{"id":264728,"date":"2022-03-30T11:00:28","date_gmt":"2022-03-30T05:30:28","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=264728"},"modified":"2022-04-01T08:33:27","modified_gmt":"2022-04-01T03:03:27","slug":"principle-of-natural-justice","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/30\/principle-of-natural-justice\/","title":{"rendered":"P&#038;H HC | Principle of Natural Justice demands petitioner-miller to be associated with stock verification by Food Corporation of India; physical verification set aside"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Punjab and Haryana High Court:<\/strong> The question before Jaishree Thakur J., was whether physical verification conducted by Food Corporation of India was arbitrary, incomplete and in violation of principles of natural justice when the agreement of the petitioner was made with Punjab State Co-operative Supply &amp; Marketing Federation Ltd. (MARKFED).<\/p>\n<p style=\"text-align: justify;\">Petitioner-miller had been allotted paddy for custom milling under the policy framed by the Government of Punjab. An agreement was signed between the petitioner and MARKFED. As per the agreement the petitioner was bound to deliver the resultant rice to the Food Corporation of India (FCI) within the prescribed period. However, the period of delivery was extended and the Government of India while allowing the extension imposed a condition that the Food Corporation must ensure that the paddy was physically available on the premises of the miller before accepting the consignment. The Branch Manager of the FCI along with other members visited the mill for physical verification of stock. As per the physical verification done, it was reported that 57713 bags of rice were short in the mill premises.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0<em>Submissions<\/em>:<\/span><\/h4>\n<ul style=\"text-align: justify;\">\n<li>The petitioner vehemently contended that the physical verification was conducted arbitrarily and part of the stock was lying in another unit of the petitioner was not taken into consideration. It was further submitted that Food Corporation of India allowed the delivery of rice only to the extent of 760 MT paddy and did not accept the rice out of the paddy allegedly found short to the tune of 57713 bags whereas, the said paddy was not short, but was lying in the processing unit, godown and transferred to another unit for fortification of the rice.<\/li>\n<li>No proper representative was present from the side of the petitioner during the verification which makes it improper. The petitioner requested a fresh verification by writing it to the MARKFED and other respondents.<\/li>\n<li>It was submitted that thereafter on, a physical verification was done by the MARKFED through its In-charge, as per which there was no shortfall.<\/li>\n<li>Petitioner insisted that agreement was signed only between the petitioner and the MARKFED and MARKFED being satisfied with the petitioner&#8217;s storage of paddy, there can be no case for the FCI to intrude into the bilateral and inter-se relationship between the petitioner and the procuring agency.<\/li>\n<li>On the contrary FCI submitted that the physical verification conducted on the petitioner&#8217;s mill was by the team constituted after following the due procedure including the representative of the MARKFED. It was a special physical verification, as such; the miller was not required to be intimated in advance.<\/li>\n<li>It was contended that the petitioner-miller was taking different pleas for non-availability of the stock at the time of physical verification, which being disputed questions of facts, cannot be accepted in the writ jurisdiction.<\/li>\n<li>MARKFED submitted that in terms of Clause 16 of the policy, the physical verification was to be done fortnightly and as per Clause 16(v) of the policy, when the physical verification was to be done, the miller\/his authorized representative has to be associated and they were to sign the physical verification report. However, MARKFED doubted FCI\u2019s procedure while conducting the verification. Requirements of Clause 16 were not duly followed by FCI.<\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><em>Decision and Analysis<\/em>:<\/span><\/h4>\n<p style=\"text-align: justify;\">The Court analysed the stand of the MARKFED that the physical verification is done by the MARKFED at its level after every fourteen days and in the instant case, the last physical verification was done 3 days before the physical verification done by the FCI and even at that time, the stocks were found intact and there was no shortfall.<\/p>\n<p style=\"text-align: justify;\">It was found that no prior intimation was provided to the petitioner which violated Clause 16 of the agreement. Also, no proper representative was present at the time of verification. It was also found that in the subsequent verification the stock was intact and no discrepancy was found. The Court while applying the principles of natural justice found that at time of verification it was the right of the petitioner to be present.<\/p>\n<p style=\"text-align: justify;\">The Court observed that, \u201c<em>The petitioner has a privity of contract with the procurement agency and is bound by the terms and conditions therein. As per clause 16 of the policy, the physical verification report is to be signed by the miller, which signatures are not available in the instant case when FCI did its own physical verification of stock available at the petitioner&#8217;s Mill. Even the rules of natural justice would demand that a person would be associated at the time of doing any stock verification<\/em>.\u201d<\/p>\n<p style=\"text-align: justify;\">The impugned verification was held unsustainable.[Gurdial Mal\u00a0 v. Union of India, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/qpRw2EA3\"><b>2022 SCC OnLine P&amp;H 764<\/b><\/a>, decided on 25-03-2022]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Appearances:<\/strong><\/p>\n<p style=\"text-align: justify;\">Mr. Sushant Kareer, Advocate for the petitioner.<\/p>\n<p style=\"text-align: justify;\">Mr. Kanisth Ganeriwala, AAG Punjab.<\/p>\n<p style=\"text-align: justify;\">Mr. K.K. Gupta, Advocate for the FCI.<\/p>\n<p style=\"text-align: justify;\">Mr. A.P.S. Mann, Advocate for the MARKFED.<\/p>\n<hr \/>\n<h4><span style=\"color: #993300;\">Aastha Sharma, Editorial Assistant has reported this brief.<\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Punjab and Haryana High Court: The question before Jaishree Thakur J., was whether physical verification conducted by Food Corporation of India was <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[29556,2805,48997,46458],"class_list":["post-264728","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-fci","tag-natural_justice","tag-physical-verification","tag-stock"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>P&amp;H HC | Principle of Natural Justice demands petitioner-miller to be associated with stock verification by Food Corporation of India; 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Orissa HC discusses","author":"Editor","date":"June 2, 2021","format":false,"excerpt":"Orissa High Court: A Division Bench of S. Muralidhar CJ. and B. P Routray J. dismissed the petition on grounds discussed below. The facts of the case are such that the Food Corporation of India i.e. `FCI (Opposite 1 and 2) being the nodal organization of the Government of India,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":217142,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/07\/22\/ph-hc-no-substantive-issue-raised-when-parties-at-consensus-to-resolve-the-matter-with-the-competent-authority\/","url_meta":{"origin":264728,"position":2},"title":"P&#038;H HC | No substantive issue raised when parties at consensus to resolve the matter with the competent authority","author":"Bhumika Indulia","date":"July 22, 2019","format":false,"excerpt":"Punjab and Haryana High Court: A Division Bench of Krishna Murari, C.J and Arun Palli, J. disposed of the writ petition after the consensus was drawn between the parties to present the case in front of the competent authorities. A writ in the nature of mandamus was sought for commanding\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222620,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/28\/cabinet-approves-big-increase-in-authorized-capital-of-food-corporation-of-india-from-rs-3500-crore-to-rs-10000-crore\/","url_meta":{"origin":264728,"position":3},"title":"Cabinet approves big increase in authorized capital of Food Corporation of India from Rs 3,500 crore to Rs 10,000 crore","author":"Bhumika Indulia","date":"November 28, 2019","format":false,"excerpt":"The Cabinet Committee on Economic Affairs approved to increase the authorized capital of Food Corporation of India (FCI) from existing Rs 3,500 crore to Rs 10,000 crore. With the increase of authorized capital, additional equity capital can be infused in FCI through Union Budget, to fund the foodgrains stock, perpetually\u2026","rel":"","context":"In &quot;Cabinet Decisions&quot;","block_context":{"text":"Cabinet Decisions","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/cabinet_decisions\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/NPIC-201911622449.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/NPIC-201911622449.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/NPIC-201911622449.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/NPIC-201911622449.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/NPIC-201911622449.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":210314,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/02\/19\/pat-hc-petitioner-unable-to-provide-explanation-regarding-rice-gunny-bags-bearing-fci-logo-and-tag-charges-under-essential-commodities-act-sustained\/","url_meta":{"origin":264728,"position":4},"title":"Pat HC | Petitioner unable to provide explanation regarding rice gunny bags bearing FCI logo and tag; charges under Essential Commodities Act sustained","author":"Bhumika Indulia","date":"February 19, 2019","format":false,"excerpt":"Patna High Court: The Bench of Ahsanuddin Amanullah, J. dismissed an application seeking relief in the matter wherein cognizance of the offence had been taken under Section 7 of the Essential Commodities Act. The facts of the case are that the petitioner in the godown run by him had a\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":298180,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/08\/01\/no-one-suffer-inaction-police-verification-document-passport-issuance-calcutta-hc-scc-blog-news\/","url_meta":{"origin":264728,"position":5},"title":"No one should suffer indefinitely due to inaction in police verification for passport issuance: Calcutta High Court","author":"Ritu","date":"August 1, 2023","format":false,"excerpt":"Calcutta High Court decided whether the delay in issuing the passport is due to a lack of verification by the police authorities or if there are genuine concerns regarding the citizenship proof submitted by the petitioner.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/264728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=264728"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/264728\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=264728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=264728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=264728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}