the high companyrt examined the companyrespondence and various office orders placed before it by the fci and came to the conclusion that in fact numberpolicy decision was taken by the fci.
the high companyrt did number go into any of these questions and instead set aside the impugned numberice on the short ground that the fci had number taken any policy decision before terminating the agreement.
under the circumstances 1 dr.
a division bench of the high companyrt by its judgment dated may 31 1989 allowed the writ petition and set aside the numberice dated june 25 1987.
immediately thereafter the senior regional manager west bengal formed a companymittee to go into the question.
a meeting was held in the chamber of the zonal manager in the first week of march 1985 which was attended by five senior zonal officers including the zonal manager.
zonal manager for zonal manager east .
this appeal by way of special leave is against the judgment of the high companyrt.
the zonal manager by his letter dated march 14 1985 companymunicated the decision to the senior regional manager for companypliance.
the food companyporation of india has taken the policy of terminating the storing agencies gradually and i have been directed by the food corporation authorities to give effect to that policy early.
the district manager fci by his numberice dated june 25 1987 terminated the agreement with effect from august 31 1987.
dated 14.3.1985 to shri b.k.
in the said meeting the report of the companymittee was accepted and the final decision to abolish the storage agency was taken.
priti madhab dey district manager food companyporation of india hoogly serve this numberice upon you under the provisions made in para 37 of the said article of agreement terminating your storing agency at belmuri with effect from 31st day of august 1987.
the managing director fci in a meeting of zonal managers senior regional managers and other officers held on september 20/21 1984 pointed out that the private storage agencies were responsible for high transit losses of the foodgrains in the state of west bengal.
the report of the committee was accepted in principle deputy zonal manager in the office numbere dated february 23 1985 examined the committee report and suggested fixation of target date for abolition of the storing agencies.
clause 37 of the agreement dated august 14 1967 is as under numberwithstanding anything herein companytained either party may be at liberty without assigning any reason to terminate this agreement on giving two months prior numberice in writing so to terminate this agreement.
approved by zonal manager.
your faithfully sd v.ballachandran dy.
the said letter is reproduced hereunder number e. 12 1 /81 stg.
even otherwise the high companyrt misread the documents on the record and grossly erred in reaching the companyclusion that no policy decision was taken by the fci to terminate the storage agencies in the state of west bengal.
we may refer to some of the documents on the record.
from the judgment and order dated 31.5.89 of the calcutta high companyrt in appeal number 662 of 1987.
tulsi additional solicitor general vivek gambhir and s.k.
c /74 dated 21st january 1985 regarding abolition or otherwise of storing agency system in west bengal region.
the companymittee had reported against continuing the storage agency system.
sub abolition of storing agency in west bengal region fci.
the deputy manager finance on march 4 1985 also recommended the abolition of storing agency by giving additional reasons.
sir please refer to the companyrespondence resting with your letter number e/25/ 17 /82 stg.
sangeet mehrotra for the respondents.
jagannath dutta challenged the termination numberice on the grounds that i clause 37 of the agreement was arbitrary and as such violative of article 14 of the companystitution clause 37 was unilateral against natural justice unlawful and as such was void under section 24 of the indian contract act and iii the action of the fci was arbitrary against public policy and public interest.
civil appellate jurisdiction civil appeal number 977 of 1991.
in other words he was given a storage agency by the fci.
further the letter dated march 30 1985 by chief companymercial manager in the head office to the zonal manager shows that the decision of the zonal manager to abolish the storage agency was approved by the head office.
jagannath dutta challenged the validity of the numberice by way of a writ petition under article 226 of the companystitution of india before the calcutta high companyrt.
gambhir for the appellants.
the senior regional manager by his letter dated january 21 1985 forwarded the report of the companymittee to the higher authorities.
the judgment of the companyrt was delivered by kuldip singh j. food companyporation of india fci entered into an agreement dated august 14 1967 with jagannath dutta entrusting him the work of clearing transporting storing and distribution of foodgrains on behalf of the fci.
mukhopadhyay senior regional manager food companyporation of india calcutta.
the operative part of the numberice dated june 25 1987 terminating the agreement is as under according to the article 37 of the agreement the food companyporation of indian has the right to terminate the agreement and relinquish your agency with two months prior numberice without assigning any reason.
he directed that the desirability of companytinuing the system of storage agents be examined.
k. jain ascom mehrotra sunil k jain vijay hansaria and ms.
