Chhattisgarh HC allows rice miller to deliver CMR, citing FCI and state logistical failures affecting deadlines

News Citation : 2026 LN (HC) 291 | 2026:CGHC:20164

April 30, 2026 : The Chhattisgarh High Court has directed authorities to allow a rice miller to deposit Custom Milled Rice (CMR) before the deadline, while acknowledging that administrative and logistical failures on the part of government agencies contributed significantly to delays.

In its order dated April 30, 2026, Justice Amitendra Kishore Prasad disposed of a writ petition filed by M/s S.K. Industries, which had challenged what it described as arbitrary inaction by authorities, particularly the Food Corporation of India (FCI), in facilitating the delivery of CMR under the Kharif Marketing Season 2024–25.

The petitioner, a rice miller based in Durg district, argued that despite valid agreements and readiness to fulfill its contractual obligations, it was unable to complete delivery due to systemic issues such as delayed stack allotment, shortage of labour at FCI depots, slow unloading processes, and disruptions caused by changes in fortified rice policies. The firm also highlighted issues like non-availability of gunny bags and technical glitches in the online allocation system.

According to the court record, these constraints were not disputed and had been acknowledged in official communications by agencies including the FCI, Markfed, and district authorities. The court observed that a substantial quantity of milled rice was ready but could not be delivered due to factors beyond the petitioner’s control.

The petitioner had sought directions to extend the delivery deadline, restrain coercive action such as forfeiture of bank guarantees, and ensure logistical support for smooth delivery. It argued that penal action in such circumstances would be unjust, especially when delays stemmed from administrative inefficiencies.

On the other hand, the State and other agencies maintained that they had taken steps to streamline operations and had already extended the deadline to April 30, 2026. They contended that while there may have been temporary challenges, the petitioner was still bound by contractual obligations.

After considering the submissions, the court noted that the petitioner had demonstrated bona fide intent and partial compliance, and that delays were largely attributable to systemic shortcomings. It held that denying relief in such a situation would cause irreparable harm.

Balancing the equities, the court directed that the petitioner be allowed to deposit the Custom Milled Rice up to 5:00 PM on the same day and that authorities must not refuse acceptance if the rice reached FCI depots within that timeframe, subject to quality and contractual compliance.

The court further directed the FCI and other concerned agencies to act in a fair and pragmatic manner and ensure necessary logistical support, including stack allocation, labour availability, and unloading facilities, to facilitate smooth acceptance of the rice.

Importantly, the court clarified that it had not expressed any opinion on other disputes between the parties and left those issues open to be addressed in accordance with law.

Case Reference : WPC No. 2124 of 2026, S.K. Industries vs Union of India and Others. Counsels: For the Petitioner: Mr. Ishan Verma, Advocate; For the Respondent-State: Mr. S.S. Choubey, Government Advocate; For Respondents No. 3 and 4: Mr. Animesh Tiwari, Advocate; For Respondent No. 5: Mr. R.S. Patel, Advocate.