BHARTIYA KHADYA NIGAM COOPERATIVE L AND C SOCIETY LIMITED Vs. FOOD CORPORATION OF INDIA AND ORS.
LAWS(P&H)-2000-2-108
HIGH COURT OF PUNJAB AND HARYANA
Decided on February 08,2000

Bhartiya Khadya Nigam Cooperative L And C Society Limited Appellant
VERSUS
Food Corporation Of India And Ors. Respondents

JUDGEMENT

M.L. Singhal, J. - (1.) VIDE order dated 10th November, 1998, Additional Civil Judge (Senior Division), Ambala Cantt. refused temporary injunction to the plaintiff (the Bhartiya Khadya Nigam Cooperative L&C Society Limited, Naraingarh) restraining the Food Corporation of India (FCI) from floating tenders for handling and transport work, for Barara centre and for negotiations and allotting the above said work to any person other than the plaintiff -society without entering into negotiations with the plaintiff society for rates and allotment of HTC work.
(2.) AGGRIEVED , plaintiff society went in appeal. District Judge, Ambala refused to interfere with the exercise of discretion by the Additional Civil (Senior Division), Ambala Cantt. and dismissed the appeal. Still not satisfied, the plaintiff society has knocked the door of this Court through this revision. Facts: - Plaintiff society is a labour cooperative society formed by the labourers working in depot Barara under the guidelines of the Food Corporation of India and had been approved by it. It had been working for executing HTC work on negotiated rates for 4 years. HTC work was allotted to this labour cooperative society vide circular No. 1.R. (L8)2.B/93 July 27, 1994. As per its clause 3, FCI had directed its District Manager/Assistant Manager that HTC work shall be carried through such approved societies only in the depot whose labourers form such society on mutually negotiated rates, terms and conditions. Plaintiff society fulfilled all the norms of such society and it had been approved by the FCI and, therefore, FCI was bound to allot HTC work to the plaintiff society on negotiated rates, terms and conditions. FCI has ignored that circular and have started embarking upon floating the tenders for HTC work. On these allegations, the plaintiff society filed suit for permanent injunction restraining the defendant FCI from floating the tenders for handling and transport work for Barara centre and for negotiations and for allotting the said work to any other person than the plaintiff society without entering into negotiations with the plaintiff society for rates and allotment of the HTC work. Defendant FCI's case, on the other hand, was that the concessions given by circular dated 27.7.1994 were not workable and beneficial to the FCI and vide circular No. IRL/8/28/93 -V2II dated 21/22.11.1996 issued by the FCI headquarters, New Delhi the said concessions have been withdrawn with immediate effect.
(3.) VIDE circular dated 27.7.1994, the FCI had given the following concessions to the labour cooperative societies: - 1(a) that FCI will directly allot handling and transport work to labour cooperative societies without calling tenders; (b) such cooperative societies who are exempted from the deposit of earnest money and security; (c) the allotment of contract will be made on the basis of prevailing market rate after negotiating with such societies.;


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