LexTAPAN KUMAR SADHUKHAN versus FOOD CORPORATION OF INDIA
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TAPAN KUMAR SADHUKHAN v. FOOD CORPORATION OF INDIA AUGUST 20, 1996 [A.M. AHMADI, CJ., N.P. SINGH AND S.C. SEN, JJ.] Food Corporatio11 Act, 1964: Section 13(2)(b). Food Corporation---Fzmctions of-Processi11g of foodgrains-Upgrad- ing of sub-standard ricr:-Setting up plant fo,-.Being an agency of State, it must co11fon11 to Art. 47 of Constitutio11 to improve public health-Sub-sta11d- ard rice suitable for huma11 consumptio11 should be duly upgraded a11d sold to /ice11sed rice dealers:-Such sub-sta11dard rice could 11ot be sold as such on mere undertaki11g by dealm· that they would upgrade the 1ice before marketi11g the samr:-Corporatio11 itself should preferably set up pla11t to upgrade sub- standard ric~Alteniatively, concen1ed Ministry in Govenunent of India should evolve guidelines so that sub-standard rice did not enter market for human consumption before upgradi11g----Third altemative would be to use A B c D "" such untreated sub-standard rice for any other p1upose, such as cattle/chicken feed etc-Huweve1; sub-standard rice itnsuitable for lzunzan consuniption should be disposed of for purposes other than hun1an consunzption in E • conipliance of Gove1n111ent directions. Constitution of India, 1950 : Article 47. Obligatio11 of State to raise level of 11utritio11 a11d improve public health-Food Co1poratio11 of l11dia being 011 agency of State should evolve F foolproof system so that sub-sta11dard rice does ;zot enter market for hwnan consumption before upgrading-Poverty stricke11 people who were consumers of sub- standard rice 11eeded State's protectio11 from injurious effect of such sub-standard rice. The respondent-Corporation issued a ,tender notice inviting tenders from the registered/licensed rice dealers for sale of sub-standard rice unlit G for human consumption. The purchasers were required to give an under- taking to upgrade the said sub-standard rice before issuing for human consumption. Tuo licensed dealers filed writ petition before the High Court challenging the tender notice as being violative of the West Bengal H 775 776 SUPREME COURT REPORTS (1996] SUPP. 4 S.C.R. A Rice and Paddy (Licencing & Control) Order, 1967 and also being violative of the Government Circular issued in that regard. A Single Judge of the High Court made an interim order directing the Quality Control Commit- tee of the respondent-Corporation to submit a report as to whether the rice which was the subject Patter of the tender notice was capable of being B upgraded for human consumption. This interim order was challenged in appeal before a Division Bench of the High Court which vacated the injunction issued by the Single Judge and also issued detailed instructions to deal with the aforesaid sub-standard stock of rice. The appellant claimed to be interested in the subject matter of the C case as proprietor of a company dealing in manufacture and supply of cattle feed, poultry feed, manure etc., as a registered contractor of the respondent-Corporation. His plea was that rice which was unfit for human consumption was sought to be sold as sub-standard/damaged rice, subject to upgradation by the purchasers. D Disposing of the appeal, this Court E HELD : 1.1. The Food Corporation of India, i.e., respondent No. 1, is to secure a commanding position in the foodgrains trade of the country. Being an important factor in the n1arket of foodgrains and being an agency of the State, it must conform to the letter and spirit of Article 47 of the Constitution. Such being the position of respondent No. 1, the trading activity in rice and other foodgrains must be done keeping in view the obligation to improve public health. [787-D] 1.2. The stocks found unsuitable for human consumption cannot be F sold to any rice dealer and have to be disposed of for purposes other than human consumption in the manner prescribed by the Government. The stock that is found suitable again cannot be immediately used fur human consumption for that can be so used only after being upgraded. If sub- standard rice is released and sold in the open market it would be highly injurious to the consumers. Publics health would be jeopardised if such G rice is consumed by members of the public. Poverty in our country is quite rampant and illiterate, ignorant and poor persons would not hesitate to consume such rice if sold at cheap rates. That would undoubtedly be exposing the poor to the risk of consuming sub
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