TMI Blog2008 (1) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... Government or to a body owned or controlled by them for the purpose of making it available to the public at a fair price. It is commonly known as 'levy sugar'. Price of such levy sugar is fixed by the Central Government in exercise of its power under Section 3(3C) of the Act on yearly basis. 'Sugar year' commences from the month October of the year. Price of levy sugar although is required to be notified at that time, admittedly, there exists a practice to notify the previous year's price as a levy sugar on an adhoc basis price in October and final price therefor is notified later on. 2. Pursuant to or in furtherance of a notification issued by the Central Government under the Act and the directions issued by the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was held that a direction for making the payment should be made but in respect of the supplies made to the appellant; any resolution setting the controversy was held to be impermissible in a writ proceeding therefor and the respondents were relegated to the remedy of a civil suit for recovery of respect of the amount claimed by them. 6. A review petition was filed by the respondents pointing out that no direction has been made in regard to payment of interest and by a judgment and order dated 29th April, 2005 interest was directed to be paid. 7. Appeals preferred thereagainst by the appellant herein have been dismissed by a Division Bench of the High Court by reason of the impugned judgment. 8. Mr. Amarendra Sharan, learned Addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view the price notification dated 22.10.1993 and 17.1.1994. Bills were forwarded to the Food Corporation of India by the concerned authority for making payment. Appellant, in its counter affidavit before the High Court, inter alia, averred that as in respect of supply of sugar in earlier years, certain claims had been made by it, payment was rightly withheld, stating: Since the shortages mentioned in the preceding paras were detailed in the seal intact wagons, therefore, the petitioners were fully respondible/liable for compensating the losses caused to the Respondents on this account. However, there happened some delay in working out compiling the accurate shortages at our level and as such factual position could not be intimated to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no reason as to why payment therefor could not be made. 12. Appellant could not have withheld payment on the basis of the purported shortages in supply of sugar under the contracts made by the respondents many many years back, save and except under the terms of binding contract. 13. We have noticed hereinbefore that the High Court had divided the cases in two categories. In regard to the supplies made by the respondents to the Central Government and/or its agencies wherewith appellants had no concern, it could not have denied payment on the pretext of shortage or quality of the sugar supplied, particularly, when the recipient did not raise such a question. 14. The Central Government, issued a letter dated 17th November, 1972 on wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p action should be taken by the Regional Managers. The staff at the mill would be responsible to undertake inspection of quality, check weighment, indent of wagons and look to other general arrangements about transport and dispatch . These transport charges will be incorporated by the mills in the bills and will be paid by FCI. Wagons will be booked against clear RRs in the name of receiving District Managers and would be sent to the letter promptly. Stocks by rail shall move against clear RRs and it shall therefore be the responsibility of the receiving District Managers to account for the weight of sugar properly. In case of any shortage/damages of sugar in transit, the claims for the same should be lodged promptly with the railways, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erpretation over the years. Its scope has also been expanded by creative interpretation of the court. The law has developed in this field to a great extent. In this case, no disputed question of fact is involved. The High Court, in an appropriate case, may grant such relief to which the writ petitioner would be entitled to in law as well as in equity. We do not, thus, find any substance in the contention of Mr. Sharan that while exercising its review jurisdiction, no interest on the principal sum could have been directed to be granted by the High Court. A writ court exercises its power of Review under Article 226 of the Constitution of India itself. While exercising the said jurisdiction, it not only acts as a court of law but also as a cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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