A naked and arbitrary power to revoke permits, without any restriction or guidance, is an unreasonable restriction on the fundamental right to carry on business under Article 19 (1) (g) of the Constitution and is not saved by Article 19 (5).

( 1 ) THE facts in this case are shortly as follows: The petitioner company carries on business in iron and steel materials. It is a well known business house in Calcutta, and has been carrying on business since 1940, having been incorporated as a company in 1923. Ever since the inception of statutory control of the distribution of Iron and Steel in 1941, the petitioner company has been registered as a stock-holder under the Iron and Steel Control Orders. The petitioner company had also been appointed as a 'controlled Stockholder', but in this application we are not concerned with that aspect of the matter. In this case we are concerned with events which occurred in 1957. At that time, the Iron and Steel (Control) Order, 1956, promulgated in exercise of powers conferred by the Central Government by Section 3 of the Essential Commodities Act, 1955 was in operation. This order superseded the Iron and Steel (Control of Production and Distribution) Order, 1941 and the Iron and Steel (Scrap Control) Order, 1943. Before I proceed further, it is necessary to consider some of the provisions of the Iron and Steel (Control) Order, 1956 (hereinafter referred to as the 'control Order' ). Under Clause 2, the term, 'controlled source' includes a 'producer' which term means a person carrying on the business of manufacturing iron and steel. The term 'registered producer' means a producer who is registered as such by the Controller. The term 'controller' means a person appointed as Iron and Steel Controller by the Central Government and includes any person exercising, upon authorisation by the Central Government, all or any of the powers of the Iron and Steel Controller. A 'controlled stockholder' means a stockholder appointed by the Controller to hold stocks of iron and steel under such terms and conditions as he may prescribe from time to time. The term, 'stockholder' means a person holding stocks of iron or steel for sale who is registered as a stockholder by the Controller. Clause 4 of the Control Order lays down that no person shall acquire or agree to acquire any iron or steel from a producer or stockholder except under the authority of and in accordance with, the conditions contained in a quota certificate or permit issued by the Controller Or under the authority of and in accordance with the conditions contained or incorporated in a general or special written order of the Controller. Clause 5 of the Control Order provides that no person who acquires iron or steel under Clause 4, or no producer shall dispose of or agree to dispose of any iron or steel except in accordance with the conditions contained or incorporated in, a special or general written order of the Controller. Clause 8 of the Control Order is important and must be set out:"surrender of revoked authorities:-- Where any quota certificate, permit or written order, referred to in Clause 4 or 5 is revoked by the authority which issued it, the person to whom it was issued shall forthwith return it to the authority which issued it. "

( 2 ) THE provisions of Clause 13 are important and are set out below:"the Controller may, where he is satisfied that such action is necessary in order to co-ordinate the production of iron or steel with the demands for iron or steel which have arisen or are likely to arise under authorisations to acquire duly issued under this part- (a) prohibit, with effect from such date as he may specify, the manufacture by any producer of iron or steel of any of the categories specified in the Schedule to this Order, otherwise than in accordance with any general or special directions issued by the Controller; (b) require, with effect from such date and with reference to such periods as the Controller may specify, any producer to obtain approval to his programme of manufacture of iron or steel of any of the categories specified in the Schedule to this Order; (c) require, with effect from such date as the Controller may specify, any producer to ma