1 1 4 446 1 9e CWP Noe 1911of2010 etc 1 r IN THE HlGH COURT OF PUNJAB AND HARYANA AT CHANDIGARII 9 DATE 017DECISION 44201 1 of2010 Mls Pnrkash Rice Mill OeePetitioner Versus StateofHaryanaand others 1 Q eRespondents 0 C40 WP N003554of 2010 I Mls Hanuman Rice Mill 8i Another C9 eeePclitioners I Versus Z The Stateof Haryanaand others 2 espondents r I 1CWP N0e5281of2010 C3 Mls Inder SinghAjit Singh Z m VerSllS 14 7 StateofHaryanaand others Z fl Respondents CWP N05282 of2010 Mls GanpatiRice Overseas 4me eee Peti tionc r Versus StateofHaryana and others Respondents 1 6 Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document jl 447 9 r 4 1 CWPNoo1911of2010etce 2 14 Overscas 0e0Petitioncr Versus StateofHaryanaand others lespondents 9sCWPNoe5279of 2010 Mls Jhandu Mal Tara Chand eeePetitioner VerSIlS 1 lr StateofHaryanaand others 0 0 Respondents I of2010 C49 Mls HaryanaRice Lande I eee Petition er Z Versus A StateofHaryanaand others r I Z WP N005287of2010 Mls Shiva Shiva TradingCompany oo eee Petition er em Versus Z StateofHaryanaand others Respondcnts WP Noe5284 of2010 Illls Siri Gancsh Rice and General Mill 4e eeePetitioner Versus StateofHaryanaand others of2010 J Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document a 448 Cp CWPN0 1911of2010etce 3 J 5 4j MlJaiDurgaRice and General Mm eeePetitioner VerstlS The Statc ofHaryanaand others espondents Mls Hindustan Rice Mills eeePetitioner Versus m CL The Stale ofHaryanaand others 0 Cao Respondents I J4lCWPNo4917 of2010 C5 Mls Krishna Rice S General Mills I SeePettioner Z Vcrsus Stateofllaryanaand others I Z Mls Raj Shree Rice Mills 00 ePctitioner v Versus Z StateofHaryanaand others Qm Respondents 1114CVVP Noe5286of2010 Mls Mahavir Rice 8 General Mills C eeePetitioner Versus State ofHaryanaand others Noe5285of2010 Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 449 e 1 4 lo CWPNo 1911of2010 etce 5 rslsHanuman Ricc Mis eeePctitioner VersUS StateofHaryana and others CWP N004937of2010 Mls A Onc Rice Unit 000Petitioner Versus 1 CC Stateof Haryanaand others 0 0 0 0 CORAM I Z HONBLE MReJUSTICE PERMOD KOHLI r PRESENT MrTS Dhindsa Advocate MrOP GoyalSrAdvocatewith I Msimplejeet Kaur Advocate MrOSharma DAG Hatyona Z MrJ4ariPal Venna Advocatc MrGirish AgnihotriSIAclvocatcwith D MrArvind Seth Advocate Mr KS Dadwal Advocate 7 Y Pcrmod Kohli J 9 With of facts and common issueshavingbeeninvolved ion 7 thesewrit petitionsth8 same are beingOisposed of bythis coinmon order The petitioners in all these petitions are Nlillers engaged in custom milling of the paddypursuantto entered into with theHaryanaState Supplytind MarketingFcderalioil litllited referred to as the HAFEDI Even thoughthere are separate impugnednotices lil all these petitions however the contents being 1 en Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 6 450 21 C 1 CWP Noe 1911of2010 etce 5 nr foctsare beingnoticedfrom CWP No91 1 of2010 State of Haryanaissued rice Ievyorder called as Rice Procurement LevylOrder l 985 lereinafterrefened to as 1985 order1This order hasbeenissued underSection30f the Essential Act 1955with theobjectivc of maintaining thesupplyofrice and for securingits distributionand availability at fair priccs Clause10 of the aforesaid 1985order cinpowersthe Governnlentor the Director Foodand to directany ricelniller to convert any stock or r paddyInto rlCC held by the governmentor Its agency or the Food 0 0 ofIndia on such terms andconditionsas may be by r theGovenlment or the Director in terms ofthe aforesaidClauseofthe 1985 9 I Ordertlle StateofHaryanadecidedto engagevariousrice mills in thc State Z of Haryanafbr Custom Milling of Rice commonlyknown as CMR A 1 2 detailed were formulatedIn this regardon 1992008 0 issuedby the Director Food and SuppliesIaryanaUnclerllle 1985 Order I 0 and the the miller is re4uired to deliver the rice aftcr Z custotn milling to the FCl AllotIncnttoothe inillers is to be madcby the C District Level Committeeheadedbythe DeputyDirectoi atld of mm Z DistrictManagerof procurelnentagenciesincludingthe loocl Corpotatitil ofIndia Italso provides not to makcany allotinentto a defaulterricc millcr Clause 5 6Oof the policy 6Annexure Pe4 providesfor cxecution of whereas Clause Ol deals with the payinentof tnil lingcharges Ce For the paddyseason 20082009the petitionernamelyMls ParkashRice C Road Karnal was entrusled willh 1439 MT tonns pacldyfor millingA formal agreelnenllenvisagedundcr Clause S OOof the policyalso came to be executed Oll 268008 Condition 15 il of tllc agreelnetlt Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 451 111 CWPNoe 1911 of2010etc 6 1 1 of the rice after inillingas per quality for Jaiddown bythe HAFED directly to the FCI Condition 17 01 theagreementdeals with the mode and manner of deliveryThe saicl conditionis as under 17The of rice shall bc deenlcd to have been bytheMillerlSccondPartyafterthcstocksare Ioaded intowagonsor dclivercd into thegodowns as pel 1 of the ofOcial of the 0 12irst Party afler necessary and 0 0 of the quantitylll accordancewith llle I C5 procedure of the 12irstPartyat the cosl of the I PartyIt will be the responsibility of the Z MillerlSecondPartyto supplyA note weightchcck 2 andall otherrelevantdocumentsto the concerned tnemO immediately aOoerthcdeliveryof rice for clailning L from Food of lndia failingwhich Z he shall be liable to pay CCL rolc of interest for 1he CO period All lhc cxpcnditureincludingIabour I7 Z uilloading transporlatIonand any otller etc incurredill connectionwith thedelivery of rice within 8 Kms shall be borne by the MillerlSecond Pally11 case rlce IS deliveredbeyond8 Kms the expenditure inculred by the MillerlSecond 4e Party on this account sllall be as per instructionsofGovcrnlnent of lndia 99 Even FC1has issued guidelines dated178008 regarding iilspectioll Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 452 414 CWP Noa 1911of2010 etc 7 sanle analysisin respeclof the procurementof paddy and ofrice stockduring Seasons2008e09 Perusalof this documentrevealsthat proper hasbeen for ensuringthequalityof the rice its supplyand storageetc Thc quality hasto bemaintainedas per theguidelincs bythe Goverilmeiltof Indiaetc It is admittedcase of thc partieslhotothc petitionel deliveredthe milledrice to FCI upto the monthsof 2009 lt is alleged 1 thatat thetlmc of deliveryFCI Karnol carriedout detailedanalysis to C test the qualityspecicationsof the rice delivcrecl by lhe 0 40 The petitionerhas placedon rccord various I 0 reportsIrl respectof the supplies inacle by thc petitionerThese are I markedas Annexure P7 witll tlIc writ petitionTllc acccptance Z reports indicale that the milled rice supplicdconfomls to tlle as regards the qualityofthe rice sujoplied r In the next paddyseason 2009m201 0 againthe partiesentcredInto I same kind of arrangementas ltl thc prcviousSeason 200809 The Z was entrustedwith 4390MT of piiddyfor millingfor the seasOIl CQ 200910 Allerinillingthe rice wasloohc dclivercd to Cl notlatetthail W3 Z 32010 for which followingschedulcof dclivcrywas prcscribed under tl theagreementexecutedbetweenthepalties for this season as well October andNovember 20091 20Iooftllc alloud paddy December2009 25 edO ee January2010 2510 edoe February2010 150Io edo March 2010 15Io adoe Il The inilled rice was to be delivcred Ioothc FCl directlyin accordance Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document b 453 4 11 CWP No 1911of2010etce 8 0 wik the contractual in terms of thc agreementdated l 102009 The claims to have milled 184 MT of paddyfor the montllsof 2009andwhendelivery was sought to be tnadeto FCl it refused to take the deliveryIt is statedlhat whcn the nlade for refusal ofthe FCl to lake deliveiyIl enquiries tlle reason receivedIetterdated 10 I l 2009 lnnexurc PI issued by the Pawan GuptaDepot Manager FCl Karnal wherebylhc petitioner WOS 1 that the rice stocked by it at IlB Bajidahad been C declaredas Below Limit Olereinafler rcfened to as BRl It 0 U was furIlercommunicatedthatas a precondition thepetitioner is requircd I C0 to replace thericc at its OW11 costsasper directionsofthe I for acceptingthe paddyfor the year 2009 1O A siinilar Ielter dalled Z 27112009 was received from the District Manager HAFED Karnal AnnexureP OIaskingthe petitioner to rcplacethe BRL stock Of rice C2 within the as perdirectloils of the FCl 1le petitoner I CJ receivedyet anotherletter dated4122 009 from the Assistant Food and Z OfOcer Kanlal on the same Iines odvising thepetitioner to replace 1 theBRL declaredrice for the year 2008m09 to facilitatethe deliveiyof the 7 Z nce to the paddyseaSOll 2009 10 The pctittonermade a Cle dated 2112 2009 objcctingto the demand of lhe FCl HAFED and Food andSupplies with llle pleathat thc deliveiy of rice for the previousyear 2008e09was as per the agreeinentand quality 6ev and norms Petitioncrinsisted for takingdelivetyofthe rice for the season 20091 0 The petitionel hus beenserved with the iillpugned noticedated 81201 0 6Annexure ll issuedby the Area Managcraskingit toreplacethe substandardstocks with stockof applicable sloeci Ocations for Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 454 1 1 F 4 Ier CWP Noe 1911of2010etc 9 200809 within seven daysfailingwhich the reserves therightto disposeof substandardrice slock delivereclbytlle at its risk and costs without furthernoticeand without prejtidice to the Iegal includingbanningthe business dealingand to the State Government for This Ielter AnnexurePellwas followcdbv anothcrnoticc datcd 15 12010 issucclby 0 the HAFED 1nnexure P2I advisingtlle petitioncr to replace131U rICC 1 6Annexure Both thcse Iettersare subjectmattcr of C in the presentpetitionThe pctitioner submitteda detailed reply 0 0 dated2512010 6Annexure P139to theVCi ancll IAF13D Challenge to theseordersis on followinggrounds C5 I ilThe are not entitled to roisc disputeIll respectof the Z for the season 200809 at the time of deliveryof rice for lhe O4 season 2009 10 as boththetransactIons are distnct andarise0ut1diffcrcllt C agreements I Cl iiIDelivetymade duringthe season 200809 was duly acceptedas Z T to the specifications and standardswithout SllY m andthusno dispute itlsqualityand could Inm Z be raisedin thenext season 0 CL iiilTestsconductcdallegedlyin respectof dclivcryfotthe year200809 lvere at thc back ofthe petitioner andwithouteven informillgtlle pctitioncr ovIFreshinspection has been carricclotit afler a periodof more lhan six monthsof llhedeliverywhen the rice supplicdto the lCl was stacked ond 4e lefl out to the vagariesof wcathcr I 9 There has been violation of principles ofnatural justice There are three scts of rcpliesIiIed Ioythe The replies 9 Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document p1 455 Je eJ e 21 1e 19110f2010etce 10 A flled oy the FCI and the HAFED do not dispulethe facls stated by thc Ravinder Malik District Food and SuppliesController Karnal hasstatedthat the miller was to deliver67Io rice of the paddyduringthe ie cropyear 2008a09after inillingto tlle FCI within lhe stipulated pcriocl upto3132009 This deliverywas madeas per the ternlsand conditons of theagreeineiltand milling of thc petitioiletIlacl beeil by District ManagerHAFI3I0 Howcver rtspotldeilliloS llas the rice delivered bylhe iiller eightinonthsand rclused 1l r thefurtherrice of crop year2009 10vide letter dttted10 l l 2009 0 0 In the replyfiled by 100Aaild 5 Cl l their action is I C0 soughtto be justiOed Oll the ground that rice suppliedby tllc petitioiler I the season 200809 was found to bc substandarde I3elow Z Limit againslthe Iaiddown spcciIlcalion lor thc rclevantyear it 2 1S furthermentioned that a super inspectlon W8S carriedout by Shri Janak C RajAGM QCI FCI Zonal Offlce Noih Noida andthe analysisreporlS I dated 23 02009 to 2802009 lnncxurcs Re511A R5118 Rv511Cl Z showsthat the stocks delivered bythepetilioner were below tlle laid down m norms BRL and the petitionerwas to replacethc samc for 17 Z which sufficient was gralltcdto tlle petitionerIt is Iurther Qm that merelybecause stocks wcre acccpteclby lhe lCl pctilloner cannot be obsolved of its liability It IS slated thal in facl petltioner succeeded 111 the Below RcjcctionLimit stocks in connivance Ce theofcials ofthe Corporation11is furtller menlonedthat oOciais o1 with namelyShri KCGarg Arco Manag SP IOtibeyA4 QCI SNGaba Mallageor and RajcshChiIudllaryTeGhnicalAssisl2lilt wcIc placed under suspension and Some of thenl have even been Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 456 1 849 CWPNoe 1911of2010etc I l e relieed6om senliceofthe FCl According 10 i104 and 5 216 MT rice delivercdby the duringtheperiod from 1222009 to 53 2009 was foundto be Below Rejection Limit causingIoss to the to the tune ofRsA68 Iacs lt is mentionedtllat 11lepetitioner was aNorded an to replacethe substandardricc The werc not onlyagainstthe but alsoagainstnulnberof otherinillers Il is furthermentlotlcd thlit lllc offet of the Corporation was 1 by about 31 millers who reploccd the ricc supplied 0 during the season 200809 but thepetitioncr failed to do so 0 O havealso pleaded thatthereis an arbitrationclausebcingClauseNo3 in I C5 the agreemententereclbetweenthe petitionerand no6 which I inter aliaprovides for settlementof all disputesby referringlo the sole Z arbitration of the Director Food and SuppliesI Dircctot of the Agencyor any person by thein in this bchalf Thc 1 1 havethus the Qfthewril toelitioil I C3 The has filed rcitcratingts stand in the writ Z petitionThe additional fact staled in llhc is llhat evcn as per cil reportthe infraction in thc is It IS 7 Z furtllerpleaded thatothe allegedsuper iIlspection w8s carried out after a periodof more than six monthsand withtlutatly notICe to the or associating it with such inspection 1 haveheard Iearnedcounsel for lhe parles at lengthand carcfulIy 4eeeP gonethrough the record Duringthe pendencyof this SOllle interim orders werc askingthe FC1 to acceptthe stocks ofrice for the season 2002010 anclpay 500Ioofthe billingchargesDetailedllllCrllll orderin thisregard wEIS Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 457 1 r lll te CWPN1e 1911of2010etc 12 1 on April9 2010 This orderpasscdin CWP No 19 11 of 2010 was extended to all thewrit petitions IssuesiIlvolved Ill this petitionarc two foIds I supplyof rice for the season 2008m094iISupplyof CUStom rnillingof ricefor the season 20092010 boththe transactionswere underdistinct and separatc executedbetweenthepaitics the custom Inillingof m paddy for conversiontorice in accordancewitlhlhe contractual r andthe Scheme under thc 1985Orcler lt is cotllinoil case ofthe 0 0 that all supplies were acceptedbythe J2Clfrom the petitioner for the Z withoutany objection in respcctof quality C45 season2008e09 I mode and manner of delivery etc as under the Z Not onlythatthe rice was even werc inadc thepetitioner and their securitycleposilreleased by thc I1A12ED to with the concurrence of FCl Even lCl in its detailedcountet dld I r not thedeliveryof rice and the relcaseof paymentsand security Z withoutany objectionThe case by the FCl is tllat esuper Ql inspectiotlwas carried out bythe omcials of the FCl wherein the rice 7 by the petitionerwas found substandard1e Below Rcjection Cl Limit 3RLI This inspection was corriedout by the officials of the FCI af1ersix tnonthsof the flnal supplybythe pctitiollerIt is pettincntto note thatthe suloplyofthe rice was to bc tnadcin flve johases between October to w lvfarchAt no stageduringthe periodof supplyspreadillg over six months anyobjection was raised regarditlg the quoIityspeciflcations of tllc ricc lt was onlywhen the entiresupplywas made and afler releaseof andsecurityandafter six montlhsthe superinspection was said 100 Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 458 1 1 4 13 CWPNoe 1911of2010 etce be 7rried out No has bcen renderedby the lCl fot not carryingout aily inspectlonOl duringthe six Inonthsof supply periodor on of supply To the contrarythe haveplaced 011 recordtheanalysis rcporspect oflhe quolity oftlle delivety ofrice madebythem Theseanalysis weIe also carriedout bythe FCl Apartfrom above the test said to be conducledby the FCl duringsuper inspection was carriedout at the back of llle I t would have been morc prudcntto assocIate the when duringsupet illspectionany deOciellcy was tloticed in the rlce 0 0 bythepetitioner but the ICJ chosenot to associatctllc pctiloncr I C5 the suppliers or even informthcm ll htis olso cotne on record that thc I custommilled rice was Iying in thedepotof thc FCl The condilion under Z wllichstoragewas inadehas not beenbrought on record Admittedlyrice IS r a perishable item It needs to be keptundcrprescribed condition for Ionger 0 life If it is left to vagaries of wcother it is open to perisllNo sucll I materialhasbeenbrought on record Ol CVCIl plcaded in the repIy Z thestorageconditionsof the rice by the pelltionerduringthe QO season 200809 ln any case the were 110tput to any notice or 7 Z an of beinghearcl thequal spcciOcation Qm beforecarryingout thetest or even at Iohetiine thetest was conducled This hasresulled into serious violatlon ofthc principlesofnaturaljustice Ncotice to thepetitioner was given onlywith regardlo replacemenlof 11leallcgecl 4ee rice However atothe toimcof dcterminaloionwhctller the rice is substandardor not no notice was evcr issLiedto the petiliotlerlhus action oflhe in refusingdeliveryof rice for the season 20092010 is not under any circumstanccs Ilave referred to Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 459 41 1 1 4 14 14 CWPNoe 1911of2010etc 1 of the Honble SupremeCourt passcdin lllc case ol TaplItl KurnarSadhukhanvsFood of India Ilndothers 1199616 Court Cases 1010ll this judglnent1onble SupreincCourt has the needfor improving publichealth Whiledealingwith the provISlonsof Food of lndia Act 1964 it has bcen observed thal it is tlle of the Stlateor its agcncy to raisc nutritionalIevel and improvepublic health lt has also beenhcld tht thc Stateshould not 1 allow food grains10 rcochmarkct fdr hunlan C without the same so as to makeit fit fqr huinanconsuinption 0 0 While refcrringto this judgtnetltIl has becn pleadedOll behalf of that substandard be utilizedbythe Slate Ior supply rice C5 I underthe publicdistributionsystelnas it is injuriostopublichealthl foil Z to understandhow this is relevontin so fliras the interesedisputc betweenthepetitioner and is concernedStateand ils agencys r to providefood grainsflt foi hulnancmlsuinplon to tlle needy I C who are upon tlle Slatc public distributi011 Z cannot be disputed However t1lcquestioIt in the presciltpetitionIS 00 breacllof tnutual contractual obligationsbqtweenthe partiesand mm Z thereof This judgmeiltcloesnot hdlpthe in any tl to obligatethemto supplyonlysUch food grainsas are Ilt manner forhulllan consulllption byLipgrilding tlle food graiils have also plcadedogalnst the t1fthe writ 4 petitionon two counts flrstlythot thc writ petitioninvolvcs diSpUlcd of fact and thus discretionmyrcmedyunder Article 226 of the of lndia is not available to tlhc Secondly therc is anarbitrationClauseNo3 in thecolltllract agr4ementbctween the parties t Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 460 4 CWP No 1911of2010 etce 15 3 andkheonlyrcmedyavailableto the pctitioner IS to invokethereinedyby wayofarbitration lt is toruethat theHighCoult while exercisingwrit jurisdiction under Article226 of the Constitutionshould be reluctant to cnteilain a wrlt seriousdisputed of fact HowcvcrtllISIS 1101a ruieof Iaw blit a rule of discretn whcre tohel IighCouil exerciscsli self restrictionto avoid to adjudicotc upon dispud questIils of ct 1 inexerciseof writ In thcprcsentcosc theredoesnot seein to be any senous of fact so os to decline thc pleaof the 0 0 petltlOner lll thewrit petitionWhat is sought to bc projectcd as disputed I C5 of fact is the supplymadeby lohepetlitiontduring the season I 20082009 have pleadedthat the rice suppliedwas Z substandardwhereas the Ilove tlle sanle to be 2 to the quality Thesupplyof tice its C admittedpositionainongstthe pattiesThe petitioners I quantltyetc is an r haveplaced on recordanalysisconductedbyIhc Foocl Corporatioil oflndio Z the quality undertlheagreeinentand the m normslaid down bythe Govemmentof lndia This fact is not dispt1 It 7 Z hashowever beenpleadedbythe tlhatwhen a supcl itlspectioll tl conductedafter six noonthsof tlhcsupplyrlCC supply was found to be was Such tests were not conductcdIil l prespnccof iolleIoetitoilet orwith their associatlotl Under thesc circtimstonccs Il catltlol be said that e there are serious disputed questions of fact The pctitionersare disputing theanalysisthe test conductedbythe at 4leirback whereastlle are earlier anolysisconductedby theii own 00cials thequalityspeciOcationsSo wllat is bcingdisptitedis tlle action Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 461 1 16 CWPNtl 1911of2010etce 3 ThisCourl is not called uponto decide about thcquestion whetherthe rice supplied bytllppetitonerdurillg theseason is substandardor not Court is onlyqoncernedwith the breachof contractual and the violation of Uheconditions Iaicl down 111tlleyear 1985order which is statutoryin naturOThus thepleaof the not to interferein exerciseof writ jurisdiction deserves W Tlle have relied upon a judginen of the HonIole C Court passed in ABL Internation Ltde And 8nothervse Export 0 Co Credit Guarantee of India Ltd And others 00413 SCC I 0 553 whereinHonbleSupremeourt has hcld thal even wherc tllere are I questlons of fact andthereis no absolutebaifor enteitainiilg the Z writ petition underArticle 226 of the Constitutionof India can beexercised Honble Supreme Cout10has even gonc to the extoentofsaying I that if facts require oral evidencecan also be takenin cxercisc of writ C3 Where any break of conuactual arises oul of Z e violationof principlesof naturaljusticc or arbitrary aClIOll of Staterequires CO judicialscrutiny wnt canbc excrcised elevant obscrvattollS eJ Z 8 of thc oforesaid which are Ill are contained hereunder As couldbe seen from thcargutnents adliressed in this appeal and asalso fromthedivcrgent vlewsofthetWocouits bclowone oftloe that fallsfor our considerations whethera wril petition underArticle 226oi tlle Constitutionof Inciiais mainttiinablc lO enforce a conlractuoltlbligationof tlle Stateor its ea byan aggricvcdparty ln our opinionlllis qucslltlnis Iltomorc rs integraand is selted by aIargenutnberofjuclicial ofthis Court ln KN P Vs The Sttiteof Mysorend others1 955 I SCR r 3051 this Court Ileld The next questionis whetherthe appellant can complaitl0f IlllS byway of a writ ln our oplnionhe could have done so in an ordinary case The appellantls intereted in tllese contacts and hasa right under tllc Iows of the IStatcio receive the silIne Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 462 Im CWPNoe 1911of2010etce 17 J begiventhc same chanccas anybody clse lIL treatmentand We wouldthereibrein the ordinary course havc giventile appellant lhe writhe seelcs 13ulowingto the time whichlhis matter hs taken to rcach us a consequence fiIr which the appellont 1S 111110way to blame for hc has done 11he could to Iavean earlyhearin thereisbarely a fonnight of lhe contmct lefllo go A writwouldthcreforcbe ineffectiveandas it is not our lo issue writswe must dismiss thisappcal andIeavetheappellant contentwith an enunciationofthe law 1t is clear from the abovc observationsof this Courl lll the said casc thougha writ was not iSSUCdOn tllefacts ofthatcase this Court has heldthat on a given m setof factsif a Stateacts Itl ail arbitrary inanner even Ill r a matter of contracan partycan the by way of writ under ArtiCle 226 of thc 0 COllrt Constitionandthe court dcpcnding on factsofthe said 0 caseis to grantlhe relief 99 I C5 Thenexl questionwhich has bcen stressed by the I IS existenceof arbitrationclousc in the contract agreeinent Z between thepartiesRelevant extracl of Cluuse 23 of the Arbitratoion between the pailiesreadsas undcr c I 23All the and diflerencearisingout of or m Z anymanner touchingOl tllis agreelnent 14 whatsoever except as to any matter thc decision of CO which is providedfor in Uhecontractlshall be 7 Z referred to the sole arbitrotionof the Director Food and C1 Director of the Agencyor any person by 1lcnl itl this behalf There will be no to any such tllat the person appointed 1S Or WOS Oll wnployee of Food and Supplies 1 and he had cxpressed views on all orany offhc matter i4 dispute or difference Theaward of such arbitrationshall be Onal and binding on botll lhe parties to tohiscontract 91 Rashmi 2014.04.29 12: 19 Scanned True Copy of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:52 I attest to the accuracy and integrity of this document 4 463 1 0 q 18 119 CWPNoe 1911of2010etc J t Contentionof the repondents in this regardis also to be for followingreasons For thesession20092010thereis no disputebetweenthe panies breachof any contractual FCl has simplyreftiseclto the rice from the millers on thc groundthat rice suppliedin the year be replaced beingsubstandardThis clearlyestablishcstllat m there is no as the of under the 0 for the season 2009a2010Such a pleais extraneous to lhc 0 0 contractualstipulations arisingout of 2009e2010 agreetnentThe petitloners I CO are of the action of