FLOUR MILLS PVT LTD Vs. SARDA CEREALS PVT LTD
LAWS(CAL)-2010-3-2
HIGH COURT OF CALCUTTA
Decided on March 17,2010

GOUR FLOUR MILLS PVT. LTD.,MAA LAXMI ENTERPRISE Appellant
VERSUS
SARADA CEREALS PVT. LTD.,SARADA CEREALS PVT. LTD Respondents

JUDGEMENT

- (1.) Both these appeals are directed against the common judgment dated 11th December, 2009 by the Learned Single Judge in G. A. No. 2252 of 2009 and 2613 of 2009 in Civil Suit No. 234 of 2009 directing the Director, District Distribution, Procurement and Supply, Food & Supplies Department, Government of West Bengal to take appropriate steps to consider the case of plaintiff (respondent No. 1) in each of these appeals - Sarada Cereals Pvt. Ltd. for being allotted quota for supply of fortified atta to BPL consumers in Malda District.
(2.) The facts leading to filing of these appeals, briefly stated, are as under :- Government of West Bengal, Department of Food & Supplies invited applications from eligible operators of flour/chakki mills to offer supply of fortified atta in the District of Malda to the BPL consumers. The flour mills were to be supplied wheat by the Director of District Distribution, Procurement and Supply, Food & Supplies Department, Government of West Bengal (herein after referred to as Director). The applications were invited by notice dated 9th July, 2009 in the following terms :- "Applications are invited from existing/running bona fide flour/chakki mills of the Malda District which fulfil/ satisfy the guidelines as laid down in the G.O.No. 8347/FS/Sectt/ Food/13A- 06/07 dt. 10.08.2007 (obtainable from the office of the undersigned) for selection of Flour/Chakki Mills for production and distribution of fortified Atta. Flour/Chakki Mills must be in running condition for at least three months prior to the date of publication of this notice. Intending Flour/Chakki Mills may apply as per preforma (obtainable from the office of the undersigned) along with copies of supporting documents. Government of West Bengal reserves the right to accept or reject all or any of the applications without assigning any reasons whatsoever. Last date of receipt of the application is 24.8.2009." The relevant extract of the Guidelines referred to in the above notice reads, inter alia, as under :- "With a view to streamlining the process of conversion of wheat into fortified atta & smooth distribution thereof through PDS the following guidelines have been drawn up for strict adherence thereto :- 1. The Director, District Distribution, Procurement and Supply is authorized to allot wheat to the areas brought under the scheme. 2. The Director, DDP & S, will select eligible flour mills/chakki mills keeping in view the eligibility criteria set forth in the guidelines. 3. Eligibility criteria for selection of flour mill(s) chakki mill(s) under the scheme:- (i) In addition to the main wheat crushing machinery the mill should be equipped with cleaning machine (for cleaning of wheat before grinding), dozing machine (for premixing nutrients at appropriate dose) and automatic online/automatic packaging machines capable of packaging 750 gms of atta in properly labeled polypacks having (thickness above 40 microns (to avoid wastage, contamination, short weightment and proper sealing). Priority will be given to flour mills/chakki mills having automatic online/automatic punching machines. However, if the number of automatic online/automatic packaging machines are insufficient in a district to pack the required allocation of wheat within the specified time for proper distribution, then as a special case and only for such time as the packaging capacity under automatic/automatic online packaging machine are not enhanced/increased in the flour mills/chakki mills in a district, semiautomatic packaging machines may be considered provided that they are capable of packing the fortified atta within the required time while maintaining the relevant PFA standards/norms. But on no account are manual packaging machines to be considered as it would be difficult to monitor wastage, short weightment, contamination and ensure proper sealing. ii) The mill should be capable of giving atta at an outturn ratio not less than 90%. Packaged product should conform to the specification laid down under PFA Act. iii) Packaging capacity should be commensurate with the milling capacity ... ....."
(3.) In response to the above advertisement, both the appellants herein, i.e., Maa Laxmi Enterprise and Gour Flour Mills Pvt. Ltd. applied and the Director took decision on the file to consider them as eligible and to issue allotment letters in their favour for allotment of 713 MTs per month and 1031 MTs per month respectively. However, before allotment orders could be issued in their favour, the suit giving rise to these appeals came to be filed by Sarada Cereals Pvt. Ltd. (plaintiff) which had also applied within the time limit, but the plaintiff was not considered eligible by the Director mainly on two grounds. Firstly, the plaintiff had purchased the property of Neelam Flour Mills, but according to the Director, in view of litigation by Neelam Flour Mills against the plaintiff, there was dispute about ownership of the plant and machinery of the flour mill and, therefore, the plaintiff, Sarada Cereals Pvt. Ltd. was not entitled to run the mill on its own. Secondly, the plaintiff had not installed packaging machines in the factory premises. This view was taken pursuant to an investigation conducted at the factory premises of plaintiff to assess the plaintiff's eligibility.;


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