Judgment

MITTER, J. :- This is an appeal from a judgment of the Madhya Pradesh, High Court quashing the proceedings initiated on the complaint filed by the Divisional Forest Officer, Saugor in the Court of the Magistrate of the First Class Saugor for imposition of a penalty on the respondents.

2. The matter arises thus. Chhotabhai Jethabhai Patel, partnership firm of which the second respondent, Jhaverbhai Bhulabhai Patel is a partner, carried on business on a fairly large scale as manufacturers of bidis at various places in the State of Madhya Pradesh including Saugor, Being unable to secure sufficient quantities of tendu leaves grown in the forest units in the State, the firm took leases for the collection of such leaves in States of Bihar and Maharashtra. They actually imported tendu leaves under two railway consignments from Bihar to Saugor. They informed the Divisional Forest Officer about the same and asked for permission for transport of the leaves and to utilise the said leaves for manufacture of bidis in their factories. By latter dated July 27, 1965 the said Forest Officer intimated the firm that the imported leaves ware not to be moved for bidi manufacture until permission was accorded for so doing. The respondents grievance was that notwithstanding the above communication and in spite of the fact that they had not moved the imported leaves from their godowns, the Sub-Divisional Forest Officer Saugor seized two quantities of such leaves of 9007 bags imported from Garwah Road, Bihar and 256 bags of tendu leaves imported from Bindou-magani, Bihar and followed the same up by filing a complaint alleging contravention of Section 5 of the Madhya Pradesh Tendu Patta (Vyapar Viniyaman) Adhiniyam. 1964, hereinafter referred to as the Act. THe respondents filed a petition under Article 226 of the Constitution before the High Court for the issue of a writ of certiorari quashing the complaint. The contention of the respondents (importers of the leaves) before the High Court was that the Act did not prohibit the import of tendu leaves from places outside the State nor was there any restriction on a manufacturer importing such leaves with the express object of consumption of the same in his factory for the manufacure of bidis and in any event the Act or the Rules made thereunder did not purport to regulate the transport of tendu leaves imported from places outside the State.

3. On behalf of the State it was contended that transport of tendu leaves whether grown in the State or outside the State was completely prohibited by Section 5 (2) of the Act and regulation and control of transport of such imported leaves was necessary for the successful working of the State monopoly in the trade of tendu leaves envisaged by the Act. Further the Act did not prohibit the import of tendu leaves and was not therefore violative of Aricles 31, 301 and 304 of the Constitution and the control of movement of tendu leaves after their import from another State was in no way repugnant to Articles 301 and 304.

4. The High Court rejected the contentions of the State. Hence the appeal.

5. In order to find out whether the action of the Forest Officer was justified, we have to look into the relevant provisions of the Act and the rules framed thereunder. The Act as its preamble shows is one make provision in the public interest the trade of tendu leaves by creation of State monopoly in such trade. By Section 1 (2) it was to extend to the whole of the State and under sub-section (3) of section 1 it was to come into force in such area or areas and on such date or dates as the State Government may, by notification, specify. The broad scheme of the Act appears to be as follows. Under Section 3 the State Government was empowered to divide every specified area defined in clause (h) of Section 2 into such number of units as it may deem fit. Section 4 empowered the State Government to appoint agents in respect of different units for the purpose of purchase of and trade