High Court Of Calcutta
Padma Khastgir, Kalyanmoy Ganguli
STATE OF WEST BENGAL - Appellant
Versus
RAYMOND WOOLLEN MILLS LIMITED - Respondent
Matter 1212 Of 1986
Decided On : 11/08/1990
CONSTITUTIONAL LAW - ARTICLE 254 - ESSENTIAL COMMODITIES ACT, 1955 - INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951 - CEMENT CONTROL ORDER, 1967 - WEST BENGAL LICENSING OF DEALERS OF CEMENT AND DISTRIBUTION OF LEVY CEMENT ORDER, 1982 - WEST BENGAL DECLARATION OF STOCKS AND PRICES OF ESSENTIAL COMMODITIES ORDER, 1977 - Repugnancy between Central and State Laws - Delegated Legislation - Scope of Article 254 of the Constitution - Interpretation of S. O. 681 (E) dated November 30, 1974 issued under Section 5 of the Essential Commodities Act, 1955 - Applicability of State Control Orders to Non-Levy Cement.
Fact of the Case:
The appellant authority initiated proceedings against the writ petitioners for violation of the West Bengal Licencing of Dealers of Cement and Distribution of Levy Cement Order, 1982, and the West Bengal Declaration of Stocks and Prices of Essential Commodities Order, 1977. The writ petitioners contended that the First Information Report did not disclose any offence as the State Control Orders were not applicable to non-levy cement, which was virtually decontrolled by the amendment of the Cement Control Order, 1967 in 1982.
Finding of the Court:
The court held that the State Control Orders of 1977 and 1982 were not applicable to non-levy cement, which was virtually decontrolled by the amendment of the Cement Control Order, 1967 in 1982. The court further held that Article 254 of the Constitution of India, which deals with repugnancy between Central and State laws, does not apply to delegated legislation. The court also held that the State Government's power to make the 1982 Control Order was derived from S. O. 681 (E) dated November 30, 1974, which delegated powers to the State Government subject to certain conditions. The court interpreted clause (i) of S. O. 681 (E) to mean that any order made by the Central Government affecting the transport or distribution of a commodity shall not be prejudicially affected by any order passed by a State Government.
Issues: 1. Whether the State Control Orders of 1977 and 1982 were applicable to non-levy cement? 2. Whether Article 254 of the Constitution of India applies to delegated legislation? 3. Whether the State Government had the power to make the 1982 Control Order? 4. Whether clause (i) of S. O. 681 (E) dated November 30, 1974 allowed the State Control Order of 1982 to override the Cement Control Order, 1967 as amended in 1982?
Ratio Decidendi: 1. The court held that the State Control Orders of 1977 and 1982 were not applicable to non-levy cement because non-levy cement was virtually decontrolled by the amendment of the Cement Control Order, 1967 in 1982. 2. The court held that Article 254 of the Constitution of India does not apply to delegated legislation because Article 254 contemplates 'laws' including subordinate and delegated legislation not enacted by the respective Legislatures. 3. The court held that the State Government had the power to make the 1982 Control Order by virtue of S. O. 681 (E) dated November 30, 1974, which delegated powers to the State Government subject to certain conditions. 4. The court held that clause (i) of S. O. 681 (E) dated November 30, 1974 did not allow the State Control Order of 1982 to override the Cement Control Order, 1967 as amended in 1982 because clause (i) provides that any order made by the Central Government affecting the transport or distribution of a commodity shall not be prejudicially affected by any order passed by a State Government.
Final Decision: The court dismissed the appeal filed by the State Government and upheld the decision of the learned trial Judge, quashing the First Information Report and the proceedings initiated thereon.
( 1 ) THIS appeal is preferred against the judgment and order passed by a learned Single Judge in Matter No. 1212 of 1986 allowing, the writ petition of the principal respondents in the instant appeal and quashing the first information report being No. 597 dated July 15, 1986 and the proceedings initiated thereon. The appellant authority was also directed to return the seized material, if any, till then lying in the appellant's custody. There was also an order of permanent injunction restraining the present appellant authority from interferring with storage of non-levy cement in the godowns of the writ petitioners or taking any further step in terms of the West Bengal Licencing of Dealers of Cement and Distribution of Levy Cement Order, 1982, hereinafter referred to as the State Control Order of 1982.
( 2 ) THE appellant authority initiated proceedings against the writ petitioners for the violation of paragraph 10 (1) of the aforesaid State Control Order of 1982 and paragraph 8 (1) and paragraph 2 (e) of West Bengal Declaration of Stocks and Prices of Essential Commodities Order, 1977, hereinafter referred to as the 1977 Control Order. It is not necessary to enter in detail into the facts and the arguments made at the bar before the: learned trial Judge.
( 3 ) THE main contention of the writ petitioners was- that the First Information Report did not disclose any offence and as such the same should be quashed. Such argument was based on the ground that the State Control Orders of 1977 and 1982 were not applicable in respect of non-levy cement which was virtually decontrolled by the amendment of Cement Control Order, 1967 in 1982. It may be mentioned here that the said Cement Control Order, 1967 was made by the Central Government in exercise of the powers conferred upon it under the provisions of section l8g of the Industries (Development and Regulation) Act, 1951.
( 4 ) WE are to confine ourselves to certain questions of law involved in the case.
( 5 ) THE Central Government promulgated the Cement Control Order,. 1967 for control of price and equitable distribution of cement, By a subsequent amendment effected into the aforesaid Cement Control Order 196 in 1982 the Central Government released non-levy cement from its operation with effect from February 28, 1982 as a result of which non-levy cement became a non-essential commodity within the meaning of the Central Control Order.
( 6 ) UNDER section 3 of the Essential Commodities Act, 1955 the Central Government is empowered to provide for regulating or, prohibiting3, production, supply and distribution of any essential commodity. Under section 5 of the said 1955 Act the power to make orders or issue notifications under section 3 can be delegated, inter alia, to the State Government and in such cases such power will be acquired by such State Government.
( 7 ) IN parenthesis it should also be noted that as it was sought to be urged by the appellants that an order made under section 3 shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than the said 1955 Act or any instrument having any effect by virtue of any enactment under any other Act.
( 8 ) WE have already found that non-levy cement was virtually released, from the restrictive provisions of the Cement Control Order, 1967 by its amendment in 1982 with effect from February 28, 1982 and in that very year the West Bengal Control Order of 1982 came into force.
( 9 ) BEREFT of verbiage the main contention of the writ petitioners seems to be that as non-levy cement was virtually decontrolled by 1982 Amendment made in the Cement Control Order, 1967 the State Government lost its authority power and jurisdiction to bring such non4evy cement within the perview of the State Control Order of 1982 because of the intervention of Article 254 (1) of the Constitution of India. The writ petitioners contended before the learned Trial Court that under the Central Order non-
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