The main legal point established is that the State Government's authority to enact provisions under the Essential Commodities Act is limited to the matters specified in the delegated order under S.5, and any provisions beyond that scope are invalid.

1. The first two prayers in this petition are to: "(i) declare Clause.4 of the Kerala Cycle Tyres and Tubes (Declaration of Stocks and Maintenance of Accounts) 0.1966 as invalid as it is beyond the competence of the State Government.

(ii) declare Clause.5 of the Kerala Cycle Tyres and Tubes (Declaration of Stocks and Maintenance of Accounts) Order, 1966 to be invalid as the power sought to be exercised is beyond what has been conferred on the State Government."

2. The Kerala Cycle Tyres and Tubes (Declaration of Stocks and Maintenance of Accounts) Order, 1966 (hereinafter referred to as the Order) was passed by the State Government on 16th August, 1966 in exercise of the powers conferred by sub-section (1) read with clauses (e), (h), (i) and 0) of sub-s. (2) of S.3 of the Essential Commodities Act, 1955 (hereinafter referred to as the Act) and the Order of the Government of India in the Ministry of Commerce dated 18th June, 1966. Clause.4 and 5 of the Order are in these terms:

"4. Price list to be displayed at place of business Every dealer shall exhibit at the entrance or some other prominent place of his business premises; the price list of cycle tyres and tubes held by him for sale. Such price list shall be legibly written in the principal language of the locality concerned. It shall Indicate separately the prices of different varieties of cycle tyres and tubes.

5. Dealer to maintain accounts (1) Every dealer shall maintain a register of daily accounts of his stock of cycle tyres and tubes showing correctly,

(a) the opening stock on each day;

(b) the quantifies received on each day showing the place from where and the source from which received;

(c) the quantities delivered or otherwise removed on each day showing the places of destination; and

(d) the closing stock on each day.

(2) Every dealer shall complete his accounts for each day on the day to which they relate unless prevented by reasonable cause, the burden of proving which shall be upon him.

(3) Every dealer shall submit to the District Collector or any other officer authorised by him in this behalf, a true return of the stocks, receipts and deliveries of cycle tyres and tubes every fortnight (1st to 15th and 16th to the end of the month), so as to reach the District Collector or the officer authorised within 7 days after the close of the fortnight."

Sub-sections (1) and (2) of S.3 of the Act which are the only provisions in S.3 that are relevant are in these

terms:

"3. Powers to control production, supply, distribution, etc. of essential commodities. (1) If the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein.

(2) Without prejudice to the generality of the powers conferred by sub-section (1), an order made thereunder may provide

(a) for regulating by licences, permits or otherwise the production or manufacture of any essential commodity;

(b) for bringing under cultivation any waste or arable land, whether apperten-ant to a building or not, for the growing thereon of food crops generally or of specified food-crops, and for otherwise maintaining or increasing the cultivation of food-crops generally, or of specified food-crops;

(c) for controlling the price at which any essential commodity may be brought or sold;

(d) for regulating by licences, permits or otherwise the storage, transport, distribution, disposal; acquisition, use or consumption of any essential commodity;

(e) for prohibiting the withholding from sale of any essential commodity ordinarily kept for sale;

(f) for requiring any person holding in stock any essential commodity to sell the whole or a specified part of the stock to the Central Government or a State Government or to an officer or agent of such Governm