Civil Writ Petition No.7977 of 2007. -1- In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.7977 of 2007. Date of decision:January 8 ,2008. Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited,Kurali and others. ...Petitioners. Versus State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr.Justice Satish Kumar Mittal. Hon'ble Mr.Justice K. C.Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Ms.Deepali Puri, Advocate for respondent No.6. Mr. Vikram Walia Advocate for respondent No.7. ... K. C. Puri, J. Judgment. This judgment will dispose of Civil Writ Petition Nos. 7977 of 2007, 14372 of 2007, 14380 of 2007, 14492 of 2007, 14527 of 2007,14584 Civil Writ Petition No.7977 of 2007. -2- of 2007,14709 of 2007,14767 of 2007, 14808 of 2007,15026 of 2007,15399 of 2007, 15493 of 2007, 15705 of 2007, 15756 of 2007, 15819 of 2007 and 16160 of 2007 as common questions of fact and law are involved in all these writ petitions. Facts have, however, been extracted from Civil Writ Petition No.7977 of 2007. Challenge in these writ petitions is to the orders of recovery in respect of difference of cost of Surplus Gunny Bags (Bardana) retained by the petitioners during the years 1997-1998 to 2004-2005. The petitioners are rice shellers in the State of Punjab. There are two modes of procurement of rice in the State in the common pool. First is the paddy purchased by the State and its Agencies which is got milled from the petitioners (millers) and the same is called Custom Milled Rice and second is 75% of rice from the paddy purchased by the millers from the open market under Levy Control Order called Levy Rice. The paddy purchased by the State and its Agencies is supplied to the millers in bags. The resultant rice which is about 67% of the paddy supplied by the State Agencies is returned by the petitioners to the State through various Agencies. 33% of the bags, in this manner, become surplus. The price of these gunny bags (Bardana) is to be paid by the petitioners to the respondents. The provisional rates of these gunny bags fixed by the State have been paid by the millers to the State and its Agencies after the completion of paddy season. State and its procuring agency reserved its right to claim difference of rates in provisional price of gunny bags and final price of gunny bags. The rates of once used gunny bags have been declared to be 60% of the cost of gunny bags supplied to the millers. According to the case of the petitioners, they have paid 60% of the price of these gunny Civil Writ Petition No.7977 of 2007. -3- bags to the State or its Agencies but the State and its Agencies have fixed excessive final rates of gunny bags. The act of the respondents and its Agencies is, thus, illegal. Once the price of the gunny bags has been paid, the State and its Agencies are not entitled to claim any extra amount in respect of gunny bags. The recovery notices/show cause notices issued, directing the petitioners, to pay more price of the gunny bags are illegal and directions have been sought to quash those orders regarding the recovery of extra price of the gunny bags. The State and its Agencies cannot claim extra amount in respect of gunny bags for the period 1997-1998 to 2004-2005 as detailed above. Representations have been made by the petitioners to the respondents not to claim extra price of the gunny bags but in vain. Hence these Civil Writ Petitions. Notices were issued to the respondents. Written replies have been filed in some of the writ petitions and the same have been adopted in the other writ petitions as per statements made by the counsel for the respondents. The respondents have resisted the claim of the petitioners. It has been pleaded in the written replies that the Food Civil Supplies & Consumers Affairs, Punjab had issued directions amongst others to the Food Corporation of India to recover the difference of the cost of surplus gunny bags retained by the petitioners @ 60% of the cost of gunny bags used for custom milling of paddy (instead of 60% of the cost of gunny bags used for supply of levy rice by the millers). The Food Corporation of India is recovering the amount in accordance with the said directions. Only the difference between provisional rates of gunny bags and final rates of gunny bags is being recovered. We have heard counsel for both sides and have gone through Civil Writ Petition No.7977 of 2007. -4- the record of the case. From the submissions made by both sides, the following difference in the opinion of the petitioners and the respondents has arisen:- “Whether 60% of the cost of gunny bags used for custom milling of paddy could be charged instead of 60% of the cost of gunny bags used for supply of levy rice by the millers? The facts of the case are not in dispute. The State or its Agencies under the Custom Milling have supplied paddy to the millers for milling the paddy. The resultant rice of the paddy is 67% of the total paddy supplied. 33% of the gunny bags, in this manner, become surplus with the millers and the millers have to pay the price of those gunny bags. It is also not disputed that 60% of the cost of gunny bags is to be paid by the millers to the State or its Agencies in respect of gunny bags used for the first time. In this manner, 40% of the value of gunny bags is depreciated in the use of gunny bags. It is also not disputed that the millers have paid the provisional price fixed by the State or its Agencies. The State and its Agencies have now demanded difference of provisional rate and final rate of gunny bags fixed by the Food Civil Supplies & Consumers Affairs, Punjab. The demand of the millers that the State or its Agencies or the FCI can only recover the price of gunny bags as applicable to the levy rice milling is without any basis. There are two methods of recovery of rice by the FCI from the millers. One method is regarding delivery of resultant rice in respect of paddy supplied by the State or its Agencies for custom milling and the other method is the levy rice supplied by the millers to the FCI which is 75% of the total purchase made by the millers from the open market. Both these methods are altogether different. It cannot be said that same price of gunny Civil Writ Petition No.7977 of 2007. -5- bags should be applicable to the balance gunny bags with the millers in respect of custom milling and in respect of levy rice delivery by the petitioners. The petitioners have themselves pleaded that provisional rates of Bardana were paid by the millers. There is nothing wrong in the recovery of the difference of rate between provisional and final rates of Empty Gunny Bags (Bardana) by the State from the millers. In the light of above discussion, no case for interference is made out. Consequently, all the above writ petitions stand dismissed. ( K. C. Puri ) Judge January 8 ,2008. ( Satish Kumar Mittal ) Jaggi Judge Civil Writ Petition No.7977 of 2007. -6- In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.14372 of 2007. Date of decision: January ,2008. Luxmi Rice & General Mills and others. ...Petitioners. Versus State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Ms.Deepali Puri, Advocate for respondent No.6. Mr. Rupam K.Aggarwal for Mrs. Ritam Aggarwal Advocate for respondent No.7. Civil Writ Petition No.7977 of 2007. -7- ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.14380 of 2007. Date of decision: January ,2008. M/s Friends Rice Mills Gram Udyog Samiti (Regd.) ...Petitioner. Versus State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. Kranti Dhir Advocate for the petitioner. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Civil Writ Petition No.7977 of 2007. -8- Ms.Deepali Puri, Advocate for respondent No.6. Mr.Somesh Gupta Advocate for respondent No.7. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.14767 of 2007. Date of decision: January ,2008. National Rice Mills and others. ...Petitioners. Versus State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. Aman Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Civil Writ Petition No.7977 of 2007. -9- Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Ms.Deepali Puri, Advocate for respondent No.6. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.14709 of 2007. Date of decision: January ,2008. M/s. Hargobind Rice Mills and others. ...Petitioners. Versus State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Civil Writ Petition No.7977 of 2007. -10- Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Ms.Deepali Puri, Advocate for respondent No.6. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge Civil Writ Petition No.7977 of 2007. -11- In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.15026 of 2007. Date of decision: January ,2008. Nanak Rice Mills and others. ...Petitioners. Versus State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Civil Writ Petition No.7977 of 2007. -12- Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Ms.Deepali Puri, Advocate for respondent No.6. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.14584 of 2007. Date of decision: January ,2008. Hari Rice Mills and others. ...Petitioners. Versus State of Punjab and others. ...Respondents. ... Civil Writ Petition No.7977 of 2007. -13- Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Ms.Deepali Puri, Advocate for respondent No.6. Mr. Vikram Walia Advocate for respondent No.7. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.14527 of 2007. Date of decision: January ,2008. M/s. Bajaj Industries. ...Petitioner. Versus State of Punjab and others. ...Respondents. Civil Writ Petition No.7977 of 2007. -14- ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. P.S.Khurana Advocate for the petitioner. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Ms.Deepali Puri, Advocate for respondent No.4. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.15493 of 2007. Date of decision: January ,2008. Arun Rice Mills and another. ...Petitioners. Versus State of Punjab and others. Civil Writ Petition No.7977 of 2007. -15- ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Mr.B.S.Walia Advocate for respondent No.4. Mr.Gurminder Singh Advocate for respondent No.5. Ms.Deepali Puri, Advocate for respondent No.6. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.15819 of 2007. Date of decision: January ,2008. Janta Rice Mills. ...Petitioner. Versus Civil Writ Petition No.7977 of 2007. -16- State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioner. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Ms.Deepali Puri, Advocate for respondent No.4. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.15705 of 2007. Date of decision: January ,2008. Super Rice Mills. ...Petitioner. Civil Writ Petition No.7977 of 2007. -17- Versus Union of India and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioner. Ms. Charu Tuli, Senior DAG Punjab for respondent No.2. Mr.A.R. Takkar, Advocate for respondent No.3. Mr.Gurminder Singh Advocate for respondent No.4. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.15756 of 2007. Date of decision: January ,2008. Janta Rice Mills and others. Civil Writ Petition No.7977 of 2007. -18- ...Petitioners. Versus Union of India and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent Nos.2 & 3. Mr.Gurminder Singh Advocate for respondent No.5. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.16160 of 2007. Date of decision: January ,2008. Civil Writ Petition No.7977 of 2007. -19- Goyal Enterprises and others. ...Petitioners. Versus Union of India and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.2. Mr.A.R. Takkar, Advocate for respondent No.3. Mr.Gurminder Singh Advocate for respondent No.4. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.7977 of 2007. -20- Civil Writ Petition No.14808 of 2007. Date of decision: January ,2008. M/s. Excellsior Rice & General Mills ...Petitioner. Versus State of Punjab and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. P.S.Khurana Advocate for the petitioner. Ms. Charu Tuli, Senior DAG Punjab for respondent No.1. Mr.A.R. Takkar, Advocate for respondent No.2. Ms.Deepali Puri, Advocate for respondent No.4. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge Civil Writ Petition No.7977 of 2007. -21- In the High Court of Punjab and Haryana at Chandigarh. Civil Writ Petition No.15399 of 2007. Date of decision: January ,2008. Kailash Oil Mills and others. ...Petitioners. Versus Union of India and others. ...Respondents. ... Coram: Hon'ble Mr. Justice Satish Kumar Mittal. Hon'ble Mr. Justice K. C. Puri. ... Present: Mr. D. D. Bansal Advocate for the petitioners. Ms. Charu Tuli, Senior DAG Punjab for respondent No.2. Mr.A.R. Takkar, Advocate for respondent No.3. Mr.B.S.Walia Advocate for respondent No.5. Mr.Gurminder Singh Advocate for respondent No.6. Ms.Deepali Puri, Advocate for respondent No.7. ... K. C. Puri, J. For orders see Civil Writ Petition No.7977 of 2007, titled Kurali Luxmi Milling Workshop Co-op. Industrial Society Limited, Kurali and others Versus State of Punjab and others, decided today. ( K. C. Puri ) Judge January ,2008. ( Satish Kumar Mittal ) Jaggi Judge Civil Writ Petition No.7977 of 2007. -22-