SHIV SHAKTI RICE MILLS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Present writ petition has been filed, inter alia, for issuance of a writ in the nature of certiorari to quash the notices of recovery dtd. 13/9/2013 and 1/10/2014 (Annexures P-6 and P-7) respectively, whereby the petitioner was intimated that owing to respondent-FCI deducting a sum of Rs.4,70,100.00 from Markfed, on account of excess payment of up-gradation charges for paddy crop 2009-2010 qua the petitioner, the said amount was to be deposited by the petitioner with Markfed within a period of 10 days from the issue of notice.

(2.) Succinctly, factual backdrop is that the petitioner is engaged in the business of milling of rice. The petitioner was allotted the job of custom milling of paddy pursuant to an agreement dtd. 22/10/2009 (Annexure P-1). The said agreement contains an Arbitration Clause, the relevant extract, for ready reference, is reproduced hereinbelow:-

(3.) Learned counsel for the petitioner contends that after issuance of recovery notices, the petitioner submitted bank guarantees dtd. 20/4/2015 (Annexure P-8) for an amount of Rs.4,70,000.00, for guaranteeing the recovery of the amount demanded by the Markfed subject to the adjudication of the dispute claimed.