MALAPPURAM DISTRICT RATION WHOLESALE DISTRIBUTORS FEDERATION AND ORS. Vs. FOOD CORPORATION OF INDIA AND ORS.

JUDGEMENT

(1.) These writ petitions are filed by Authorised Wholesale Distributors (for short, "AWDs") of rationed articles in Malappuram District and Kannur District feeling aggrieved by non-payment of additional transportation charges incurred by them consequent upon re-allocation of the depots of the Food Corporation of India (for short, "FCI") for lifting rationed articles in accordance with the terms in their respective agreements. FCI is engaged by the State Government by virtue of the agreement entered in the year 1969. By the above said agreement, the Government has decided to entrust the work of distribution of rationed articles and other commodities through FCI. AWDs are appointed by the State Government under the Kerala Rationing Order for distribution of rationed articles. They are also attached to different sub depots in the area which are located under the FCI. AWDs are to lift the rationed articles from the pre-assigned depots/godowns of FCI.

(2.) The issue arisen in these cases is owing to the reason that the sub-depots to which the petitioners were attached could not supply rationed articles authorised to be lifted by them. They were redirected to be lifted from other alternative godowns/depot belonged to FCI. This resulted in additional transportation expenditure to AWDs.

(3.) This issue is no longer res integra. This Court by a common judgment in WP (C) Nos. 1264/2009 and 6449/2009 directed the State Government to pay the additional transportation charges at first instance and obtain reimbursement from the FCI. This judgment was also affirmed by the Division Bench of this Court in WA Nos. 2426/2009 and 2808/2009. However, the learned counsel for the petitioners would urge that FCI has the liability to reimburse the cost as FCI is bound by the terms of the agreement entered into with the State Government to reimburse such costs.