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2008 DIGILAW 821 (ORI)

B. K. FOOD PRODUCTS (P) LTD. v. UNION OF INDIA (UOI)

2008-09-10

M.M.DAS

body2008
JUDGMENT : M.M. Das, J. - Heard Mr. S.C. Lal, learned Counsel for the Petitioners, Mr. Lalatendu Jena, learned Counsel for the Union of India and Mr. N.M. Mohapatra, learned Counsel appearing for the State. 2. The Petitioner No. 1 is a custom miller, who is required to procure paddy from the farmers on payment of the minimum support price and after milling, delivered the rice to the Food Corporation of India and other governmental agencies, in each Kharif year, which commences from 1 st October of the year and ends on 30th September of the following year. The Government of India in its Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & public Distribution fixes the maximum limit of percentage of paddy to be considered as damaged, discoloured, sprouted and weevilled grains and the maximum limit in respect of immature, shrunken and shriveled, which may be allowed for the particular Kharif year. It also fixes the out Turn Ratio (OTR) of raw and par-boiled rice obtained from Under Relaxed Specification (URS) paddy. It is the admitted case of the parties that for the State of Orissa, relaxation is allowed towards such quality of paddy, which is inferior to the Fair Average Quality (FAQ) determined by the said Ministry. The grievance of the Petitioners in this writ petition is that though the percentage, which was allowed towards such damaged, discoloured, sprouted and weevilled etc. paddy in the Kharif year 2005-06, 2006-07 and 2007-08 has remained constant at 5% but for the Kharif year 2007-08, the OTR of raw and par-boiled rice obtained from such URS paddy has been reduced by 1 % from the FAQ standard rice. According to the Petitioners, such reduction by 1 % in effect requires the millers to return 1 % more rice than what they were to return after milling of paddy in the previous Kharif year. 3. Mr. Lal, learned Counsel for the Petitioners also draws the attention of the Court to Annexue-6, which is a report of the trial milling of the paddy conducted at different rice mills at Orissa for determining the Out Turn Ratio of rice, such as the Central Rice Research Institute, Cuttack, Food Corporation of India, Bhubaneswar and Department of Food and Consumer Welfare, Government of Orissa. The said Annexure-6 shows that on trial milling in different rice mills, the average out turn for raw common group of paddy was 64.81% and for par-boiled group of paddy 66.30%, whereas as per the decision of the Government of India under Anneuxure-3 by reducing the OTR for URS, paddy by 1% from that for FAQ paddy the millers are now required to return 66 and 67% respectively of raw rice and par boiled rice, which appears to be impractical as per the trial milling report under Anneuxre-6. 4. The learned Counsel for the Union of India, however, submits that Anneuxre-6 relates to the Kharif year 2004-05 and, therefore, the said annexure is not relevant to the facts of the present case. A counter affidavit has been filed by the Union of India, wherein a stand has been taken that for the Kharif year 2007-08 as per the specification made under Anneuxure-A/1, 3% was the maximum limit fixed for damaged, discoloured, sprouted and weevilled grains of paddy and 2% was the maximum limit fixed for damaged, slightly damaged grains of rice. Subsequently, on the request of the State Government, reconsidering the same, the percentage was increased to 3% in each of the categories and again the same was increased to 4% and then to 5%, as shown in Annexure-3 to the writ petition. With regard to the decrease of out turn ratio from the last year from 2% to 1 % which, in effect, amounts to increase in return of rice by 1% that is at the rate of 67% and 68% for raw rice and par-boiled rice it is submitted that this percentage is fixed for all States uniformly and this fixed ratio is continuing since the Kharif Marketing Season 199596 onwards on the basis of trial milling of paddy conducted by reputed research institutes like CFTRI, Mysore and PPRC, Thanjavur and IIT Kharagpur in the year 1993-94. During the period 1993-94, trial milling of paddy in respect of Orissa was also conducted by IIT, Kharagpur and the average out turn ratio was found to be 68.8% for raw rice and 70.60% for par-boiled rice. Much thereafter again in the year 2004-05, on the request of various State Governments, fresh trial milling of paddy was conducted by F.C.I. through reputed institutions and such trial milling was conducted during this period at CRII, Cuttack for the State of Orissa. Much thereafter again in the year 2004-05, on the request of various State Governments, fresh trial milling of paddy was conducted by F.C.I. through reputed institutions and such trial milling was conducted during this period at CRII, Cuttack for the State of Orissa. The average out turn ratio for raw rice was 64.35% and for par-boiled rice 66.66%. The one per cent reduction in OTR for the Kharif 2007-08 is stated to be statistical proportionate against the quality refraction of paddy for the year 2007-08 and the same cannot be compared with the previous years. 5. Considering the respective cases of the parties and submissions made before this Court, it appears that when there is no change in the percentage of the proportion of paddy per quintal and there is no plausible reason assigned as to why the out turn ratio was reduced by 1 % from 2% of OTR for FAQ and there is absence of pleading in the counter affidavit that there was a trial milling done for the Kharif year 2007-08, this Court finds that reducing the percentage of out turn ratio to 1% from the OTR for FAQ, which, in effect, amounts to compelling the Petitioner-millers to deliver 1% more rice than the previous Kharif year is not based on any reasons and, therefore, the said decision of reduction, as given in Clause-3, Paragraph-2 of Annexure-3, is unsustainable. 6. This Court, therefore, has no hesitation to quash the said decision of the Union of India in its letter dated 21.11.2007 under Annexure-3 to the writ petition, and it is ordered accordingly. In the absence of any reason for the above decision, which has been quashed, this Court directs that the out turn ratio which was prevailing for the Kharif year 2006-07 at 2% less than the Out Turn Ration for FAQ paddy shall be maintained for the Kharif year 2007 08. 7. The writ petition is accordingly allowed but in the circumstances without cost. Final Result : Allowed