MAHSOOQ TRADING COMPANY Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner, who has entered into an agreement with the 2nd respondent-Kerala State Cashew Workers Apex Industrial Co-operative Society Limited for purchase of Kerala origin raw cashew from the farmers, has approached this Court seeking to direct the respondents to release the payment of Rs.1,18,08,144/- to the petitioner with interest.

(2.) The petitioner states that the 2nd respondent used to collect Kerala origin raw cashew from the farmers. As the farmers do not have GST registration, the petitioner agreed to facilitate the supply using its registration. Ext.P1 agreement dtd. 20/4/2019 was entered into by the petitioner with the 2nd respondent. Pursuant to Ext.P1, the petitioner purchased raw cashew from farmers and supplied to the 2nd respondent.

(3.) The petitioner has complied with the terms of the agreement and made payment to the farmers in 2019 itself taking OD facility from Bank. The 2nd respondent has not paid an amount of Rs.1,19,75,901/-. The petitioner demanded the amount from the 2nd respondent. The Government then sought clarification as to whether permission is required from the Government for payment to the petitioner, in view of the report submitted by the Accountant General regarding dropping of proceedings.