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1965 Supreme(Pat) 97

PATNA HIGH COURT
R.L.Narasimham and R.J.Bahadur JJ.
Radheshyam Kalbalia
Versus
Sub Divisional Officer Of Dumka
Miscellaneous Judicial Case No. 1032 of 1962 ;
Decided On : SEPTEMBER 15, 1965

A rice mill does not become a new rice mill merely because of change of its location, or even change of its name, so long as the ownership remains the same and the machineries and other equipments of the old rice mill have been taken intact and erected at the new place.

Headnote:

RICE MILLING INDUSTRY (REGULATION) ACT, 1958 - SEC. 3(B), 3(E), 5, 6, 8 - CHANGE OF LOCATION OF RICE MILL - WHETHER MAKES IT A NEW RICE MILL - INTERPRETATION OF STATUTE.

Fact of the Case:

The petitioner, who owned a rice mill at Madhupur, shifted it to another place called Jarmundi and renamed it as Shiva Parvati Rice Mills. He applied for a license to run the old rice mill under Sec. 6 of the Rice Milling Industry (Regulation) Act, 1958 (Act XXI of 1958). The application was rejected on the ground that the rice mill at Jarmundi was a new mill started after the coming into force of the Act and that the petitioner should obtain permission from the competent authority under Sec. 5 of the Act. The petitioner appealed to the Commissioner of Bhagalpur Division, who remanded the case to the Sub-divisional Officer for local enquiry. The Sub-divisional Officer found that the Act came into force in Bihar on 22-4-1959 and that the new rice mill was bound to obtain permit under Sec. 5 of the Act. The Commissioner upheld the order of the Sub-divisional Officer.

Finding of the Court:

The court held that the rice mill at Jarmundi was a new rice mill and not an old rice mill which was originally located at Madhupur. The court further held that the new rice mill was bound to obtain permit under Sec. 5 of the Act inasmuch as it was started after the coming into force of the Act.

Issues: Whether the change of location of a rice mill makes it a new rice mill.

Ratio Decidendi: The court interpreted the definition of "rice mill" in Sec. 3(i) of the Act, which includes the plant and machinery, the premises, and the precincts thereof. The court held that a rice mill is not restricted to the plant and machinery only but includes the premises and the precincts thereof. The court further held that the definition of "existing rice mill" in Sec. 3(b) of the Act refers to a rice mill carrying on rice-milling operations at the commencement of the Act, and a "new rice mill" in Sec. 3(e) of the Act refers to a rice mill other than an existing rice mill or a defunct rice mill. The court held that the rice mill at Jarmundi was a new rice mill as defined in the Act, because it was installed at a new place after the commencement of the Act.

Final Decision: The petition was dismissed with costs.

Judgment

Narasimham, J.

1. This is an application under Articles 226 and 227 of the Constitution for clashing the appellate order dated 4-9-1962, passed by the Commissioner of Bhagalpur Division in S. P. Miscellaneous Appeal No. 28 of 1962-63 (Annexure F) dismissing an appeal filed against the order of the Subdivisional Officer, Dumka, dated 16-8-1962 rejecting the prayer of the petitioner for grant of licence under Sec. 6 of the Rice Milling Industry (Regulation) Act, 1958 (Act XXI of 1958) (hereinafter referred to as the Act).

2. At Madhupur there was a rice mill named Agarwala Factory of which the petitioner was the managing partner. The petitioner alleged that sometime in October, 1960, the same mill was shifted to another place known Jarmundi about fifteen miles away and named as Shiva Parvati Rice Mills and that it started working there from 13-11-1960. The petitioner being under the impression that notwithstanding the change of place and the change of name the new rice mill was, for the purposes of the Act, same as the old rice mill, applied for licence to the Subdivisional Officer for running the old rice mill under Sec. 6 of the Act. The Subdivisional Officer, however, by his order dated 13-3-1961 rejected the application holding that the rice mill at Jarmundi, namely Shiva Parvati Rice Mill, was a new mill started after the coming into force of the Act and that consequently the petitioner should obtain permission from the competent authority under Sec. 5 of the Act. Against that order of the Subdivisional Officer the petitioner filed an appeal before the Commissioner of Bhagalpur Division which was disposed of on the 28th September, 1961 (Annexure D), The learned Commissioner held that the mill started at Jarmundi was a new rice mill and not an old rice mill which was originally located at Madhupur, but he thought that even for the new rice mill a permit under Sec. 5 of Act was not required inasmuch as the Act came into force in Bihar only on 15-11-1960. He, therefore, remanded the case to the Sub-divisional Officer for local enquiry with a view to ascertain whether the mill at Jarmundi was started on 13-11-1960, prior to the coming into force of the Act as alleged. But when the matter was sent on remand to the Subdivisional Officer, it was noticed that the Commissioner had committed an error as regards the date of the coming into force of the Act. It was found that the Act came into force in Bihar on 22-4-1959. Therefore, the Subdivisional Officer held that the new rice mill was bound to obtain permit under Sec. 5 of the Act inasmuch as it was started after the coming into force of the Act, and his order was upheld on appeal by the succeeding Commissioner on 4-9-1962.

3. The main contention of Mr. Sinha for the petitioner is that an old rice mill does not become a new rice mill merely because of change of its location, or even change of its name, so long as the ownership remains the same and the machineries and other equipments of the old rice mill have been taken intact and erected at the new place.

4. It is necessary now to examine the relevant provisions of the Act. A "rice mill" has been defined in Clause (i) of Sec.3 as follows:

" 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." This definition shows that a rice mill is not restricted to the plant and machinery only but includes the premises and the precincts thereof. An "existing rice mill" has been defined in Clause (b) of Sec.3 as a rice mill carrying on rice-milling operations at the commencement of the Act, and a "new rice mill" has been defined in Clause (e) of that section as a rice mill other than an existing rice mill or a defunct rice mill. Sec. 5 requires the obtaining of a permit from the competent authority for the establishment of a new rice mill. Sec. 6 requires that a licence should be obtained from the competent authorit






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