PARAS FOOD VIILAGE DAHA Vs. STATE OF HARYANA

JUDGEMENT

(1.) Affidavit has been has been filed by the learned counsel for the respondent today in the Court in compliance to the order dtd. 28/2/2019 and the same is taken on record. This is an appeal that has been filed seeking to challenge the impugned order dtd. 19/1/2019 passed by the learned Additional District Judge, Karnal dismissing the application under Sec. 9 of the Arbitration and Conciliation Act, 1996. There was an agreement between the appellant herein and the respondent-Corporation to mill 190764 bags of paddy weighing 71536.50 qtls. which was delivered to the appellant, out of which appellant herein had to deliver 47929.455 qtls. of A grade Custom Mill rice to the Food Corporation of India on behalf of the respondent- Corporation.

(2.) It is the contention of the respondent-Corporation that physical verification of the paddyrice lying in premises of the appellant wasconducted on 29/12/2018 by the designated team and it was found that out of total 47929.455 qtls. of Custom rice which was to be delivered to the Food Corporation of India only 37199.590 qtls of Custom Milled Rice was delivered to Food Corporation of India till 31/8/2018 and there was a shortage and misappropriation of the balance paddyrice. On account of the misappropriation and to secure the interest of the respondent-Corporation, respondent-Corporation issued a notice dtd. 1/1/2019 to the appellant herein to pay the cost of 10729.865 qtls CMR (Custom Milled Rice) of grade A at 110% of the rate fixed by the Government of India alongwith interest @ 12% per annum within 10 days of issue of the said notice.

(3.) In the notice, it was further stated that in case the appellant failed to deposit the cost as demanded within 10 days, the respondent- Corporation will have no other option except to auction the entire quantity of paddyrice, broken rice, dis-coloured rice and damaged rice at the risk and cost of the appellant on 21/1/2019.