Manipur High Court
M/S Zenith Enterprises vs The Food Corporation Of India & 5 Ors on 11 March, 2026
Author: A. Guneshwar Sharma
Bench: A. Guneshwar Sharma
NINGOM Digitally signed
by NINGOMBAM
BAM VICTORIA Item Nos. 2-3
Date: 2026.03.12
VICTORIA 10:52:39 +05'30'
IN THE HIGH COURT OF MANIPUR
AT IMPHAL
WP(C) No. 191 of 2026
M/S Zenith Enterprises.
...Petitioner
- Versus -
The Food Corporation of India & 5 Ors.
...Respondents
With
MC(WP(C)) No. 200 of 2026
B EF O R E
HON'BLE MR. JUSTICE A. GUNESHWAR SHARMA
ORDER
11-03-2026
[1] Heard Mr. H.S. Paonam, learned senior counsel assisted by Mr.
S. Gunabanta, learned counsel for the petitioner; Mr. W. Darakeshwar,
learned Standing Counsel for FCI, i.e. respondent Nos. 1, 2 & 3; and Mr.
Niranjan Sanasam, learned Government Advocate for State respondent
Nos. 4, 5 & 6.
[2] At the outset, Mr. H.S. Paonam, learned senior counsel for the
petitioner, submits that the nomenclature of respondent No. 6, Officer in-
charge, Thoubal Police Station in the cause title is wrongly mentioned as
Officer in-charge, Imphal Police Station and he may be permitted to make
necessary correction in the cause title of respondent No. 6.
[3] The oral prayer is allowed and the same may be done in the
course of the day.
[4] The petitioner is a Contractor for transportation of food grains from
RH/FSD Jiribam to FSD Thoubal for the period from 07-12-2021 to 06-12-
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2023. A writ petition being WP(C) No. 439 of 2023 is filed between the
petitioner and the FCI about challenging the show cause notice for
termination of contract for the period of 2021-2023 and the same is pending
and there is an interim order of no coercive action. Admittedly, the tenure of
contract for the petitioner has already lapsed in the month of December,
2023. During the subsistence of the contract period, the 9 loaded trucks
being Registration Nos. MN03T0720, MN019057, MN04A5916,
MN04C0695, AS11AC7975, MN017678, MN05C2852, MN04C0686 and
AS24C2451 were dispatched from RH Jiribam to FSD Thoubal. The said 9
trucks were duly entered and reported on 03-05-2023 at FSD Thoubal by
issuing Receipt Entry Gate Register maintained at FSD Thoubal. It is stated
that the 9 trucks were forcibly taken away by some miscreants on 06-05-
2023 and in this respect, a report has been made by the Manager (Depot),
FCI, FSD Thoubal to the Superintendent of Police, Thoubal District,
Government of Manipur and an FIR being No. 100(5) 2023-TBL-PS u/s
365/384/34 IPC & 25(1-B) Arms Act was registered against the unknown
armed persons. Later on, it is stated that out of the total quantity of
1,640.51140 quintals, only 895.01640 quintals were recovered and food
grains of 745.49500 quintals still remains unrecovered. Thereafter, the FCI
issued notice for recovery dated 13-02-2026 from the petitioner directing
them to deposit a sum of Rs. 52,76,560/- in respect to 1,475 bags weighing
745.49500 quintals of food grains within 10 days and another demand notice
dated 03-03-2026 was also issued to the petitioner to deposit the said
amount within 10 days. The main reason given in the impugned notice for
recovery dated 13-02-2026 and demand notice dated 03-03-2026 is that
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since the food grains have not been unloaded and stocked in the godown, it
is the liability of the Contractor in terms of clause X(a) and clause X(d) of the
Model Tender Form (MTF).
[5] Mr. H.S. Paonam, learned senior counsel for the petitioner,
submits that the notice for recovery was issued without issuing any prior
show cause notice to explain the case of the petitioner. It is also submitted
that unloading is to be done by another Contractor appointed by the FCI and
the petitioner who is the transporter has no role in the unloading. Once the
bags are officially entered within the campus of the depot, it should be in the
custody of the FCI staff and no liability cannot be fixed on the petitioner and
it is also pointed out that the demand notice was issued after 3 years of the
expiry of the contract period.
[6] On the other hand, Mr. W. Darakeshwar, learned Standing
Counsel for the FCI, has pointed out that the demand notice is taken up
strictly in terms of the Model Tender Form and the liability of the Contractor
still subsists in terms of the MTF. Learned Standing Counsel for the FCI has
also drawn the attention of this Court to clause XX of MTF that any dispute
arising out of the contract, the matter has to be referred to the
Dispute/Grievance Redressal Committee of FCI. Mr. W. Darakeshwar,
learned Standing Counsel for the FCI, submits that the writ petition is not
maintainable in the present form as there is an alternative forum of appeal
before GRC.
[7] Mr. H.S. Paonam, learned senior counsel for the petitioner,
submits that in the impugned recovery notice dated 13-02-2026 and demand
notice dated 03-03-2026 issued by the FCI to the petitioner, the alternative
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forum to approach GRC is not indicated. Clause XX of MTF is not applicable
as the present case is not a dispute in contract but illegal removal of food
grains by unknown persons from the campus of FSD, Thoubal. It is also
submitted that notice for recovery and demand notice are in the nature of
final order without giving any time for approaching GRC. Learned senior
counsel for the petitioner submits that the FCI itself has initiated criminal
proceedings for the missing food grain items against the unknown armed
persons.
[8] This Court has perused the material on record. Since alternative
remedy is available to the petitioner for approaching GRC, the petitioner is
directed to approach the GRC raising all the points available. Since the
demand notice is for immediate compliance and till the matter is decided by
GRC, the recovery of Rs. 52,76,560/- shall be kept suspended. The
petitioner is given 10 days’ time for approaching GRC and if the petitioner is
aggrieved by the decision of GRC, the petitioner is at liberty to approach
appropriate forum.
[9] It is clarified that this Court does not express any opinion on the
merit of the case and both the parties are free to raise all the pleas available
to them before the GRC.
[10] The writ petition is disposed of in terms of the above direction.
MC(WP(C)) No. 200 of 2026 is also closed.
[11] Furnish a copy of this order to the learned counsel appearing for
the parties by Whatsapp or any other available modes.
JUDGE
Victoria
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