PUNJAB & HARYANA HIGH COURT
D.K.Mahajan, J.
Jaswant Sugar Mills Ltd.
Versus
Union Of India
Civil Writ Petition No. 442 of 1964,443 of 1964,444 of 1964,455 of 1964,
Decided On : MARCH 23, 1965
SUGAR CONTROL ORDER - NOMINEE - CLAUSE 8 - INTERPRETATION - DELHI ADMINISTRATION - NOT A PERSON OR ORGANIZATION - CANNOT BE CONSTITUTED AS NOMINEE - DISTRIBUTION OF SUGAR BY DELHI ADMINISTRATION - ILLEGAL.
Fact of the Case:
Petitioners, licensed sugar dealers in Delhi, challenged the Delhi Administration's distribution of sugar quota to 64 selected dealers, excluding them, after the Central Government transferred the distribution responsibility to the Delhi Administration.
Finding of the Court:
The court held that the Delhi Administration could not be constituted as a nominee under Clause 8 of the Sugar Control Order because it was neither a person nor an organization as defined in the General Clauses Act.
Issues: Whether the Delhi Administration could be constituted as a nominee under Clause 8 of the Sugar Control Order to distribute sugar quota.
Ratio Decidendi: The court interpreted Clause 8 of the Sugar Control Order and the definitions of "person" and "organization" in the General Clauses Act. It concluded that the Delhi Administration, being a State, could not be considered a person or an organization and, therefore, could not be appointed as a nominee.
Final Decision: The court directed the petitioners to apply to the Central Government for the next sugar quota, which the Central Government was required to consider on its merits without issuing the quota to the Delhi Administration.
D.K.Mahajan, J.
1. This order will dispose of fourteen petitions (Civil Writ Petitions Nos. 442D/ 1964 to 455D/64), which have been filed by different petitioners but in which the allegations made are identical. In these petitions a prayer has been made for the issuance of a writ of quo warranto and mandamus restraining the respondents (Union of India and the Director of Food and Civil Supplies Delhi) from issuing orders or allotment of permits for import of sugar for the months of July, August 1964 to Delhi Sugar License holders for the Delhi territory and to quash the present system of allotment of sugar introduced by respondent No. 2 and restore the system of allotment adopted by the Union of India for allotment of sugar quota prior to 22nd May 1964 or to make allotment to all sugar dealers licence holders on the basis of equal distribution.
2. These fourteen petitions are by some out of the sugar dealers who were holding licenses under the Delhi Sugar Dealers Licencing Order 1963 The total quota for Delhi territory allotted by the Central Government was 65,000 bags per month This quota was distributed by the Directorate of Sugar and Vanspati Ministry of Food and Agriculture Government of India. After 22nd June 1964 according to the petitioner the Central Government transferred this work of distribution of sugar to licensed dealers to the Delhi Administration whereas according to the return filed by the Centre) Government as well as by the Delhi Administration The Central Government appointed the Delhi Administration as one of the nominees under clause 8 of the Sugar Control Order 1963 issued on the 17th April 1963 under Rule 125(2) of the Defence of India Rules 1962
3. The Directors of Food and Civil Supplies, Delhi made a list of 54 dealers but according to the administration 64 dealers, to whom this quota was to be distributed for retail sale in the market The petitioners are not in the list of 64 dealers though they were licenced sugar dealers prior to 22nd June 1964 as the petitioners have been deprived of their right to deal in sugar under the license held by them before 22nd June. 1904, they have moved this Court with the prayer already set out in the earlier part of this judgment.
4. In the petition the simple stand taken up by the petitioners was that the Director had been conferred with arbitrary power in the matter of allotment of the sugar quota. The reply of the Delhi Administration as well as the Central Government was that there was no question of the Director exercising arbitrary powers because the entire distribution of sugar had been made over under Clause 8 of the Sugar Control Order in the Delhi Territory to the Delhi Administration In view of this stand taken up by the respondents Mr. A. R. Whig learned counsel for the petitioner has raised a short contention namely that under Clause 8 of the Sugar Control Order the Delhi Administration cannot be constituted a nominee by the Central Government. Clause 8 of the Sugar Control order reads as follows:
"The Central Government or the Chief Director, may, from time to time by order issue directions to any producer or recognized dealers to supply sugar of such type or grade in such quantities and to such areas of markets or to such persons or organizations as may be specified in the order and at a price not exceeding the price or the maximum price fix ed under Clause 6."
5. Under Clause 8, the Central Government has the power to issue directions to any producer or recognized dealer to supply sugar to such persons or organizations, as may be specified in the order
6. The short contention raised by the learned counsel for the petitioner is that the Delhi Administration is neither a person nor an organization and, therefore, it could not be constituted a nominee tinder Clause 8 of the Sugar Control Order Therefore, no distribution of sugar could be made by the Delhi Administration. This contention appears to be sound. The word person has been defined in th
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