated 1.5.2001 to the petitioner demanding delivery of potato bags. The notice was replied by petitioner stating that potatoes were sold pursuant to receipt executed by noticee. Thereafter it appears that a complaint was made by potato farmers before Licencing Authority claiming compensation under Section 24 of Act 1976 and the matter was enquired into by District Horticulture Officer. Ultimately, LOC passed order dated 01.09.2003 determining compensation in regard to non-delivery of goods stored in the cold storage whereagainst the appeal has also been rejected.
(3.) Learned counsel for the petitioner submitted that farmers have obtained loan from the petitioner which was liable to be repaid alongwith interest which they failed. In view thereof and in terms of the contents of receipt, petitioner became owner of stored goods and the same was accordingly sold towards recovery of loan amount advanced to potato farmers; hence, Section 24 of Act 1976 has no application in the matter in the light of Section 17 of the Act 1976.;