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PUNJAB & HARYANA HIGH COURT
Mehar Singh and A.N.Grover JJ.
Krishan Khanna
Versus
State Of Punjab
Civil Writ No. 321 of 1959,
Decided On : FEBRUARY 22, 1961
CONSTITUTIONAL LAW - ARTICLE 226 - COAL CONTROL ORDER, 1955 - VALIDITY OF ORDER - NON-COMPLIANCE WITH SUB-SECTION (6) OF SECTION 3 OF THE ESSENTIAL COMMODITIES ACT, 1955 - EFFECT - SUSPENSION AND CANCELLATION OF COAL DEPOT - LEGALITY - GROUNDS FOR CANCELLATION - ULTRA VIRES - WRIT OF MANDAMUS.
Fact of the Case:
The petitioner, a coal depot holder, challenged the suspension and cancellation of his coal depot by the authorities under the Punjab Coal Control Order, 1955. The petitioner contended that the order was invalid as it was not laid before both Houses of Parliament as required by sub-section (6) of Section 3 of the Essential Commodities Act, 1955. The petitioner also contended that the grounds for suspension and cancellation of his coal depot were ultra vires the provisions of the Order.
Finding of the Court:
The court held that the non-compliance with sub-section (6) of Section 3 of the Essential Commodities Act, 1955 did not render the order invalid as the provision was directory and not mandatory. The court further held that the grounds for suspension and cancellation of the petitioner's coal depot, namely, the petitioner's refusal to accept Sant Singh as a partner, the petitioner's failure to disclose the source from which he obtained copies of office notes, and the petitioner's misappropriation of 4 wagons of soft coke, were ultra vires the provisions of the Order. The court quashed the impugned orders and directed the respondents to treat the suspension and cancellation of the coal depot of the petitioner as wholly illegal, void and ineffective.
Issues: 1. Whether the non-compliance with sub-section (6) of Section 3 of the Essential Commodities Act, 1955 rendered the order invalid? 2. Whether the grounds for suspension and cancellation of the petitioner's coal depot were ultra vires the provisions of the Order?
Ratio Decidendi: 1. The court held that the non-compliance with sub-section (6) of Section 3 of the Essential Commodities Act, 1955 did not render the order invalid as the provision was directory and not mandatory. The court relied on the decision of the Andhra High Court in Krishnan V/s. Secretary, Regional Transport Authority, Chittoor, (S) AIR 1956 Andhra 129, in which it was held that a provision directing rules to be laid before the Parliament or the Legislature without any condition attached did not make it mandatory that they should be so laid. 2. The court held that the grounds for suspension and cancellation of the petitioner's coal depot, namely, the petitioner's refusal to accept Sant Singh as a partner, the petitioner's failure to disclose the source from which he obtained copies of office notes, and the petitioner's misappropriation of 4 wagons of soft coke, were ultra vires the provisions of the Order. The court held that the direction that Sant Singh should be accepted as a partner could not be regarded as an "instruction" by the District Magistrate in the matter of disposing of or selling coal, and that the failure of the petitioner to disclose the source from which he obtained copies of office notes was not covered by any provision contained in the Order.
Final Decision: The court allowed the petition and issued a writ of mandamus directing the respondents to treat the suspension and cancellation of the coal depot of the petitioner as wholly illegal, void and ineffective.
A.N.Grover, J.
1. This is a petition under Article 226 of the Constitution of India in which it is necessary to state certain facts before the question that have been canvassed before us can be disposed of.
2. It appears that a coal depot had been allotted to a firm of the name of Messrs Sant Singh Mohan Singh at Jullundur. According to the petitioner, in 1949 Sant Singh, who was one of the partners of the firm, surrendered his share in favour of the petitioner, and the depot was transferred to a firm called Messrs Mohan Singh Maharaj Krishan. In 1952 Mohan Singh also surrendered his share in favour of the petitioner and applied to the Civil Supplies Department for the refund of the security deposited by him. The petitioner was directed by the authorities to deposit the necessary security of Rs. 500 as that he could be allowed to continue as a coal depot-holder (vide Annexure A to the petition). The petitioner then deposited a security of Rs. 500 and informed the office by means of a letter dated the 15th July, 1952 (Annexure B). On report of the office, marked Annexure C, the District Magistrate passed an order, which is set out in Annexure D, releasing the security of Mohan Singh.
The petitioner proceeded to assert that from July 1952 onwards he was recognised as the sole proprietor of the coal depot which was being run under the name of "Maharaj Krishan Khanna." On the 14th May, 1954 the petitioner applied for the change of the name and style of the depot to Messrs Maharaj Krishan Khanna and Sons by means of Annexure E, to which a reply was sent by the District Organiser, Civil Supplies and Rationing, Jullundur, according the requisite permission (Annexure F). It may be mentioned that up to this stage the facts are generally admitted except that in the return it is stated that Sant Sing never surrendered his share and only Mohan Singh had withdrawn from the partnership in the coal depot and that the relevant record has been looked up but Annexure E was not forthcoming. Its receipt was denied. Similarly it is stated that Annexure F was not forth-coming. It is common ground, however, that the petitioner was informed on the 12th November, 1956 by the District Food and Supplies Officer (Annexure G) that the Government had recognised Sant Singh as partner of the coal depot styled as Messrs Maharaj Krishan and Sons. It would be useful to set out in its entirety the material part of this communication: "It has been decided by Government to recognise Shri Sant Singh as partner of Coal Depot styled as Messrs Maharaj Krishan and Sons and as such has included his name in the style of the depot. You are hereby informed of this change and requested that you and Shri Sant Singh should deposit the security of Rs. 500 in the name of Messrs Sant Singh Maharaj Krishan in the Post Office duly pledged to the undersigned within a week of the receipt of this letter. The coal depot henceforth will function in the name and style of Messrs Sant Singh Maharaj Krishan."
The petitioner wrote a letter on the 14th November, 1956 (Annexure H) protesting against the Department compelling him to accept Sant Singh as a partner and asserting that since 1952 he was the sole owner of the coal depot. He also made a representation to the Food Minister, Punjab, in this respect (Annexure I) in which all the necessary facts were set out. By means of a latter dated the 21st November, 1956 (Annexure J), the District Food and Supplies Officer wrote to the petitioner saying: "The inclusion of the name of Shri Sant Singh in the depot named as Maharaj Krishan and Sons was made by the Head Office. So you are informed that this office is not in a position to keep the order of the Head Office in abeyance."
By means of an order dated the 23rd/27th November, 1956 (Annexure K) the District Magistrate suspended the coal business of the petitioner on account of an alleged contravention of instructions issued to him by the District Food and Supplies Officer. Jullundur, an
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