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1951 Supreme(Mad) 391

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mr. P.V. Rajamannar, Chief Justice and Mr. Justice Venkatarama Ayyar,JJ.
The Lotus Industrials, Kallai, Malabar by sole Proprietor M. Velayudha Menon
Versus
The State of Madras represented by the Secretary, Development Department, Madras
C.M.P. No. 5524 of 1951 and W.P. No. 635 of 1951.
Decided On : 05 December 1951

Advocates:
D. Narasaraju and P.C. Kurian for Petitioners.
The Advocate-General (V.K. Thiruvenkalachari) for the State Counsel (John and Row) for Respondents Nos. 1 and 2.
K. Umamaheswaram and Alladi Kuppuswami for 3rd Respondent.

Reasonableness and validity of distribution of yarn and division of consumers.

Headnote:Cotton Textiles Control Order, 1948-Clause 30 - Distribution of yarn and division of consumers in pursuance of All India Yarn Distribution Scheme-Validity of classification of consumers and distribution of yarn to them.

The Chief Justice: C.M.P. No. 5524 of 1951.-This is an application for the issue of an order in the nature of a prohibition directing the Government of Madras to forbear from enforcing any system of rationing of yarn with regard to some only of the consumers and to issue an order in the nature of a writ of mandamus directing the Government of Madras to distribute the yarn allotted to the Madras State equally between all the consumers in proportion to the looms employed by them. The affidavit in support of this application is filed by one M. Velayudha Menon representing the two petitioners, namely, (1) The Lotus Industrials, Kallai, Malabar, of which “he is the sole proprietor, and (2) the Calicut Handloom Owners’ Association of which he is the Honorary Secretary.

Distribution of yarn in this State is made under the Cotton Textiles Control Order, 1948, by officers specially appointed for the purpose. Clause 30 of that Order directly relates to the distribution of yarn. It runs as follows:

"The Textile Commissioner may, with a view to securing a proper distribution of cloth or yarn or with a view to securing compliance with this order, direct any manufacturer or dealer, or any class of manufacturers or dealers-

(a) to sell to such person or persons such quantities of cloth or yarn as the Textile Commissioner may specify;

(b) not to sell or deliver cloth or yarn of a specified description except to such person or persons and subject to such conditions as the Textile Commissioner may specify; and may issue such instructions as he thinks fit regarding the manner in which the direction is to be carried out."

This clause as well as other clauses relating to the acquisition and installation of power looms came up for discussion before this Court in C.M.P. Nos. 6181 and 6182 of 19511. In the latter of these petitions I remarked that there was nothing in the affidavit filed on behalf of the State to give any information as to the principles on which the distribution cf yarn is being made. While realising that during periods of acute shortage of essential goods and commodities it is not only desirable but also imperative that the State should take steps to regulate their purchase and sale with a view to an equitable distribution among all the consumers and also that provisions relating to Controls cannot go into the minutest detail of actual distribution, I said as follows:-

"Clause 30 lays down the ultimate end in view, namely, a proper distribution of cloth and yarn. If, in accordance with and in pursuance of this policy, the Textile Commissioner had arrived at a scheme of distribution on a certain and ascertainable basis which is free from any charge of discrimination and he had placed that scheme before this Court and convinced us that the petitioner before us has been allotted the proper quota in accordance with the scheme, then we would have been loth to interfere. Unfortunately, however, and presumably in spite of the efforts of the learned Advocate-General, we have not been informed of any such general scheme. There is no doubt a reference to an All-India Yarn Distribution Scheme in the counter-affidavit filed on behalf of the State, but no particulars of the scheme have been put before us......It appears to me that if in the exercise of the powers granted under clause 30, the Textile Commissioner has evolved a proper scheme of distribution which does not offend either against Article 14 or Article 19(1)(f) and (g) read with Article 19(5) and (6), then there is no room for complaint by any person on the ground that his rights have been unlawfully affected to his prejudice."

I am glad to find that in this case a long and elaborate affidavit has been filed on behalf of the State by the Director cf Controlled Commodities setting out in detail the provisions of the All-India Yarn Distribution Scheme. The material features of this scheme are as follows:

Under the scheme the Government of India takes over the entire yarn produced in the Indian



















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