VidhiSangh

Supreme Court of India · 06/03/2020

CORPORATION OF INDIA AND ANOTHER versus M/S. V.K. TRADERS AND OTHERS

[2020] 4 S.C.R. 110 · 2020 INSC 286

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court upheld FCI’s refusal to allocate paddy to entities claiming leases of defaulting rice mills. The unregistered leases did not establish a valid transfer of possessory rights, and the lessees could not demand allocation while liabilities under the earlier milling agreements remained unpaid. The Court dismissed their writ petitions, permitting applications under FCI policy after payment of the original millers’ dues with penalty or interest and production of no-dues certificates.

Issues

  1. Whether unregistered leases established new lessees’ entitlement to paddy allocation despite the mills’ outstanding liabilities.
  2. Whether separate legal identity alone required FCI to allocate paddy.

Provisions considered

Held

Result

FCI’s appeals allowed; both High Court orders set aside and lessees’ writ petitions dismissed, with liberty to seek allocation under FCI policy after clearing dues and producing no-dues certificates. No costs.

Judgment PDF: Supreme Court of India, [2020] 4 S.C.R. 110.