SUPREME COURT OF INDIA
B.P. Jeevan Reddy and M.K. Mukherjee, JJ.
State of Andhra Pradesh and Ors. - Petitioners
Versus
Mc Dowell and Company and Ors. - Respondents
Special Leave to Appeal (Civil) No. 13936-41 of 1995 (From the judgment and order dated 28.4.1995 of the High Court of Andhra Pradesh in WP Nos. 2506, 2574, 2950, 3248, 3832, 667 of 1995) with Appln. for ex-parte stay and impleadment W.P.(C) No. 470 of 1995.
Decided On : 21-7-1995
Status Quo - Manufacturing Operations - Court orders maintenance of status quo on manufacturing operations and clearance of finished products until a specified date, subject to conditions laid down by the Commissioner of Prohibition and Excise.
Fact of the Case:
The court issued orders to maintain status quo on manufacturing operations and clearance of finished products until a specified date, subject to conditions laid down by the Commissioner of Prohibition and Excise.
Finding of the Court:
The court found that the respondents were permitted to manufacture their products with existing stocks of raw material until a specified date, and allowed clearance of finished products in accordance with law and subject to specified conditions.
Issues: The issues involved the maintenance of status quo on manufacturing operations, clearance of finished products, and the potential issuance of an ordinance by the Governor of Andhra Pradesh.
Ratio Decidendi: The court's decision was based on the need to regulate manufacturing operations and clearance of finished products, while also acknowledging the potential issuance of an ordinance by the Governor of Andhra Pradesh.
Final Decision: The court ordered the maintenance of status quo on manufacturing operations and clearance of finished products until a specified date, subject to conditions laid down by the Commissioner of Prohibition and Excise.
JUDGMENT :
1. Issue notice.
2. Learned counsel appearing for the respondents accept notice. Notice to the unserved respondents, if any, Pasti service, in addition, is also permitted, post for final hearing on 13th October, 1995. Counters and rejoinders in the meanwhile.
3. Pending further orders status quo as on today shall he maintained. In other words, the respondents shall be permitted to manufacture their products with the existing stocks of raw material upto and inclusive of 16th August, 1995. They shall not continue their manufacturing operations beyond that date irrespective of the fact that their raw material or stocks have been exhausted or not.
4. The finished products manufactured by the respondents until now or which may be manufactured until 16th August, 1995 may be allowed to be cleared by the State in accordance with law and subject to the conditions laid down in the letter of the Commissioner of Prohibition and Excise No. 9736/95/Ex/J5 dated 24th May, 1995, referred to in the letter of the Commissioner dated 16th June, 1995.
5. The order of status quo shall not preclude the respondents from closing their units meanwhile, in accordance with law, if they are so advised.
6. It is stated by the learned counsel for the petitioners that the Governor of Andhra Pradesh is likely to issue an ordinance seeking to remove the alleged defects in the enactment and that this order shall not stand in the way. Obviously this order does not but the issuing of any such Ordinance. At the same time, we do not express any opinion on the effect or validity of the proposed Ordinance. That question will be gone into as and when necessary.
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