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Madras High CourtWP/28549/2023disposed of

M/S.Nitish Industries v. The Union Of India

2025-07-29Honourable Mr Justice N. Anand Venkatesh24 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 29.07.2025

CORAM

THE HONOURABLE MR. JUSTICE N. ANAND VENKATESH WP No. 28549, 28554, 25927, 26398, 26077, 26230, 27305 & 26236 of 2023 and WMP Nos.25358, 25494, 25629, 25815, 25635 & 26735 of 2023 W.P.No.28549 of 2023 M/s.Nitish Industries Rep. By Its Proprietor No 96, Suramangalam Main Road, Salem 638 009 Petitioner vs.

1. The Union Of India Rep by its Secretary, Department of Civil Supplies Union Territory of Puducherry, Puducherry 605 001.

2.The Puducherry Agro Products Food and Civil Supplies Corporation Limited, Rep. by its Managing Director, Agricultural Complex, Thattachavady, Puducherry 605 009. 3.The Department of Civil Supplies and Consumer Affairs, Puducherry Rep by its Director 1/24

Thattanchavady, Puducherry 605 009 Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the 2nd Respondent to pay the sum of Rs 30,13,048.35 ( Rupees Thirty Lakhs Thirteen Thousand and Forty Eight and Paisa Thirty Five only) as per the order of this High Court in W.P. No.16346 of 2020 dated 22.02.2021.

W.P.No.28554 of 2023 M/s R.P Sarathy Industries Rep. By Its Proprietor B. Nitish Harihar No 96, Suramangalam Main Road, Salem 638 009 Petitioner vs.

1. The Union Of India Rep by its Secretary, Department of Civil Supplies Union Territory of Puducherry, Puducherry 605 001.

2.The Puducherry Agro Products Food and Civil Supplies Corporation Limited, Rep. by its Managing Director, Agricultural Complex, Thattachavady, Puducherry 605 009. 2/24

3.The Department of Civil Supplies and Consumer Affairs, Puducherry Rep by its Director Thattanchavady, Puducherry 605 009 Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the 2nd Respondent to pay the sum of Rs.31,08,739.50 (Thirty One Lakh Eighty Thousand Seven Hundred Thirty Nine an Paisa Fifty only) as per the order of this High Court in W.P. No.16343 of 2020 dated 22.02.2021.

W.P.Nos.28549 & 28554 of 2023 For Petitioner(s) :

Mr.M. Rajasekar For Respondent(s) :

Mr.V.Vasanthakumar Additional Government Pleader for R1 to R3 W.P.No.25927 of 2023 M/s Jayam Traders Regd. Proprietorship Firm Represented by its Sole Proprietor V.Karthikeyan S/o T. Vaithyalingam No 30, Chinnayanpet Main Road Rajive Gandhi Nagar, Saram Puducherry 605 013 Petitioner 3/24

vs.

1. The Chief Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 2.The Finance Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 3.The Secretary To Government Food and Civil Supplies Department, Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 4.The Managing Director Puducherry Agro Products, Food and Civil Supplies Corporation Limited Agricultural Complex, Thattanchavady, Puducherry - 605 009 Now Camp at Office of the Director Department of Civil Supplies and Consumer Affairs Puducherry, Thattanchavady Puduherry 605 009. 5.The Director Department of Civil Supplies and Consumer Affairs, Puducherry, Thattanchavady, Puducherry 605 009 Respondents 4/24

PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondents to pay agreed pending due amount a sum of Rs.16,80,914/- as per the confirmation of due letter Ref. No. 7-14 /PAPSCO / 2017-2018 dated 31.07.2019 issued by the 4th respondent to the petitioner, further considering the petitioner's representation dated 09.09.2021 together with appropriate interest till the date of disbursement of entire payment of, due within the time limit as this court deem fit and for consequential orders. W.P.No.26398 of 2023 M/s Global Beverages Inc Regd. Partnership Firm Rep by its Managing Partner S.Ganesan, S/o. S.A. Swaminathan No-58/2 Pondy Villupuram Main Road, Villiyanur, Puducherry-605 013.

Petitioner vs.

1. The Chief Secretary Chief Secretariat Government Of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 5/24

2.The Finance Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 3.The Secretary To Government Food and Civil Supplies Department, Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 4.The Managing Director Puducherry Agro Products, Food and Civil Supplies Corporation Limited Agricultural Complex, Thattanchavady, Puducherry - 605 009 Now Camp at Office of the Director Department of Civil Supplies and Consumer Affairs Puducherry, Thattanchavady, Puduherry 605 009.

5.The Director Department of Civil Supplies and Consumer Affairs, Puducherry, Thattanchavady, Puducherry 605 009 Respondents 6/24

PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondents to pay agreed pending due amount of a sum of Rs.1,49,65,981 /- as per tee confirmation of due letter dated 17.07.2019, issued by the 4the respondent to the petitioner, further considering the petitioner's representations dated 13.09.2021 and 15.07.2022, together with appropriate interest till the date of disbursement of entire payment of due within the time limit as this Court deem fit and for consequential orders. W.P.No.26077 of 2023 M/s Global Beverages Inc Regd. Partnership Firm Rep by its Managing Partner S.Ganesan, S/o. S.A. Swaminathan No-58/2 Pondy Villupuram Main Road, Villiyanur, Puducherry-605 013.

Petitioner vs.

1. The Chief Secretary Chief Secretariat Government Of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 7/24

2.The Finance Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 3.The Secretary To Government Food and Civil Supplies Department, Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 4.The Managing Director The Puducherry State Co-op Consumer's Federation Ltd., No.P-429, A-38 & A-39 Industrial Estate, Thattanchavady, Puducherry - 605 009.

5.The Director Department of Civil Supplies and Consumer Affairs, Puducherry, Thattanchavady, Puducherry 605 009 Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondents to pay agreed pending due amount a sum of Rs.64,96,109/- as per the confirmation of due letter dated 10.02.2020 issued by the 4th respondent to the petitioner, further considering the petitioner's representations dated 18.11.2021 and 15.07.2022 together with 8/24

appropriate interest till the date of disbursement of entire payment of due within the time limit as this Court deem fit and for consequential orders. W.P.No.26230 of 2023 M/s.Annai and Co Regd. Partnership Firm Represented by its Partner S.Saravanan, Son of Subramaniam, No.17 Second Cross Kaylash Nagar, Lawspet Post, Puducherry 605 008.

Petitioner vs.

1. The Chief Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 2.The Finance Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 3.The Secretary To Government Food and Civil Supplies Department, Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 9/24

4.The Managing Director Puducherry Agro Products, Food and Civil Supplies Corporation Limited Agricultural Complex, Thattanchavady, Puducherry - 605 009 Now Camp at Office of the Director Department of Civil Supplies and Consumer Affairs Puducherry, Thattanchavady Puduherry 605 009. 5.The Director Department of Civil Supplies and Consumer Affairs, Puducherry, Thattanchavady, Puducherry 605 009 Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondents to pay agreed pending due amount a sum of Rs.99,23,163/- as per the confirmation of due letter Ref.No. 7-14/PAPSCO/ 2017-18 dated 31.1.2018 issued by the 4th respondent to the petitioner, further considering the petitioner's representation dated 30.06.2022 together with appropriate interest till the date of disbursement of entire payment of due within the time limit as this Court deem fit and for consequential orders. 10/24

W.P.No.27305 of 2023 M/s.Ammaa Traders Regd. Partnership Firm, Rep. by its General Manager, R.G.Balakrishnan, S/o. R.Govindan, No. 20, 6th Cross, Thanthai Periyar Nagar, Puducherry 605 005 Petitioner vs.

1. The Chief Secretary Chief Secretariat Government Of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 2.The Finance Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 3.The Secretary To Government Food and Civil Supplies Department, Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 4.The Managing Director Puducherry Agro Products, Food and Civil Supplies Corporation Limited Agricultural Complex, Thattanchavady, Puducherry - 605 009 11/24

Now Camp at Office of the Director Department of Civil Supplies and Consumer Affairs Puducherry, Thattanchavady, Puduherry 605 009.

5.The Director Department of Civil Supplies and Consumer Affairs, Puducherry, Thattanchavady, Puducherry 605 009 Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondents to pay agreed pending due amount a sum of Rs.1,06,53,418/- as per the confirmation of due letter dated 18.01.2019 issued by the 4th respondent to the petitioner, further considering the petitioner's representation dated 08.09.2021 together with appropriate interest till the date of disbursement of entire payment of due within the time limit as this Court deem fit and for consequential orders.

12/24

W.P.No.26236 of 2023 M/s.Global Beverages Inc, Regd. Partnership Firm, Represented by its Partner S.Ganesan, Son of S.A.Swaminathan, No.58/2 Pondy Villupuram Main Road Villiyanur, Puducherry 605 013.

Petitioner vs.

1. The Chief Secretary Chief Secretariat Government Of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 2.The Finance Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 3.The Secretary To Government Food and Civil Supplies Department, Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 4.The Managing Director The PASIC Mega Godown, Puducherry Agro Services and Industrial Corporation Limited Agro House, Thattanchavady, Puducherry - 605 009.

13/24

5.The Director Department of Civil Supplies and Consumer Affairs, Puducherry, Thattanchavady, Puducherry 605 009.

Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondents to pay agreed pending due amount a sum of Rs.55,03,643/- as per the confirmation of due letter dated 31.1.2018 issued by the 4th respondent to the petitioner, further considering the petitioner's representation dated 18.11.2021 and 15.07.2022, together with appropriate interest till the date of disbursement of entire payment of due within the time limit as this Court deem fit and for consequential orders. W.P.Nos.25927, 26398, 26077, 26230, 27305 & 26236 of 2023 For Petitioner(s) :

Mr.Mukund Senior Counsel for Mr.A.C.Manibharathi For Respondent(s) :

Mr.A.Tamilvanan Additional Government Pleader for R1 to R3 & R5 Mr.T.M.Naveen for R4 14/24

ORDER

All these writ petitions have been filed for a direction to respondents to pay the amounts due and payable to the petitioners towards supply of goods made to the Puducherry Agro Products, Food and Civil Supplies Corporation Limited and Puducherry State Cooperative Consumers Federation Limited. 2.The case of the petitioners is that they participated in a tender floated by the Puducherry Agro Products, Food and Civil Supplies Corporation Limited (PAPSCO), in which they were declared as the highest bidders. Pursuant to the award of the tender, the petitioners entered into agreements with the following entities and effected supply of goods of the respective value as tabulated below: S.No Name of the Entity Value of Goods Supplied M/s. Ammaa Traders Rs. 1,06,53,418/- M/s. Nitish Industries Rs. 30,13,048.35/- M/s. Jayam Traders Rs. 16,80,914/- M/s. RP Sarathy Industries Rs. 31,08,739.50/- M/s. Global Beverages Inc.

Rs. 64,96,108.50/- M/s. Annai & Co.

Rs. 99,23,163.21/- 15/24

S.No Name of the Entity Value of Goods Supplied M/s. Global Beverages Inc.

Rs. 1,49,65,981/- M/s. Global Beverages Inc.

Rs. 55,03,643/- 3.The particulars of the period during which the goods were supplied and amount that is due and payable to each petitioner is tabulated hereunder: S.No WP No.

Tender for Highest Bidder Tender Particulars Period during which goods were supplied Total Amount due and payable 27305 of 2023 M/s.

Ammaa Traders IMFL and Beer Products 21.11.2011 to 16.11.2017 Rs.

1,06,53,418/- 28549 of 2023 M/s.

Nitish Industries BPT Steam Rice, Ponmani /Idly rice, Mayuri Raw Rice, White Ponni Raw Rice, White Ponni Boiled Rice, ADT-39 Boiled Rice, Chinna Ponni Boiled Rice, White Ponni Raw Idysal, Ponni Boiled Idisal, IR 20 Raw Rice, Black Ellu (sesame till), White Ellu 11.09.2017 to 14.10.2017 Rs.

30,13,048.35/- 16/24

S.No WP No.

Tender for Highest Bidder Tender Particulars Period during which goods were supplied Total Amount due and payable (sesame till), Jaggery (free from moisture), Wheat, Rava (Sooji - packed in 1 Kg) 25927 of 2023 M/s.

Jayam Traders Refined Sunflower Oil, Vanaspathy 18.09.2017 to 31.03.2019 Rs.

16,80,914/- 28554 of 2023 M/s. RP Sarathy Industries Toor Dhall, Gram Dhall(Both), Orid full, Moong Dhall(split), Mysore Dhall, Black Mosamtric (Big), White Mosamtric (Big), Soya Beans, Green Peas, White Peas, Mochai, Karamani, Kollu (Horsegram), Toor Dhall (14,000 Kgs), Black Mosamtric (12,500 Kgs) 11.09.2017 to 14.10.2017 Rs.

31,08,739.50/- 26077 of 2023 M/s.

Global Beverages Inc.

IMFL Beverages Products as on 08.02.2019 Rs.

64,96,108.50/- 26230 of 2023 M/s. Annai & Co. Toor Dhall, Gram Dhall, Orid Full, Jaggery, Black as on 23.01.2018 Rs.

99,23,163.21/- 17/24

S.No WP No.

Tender for Highest Bidder Tender Particulars Period during which goods were supplied Total Amount due and payable Gram Dhall, Green Gram polished, Chilies, Rice Ponni, Tea, Corriander, Uridhall Ball, Tamarind, Garlic, Dry Chillly, Vegetable Oil, etc.

26398 of 2023 M/s.

Global Beverages Inc.

IMFL Beverages Products as on 31.03.2019 Rs.

1,49,65,981/- 26236 of 2023 M/s.

Global Beverages Inc.

IMFL Beverages Products as on 21.02.2020 Rs.

55,03,643/- 4.The petitioners have sought for the payment of the principal amount along with interest. Since according to the petitioners, there is absolutely no dispute with regard to the amount payable to the petitioners. 5.Individual counter affidavits have been filed in all these writ petitions. The respondents are questioning the maintainability of these writ petitions on the ground that the petitioners have an effective alternative remedy by means of initiating arbitration proceedings and in case any award is passed, it can be only 18/24

executed as a Decree and therefore, this Court must not exercise its jurisdiction under Article 226 of the Constitution of India. 6.The learned Additional Government Pleader appearing on behalf of respondents also submitted that both the Corporations are in serious financial crisis and already steps have been taken for liquidation. Therefore, the respondents are not in a position to repay back the money claimed by the petitioners. 7.This Court has carefully considered the submissions made on either side and the materials available on record.

8.It is quite evident from the materials placed before this Court that there is absolutely no dispute in the amount due and payable to the petitioners. In fact, in one of the cases, the matter reached the Apex Court in the case of M/s.Balaji Enterprises and the Apex Court directed the Corporation to pay the principal amount and waived the interest.

19/24

9.The judgements relied upon by the learned Additional Government Pleader appearing on behalf of the respondents are cases where there are disputed amounts and which involves disputed questions of fact. Under such circumstances, a writ petition is not maintainable. However, just because there is an arbitration clause available, that by itself is not a bar to entertain a writ petition and the law on this issue is now too well settled.

10.The amount that is payable to each of the petitioner are is an undisputed amounts and therefore, there is no need for the petitioners to go before the Arbitral Tribunal and workout their remedy. However, considering the fact that the Corporations are in financial doldrums, this Court deems it fit to direct the Corporation to pay the principal amount to each of the petitioners. 11.In the light of the above discussion, these writ petitions are disposed of in the following terms:

(a) PAPSCO is directed to pay a sum of Rs. 1,06,53,418/- to the Petitioner in WP No. 27305 of 2023 20/24

(b)PAPSCO is directed to pay a sum of Rs. 30,13,048/- to the Petitioner in WP No. 28549 of 2023 (c) PAPSCO is directed to pay a sum of Rs. 16,80,914/- to the Petitioner in WP No. 25927 of 2023 (d)PAPSCO is directed to pay a sum of Rs. 31,08,739.50/- to the Petitioner in WP No. 28554 of 2023 (e) PAPSCO is directed to pay a sum of Rs. 64,96,108.50/- to the Petitioner in WP No. 26077 of 2023 (f) PAPSCO is directed to pay a sum of Rs. 99,23,163.21/- to the Petitioner in WP No. 26230 of 2023 (g)PAPSCO is directed to pay a sum of Rs. 1,49,65,981/- to the Petitioner in WP No. 26398 of 2023 (h)PAPSCO is directed to pay a sum of Rs. 55,03,643/- to the Petitioner in WP No. 26236 of 2023 12.It is made clear that the principal amount shall be paid to the petitioners in each of the petition, within a period of six weeks from the date of receipt of copy of this order, failing which it will carry an interest at the rate of 7.5% per annum 21/24

from the date on which the amount is due and payable till the date of settlement of the entire amount. No Costs. Consequently, connected miscellaneous petitions are closed.

29.07.2025 Index:Yes/No Speaking/Non-speaking order Internet:Yes ssr To

1. The Secretary, Union Of India Department of Civil Supplies Union Territory of Puducherry, Puducherry 605 001.

2.The Managing Director, Puducherry Agro Products Food and Civil Supplies Corporation Limited, Agricultural Complex, Thattachavady, Puducherry 605 009. 3.The Director Department of Civil Supplies and Consumer Affairs, Puducherry, Thattanchavady, Puducherry 605 009 22/24

4. The Chief Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 5.The Finance Secretary Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 6.The Secretary To Government Food and Civil Supplies Department, Chief Secretariat Government of Puducherry Goubert Avenue, Beach Road, White Town, Puducherry 605 001 7.The Managing Director Puducherry Agro Products, Food and Civil Supplies Corporation Limited Agricultural Complex, Thattanchavady, Puducherry - 605 009 8.The Managing Director The Puducherry State Co-op Consumer's Federation Ltd., No.P-429, A-38 & A-39 Industrial Estate, Thattanchavady, Puducherry - 605 009.

23/24

N.ANAND VENKATESH J.

ssr WP No. 28549, 28554, 25927, 26398, 26077, 26230, 27305 & 26236 of 2023 and WMP Nos.25358, 25494, 25629, 25815, 25635 & 26735 of 2023 29.07.2025 24/24