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2004 Supreme(SC) 1733

S.RAJENDRA BABU, K.G.BALAKRISHNAN, P.VENKATARAMA REDDI, B.N.SRIKRISHNA, G.P.MATHUR
Special Reference No. 1 – Appellant
Versus
. – Respondent


Advocate Appeared:
Mr. Soli J. Sorabjee, Attorney General, Mr. Ranjit Kumar, Dr. A.M. Singhvi, Ms. K. Amreshwari, Mr. Ashok Desai, Mr. D.A. Dave, Mr. S.K. Dholakia, Mr. B. Sen, Mr. P. Chidambaram, Mr. Foroze B. Andhyarujina, Senior Advocates, Mr. K.C. Kaushik, Mr. Pratish Kapur, Mr. P. Parmeswaran, Mr. Manish Singhvi, Mr. B.V. Balram Das, Ms. Krishna Sarma, Mr. J.R. Luwang, Ms. Asha G. Nair, Mr. Anish Dayal, Mr. V. Siddharthan, Mr. Anil Shrivastav, Mr. Guntur Prabhakar, Mr. T.V. Ratnam, Mr. B.B. Singh, Mr. S.N. Shelat, Advocate General for State of Gujarat, Ms. Meenakshi Arora, Ms. Sumita Hazarika, Ms. Hemantika Wahi, Ms. A. Shbhashini, Mr. Praveen Kumar Rai, Mr. Vinay Kumar Garg, Mr. Anil Kumar Jha, Ms. Alka Jha, Anis Suhrawardy, K.R. Sasiprabhu, Mr. Sanjay R. Hegde, Mr. KH. Nobin Singh, Mr. M. Gireesh Kumar, Mr. Sakesh Kumar, Mr. S. K. Agnihotri, Mr. Ravindra K. Adsure, Mr. S.S. Shinde, Mr. Mukesh K. Giri, Ms. Aruna Gupta, Mr. Ranjan Mukherjee, Mr. U. Hazarika, Ms. V.D. Khanna, Mr. Radha Shyam Jena, Mr. V.G. Pragasam, Mr. J.K. Bhatia, Mr. R.S. Suri, Mr. Ranji Thomas, Ms. Bharti Upadhyaya, Mr. A.K. Shukla, Mr. V.N. Raghupathy, Mr. A. Mariaputham, Ms. Aruna Mathur, Mr. Navin Prakash, Mr. Gopal Singh, Mr. P.N. Ramalingam, Mr. V. Balaji, Mr. Ashok K. Srivastava, Mr. Abhishek Chaudhary, Ms. Rachna Srivastava, Mr. Tara Chandra Sharma, Ms. Neelam Sharma, Mr. J.S. Attri, Addl. Advocate General, for State of Himachal Pradesh, Mr. Myur Shah, Mr. Arun K. Sharma, Ms. Prathiba Jain, Ms. Vandana Sharma, Nagendra Singh, Mr. Vishwa Pal Singh, Mr. Shahid Rizvi, Mr. Manish Garg, Ms. Anu Bindra, Mr. Anshul Singhal, Ms. Homa Chettri, Mr. Rustom B. Hatikhanwala, Mr. G.K. Bansal, Mr. Javed M. Rao, Advocates with them for the appearing parties.

JUDGMENT :

K.G. Balakrishnan, J.

This is a reference made by the President of India under Article 143(1) of the Constitution of India. The Gujarat State legislature passed an Act by name "Gujarat Gas (Regulation of Transmission, Supply and Distribution) Act, 2001" (hereinafter being referred to as "Gujarat Act"), which came into force w.e.f. 19th December, 2000. The object of the enactment is to provide for regulation of transmission, supply and distribution of gas, in the interests of general public and to promote gas industry in the State, and for that purpose, to establish Gujarat Gas Regulatory Authority and for matters connected therewith and incidental thereto. The term "Gas" has been defined in the Gujarat Act under section 2(h) as follows :

    "Gas" means a matter in gaseous state which predominantly consists of methane."

2. The State legislature passed the said enactment by tracing its legislative competence under Entry no. 25 of List II of the Seventh Schedule of the Constitution. The Parliament has passed various enactments under Entry no. 53 of List I dealing with the matters of petroleum and petroleum products. The Entry no. 53 of List I of the Seventh Schedule reads as foll

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