The conditions precedent for exercising powers under Section 3 of the Commissions of Inquiry Act, 1952 are that the matters to be inquired into must be definite matters of public importance and the Government must have formed an opinion that it is necessary to appoint a Commission of Inquiry.

( 1 ) COMMON questions of law and facts are involved in these Rules. All these Rules were heard together. My judgment in C. R. 2529 (W) of 1974 shall govern all other Rules.

( 2 ) IN these Rules the petitioners challenge the validity of the notification dated 18-2-1970 issued by the Central Government under Section 3 of the Commissions of Inquiry Act, 1952, appointing a Commission of Inquiry known as "sarkar Commission", in particular, items Nos. 2, 4, 9, 11, 12 and 13 of the Schedule 'c' to the said notification. The main grounds of challenge are that, those items are vague, indefinite and not definite matters of public importance; some of the matters had already been inquired into by the various departments of the Government, measures and actions had already been taken, as such those matters could not form the subject-matter of further inquiry by the said Commission.

( 3 ) THE petitioner is a public limited company under the Indian Companies Act, 1913. It is one of the largest paper producing concern in India, On May 1, 1967 the Government announced to appoint a committee to go into basic question regarding the functioning of licensing system during the last 10 years. On July 22, 1967 the Government appointed an expert committee headed by Prof. M. S. Thacker to inquire into the working of licensing system during the last 10 years with a view to ascertain whether larger industrial houses have secured undue advantage over the other applicants in the matter of issue of licenses. After resignation of Prof. Thacker, Sri Subimal Dutt became the Chairman of the committee. In July 1967 Sri Chandrasekhar, a member of Parliament, submitted a memorandum to the Prime Minister containing various allegations against Birla companies including the petitioner. Allegations were also made against the petitioner with regard to licence capacity of the paper mill units at Amlai and Brajraj-nagar and relating to the forest lease granted to Amlai Unit. On August 25, 1967 the Central Government sent abstracts of the allegations made in the said memorandum of Sri Chandrasekhar to Dutt committee and requested it to look into the said allegations since they had a bearing on industrial licensing. The Dutt committee was invested with powers under the Commissions of Inquiry Act, 1952. In September and December, 1967, two further memoranda were submitted by Sri Chandrasekhar to the Prime Minister containing allegations against Jute Mills, Paper Factories etc. in Birla group of concerns and also alleging evasion of payment of excise duty in respect of certain quality of paper manufactured by the petitioner. In February, 1969 reports of detailed investigations made by various Ministries about the allegations made to three memoranda of Sri Chandrasekhar were read before Rajya Sabha. the report found : (i) no instance of assessment of kraft paper at lower rate applicable to printing and writing paper and (ii) the other allegations relating to inflating of cost structure etc. were too vague and general. It is stated in paragraph 14 of the petition that on March 5, 1969 the then Dy. Prime Minister Sri Morarji Desai stated in Rajya Sabha that demand for excise duty had been quashed by Delhi High Court and no evidence of any organised evasion of duty or collusion with Central Excise Staff was found. On March 10, 1969 Lata Fakiruddin AH Ahmed, the former Minister of Industrial Development stated in Rajya Sabha that there was no substance on the basis of which the matter could be referred to a Commission of Inquiry. A resolution was moved in Rajya Sabha for the appointment of a Commission of Inquiry but that resolution was lost Thereafter, on April 25, 1969 a similar resolution was moved in Parliament for the appointment of a Commission of Inquiry but that was also lost In July, 1969, the Dutt Committee submitted its report recommending revision of the industrial licensing policy to make it more purposeful and effective, On July 23, 1969,