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High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE E. PADMANABHAN
Tamil Nadu Essential Plant Nutrients Manufacturers - Appellant
Versus
Union of India & Another - Respondents
W.P. NO. 6284 OF 1999, W.M.P. NO. 9070 OF 1999
Decided On : 17 February 2003
Fertiliser Control Order - Constitutionality, Excessive Delegation, and Violation of Fundamental Rights - The Fertiliser (Control) Order, 1985 - Clause 21-A
Fact of the Case:
The Tamil Nadu Essential Plant Nutrients Manufacturers and Marketeers Association challenged the constitutionality of clause 21-A of The Fertiliser (Control) Order, 1985, which required manufacturers to possess minimum laboratory facilities to ensure the quality of their products. The association argued that the clause was unconstitutional, suffered from excessive delegation, and violated Articles 14 and 19(1)(g) of The Constitution.
Finding of the Court:
The court found that the power conferred by Section 3 of The Essential Commodities Act and the authority to promulgate or issue orders had already been upheld by the Supreme Court. It held that clause 21-A did not suffer from excessive delegation and was a valid and reasonable restriction. The court also ruled that the clause did not violate Article 14 or 19(1)(g) of The Constitution. Additionally, it found that clause 21-A had been placed before both Houses of Parliament as required by Section 3(6) of The Essential Commodities Act.
Issues: i) Whether Clause 21-A of The Fertiliser (Control) Order is unconstitutional, suffer the vice of excessive delegation or violative of Article 14 and 19 of The Constitution ? ii) Whether Clause 21-A has been placed before both Houses of Parliament as required by Section 3(6) of The Essential Commodities Act, 1955 ? iii) To what relief, if any, the petitioner is entitled to ?
Ratio Decidendi: The court held that clause 21-A did not suffer from excessive delegation and was a valid and reasonable restriction. It also ruled that the clause did not violate Article 14 or 19(1)(g) of The Constitution. Additionally, it found that clause 21-A had been placed before both Houses of Parliament as required by Section 3(6) of The Essential Commodities Act.
Final Decision: The court dismissed the writ of declaration as prayed for by the petitioner and held that clause 21-A as introduced by the Central Government is constitutionally valid. The parties were ordered to bear their respective costs.
1. The writ petitioner, Tamil Nadu Essential Essential Plant Nutrients Manufacturers and Marketeers Association, has prayed for the issue of a writ of declaration declaring that clause 21-A of The Fertiliser (Control) Order, 1995 is unconstitutional, ultra vires and null and void as far as the members of the petitioner association is concerned.
2. The petitioner claiming to be a registered society formed for the purpose of promoting the welfare of its members, who are all manufacturers of fertiliser mixtures and micro nutrient fertilisers, has moved the present writ petition. After referring to the various details of legislations introduced, with respect to the licensing system as well as The Fertiliser (Control) Order, etc., the petitioner has referred to the provisions of The Essential Commodities Act and the Fertiliser (Control) Order.
3. The petitioner association and other associations requested to dispense with the requirement of clause 21A of the order, as it is not at all necessary having regard to the nature of business and in view of the expenditure involved in the establishment of a laboratory. The 2nd respondent extended time to possess the minimum laboratory facility up to 31.8.1996.
4. The 2nd respondent by circular dated 9.8.96 instructed all Joint Directors of Agriculture to withdraw the certificate of registration in the event of failure of owning the minimum laboratory facility. Challenging the said circular, the petitioner filed W.P. No.12177 of 1996 and the same was dismissed and also affirmed in writ appeal. Hence, the petitioner challenged the validity of clause 21-A of The Fertiliser (Control) Order.
5. It is contended that the power conferred under Clause 21-A is legislative in nature and, therefore such essential law making power cannot be conferred upon an outside agency as it falls exclusively within the relam of The Parliament. Clause 21-A is liable to be struck down as the plenary powers conferred upon executive or outside agency is unconstitutional and contrary to the scheme of The Constitution.
6. It is further contended that it is violative of Article 14 and 19 (1)(g) of The Constitution. It is also contended that clause 21-A has not been placed before both the Houses of the Parliament as required by Section 3 of The Essential Commodities Act. The members of the petitioner association, to comply with clause 21-A have to spend considerable amount in setting up a laboratory, which will be several times more than what they have invested and, therefore, the members of the petitioner association will have to go out of business, which will be in violation of fundamental rights.
7. Per contra, on behalf of respondents, the first respondent has filed a counter pointing out that fertilisers have been declared as essential commodity by the Central Government in exercise of powers conferred under Section 2 (a) (xi) of The Essential Commodities Act, 1955. The Central Government is conferred with the power under Section 3 (1) of the Act to issue rules/regulations/orders for regulating or prohibiting production, supply and distribution of trade and commerce in fertilisers so as to maintain or increase the supply or for securing its equitable distribution and availability of fair prices. In exercise of the said powers, the Central Government issued Fertiliser (Control) Order, 1985, to regulate quality, price, supply and distribution of fertilisers. Provision have been made empowering the State Government to enforce various provisions of the order to ensure availability of good quality fertilisers to farmers in adequate quantities in time and at reasonable prices. The fertilisers has to conform to prescribed standards as laid down in Schedule I Part-A of the Order in respect of straight and complex fertilisers including micro-nutrients or micro-nutrient fertilisers including mixtures of NPK fertilisers as well as mixture of micro-nutrient fertilisers with or without NPK are only to be produced and stoc
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