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2002 Supreme(Bom) 1226

IN THE HIGH COURT OF BOMBAY
Lodha R.M. Bhosale D.B., JJ.
Mumbai Bidi Tambaku Vyapari Sangh others .... Petitioners.
Versus
Union of India another.... Respondents.
Writ Petition No. 3710 of 1990, decided on 21-11-2002.
Advocates appeared :
Ms. Neeta Karnik, for petitioners.
H.V. Mehta, for respondent No. 1.

Headnote:Constitution of India - Articles 14, 19(1)(g) and 21 - Fixation of rates for retailers - Alleged to be violative of constitutional rights of venders - Alleged non-considera- tion of various factors - Legislative intention mainly to protect consumers - Yet all factors affecting vendors were considered - It cannot be said that the fixation was violative of provisions of Constitution. - As a matter of fact the whole object and purpose of the Act has been to enact a law for the purpose of setting out standards in weights and measures and to make provisions for the protection of consumers. One of the most important rights of the consumer today, amongst other rights, is to be fully informed of the product and also to choose from a sufficient number of alternatives to ensure the objective price and quality and in that regard if a rule is made as to the manner of declaration on the package, the maximum sale price alongwith the contents of package and specifications of the unit, weight, measure or number it cannot be said that it is beyond the scope of the Act. Insofar as the apprehension expressed by the petitioners, in respect of the financial loss likely to cause them, is concerned that should be taken care of by the contract understanding between the manufacturers/packers and the retail dealers.

JUDGMENT - BHOSALE D.B., J.:---In this writ petition under Article 226 of the Constitution, the petitioners have sought declaration that Rules 2(r) and 23(2) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (for short "the Rules") are ultra vires provisions of the Standards of Weights and Measures Act, 1976 (for short "the Act") and, therefore, void ab initio, non est and without any effect in law. The declaration has also been sought that Rules 2(r) and 23(2) are violative of Articles 14, 19(1)(g) and 21 of the Constitution. Rule 2(r) of the Rules, defines "retail sale price which in short means the maximum price at which the commodity in the packaged form may be sold to the ultimate consumer and where such price is mentioned on the package. Rule 23(2) of the Rules prohibits retail dealer or other persons including manufacturer, packer and wholesale dealer from making any sale of any commodity in packaged form at the price exceeding the retail sale price thereof.

2. The first petitioner is a trade union registered under Trade Unions Act, 1926. It has as its members the small retailers selling pre-packaged goods in Bombay. Petitioner No. 2 is an unregistered association which has as its members small retailers including the members of petitioner No. 1. Petitioner No. 3 is a small retail trader and a member of petitioner No. 1. He is inter alia engaged in retail selling of pre-packaged materials namely cigarettes, soaps, toiletery items, biscuits etc. According to the petitioners the retail traders such as petitioner No. 3, sell goods in pre-packaged form which are manufactured all over India. They are all small retail traders whose turnover is always very low and they earn their profits from the commission that they charge on the sales.

3. The petitioners have filed this petition in the representative capacity seeking leave under Order 1, Rule 8 of the Code of Civil Procedure on their behalf and on behalf of persons who have similar interest.

4. It is the case of the petitioners that the turnover of the retail traders who are members of the 1st petitioner association is approximately Rs. 600/- Rs. 700/-, per day. On an average the commission of 10% profits work out to Rs. 60/--Rs. 70/- per day and on a 26 days basis it works out to Rs. 1820/- per month. According to the petitioners the actual commission for similar retailers is at times almost nil. The petitioners have quoted two instances so as to support the contention that at times the commission is almost nil. We do not deem it necessary to reproduce those instances for adjudicating the issue involved in the present writ petition. In short, the petitioners contention is that the difference between the purchase price for the members of their association of pre-packaged commodities and the retail sale price which has to be published on various brands of pre-packaged commodities like cigarettes, biscuits does not fetch the commission or more than 10%. It is, therefore, unreasonable to impose a maximum retail price which does not allow the retailer to have atleast 15% to 20% commission on their sales. The petitioners have also demonstrated in the writ petition, the efforts made by them in order to get more commission on the retail sale price of pre-packaged commodities. According to the petitioners as a result of their efforts, they were, in fact getting 15% to 20% commission which made their business economically viable. However, after the 1990 amendment to the Rules, by which the restrictions have been imposed on retail dealers including manufacturers, packers and wholesale dealers, that they shall not make any sale of any commodity in packed form at the price exceeding the retail sale price thereon, the things changed and the profit margin of the members of petitioners association started vitally affecting. According to the petitioners for no fault of theirs and because of the intense competition of various manufacturers who control the retail pri



































































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