A recent judgment by Supreme Court giving relief to a contractor of Agartala brought to fore as to how some unscrupulous elements in government , semi government and various corporations harass people and act vindictively spending crores of public money. They without any logic or reasons go to courts using government money against the individual of their dislike with frivolous litigations one after another only to satisfy their ego.
In the significant judgment, the Supreme Court of India has imposed a penalty of ₹50,000 for each of the litigations on the Food Corporation of India (FCI) for engaging in frivolous cases and unjustly delaying the refund of a contractor’s security deposit. The apex court also directed FCI to return the withheld deposit amount to Namita Paul, a contractor who had been transporting food grains for FCI since 1995-96, along with 6% interest.
The case stems from incidents in 2010-11, when Namita Paul successfully fulfilled multiple transport contracts as part of FCI’s ‘Northeast operations’. However, despite completing the contracts, Paul faced unjust withholding of her security deposits and earnest money, leading to a prolonged legal struggle. After exhausting all administrative remedies, she approached the Trial Court in West Tripura, which ruled in her favor in 2022.
Instead of complying with the court’s decision, FCI filed multiple appeals, including two review petitions in the Tripura High Court. Both petitions were dismissed in October 2023, with the High Court ordering FCI to refund the deposit. However, FCI continued to delay compliance, forcing Paul to endure an extended legal battle.
The situation worsened when it was discovered that some corrupt FCI officials had allegedly forged six cheques amounting to ₹54 lakh that were issued to Paul. All six cheques were dishonored, causing severe financial strain on the contractor. To manage her mounting financial crisis and legal expenses, Paul was compelled to take a ₹50 lakh loan from Canara Bank, plunging her into deeper financial distress.
On January 4, 2024, the Supreme Court reaffirmed the High Court’s order, directing FCI to return the security deposit to Paul. Despite this, FCI persisted with special leave petitions, prompting the apex court to impose a fine of ₹50,000 on December 9, 2024. The Supreme Court ordered that this penalty be deposited with the Supreme Court Legal Services Authority within two weeks. The court also directed FCI to refund Paul’s security deposit with 6% interest, ending a decade-long ordeal for the contractor.
Legal experts have welcomed the Supreme Court’s ruling as a vital measure to curb unnecessary litigation by government agencies. Advocate Sayeed Sharma remarked, “This judgment is a stern reminder to public authorities that they cannot misuse their position to harass honest contractors. It is a significant step towards ensuring accountability in government dealings.”
Reports suggest that FCI has spent substantial sums on legal fees over the past 15 years in similar disputes, raising concerns about the misuse of public funds for prolonged litigations.
The Supreme Court’s verdict is being seen as a landmark decision aimed at deterring public authorities from indulging in frivolous and vexatious litigation practices. The judgment not only ensures justice for Namita Paul but also underscores the need for judicial reforms to expedite the resolution of similar cases and prevent the misuse of power by government bodies.
