NATIONAL AGRICULTURAL CO Vs. RAJASTHAN STATE CO

JUDGEMENT

(1.) CM 10526/2017

(2.) The said petition impugned the Award dated 18.11.2009 passed by a sole Arbitrator. The Award was made in respect of disputes which had arisen between the appellant and the respondent. The appellant is the National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and the respondent is the Rajasthan State Cooperative Oilseed Growers Federation of India Limited which is also known as "Tilam Sangh".

(3.) The dispute pertained to the procurement of mustard seeds under the Price Support Scheme (PSS) for the Rabi 2005 season. The procurement of mustard seeds was to be made under an agreement entered into between NAFED and Tilam Sangh. The said agreement stipulated two-tier system of procurement, whereby Tilam Sangh (as also other State Cooperative Federations) would procure mustard seeds as agents of NAFED from the farmers, but through Primary Marketing Cooperative Societies. In other words, there was a two-tier system contemplated for procurement of mustard seeds. The first tier was the Primary Marketing Cooperative Society and the second tier was the State Cooperative Federations which were to function as agents of NAFED. of course, the agreement made it clear that the dealings between the State Cooperative Federations and the Primary Marketing Cooperative Societies would be on principal to principal basis without any involvement of NAFED.