FOOD CORPORATION OF INDIA vs JAGANNATH DUTTA

The Supreme Court held that the termination of the storage agency agreement by the Food Corporation of India (FCI) was valid under Clause 37, which allowed either party to terminate with two months' notice. The Court found that the High Court erred in quashing the termination notice, as it misread the documents and failed to recognize that a policy decision to abolish storage agencies was made by the FCI. The Court emphasized that the High Court should not have intervened in contractual matters under Article 226 of the Constitution, affirming the FCI's decision to terminate the agreement.