KMF milk missing since 2006

S Shyam Prasad | NT

Bengaluru: The Kolar District Co-operative Milk Producers Societies Union (KDCM), which operates under the direction of the Karnataka Milk Federation (KMF) has been waiting since 2006 for the supply of 100.576 metric tons of skimmed milk and 65.797 metric tons of butter from a Maharashtra-based company.

The KDCM had supplied its surplus milk to the company on the directions of KMF. The Maharashtra company was to convert the excess milk to skimmed milk and butter at a predetermined cost. However, the company denied the supply of milk and a Trial Court upheld its contention.

The matter reached the High Court which has now sent the matter back to the Trial Court for considering additional evidence.

Excess milk

The KMF had entered into an agreement with Mayur Co-operative Milk Union, Kohlapur, Maharashtra for conversion of surplus milk collected by its unions into skimmed milk powder and butter.

As per KMF’s instructions the KDCM started supplying its surplus milk to the company from December 2005. As per the agreement, the Company was to convert the milk to skimmed milk powder at Rs 16 per kg and butter at Rs 9.5 per kg till July 2006.

The Company was supposed to store the milk powder and butter in its warehouse and release the stock as per the instruction of the KDCM. As per the audit report on March 31, 2006, the Company was holding 100.579 metric tons of butter and 65.797 metric tons of butter in its custody.

The KDCM alleged that the Company failed to supply the milk powder and butter as per the release order issued by KMF. KDCM approached a trial court against the Company and its management seeking Rs 1,17,76,731 for the milk supplied.

Only one of them responded and denied any agreement between KMF and the Company. It was contended that KDCM never supplied any milk and had no legal right to seek recovery of money.

The Trial Court after hearing the argument of both sides recorded its finding and ultimately dismissed KDCM’s suit. Aggrieved by the dismissal, KDCM approached the High Court with an appeal in 2011. The HC bench of Justice PS Dinesh Kumar and Justice TG Shivashankare Gowda gave its judgement on the appeal recently.

The KDMC filed an application in the appeal seeking permission for production of additional documents such as the statement of accounts pertaining to supply of surplus milk, production of skimmed milk powder and butter and the quantum of product dispatched at the instance of the plaintiff, the quantity of skimmed milk powder and butter which remained in the hands of the defendant, bills of accounts, delivery challans of surplus milk, the end products and bills issued by the Company and others.

The HC noted that “These are very relevant materials which throw light upon the issues framed in this case. The present Managing Director of the plaintiff has sworn to an affidavit that production of these records is very relevant as otherwise the plaintiff will suffer a huge loss to a tune of Rs 1,31,89,938.”

Remanding the case to the Trial Court, the HC said, “The money involved in this case is public money, that too, belonging to poor farmers who depend solely on the dairy activity. When such being the case, the conduct of the officers of the plaintiff in not diligently prosecuting the case would cause loss to the farmer community. In the facts and circumstances of the case, without expressing any opinion on the merits of the case, we deem it proper to remand the matter for disposal in accordance with law.” The parties were directed to appear before the Trial Court on July 24, 2023. (RFA 265/2012)