Food Corporation Of India vs Sukh Prasad

3. Three godowns were constructed by the respondent and his brother and let out to FCI for a term of five years in the year 1978. On the instructions of the lessors, FCI credited the rents to the loan account of the landlords with the bank. FCI vacated the said godowns and surrendered back possession in December, 1983. 3

6. In June 1994, during the pendency of the said suit, the respondent and his son Sunil Kumar offered a fresh lease of one of the three godowns and the appellant took it temporarily on a month to month tenancy on a rent of Rs.0.50 paise per sq. ft. The tenancy agreement made it clear that FCI could surrender back the godown without any notice, whenever the same was not required.

(c) If FCI failed to deposit the rent as aforesaid, it shall be liable to pay interest @ 13% per annum on the rent defaulted. 6

9. FCI vacated the said godown taken on rent in June 1994 on 7.2.1997. Before doing so, it issued a notice dated 31.12.1996 to the landlords (respondent and his son) that tenancy would stand terminated on expiry of 30 days from the date of service of the said notice and called upon them to take possession. It informed the landlords that it had deposited the rents upto December 1996 in the Bank in terms of the order dated 27.5.1996 and sent the FD receipt to the court. It also issued a public notice in the Daily Newspaper `Dainik Jagran' dated 18.2.1997 that it had vacated the godown taken on rent on 18.6.1994, on 7.2.1997.

12. The trial court by order dated 15.12.2004 allowed the said application. It interpreted the order dated 27.5.1996 as directing FCI to deposit of rent of three godowns from December, 1983 up to 31.3.1996. Consequently, it held that FCI was liable to pay the said arrears with interest at 13% per annum. Acting on a calculation sheet provided by the respondent, it held that a sum of Rs.1,12,24,792.99 was due by FCI towards such rent and interest; and as the said 8 amount was not deposited, FCI was liable to be punished under Order 39 Rule 2A of the Code for disobedience of the order dated 27.5.1996. It therefore directed that the assets of FCI, both movable and immovable, should be attached under order 39 Rule 2A CPC in respect of the said sum of Rs.1,12,24,792.99.

13. Feeling aggrieved, FCI filed an appeal (FAFO No. 343/2005) before the Allahabad High Court. The High Court dismissed the appeal by a brief order dated 6.3.2006, without prejudice to the rights of FCI to challenge the order of injunction, with an observation that it was not competent to consider the validity of the `injunction order' in an appeal against an order passed under order 39 Rule 2A of the Code, for disobedience of the `injunction order'. The High Court assumed that in the appeal against the order dated 15.12.2004 passed under Order 39 Rule 2A, FCI was trying to challenge the validity of the `injunction order' dated 27.5.1996. The said order is challenged by FCI in this appeal by special leave.

Re : Question (iv)

25. FCI filed an appeal contending that the order of the trial court dated 15.12.2004 under Order 39, Rule 2A of the Code directing attachment of its assets to an extent of Rs. 1,12,24,792.99 was erroneous, without jurisdiction and liable to be set aside. In that context it raised contentions about the scope and ambit of the order dated 27.5.1996. It also incidentally mentioned that the 27.5.1996 21 being a garnishee order was patently erroneous and without jurisdiction, in a mortgage suit. The High Court however assumed that FCI was not challenging the order dated 15.12.2004 passed by the trial court under Order 39 Rule 2A but was only challenging the `injunction order' dated 27.5.1996 for disobedience of which the application under Order 39 Rule 2A was filed. As a consequence, it dismissed the appeal of FCI without examining the several contentions raised by the FCI as to the maintainability of the application under Order 39 Rule 2A or the jurisdiction of the trial court to pass such an order under Order 39 Rule 2A and the errors and perversities pointed out in such order.

Conclusion

27. We therefore allow this appeal with costs of Rs.25,000/- payable by respondent, set aside the order of the High Court and the trial court and dismiss the application filed by the respondent under Order 39 Rule 2A of the Code.