In Brief
The Food Corporation of India (FCI) challenged orders allocating paddy for custom milling to new lessees of blacklisted rice mills. The appellants argued that the lease deeds transferring mill ownership were unregistered and thus failed to meet statutory requirements under the Registration Act, 1908. The Court held that unregistered lease deeds cannot serve as valid evidence of possessory rights transfer. Further, new lessees cannot claim paddy allocation unless prior contractual liabilities to FCI are satisfied. The High Court erred in setting aside FCI's denial orders. Appeal allowed.
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