GOPAL RICE MILLS Vs. UNION OF INDIA
LAWS(P&H)-2011-8-16
HIGH COURT OF PUNJAB AND HARYANA
Decided on August 10,2011

Gopal Rice Mills Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

K.KANNAN,J. - (1.) ALL the writ petitions contain the same prayer seeking for quashing of the order issued on 28.11.2007 (Annexure P-10) by the Food Corporation of India, stating that the rice supplied to them after milling had been of substandard quality and calling upon them to replace the substandard rice delivered during KMS 2004-05 within a stipulated period. The notice also states that if the replacement had not been done as demanded, the respective petitioners would be blacklisted that would mean the bar of dealing in future with the respective milling Companies. By a subsequent notice issued on 22.12.2008 (Annexure P-14), the respective supplies of the petitioners had been found beyond PFA (Prevention of Food Adulteration) limits. The losses ascertained by resales of the grains themselves were set forth through the said notices and the amounts were called upon to be deposited within a stipulated period.
(2.) THE contention of all the petitioners in the respective cases is that, when the goods had been made ready and dispatched to the authorities, they were all weighed and certified by officers of the Food Corporation of India as conforming to the standard quality and they could not turn around and inform after nearly 2 years that there had been any defects in the goods that could quality for a categorization either as BRL (Below Rejection Limit) or under PFA. The petitioners would rely on the procedure for assessing the quality of the goods supplied, in the manner of taking samples and carrying out the investigation regarding the quality of grains supplied. In particular, the petitioners rely on the provisions of the Punjab Rice Procurement (Levy) Order, 1983, (for short, 'the Order, 1983'), that contain the procedure for custom milling of paddy not belonging to the miller after the procurement is done and setting out specification for the rice to be supplied after milling. The provision relating to delivery of levy rice, sub-clause (4) of Clause 7 spells out as follows:- "(4) Three samples of rice shall be taken jointly by the authorized representatives of the Government and Food Corporation the present of licensed miller or licensed dealer or his authorized agent. Out of the three samples, one sample shall be handed over to the licensed miller or licensed dealer or his authorized agent. The other two samples shall be sent to the Food grains Laboratory established by the Government out of which one sample shall be analyzed jointly by the Government Analyst and the authorized Analyst of the Food Corporation in the said Laboratory and the said sample shall be retained therein." This procedure shall be done at the time of delivery of paddy and it is not denied that the stocks had been taken by the officials of the Food Corporation of India and duly certified as conforming to the requisite standards. If any of the samples taken did not conform to the standards after an analysis by the Government Analyst and the authorized Analyst of the Food Corporation of India, the same shall be informed to the miller and if the miller disputed the correctness of the result, the Director or an officer duly authorized by him not below the rank of District Food and Supplies Controller, shall arrange to get the other samples retained in the Laboratory, re-analyzed in the present of the representative of the Government. The procedure as prescribed is set through sub-clause (8) of Clause 7 of the Order, 1983 as applicable to the delivery of custom milled rice of the Government and of its agencies. The first contention of the petitioners was, therefore, to show that, before any stock could be termed to be BRL or beyond PFA limits, the fair procedure as prescribed ought to be followed that would enable a miller, who is aggrieved about an assessment report to challenge the correctness of the report to have the analysis done repeated in the manner provided under the Order. The uniform specifications for Grade-A and common rice are prescribed under the Prevention of Food Adulteration Act through periodical notifications. They give the analysis procedure of how to ascertain the quality of grains and the method of sampling to be followed as given by the Bureau of Indian Standard (BIS) method of sampling of cereals and pulses. In particular, they show that - brokens' less than 1/8th of the size of full kernels would be treated as organic foreign matter and inorganic foreign matter shall not exceed 0.25% in any lot. In case of rice prepared by pressure parboiling technique, it will be ensure that correct process of parboiling is adopted and free from encrustation of the grains. Referring to specific guidelines and for sampling and analysis procedure for the marketing season 2001- 02 which is supposed to have been repeated for the subsequent kharif season as well, the learned counsel appearing on behalf of the petitioners points out to clauses 6 and 8 in particular that deals with the manner of recording the moisture content in the acceptance of rice stocks as constituting the final and binding declaration relating to the quality. The said clauses are, therefore, reproduced hereunder:- "6. The moisture content shall be recorded by the Technical Assistant for the lots accepted at the time of acceptance of stocks in the depot, which will be final for all purposes. Moisture meters calibrated for different commodities, raw and parboiled rice etc. should be used at the rice acceptance points. 8. As the acceptance of rice stocks at depot level by Technical Assistant or by A.M.(QC) in the absence of Technical Assistant is final and binding, the quality certificate, acceptance note will be signed by TA or AM (QC) himself and will form the basis along with other relevant documents for release of payment by the District Office." Similar guidelines have been issued also on 14.10.2005 relating to the procedure for acceptance/purchase of rice stocks during Kharif Marketing Season 2005-06. They contain substantially similar provisions and they are not, therefore, reproduced. It cannot be denied that the procurement order and the scheme for custom milling for various years issued out turn ratio for conversation of paddy into rice. The agreement would also specify the last date from when all the supply had to be made after successfully milling the paddy.
(3.) WHEN the impugned notice was issued on 28.11.2007 (Annexure P-10) by the Food Corporation of India, complaining of supply of poor quality of rice that fell below the acceptable standards and when the respective petitioners were required to give the replacement of the alleged substandard rice during the KMS 2004-05, it had immediately elicited responses from the petitioners that they all had been received by the Food Corporation of India after due verifications and it had never been complained immediately that there was any defect in the goods supplied. The petitioners would turn the charge on the Corporation to state that the foodgrains would undergo changes during storage due to various biological and atmospheric conditions during storage and it must be only on account of poor storage procedures adopted by the Food Corporation of India after they had been delivered to it. The Food Corporation of India had engaged the respective petitioners in a series of communication that included a further notice issued on 22.12.2008 (Annexure P-14), that stocks deliveries had been found beyond PFA limits and due opportunity had been provided to the petitioners for inspection/joint analysis of the stocks. It is not very clear from the tender sales of the stocks that were invited through the notice dated 22.12.2008 as to when the stocks had been offered for inspection or joint analysis.;


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