VRS FOODS LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Rule. Rule made returnable forthwith. Heard finally by consent of the parties.

(2.) By this Petition, what the Petitioner seeks is a direction to the respondents to pay to the Petitioner a sum of Rs.1,25,00,000.00 towards Export Subsidy for export of Milk Powder as per the Government Resolution dtd. 31/7/2018. This relief is sought on the basis that the Petitioner, under the scheme of the GR dtd. 31/7/2018, exported 250 Metric Tons (MTs) of Milk Powder for which they were entitled to be paid Rs.50.00 per Kg of Milk Powder exported. According to the Petitioner, there is no dispute about the quantity of Milk Powder exported as well as the amount claimed by them because the correctness of the same have been determined by (i) a letter dtd. 11/6/2019 issued by the Dairy Development Officer, Nashik Division, and (ii) an Order dtd. 4/3/2022 passed by Respondent No.2 read with the report dtd. 26/5/2022 also given by Respondent No.2 in the Petitioner's case. Despite all this material, the Respondents have failed and neglected to pay the Export Subsidy to the Petitioner, and hence the present Petition.

(3.) Before we proceed to decide this controversy, it would be apposite to set out some brief facts. In 2018, there was a drastic fall in the prices of Milk Powder in the domestic as well as in the international market. Because of this, all manufacturers of Milk Powder were not even able to sell their Milk Powder at a price which would break even their costs. The prices had reduced drastically and did not cover the basic cost of milk, production cost, manufacturing cost, and other expenses etc. Due to the same, the stock of Milk Powder with each and every manufacturer in Maharashtra was increasing. As a consequence, the manufacturers, including the Petitioner, reduced the procurement of milk from the end milk farmers as the demand of Milk Powder had reduced. Since the procurement of milk reduced, consequently, fresh production of milk was also reduced. The milk farmers were accordingly unable to sell their milk which resulted in additional milk in the State of Maharashtra.