P&H: Food Corporation of India - Cannot Unilaterally Cut Rent Or Recover “Excess” Without Notice

punjab-haryana
⚖️ Order Date: 20 May 2026
Headnotes
Agreement - Scope and meaning - An agreement derives its binding force from the mutual consent of parties to its terms and conditions - Once parties have agreed upon terms of agreement, neither party can unilaterally alter or modify such terms without informing other party and obtaining its consent -Any unilateral alteration affecting rights and obligations of parties without mutual consent, cannot ordinarily be sustained in law. (Para 17) Rent - Agreement/Contract — Internal administrative

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Facts of the Case
P&H: Food Corporation of India - Cannot Unilaterally Cut Rent Or Recover “Excess” Without Notice The Punjab and Haryana High Court has held that the Food Corporation of India (FCI) could not unilaterally reduce agreed rent for leased godowns and recover alleged excess payments without prior notice or consent of the landlords. Dismissing FCI’s Regular Second Appeal, it was  affirmed concurrent decrees directing release of withheld rent. The dispute arose from godowns leased since 1978.

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