High Court Of Calcutta
B. C. Ray
BHARAT SUGAR MILLS LTD - Appellant
Versus
STATE - Respondent
. . Of .
Decided On : 06/09/1983
JURISDICTION - WRIT - MAINTAINABILITY - CAUSE OF ACTION - ESSENTIAL COMMODITIES ACT, 1955 - SECTION 3 (3C) - FIXATION OF LEVY SUGAR PRICE - WHETHER CAUSE OF ACTION ARISES WITHIN THE TERRITORIAL JURISDICTION OF THE COURT - HELD, NO.
Fact of the Case:
The petitioner, a sugar mill, challenged the legality of an order by the Central Government fixing the prices of levy sugar under Section 3 (3c) of the Essential Commodities Act, 1955. The petitioner argued that the order was arbitrary and unreasonable and violated the norms laid down in the Act. The petitioner also argued that the order caused financial loss to the mill and its shareholders, and that part of the cause of action arose within the territorial jurisdiction of the court.
Finding of the Court:
The court held that the cause of action did not arise within the territorial jurisdiction of the court. The court noted that the order was made by the Central Government in New Delhi, the sugar mill was located in the State of Bihar, and the levy sugar was to be sold and delivered to agencies or the Food Corporation of India at the gate of the mill premises in the State of Bihar. The court also noted that the mill could only dispose of sugar that was levy-free, and that the sale of such sugar was not affected by the impugned order.
Issues: Whether the cause of action arose within the territorial jurisdiction of the court.
Ratio Decidendi: The court held that the cause of action did not arise within the territorial jurisdiction of the court because the order was made by the Central Government in New Delhi, the sugar mill was located in the State of Bihar, and the levy sugar was to be sold and delivered to agencies or the Food Corporation of India at the gate of the mill premises in the State of Bihar. The court also noted that the mill could only dispose of sugar that was levy-free, and that the sale of such sugar was not affected by the impugned order.
Final Decision: The court dismissed the petition for lack of jurisdiction.
( 1 ) THIS application is at the instance of the petitioners, petitioner 1 of which is a Sugar Mill, namely, Bharal Sugar Mills Limited, a Company having its Registered Office at No. 9/1, R N. Mukherjee Road, Calcutta, assailing the validity and/or propriety of the order, annexed as Annexure 'b' to the writ application, whereby the Central Government by an order dated 27-1-1983 fixed the prices of levy sugar in respect of Sugar Mills of various States including Sugar Mills situated within the territory of the State of Bihar under the provisions of Section 3 (3c ). Essential Commodities Act, Act X of 1955, on the ground that the aforesaid fixation has been made without complying the four norms laid down in Clauses (a), (b), (c) and (d) of Sub-section (3c ). Section 3. Essential Commodities Act and as such the price fixation that has been made is wholly arbitrary and in utter violation of the provisions of the Essential Commodities Act.
( 2 ) IT has been submitted by Mr. Bajoria, learned Advocate for the petitioner that, this order was published in the Gazette of India which also appeared in the State of West Bengal and the office of this Sugar Mill is situated at R, N. Mukherjee Road within the territorial jurisdiction of this Court and the petitioner has got a licence to sell sugar under the Sugar Licencing and Control Order. It has also been submitted that this Mill has a godown within the State of West Bengal wherefrom the Mill sells sugar to the various retailers. It has been further submitted that some of the shareholders of this Mill are residents within the State and if sugar is allowed to be sold at the price as determined by the impugned order, it will cause a substantial financial loss not only to the Sugar Mills but also to the shareholders as the price of the shares will be greatly affected. On these allegations it has been submitted by Mr. Bajoria that part of the cause of action arises within the territorial limits of this Court and as such this Court has got jurisdiction to issue appropriate Writs, Orders or Directions in accordance with the provisions of Article 226 Sub-article (2) of the Constitution. It has also been, submitted by Mr. Bajoria in this connection that already some Rules have been issued by this Court in respect of similar orders issued aiad hence interim order passed in these Rules are pending for decision before this Court. Some decisions were cited at the Bar to show that this Court has got jurisdiction to issue appropriate Writs or Orders or Directions and this application, is, maintainable in this forum
( 3 ) MR. Das, learned advocate appearing on behalf of the respondents has joined issues and submitted that as no part of the cause of action does arise within the territorial limits of the jurisdiction of this Court, this application is not maintainable. The order impugned was made by the Central Government from New Delhi The Bill in question is situated in the State of Bihar, outside the territorial limits of the jurisdiction, of this Court and the levy sugar that taws to be sold to the Food Corporation of India or other agencies to whom such sale will be directed to be made by the Central Government are to be made at the entrance of the Mill premises of the petitioner, i. e. , within the territory of the State of Bihar. It has further been submitted that this application is not maintainable in this jurisdiction. Mr. Das has also submitted on the merits of the impugned order fixing the price of levy sugar by the Central Government.
( 4 ) FOR the present, I do not consider to deal with the merits as to whether the impugned order has been made in accordance with the norms laid down in Sub-section (3c), Section 3. Essential Commodities Act, 1955. or not inasmuch as the first question that requires to be decided is as to the maintainability of the writ application in this jurisdiction. Before proceeding to consider this question it is pertinent to refer to the provisions of Ari
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