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1988 Supreme(Raj) 600
RAJASTHAN HIGH COURT AT JAIPUR BENCH
S.N.Bhargava, P.C.Jain, JJ.
Dalmia Dairy Industries Ltd. - Appellant
Versus
State of Rajasthan and Ors. - Respondents
D.B. Civil Special Appeal No. 98 of 1987.
Decided On : 26-05-1988
The State Government cannot issue executive orders that encroach upon the field of control occupied by a central legislation, such as the IDR Act, and that such orders cannot be justified under Article 162 of the Constitution.
Headnote:
INDUSTRIES (DEVELOPMENT & REGULATION) ACT, 1951 - SECTION 25, 26 - RAJASTHAN HIGH COURT ORDINANCE, 1949 - SECTION 18 - CONSTITUTION OF INDIA - ARTICLES 19(1)(G), 162 - UTTAR PRADESH MILK ACT, 1976 - SECTION 13 - RAJASTHAN PREVENTION OF FOOD ADULTERATION RULES, 1954 - RULE 7 - MILK SHED AREAS - MONOPOLY - EXECUTIVE ORDERS - LEGISLATIVE COMPETENCE - FUNDAMENTAL RIGHTS - JUDICIAL REVIEW - SPECIAL APPEAL - WRIT PETITION - FACTUAL BACKGROUND - LEGAL PROVISIONS - COURT ANALYSIS AND CONCLUSION - ISSUES - RATIO DECIDENDI - FINAL DECISION - MAIN LEGAL POINT
Fact of the Case:
The appellant, a milk products manufacturer, was granted a license by the Central Government under the Industries (Development & Regulation) Act, 1951 (IDR Act) for carrying on business in Bharatpur, Rajasthan. The license was subject to certain conditions, including a restriction on drawing milk from the milk shed areas of public sector milk schemes. The respondent, another milk products manufacturer, obtained a license from the Uttar Pradesh Milk Board under the Uttar Pradesh Milk Act, 1976, and established milk collection and chilling centers in Dholpur, Rajasthan. The Government of Rajasthan directed the appellant to submit a detailed project report for approval and acceptance and emphasized that the appellant could only collect milk from Bharatpur and Dholpur districts. The Collector of Dholpur subsequently issued an order prohibiting any other dairy from purchasing milk from the Dholpur district. The respondent challenged the Government's decision and the Collector's order in a writ petition before the Rajasthan High Court.
Finding of the Court:
The High Court held that the impugned orders were illegal and quashed them. The court found that the State Government did not have the authority to issue the orders under Section 25 of the IDR Act because the Central Government had not issued any order delegating such powers to the State Government. The court also held that the orders could not be justified under Section 26 of the IDR Act because that section was not operative until a notified order was issued under Section 25. The court further held that the orders violated the respondent's fundamental right to carry on business under Article 19(1)(g) of the Constitution.
Issues: 1. Whether the State Government had the authority to issue the impugned orders under Section 25 of the IDR Act? 2. Whether the orders could be justified under Section 26 of the IDR Act? 3. Whether the orders violated the respondent's fundamental right to carry on business under Article 19(1)(g) of the Constitution?
Ratio Decidendi: 1. The State Government did not have the authority to issue the impugned orders under Section 25 of the IDR Act because the Central Government had not issued any order delegating such powers to the State Government. 2. The orders could not be justified under Section 26 of the IDR Act because that section was not operative until a notified order was issued under Section 25. 3. The orders violated the respondent's fundamental right to carry on business under Article 19(1)(g) of the Constitution.
Final Decision: The High Court dismissed the appellant's special appeal and upheld the quashing of the impugned orders.
"For the reasons mentioned above the writ petition is accepted. The relevant part of Annexure 5 i.e. the directions given to the Collector, Dholpur for taking appropriate actions in accordance with law and the instructions that nobody should operate in the milk shed area of Dholpur district is hereby set aside. Consequently, the order Annexure -4 is also quashed. No order as to costs."
"2. That you do not encroach upon and draw milk from the milk shed area of public Sector Milk Schemes of Delhi as specified in Operation Flood'. Further you would not be allowed to draw milk from the Districts of Alwar and Bikaner in Rajasthan, Gurgaon in Haryana and Meerut. Bullandshihar and Mathura in U.P., which under 'Operation Flood' constitute the milk shed of Delhi Milk Scheme.
3. That you should draw milk only from Bharatpur, and such Districts other thin these included in (2) above with the specific approval of the Ministry of Agriculture and Chairman, Delhi Milk Scheme in order to ensure that there is no conflict of the milk sheds areas between the Public Sector Liquid Plants and the milk products factories in the public or private sector between the milk product factories inter so.
4. That you should undertake to develop product of milk in the milkshed areas through cattle improvement activities in such manner as may be prescribed by the Central or State Government from time to time."
