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1968 Supreme(Raj) 184

Rajasthan High Court
Dave, C.J. & Lodha, J.
The Jaipur Udbyog Ltd. - Appellant
Versus
Union of India - Respondents
D.B. Civil Writ Petition No. 147 of 1968
Decided On : December 12, 1968

Advocates Appeared:
M.C. Chagla, K.K. Jain, G.C. Kasliwal, R.L. Maheshwari and A.L. Johari, for Petitioner; D. Narsa Raju and A. Pasha, for Union of India; H.N. Calla, for Cement Corporation of India Limited

Headnote:(a) Cement Control Order, 1967—Order within scope of sec. 18-G of Industries Development and Regulation Act—Fixing different ex factory prices does not amount to discrimination same being done on rational and logical grounds— Restrictions not violative of Art. 19(l)(f) and (g).(b) Constitution of India, Art. 14—Fixing different ex factory prices under Cement Control Order, 1967 not discriminatory.(c) Constitution of India, Art. 19(l)(f)(g)-Cement Control Order, 1967—Restrictions not violative of Art. 19(l)(f) and (g).(d) Constitution of India, Art. 19—Company not a citizen and therefore cannot invoke fundamental rights.(e) Industries (Development and Regulation) Act, Sec, 25—Power may to delegated to some person (as officer or authority and not to corporation — Cement Control Order, Cl. 2(b) defining controller as Cement Corporation of India ultra vires of Act.(f) Cement Control Order 1967, Cl. 2(b)-Definition of Controller as Cement Corporation of India violative of sec. 25 of Industries (Development and Regulation) Act.(g) Cement Control (Amendment) Order, 1968, Cl. 2—Cl. 2 amending cl. 9(1) of Cement Control Order bad as same amounts to expropriation.(h) Cement Control Order 1967, Cl. 9(1)—Clause as amended by cl, 2 of Amendment Order. 1968 bad as same amounts to expropriation.(i) Cement Control Order, 1967, Cl. 11(4) -Sub-clause (4) not invalid.

       

LODHA, J.—This Writ petition has been filed under Art. 226 of the Constitu-tion of India challenging the constitutionality and validity of the Cement Contro Order, 1967.

2. The petitioner is a Limited Company. It is carrying on business in the manufacture of cement and has a factory at Sawai Madhopur in the State of Rajasthan.

3. In exercise of the powers conferred by secs. 18-G and 25 of the Industries (Development and Regulation) Act. 65 of 1951 (which will hereinafter be called the Act) and other powers enabling it in that behalf the Central Government made the Cement Control Order 1967. (which will hereinafter be called "the Order"). Sec. 18-G of the Act, which deals with the powers of the Central Government to control supply, distribution, price etc. of certain articles, reads as follows :

"18G. (1) The Central Government, so far as it appears it to be necessary or expedient for securing the equitable distribution and availability at fair prices of any article or class of articles relatable to any scheduled industry, may, notwithstanding any thing contained in any other provision of this Act, by notified order, provide for regulating the supply and distribution thereof and trade and commerce therein.

(2) Without prejudice to the generality of the powers conferred by sub-sec. (1) a notified order made thereunder may provide :

(a) for controlling the prices at which any such article or class thereof may be

brought or sold;

(b) for regulating any licenses, permits or otherwise the distribution, transport, disposal, acquisition, possession, use or consumption of any such article or class thereof;

(c) for prohibiting the withholding from sale of any such article or class thereof

ordinarily kept for sale;

(d) for requiring any person manufacturing producing or holding in stock any such article or class thereof to sell the whole or part of the articles so manufactured or produced during a specified period or to sell the whole or part of the articles so held in stock to such person or class of persons and in such circumstances as may be specified in the order;

(e) for regulating or prohibiting any class or commercial or financial transactions relating to such articles or class thereof which in the opinion of the authority making the order are, or if unregulated are likely to be, detrimental to public interest;

(f) for requiring persons engaged in the distribution and trade and commerce in any such article or class thereof to mark the articles exposed or intended for sale with the sale price or to exhibit at some easily accessible place on the premises the price-lists of articles held for sale and also to similarly exhibit on the first day of every month, or at such other time as may be prescribed, a statement of the total quantities of any such articles in stock;

(g) for collecting any information or statistics with a view to regulating or prohibiting any of the aforesaid matters; and

(h) for any incidental or supplementary matters, including, in-particular, the grant or issue of licenses, permits or other documents and the charging of fees therefor.

(3) Whereas, in pursuance of any order made with reference to clause (d) of sub-sec. (2), any person, sells any article, there shall be paid to him the price therefor :

(a) where the price can consistently with the controlled price, if any, be fixed by agreement, the price so agreed upon;

(b) where no such agreement can be reached, the price calculated with reference to the controlled price, if any, fixed under this section;

(c) where neither clause (a) nor clause (b) applies; the price calculated at the

market rate prevailing in the locality at the date of sale.

(4) No order made in exercise of any power conferred by this section shall be called in question in any court.

(5) Where an order purports to have been made and signed by an authority in exercise of any power conferred by this section, a Court shall, within the meaning of the Indian Evidence Act, 1872, presume that such order was so made by that




















































































































































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