The restrictions imposed by the Bihar Milled Rice Procurement (Levy) Order, 1958, and the Milled Rice (Bihar) Price Control Order, 1958, were reasonable restrictions in the interest of the general public and did not violate the petitioner's fundamental rights under Articles 19(1)(f) and 19(1)(g) of the Constitution.

Headnote:
CONSTITUTIONAL LAW - ESSENTIAL COMMODITIES ACT, 1955 - VALIDITY OF BIHAR MILLED RICE PROCUREMENT (LEVY) ORDER, 1958, AND MILLED RICE (BIHAR) PRICE CONTROL ORDER, 1958 - REASONABLENESS OF RESTRICTIONS ON TRADE AND PROPERTY RIGHTS - ARTICLES 19(1)(F) AND 19(1)(G) OF THE CONSTITUTION.
Fact of the Case:

The petitioner, a rice miller, challenged the constitutional validity of the Bihar Milled Rice Procurement (Levy) Order, 1958, and the Milled Rice (Bihar) Price Control Order, 1958, arguing that they violated his fundamental rights under Articles 19(1)(f) and 19(1)(g) of the Constitution, which guarantee the right to carry on trade or business and the right to acquire, hold, and dispose of property.
Finding of the Court:

The court held that the restrictions imposed by the Bihar and Central Orders were reasonable restrictions in the interest of the general public and did not violate the petitioner's fundamental rights under Articles 19(1)(f) and 19(1)(g) of the Constitution.
Issues: 1. Whether the Bihar Milled Rice Procurement (Levy) Order, 1958, and the Milled Rice (Bihar) Price Control Order, 1958, violated the petitioner's fundamental rights under Articles 19(1)(f) and 19(1)(g) of the Constitution. 2. Whether the restrictions imposed by the Orders were reasonable and in the interest of the general public.
Ratio Decidendi: 1. The court held that the Bihar Order was a reasonable restriction on the petitioner's right to carry on trade or business, as it applied only to the procurement of milled rice, not paddy or hand-pounded rice, and required the miller or licensed dealer to sell only 50% of the stock to the State Government at the controlled price. 2. The court also held that the Central Order fixing the maximum wholesale price of milled rice was a reasonable restriction, as it was enacted in the interest of the general public to maintain the supplies of essential commodities at a fair price. 3. The court further held that the restrictions imposed by the Orders were necessary to prevent hoarding and undue profiteering by traders, and to make rice available to the general public at a controlled rate through fair-price shops.
Final Decision: The court dismissed the petitioner's application for a writ under Article 226 of the Constitution, holding that there was no ground made out for grant of the writ.

Judgment

V.Ramaswami, J.

1. The question involved in this case relates to the constitutional validity of the Bihar Milled Rice Procurement (Levy) Order, 1958, promulgated by the Government of Bihar, and of the order of the Central Government called the Milled Rice (Bihar) Price Control Order. 1958, fixing the maximum wholesale price of milled rice under the provisions of Sec.3(2) of the Essential Commodities Act, 1955 (Act 10 of 1955).

2. In pursuance of Sec. 5 of the Essential Commodities Act (Act 10 of 1955), the Central Government issued a notification No. G. S. R. 1088, dated 15-11-1958, providing that the powers conferred on the Central Government by Sec.3(1) to make orders with regard to matters specified in Sec.3(2) Clauses (a) to (i) shall in relation to food-stuff be also exercisable by the State Government.

In exercise of the delegated powers given by this notification the Government of Bihar promulgated on 29-12-1958 the Bihar Milled Rice Procurement (Levy) Order. 1958, which provided for a compulsory levy on milled rice produced or kept in stock with the owner of a rice mill or a licenced dealer as DEFINEd in the order. Sections 1, 2 and 3 of the Order are reproduced below: "1. Short title, extent and commencement.- (1) This Order may be called the Bihar Milled Rice Procurement (Levy) Order, 1958.

(2) It extends to the whole of the State of Bihar.

(3) It shall come into force at once.

2. Definitions -- In this Order unless the context otherwise requires, -- (a) controlled price means the maximum price fixed in the Milled Rice (Bihar) Price Control Order, 1958;

(b) enforcement officer means an officer appointed by the State Government to enforce the provisions of this Order and includes any Police Officer not below the rank of Assistant Sub-Inspector, the District Magistrate and Sub-Divisional Magistrate within their respective jurisdictions;

(d) miller means the owner or any other person in charge of a rice mill worked by power;

(e) milled rice means rice recovered from paddy in it rice mill with the aid of power;

(f) rice mill means the plant and machinery with which and the premises including the precincts thereof in which or in any part of which, rice milling operation is carried on;

(g) State Government means the Government of the State of Bihar.

3. Levy on rice produced or in stock, (1) Every miller shall sell to the State Government at the controlled price- (a) 50 per cent. of the quantity of milled rice held in stock by him at the commencement of this Order, and

(b) 50 per cent of the total quantity of rice produced or manufactured by him in his rice mill, every day beginning with the date of the commencement of this Order until such time as the State Government otherwise directs.

(2) Every licensed dealer shall sell to the State Government at the controlled price - (a) 50 per cent of the quantity of milled rice held in stock by him at the commencement of this Order, and

(b) 50 per cent of the total quantity of milled rice acquired by him every day for sale or storage for sale beginning with the date of the commencement of this Order until such time as the State Government otherwise directs.

(3) The milled rice required to be sold to the State Government under Sub-clauses (1) and (2) shall be delivered by the miller or the licensed dealer to such officer as may be authorised by the State Government to take delivery on its behalf.

(4) The State Government may, by general orders notified in the Official Gazette, vary the percentage of milled rice required to be sold to the State Government under this Order."

On 22-12-1958, the Central Government made an order in exercise of its powers under Sec.3(2)(c) of the Essential Commodities Act, 1955 , fixing the maximum price of milled rice sold ex-mill or in wholesale quantities at Rs. 16/- per maund in any area within the State of Bihar. The order of th

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1959 Supreme(Pat) 36

PATNA HIGH COURTV.Ramaswami and R.K.Choudhary JJ.Naurang Rai Chirangi LalVersusState Of BiharMiscellaneous Judicial Case No. 48 of 1959 ;Decided On : FEBRUARY 19, 1959

PATNA HIGH COURT
V.Ramaswami and R.K.Choudhary JJ.
Naurang Rai Chirangi Lal
Versus
State Of Bihar
Miscellaneous Judicial Case No. 48 of 1959 ;
Decided On : FEBRUARY 19, 1959