SENIOR REGIONAL MANAGER FOOD CORPORATION OF INDIA BANGALORE Vs. FOOD LABOUR CONTRACTOR CO OPERATIVE SOCIETY LIMITED MYSORE

JUDGEMENT

(1.) THIS intra-Court appeal has been preferred by the concerned Area manager of the Food Corporation of India (in short the 'corporation' ). It is against the judgment of the learned Single Judge, who, contrary to the policy decisions taken by the Corporation in its meeting dated 19-10-1996 and the terms of the contract entered into by the appellant and respondent-Labour Co-operative Society, has directed for renegotiating the terms for unexpired period of contract on the basis of the policy decision taken by the Corporation in 1989, which is no more in existence,

(2.) THE Corporation had called tender for awarding contract of handling and transporting of food grains at Mysore Depot for the period 30-5-1997 to 29-5-1999. Respondent 1, which is a Labour Co-operative society had also submitted its tender. After negotiation between the parties, rates for handling and transporting were fixed and the contract was entered into. In the contract, it had been specifically stipulated that.-

(3.) IN the present case, open tenders were invited and the above stipulation was incorporated keeping in view the policy decision taken by the Board of Directors of the Corporation in the 252nd adjourned meeting held on 19-10-1996 (Annexure-5 to the W. A. Nos. 5365 to 5385 of 1998 ). In the connected appeal in W. A. Nos. 5365 to 5385 of 1998 (DD: 28-11-2001), we have already held that the policy decision taken by the board of Directors of Food Corporation of India in their meeting held on 19-10-1996 governs all the matters relating to grant of handling contracts. The said resolution of the Board of Directors reads as under.