SUPREME COURT OF INDIA
KULDIP SINGH AND N. M. KASLIWAL, JJ.
G. T. N. Textiles Ltd. and another, Appellants
Versus
Assistant Directors, R.O.T. Commr. and others, Respondents
Civil Appeals Nos. 1334 with 1335 to 1339 with 1340 - 43 of 1993 (arising out of S.L.P.(C) Nos. 1451, 1677, 1691, 1692, 2491, 6570 with 4243-46 of 1992)
Decided on 17-3-1993.
WITH
Shree Manufacturing Co., Appellant
Versus
Asstt. Director, Reg. Officer of Tex. Commr. and others, Respondents.
WITH
Kakatia Textiles Ltd., Appellant
Versus
Asstt. Director & Enforcement Officer and others, Respondent.
WITH
Sri Satyam Spg. & Wvg. Mills Ltd., Appellant
Versus
A. D. & E.O. Reg. Office Textiles Commr. and others, Respondents.
WITH
Yemmiganur Spg. Mills, Appellant
Versus
Textiles Commissioner and others, Respondents.
WITH
Dhanalakshmi Roto Spinners Pvt. Ltd., Appellant
Versus
Union of India and others, Respondents.
WITH
Sathyanarayana Spinning Mills Ltd. and another etc. etc., Appellants
Versus
Asstt. Directors, R. O. Textile Commr. and others etc. etc. Respondents.
Constitution of India - Article 226, 19(l)(g) and 14 - Essential Commodities Act, 1955 - Section 3 - Manufacturers - Civil consumption in hank - obligation pertains - Appellants are the Spinning and Weaving Mills in State of Andhra Pradesh - Cotton yarn manufactured by mills is of different varieties - It is classified on basis of counts - Yarn with 1 to 40 counts is coarse, 40 to 60 medium, between 60 and 100 fine and anything 100 counts is described as very fine - There are two methods of packing yarn - One is cone form packing which is used in power-loom and hosiery industry - Other is hank form packing which is exclusively consumed by handloom industry - Spinning and packing are two stages of manufacturing yarn - Raw-cotton has to pass through the process of blow-room, carding, drawing, simplex and finally the ring frame to complete process of spinning – Held, Court see no force in contention - Impugned notification has been made applicable uniformly to all producers of yarn - Appellants are required to pack yarn in hank form in proportion as provided in notification keeping total yarn packed by mill concerned - Case grievance of appellants has been substantially mitigated by press note - Government have now reinstituted erstwhile relaxation of getting hank yarn obligation fulfilled by transfer of surplus hank yarn packing of another producer - Government have also allowed a producer to get hank yarn reeled through another producer having extra relying capacity with the permission of Central Excise Authorities and with arrangements through State Handloom Corporations and Apex Handloom Co-operative Organisations in areas having concentration of handloom weavers – Court see no ground to interfere with judgment of High Court – Court dismiss appeals with costs - Appeals dismissed
JUDGMENT
KULDIP SINGH, J.:—Special leave granted in all the petitions.
2. The appellants-petitioners challenged the constitutional validity of Cl. 16 of the Textile (Control) Order, 1986 (the 1986 Order) and the notification, issued thereunder, dated March 29, 1990 as amended on May 11, 1990 and May 17, 1990 (the notification) by the Textile Commissioner, before the Andhra Pradesh High Court by way of writ petitions under Article 226 of the Constitution of India. The High Court by its judgment dated October 29, 1991 dismissed the writ petitions. These appeals by way of special leave are against the judgment of the High Court.
3. The appellants are the Spinning and Weaving Mills in the State of Andhra Pradesh. The cotton yarn manufactured by the mills is of different varieties. It is classified on the basis of counts. Yarn with 1 to 40 counts is coarse, 40 to 60 medium, between 60 and 100 fine and anything above 100 counts is described as very fine. There are two methods of packing the yarn. One is the cone form packing which is used in power-loom and hosiery industry. The other is hank form packing which is exclusively consumed by the handloom industry. Spinning and packing are the two stages of manufacturing yarn. Raw-cotton has to pass through the process of blow-room, carding, drawing, simplex and finally the ring frame to complete the process of spinning. The process of packing starts thereafter. For the cone form packing the ring frame cops are fed to the winding machines and for the hank form packing the cops are fed to the reeling machines. According to the appellants they are packing the yarn in cone form. They have not installed the reeling machines and as such it is not possible for them to pack the yarn in hank form.
4. The 1986 Order was issued by the Government of India in exercise of its powers under Section 3 of the Essential Commodities Act, 1955. Clause 16 of the 1986 Order is as under:
"16. (1) The Textile Commissioner, may from time to time, issue directions in writing to any manufacturer or class of manufacturers or manufacturers generally, regarding,
(a) the clauses or specifications of cloth or yarn which each manufacturer or class of manufacturers or manufacturers generally shall or shall not manufacture;
(b) the maximum or minimum quantities of cloth or yarn which such manufacturer or class of manufacturers or manufacturers generally shall manufacture during such period as may be specified in the Order;
(c) the maximum price ex-factory, wholesale or retail at which any class or specification of cloth or yarn may be sold; or
(d) the principles on which and the manner in which such maximum prices may be determined by a manufacturer; and
(e) the manner of packing of yarn in hanks, cones or in any other form and in such proportion as he may consider necessary or expedient;
Provided that in issuing any direction under this clause, the Textile Commissioner shall have regard to :
i) the demand for cloth or yarn;
ii) the needs of the general public;
iii) the special requirements of the industry for such cloth or yarn;
iv) the capacity of the manufacturer or class of manufacturers or manufacturers generally, to manufacture or pack different descriptions or specifications of cloth or yarn; and
v) the necessity to make available to the general public cloth of mass consumption.
(2) While issuing any direction under sub-clause (1), the Textile Commissioner may also provide that such direction shall be with reference to the quantity of cloth or yarn packed by the manufacturer or class of manufacturers or manufacturers generally during the period specified in the direction.
(3) Every manufacturer, or class of manufacturers or manufacturers generally, to whom a direction has been issued shall comply with it.
(4) Where, on an application made by any manufacturer or class of manufacturers or otherwise the Textile Commissioner is satisfied that any direction issued by him under this clause causes undue hardship or difficulty to any such ma
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