FOOD CORPORATION OF INDIA Vs. MITTAL TRADING COMPANY
LAWS(P&H)-2012-11-140
HIGH COURT OF PUNJAB AND HARYANA
Decided on November 06,2012

FOOD CORPORATION OF INDIA Appellant
VERSUS
Mittal Trading Company Respondents

JUDGEMENT

- (1.) Defendant No. 1 Food Corporation of India (FCI) is in second appeal. Suit was filed by respondent-plaintiff M/s Mittal Trading Company against FCI and its authorities for recovery of earnest money deposited by the plaintiff with FCI for lifting of wheat as per scheme of FCI. Vide acceptance letter dated 9.1.2003, wheat was allotted to the plaintiff, the plaintiff had deposited earnest money with application for purchasing the wheat stock. After acceptance letter dated 9.1.2003, the plaintiff deposited Rs. 1,39,60,128/- on 29.1.2003 as price of the wheat stock and accordingly release order dated 29.1.2003 was issued. The wheat was to be lifted within 30 days from the acceptance letter dated 9.1.2003 i.e. upto 8.2.2003.
(2.) Plaintiffs case is that the wheat had to be loaded by labour engaged by FCI in the trucks of the plaintiff. The plaintiff alleged that the defendants had not engaged sufficient labour for loading of wheat of different buyers. The plaintiff, therefore, sent letter dated 2.2.2003 to defendant No. 3 for change of depot for lifting of wheat stock but to no effect. The plaintiff, therefore, could not lift wheat stock upto the stipulated date. The defendants refunded the price of the wheat stock to the plaintiff but failed to refund the earnest money deposited by the plaintiff amounting to Rs. 13,92,000/-. The plaintiff by filing suit sought refund of the said earnest money.
(3.) The defendants while admitting acceptance letter dated 9.1.2003 and release order dated 29.1.2003 pleaded that wheat was to be loaded by labour of Markfed and not by labour of FCI. Receipt of letter dated 2.2.2003 from the plaintiff was denied. Lapse of the plaintiff was pleaded because the plaintiff deposited the cost of wheat after 20 days of the acceptance letter. It was, thus, pleaded that earnest money is not liable to be refunded to the plaintiff.;


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