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Justice Swaminathan of Madras High Court has held that since toor dal is grown in India, suppliers cannot cite that the Ukraine war has affected the procurement of Toor Dal and has caused price fluctuation to deny supplying the same.

The above was held in a plea filed by a company called Arunachala Impex engaged in the business of processing and distributing Dals and Lentils. The company had obtained a tender from Tamil Nadu Civil Supplies Corporation for supply of 20,000 metric tonnes of Toor Dal.

The company supplied 10,000 metric tons of the commodity and had to supply the remaining. The Civil Supplies Corporation by a communication dated March 28,2022 asked the company to supply an additional quantity of 5000 metric tonnes. This demand for supply of additional quantity of Toor Dal was challenged in the writ petition.

Court, on hearing the contentions raised by the parties, noted that the plea is more like a "gate crasher” as it was taken up along with a batch of eight other writ petitions involving the supply of Palmolein to the Corporation by various tenderers.

Court stated that while there is some merit in the contentions of the plea challenging the supply of Palmolein on account of various factors such as the outbreak of the Russia-Ukraine war and the ban on exports imposed by Indonesia, the petition could not claim any such justification.

Court pointed out that Toor Dal is grown in India in States such as Uttar Pradesh, Madhya Pradesh, Gujarat, Bihar, Tamil Nadu and Karnataka and it is very much available in the Indian market. "The claim that the Ukraine war has affected the procurement of Toor Dal and has caused price fluctuation in the open market is “too far fetched,” Court said.

Court, noting that it is possible that the cost of transportation has gone up, held that these are purely commercial difficulties and cannot constitute a force majeure event. Court added that it is not the case of the company that the contract had been rendered impossible of performance on account of the conditions pleaded by them.

Therefore, stating that the product is very much available and the demand for supplying 25% additional quantity is well within the terms of the agreement entered into between the parties, Court dismissed the plea.

Case title: Arunachala Impex Vs Tamil Nadu Civil Supplies Corporation