M/S Snk Transporting Company vs The Food Corporation Of India
2021 Latest Caselaw 13261 Ker

WP(C) NO.35188 OF 2017               1

          IN THE HIGH COURT OF KERALA AT ERNAKULAM
                           PRESENT
             THE HONOURABLE MR. JUSTICE T.R.RAVI
   THURSDAY, THE 24TH DAY OF JUNE 2021 / 3RD ASHADHA, 1943
                   WP(C) NO. 35188 OF 2017
PETITIONER:
          M/S SNK TRANSPORTING COMPANY
          PATTALATHUPALLI PURAYIDAM, NEAR FCI, KOLLAM-1,
          REPRESENTED BY ITS MANAGING PARTNER,
          M. KABEER KUTTY.

         BY ADVS.
         SRI.V.JAYAPRADEEP
         SRI.D.S.LOKANATHAN
         SMT.O.A.NURIYA


RESPONDENTS:
    1     THE FOOD CORPORATION OF INDIA
          REPRESENTED BY ITS CHAIRMAN & MANAGING DIRECTOR,
          16-20, BARAKHAMBA LANE, NEW DELHI-110001.

    2    THE DISPUTE GRIEVANCE REDRESSAL COMMITTEE
         REPRESENTED BY THE EXECUTIVE DIRECTOR (SOUTH), FOOD
         CORPORATION OF INDIA, 3, HADDOWS ROAD,
         CHENNAI-600006

    3    GENERAL MANAGER (KERALA)
         FOOD CORPORATION OF INDIA, KESAVADASAPURAM,
         PATTOM PALACE (PO), THIRUVANANTHAPURAM-695004.

    4    K.S. MOORTHY
         ASSISTANT GENERAL MANAGER, FCI ZONAL OFFICE,
         HADDOWS ROAD, CHENNAI-6.

    5    THE CHIEF MANAGER INDIAN BANK
         MAIN ROAD, KOLLAM-691 001.

         BY ADVS.SRI.VIVEK VARGHESE P.J., SC, FOOD
         CORPORATION OF INDIA
         SRI.S.EASWARAN, SC, INDIAN BANK

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
24.06.2021, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 WP(C) NO.35188 OF 2017               2




                           JUDGMENT

(Dated this the 24th day of June, 2021)

Heard Smt.Ann Susan George, learned counsel on behalf of

the petitioner, Sri Vivek Varghese, learned counsel on behalf of

respondents 1 to 3 and Sri S.Easwaran, learned Standing Counsel

for the 5th respondent .

2. When the matter was taken up today, learned counsel

for the 1st respondent pointed out that a statement has been filed

by the Divisional Manager, Food Corporation of India, Divisional

Office, Ernakulam on behalf of respondents 1 to 3 stating that no

recovery proceedings are pending against the petitioner and that

the bank guarantee given by the petitioner can be released, if the

petitioner produces a "no demand" certificate. The counsel

clarified that the "no demand" certificate has to be issued by the

petitioner to the effect that the petitioner does not have any

demand against the Food Corporation of India. The counsel for

the petitioner submitted that a civil suit is pending regarding

certain claims made by the petitioner against the Food Corporation

of India and that when such claims are pending, it would not be

possible for them to issue a "no demand" certificate. At the same

time, the counsel submitted that the writ petition can be disposed

of recording the statement made by the Divisional Manager, Food

Corporation of India, making it clear that the "no demand"

certificate which is to be issued by the petitioner will not prejudice

the rights of the petitioner in the pending civil suit.

3. In the above circumstances, this writ petition is

disposed of recording the statement dated 05.12.2020 filed on

behalf of respondents 1 to 3. The petitioner shall submit a "no

demand" certificate before the respondents stating that they have

no demand against the Food Corporation of India, except the

demand pending before the civil court. On receipt of such

certificate, the respondents shall immediately release the bank

guarantee as agreed in the statement.

The writ petition is disposed of with the above observations.

Sd/-

T.R.RAVI JUDGE dsn

APPENDIX OF WP(C)35188/2017 PETITIONER'S EXTS:

EXHIBIT P1 COPY OF THE ORDER DATED 30.10.2017 OF R1

EXHIBIT P2 COPY OF THE WRIT PETITION WPC 17917/2017.

EXHIBIT P3 COPY OF THE JUDGMENT DTD. 12.6.2017 IN WPC 17917/2017.

EXHIBIT P4 COPY OF THE LETTER DTD 21.08.2017 SUBMITTED TO R2.

EXHIBIT P5 COPY OF THE REPORT DTD NIL OF THE MEMBERS OF R2

EXHIBIT P6 COPY OF THE REQUEST DTD 17.9.17 TO R2.

EXHIBIT P6(A) COPY OF THE POSTAL ACKNOWLEDGMENT CARD.

EXHIBTI P7: COPY OF THE ORDER DATED 1.3.2018 IN I.A.NO.661/2017 IN O.S.NO.31/2017 THE SUB COURT.

EXHIBIT P8: TRUE COPY OF BILL ISSUED BY R1 FOR OCTOBER

EXHIBIT P8(A): TRUE COPY OF BILL ISSUED BY R1 FOR DECEMBER, 2017

EXHIBIT P8(B): TRUE COPY OF BILL ISSUED BY R1 FOR DECEMBER & JANUARY 2018

EXHIBIT P8(C): TRUE COPY OF BILL ISSUED BY R1 FOR JANUARY

EXHIBIT P8(D): TRUE COPY OF BILL ISSUED BY R1 FOR MARCH

EXHBIT P8(E): TRUE COPY OF BILL ISSUED BY R1 FOR 27.3.18 & 31.3.18.

EXHIBIT P8(F): TRUE COPY OF BILL ISSUED BY R1 FOR 16.4.2018

EXHIBIT P8(G): TRUE COPY OF BILL ISSUED BY R1 FOR 14.5.2018

EXHIBIT P8(H): TRUE COPY OF BILL ISSUED BY R1 FOR MARCH

EXHIBIT P8(I): TRUE COPY OF BILL ISSUED BY R1 FOR 6.6.2018 & 8.6.2018

EXHIBIT P8(J): TRUE COPY OF BILL ISSUED BY R1 FOR 5.6.2018 & 6.6.2018

EXHIBIT P8 (K): TRUE COPY OF BILL ISSUED BY R1 FOR 16.6.2018 & 18.6.2018

EXHIBIT P9: TRUE COPY OF ORDER DT.24.7.18 ISSUED BY R1

EXHIBIT P10: THE RELEVANT PORTION OF THE TENDER CONDITIONS OF R1

EXIBIT P11: COPY OF LETTER DT.29.12.2015

EXHIBIT P12: COPY OF LETTER DT.27.11.2020 ISSUED BY THE 5TH RESPONDENT TO THE PETITIONER.

RESPONDENTS' EXTS:

EXT.R1(A): TRUE COPY OF APPEAL IN FAO No.74/18 PENDING BEFORE THIS COURT.

EXT.R1(B): TRUE COPY OF STAY ORDER DT.11.4.2018 IN IA.No.278/18 IN FAO No.74/18 OF THIS COURT.

EXT.R1(C): TRUE COPY OF IA No.59/18 IN OS No.31/17 BEFORE SUB COURT, ALAPPUZHA.

EXT.R1(D): TRUE COPY OF SANCTION ORDER NO.S&C.30(1)/2018 DT.19.9.2018 IN RESPECT OF RECOVERY OF INTEREST.

EXHIBIT R1(E): TRUE COPY OF LETTER No.S&C.30(1)/2018 DT.15.11.2018 BY THE AREA MANAGER, FCI, DISTRICT OFFICE, ALAPPUZHA.