SHAH NANJI NAGSI Vs. F C I

JUDGEMENT

(1.) THE petitioner M/s Shah Nanji Nagsi has filed the present writ petition for release of balance undelivered quantity of 30,951 metric tonnes of par boiled rice in terms of a concluded contract. The petitioner is also asking for refund of excess amount of penal interest levied by Food Corporation of India (hereinafter referred to as FCI, for short) or in alternative adjustment of the said amount against the undelivered par boiled rice.

(2.) IN January, 2002, the respondent, FCI had invited tender for sale of par boiled rice on "as is where is basis". The petitioner submitted their bid and paid earnest money of Rs. 30,00,000/- for 1,30,000 metric tonnes of par boiled rice. The offer was extended at the request of the respondent, FCI. The offer made by the petitioner was found to be low and the respondent FCI by their letter dated 18th March, 2002 made a counter offer to the petitioner to lift the stock @ Rs. 500/- per quintal for which the petitioner was required to deposit 1% of the cost of the stock within three days. On 19th March, 2002, the petitioner accepted the counter offer and it is stated that payment of Rs. 25,00,000/- was made as earnest money and thus Rs. 55,00,000/-was deposited as earnest money for supply of 1,08,850 metric tonnes of par boiled rice@ Rs. 500/- per quintal. As per the petitioner, the full quantity of par boiled rice was not supplied as the same was diverted to National Council for consumer Federation (hereinafter referred to as NCCF, for short) or to NAFED.

(3.) THE respondent, FCI, however, in their counter affidavit have stated that the rice for which the petitioner had submitted their bid was four years old and rice, which was supplied to NCCF and NAFED was two years old and, therefore, there is no connection between the supply made to NCCF and nafed and the short fall in the supply made to the petitioner. On the question of short fall, it has been explained as under:-