M.M. Kumar, J. - (1.) THIS order shall dispose of a bunch of Letters Patent Appeals* filed under Clause X of the Letters Patent. All the appeals are directed against the common judgment dated 6.2.2009 rendered by the learned Single Judge while disposing of a number of writ petitions.
(2.) THE writ Petitioner -Respondent(s) are the Rice Millers working in the State of Punjab and they approached this Court with a prayer for quashing letter dated 27.8.2007 issued by the Union of India, Ministry of Consumer Affairs, Food and Public Distribution (P -1). The aforesaid letter has led to the issuance of recovery notices dated 5.11.2007. The letter dated 27.8.2007 seeks to revise the earlier circular dated 20.12.2006 and full value cut has been imposed on the levy rice. In the present case we are concerned with the paddy for levy rice which is directly purchased by the Rice Shellers themselves from the market/farmers. The purchase or allocation of paddy is governed by various statutory orders issued from time to time by the Central or the State Government under the Essential Commodities Act, 1955. For the Kharif Marketing Season (KMS) 2006 -07, the Government of India fixed the following prices of levy rice, vide its order dated 3.10.2006: (' per quintal ) Variety RawRice Par -boiled Common 1092.10 1092.00 Grade -A 1141.70 1140.80 The Rice Millers requested for relaxation in the aforesaid specification in respect of damaged or discoloured grain because according to them the levy rice was moisturised due to excessive rains and was far below the fair average quality. The Chief Secretary to Government of Punjab, vide D.O. letter dated 18.12.2006, expressed the opinion that the demand for relaxation by the Millers in respect of the damaged and discoloured specification of rice may be considered without imposing value cut and he requested the authorities to render its decision expeditiously. This recommendation led to the issuance of letter dated 20.12.2006, which relaxed the specification of rice during 'KMS 2006 -07' in relation to the State of Punjab. The aforesaid letter reads thus: I am directed to refer your DO No. PS -CS/06/2174 dated 18.12.2006 on the subject cited above and to state that as per the approved principle any relaxation even without any relaxation/reduction in OTR has to be with value cut, which is being followed uniformly in respect of all the States. Last year also, in respect of Punjab, the financial burden shared on 50 -50 basis between the Government of India and the State Government had accounted for relaxation granted in paddy/rice. Accordingly, the proposal received from Govt. of Punjab has been examined and following relaxations in specifications of rice for CMR as well as levy have been allowed for the current KMS 2006 -07. - Rice having additional 1% damaged/slightly damaged grains in respect of raw rice and additional 0.5% in respect of par boiled rice may be accepted over and above the maximum limit under uniform specification. - Rice having additional 2% discoloured grains in respect of raw rice and 1% in respect of par boiled rice may be accepted. The value cut in respect of rice delivered under relaxed specifications has been worked out by imposing a token value cut, as a special case, in public interest and should not be cited as precedent in the future. The Department would have no objection if a portion of the loss incurred by the State Government is passed on to the millers. Value cut for rice under relaxed specifications (a) CMR - (i) Raw rice (Grade 'A') Rs. 5.74 per quintal and (Common) Rs. 5.48 per quintal (ii) Parboiled rice (Grade 'A') Rs. 5.68 quintal and (Common) Rs. 5.43 per quintal. (b) Levy rice - (i) Raw rice (Grade 'A') Rs. 5.71 per quintal and (Common) Rs. 5.46 per quintal (ii) Parboiled rice (Grade 'A') Rs. 5.70 per quintal and (Common) Rs. 5.46 per quintal. Rice conforming to uniform specifications would continue to be accepted by the FCI as per the costing sheet already communicated and it is expected that most deliveries would take place without the aforesaid relaxations.
(3.) IT has come on record that the writ Petitioner -rice millers supplied the milled rice as per the relaxation specified in the letter dated 18.12.2006. Even payments have also been made to them in accordance with the terms of that letter. It was after about period of nine months that the Union of India issued another decision dated 27.8.2007 (P -1) revising the decision dated 20.12.2006. According to the aforesaid letter the relaxation in value cut so far it pertains to levy rice, has been withdrawn and value cut originally determined vide circular dated 3.10.2006 has been imposed. As a result, recovery notices have been issued to the rice millers by the Food Corporation of India and other procurement agencies operating in the State of Punjab.;