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. After rent revisions over time, payment at 57.5 paise per sq. ft. had been sanctioned and released. In 1990–91, FCI withheld rent claiming that, based on a 09.09.1987 Zonal Office letter, the rent for 17.11.1984–13.05.1985 should have been 45 paise...