1. The petitioner is an incorporated company having its registered office at Bombay, carrying on business of producing and selling iron and steel. It has got an office at Ernakulam and a stock-yard at Cochin in the State of Kerala for the purpose of selling the above goods. Iron and steel are essential commodities under S.2 of the Essential Commodities Act, 1955 (hereinafter referred to as the Act). S.3 of the Act provides that, 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 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. The section also confers powers on the Central Government to make orders in respect of the several matters mentioned therein. S.4 provides that an order under S.3 may confer powers and impose duties upon the Central Government or the State Government or Officers and Authorities of the Central Government or the State Government, and may contain directions as to exercise of any such powers or discharge of any such duties. S.5 reads:

"5. The Central Government may, by notified order, direct that the power to make order under S.3 shall in relation to such matters, and subject to such conditions, if any, as may be specified in the direction, be exercisable also by

(a) such officer or authority subordinate to the Central Government; or

(b) such State Government or such officer or authority subordinate to a State Government; as may be specified in the direction."

By virtue of the powers under S.3 of the Act the Government of India made the Iron and Steel Control Order, 1956. Clause.2A of this Order provides that the Central Government may exempt steel of one or more categories specified in the First Schedule to the Order, or iron or scrap of any category as may be specified, from all or any of the provisions of the Order or declare that any provisions of the Order shall apply to the above commodities with such modifications as the Government may specify in that behalf. In exercise of the powers under the above clause, the Government of India issued an Order Ext. P-1 dated 29 41967 exempting all categories of iron and steel from the provisions contained in Clause.4, 5,15,18, 20 and 27 of the Iron and Steel Control Order.

2. Under S.5 of the Act, the Government of India issued an order Ext. P-2 dated 18 61966, delegating the powers to make orders to provide for the matters specified in clauses (d) to 0) of Sub-section (2) of S.3 to be exercisable also by the State Government in relation to all commodities other than food stuffs and fertilisers, subject to the conditions mentioned therein. One of those conditions is that no order shall be issued pursuant to the said delegation, if it is inconsistent with any order issued by the Central Government. In exercise of the powers conferred by Ext. P-2, the Government of Kerala, the first respondent, issued on 2 41968 the Kerala Iron and Steel (Declaration of Stocks and Maintenance of Accounts) Order, 1968, which is hereinafter referred to as the State Government Order. Ext. P-3 is a copy of this Order. It introduced several restrictions in the matter of distribution and sale of iron and steel. Pursuant to Ext. P-3, the Director of Industries and Commerce, Kerala, the second respondent, issued a circular letter Ext. P-4 dated 22 41968 to all dealers in iron and steel including the petitioner drawing their attention to Ext. P-3, and requiring them to furnish stock statements on due dates to his Directorate. This writ petition has been filed to quash Exts. P-3 and P-4 and to declare them as illegal and void and to prohibit the respondents from enforcing the provisions of the said two orders.

3. The petitioner's case has been presented before us with ability and learning by its learned Counsel, Shri. T. K. Kochu Thom