1991 Supreme(All) 193
IN THE HIGH COURT OF ALLAHABAD
A. P. MISHRA, R. R. K. TRIVEDI
JHUNJHUNWALA VANASPATI LTD - Appellant
Versus
BUREAU OF INDIAN STANDARDS - Respondents
C. M. W. P. 13251 Of 1990
Decided On : 02/19/1991
Important Points
Subject
Administrative Law - Regulatory Compliance
Act Referred
BUREAU OF INDIAN STANDARDS CERTIFICATION REGULATIONS : Reg.4, Reg..3
INDUSTRIES DEVELOPMENT AND REGULATIONS ACT : S.29(b)
Headnote
Bureau of Indian Standards - Industrial Licence Requirement - Indian Standards Institution (Certification Marks) Act, 1952, Bureau of Indian Standards Act, 1986 - The court discussed the provisions of the Indian Standards Institution (Certification Marks) Act, 1952, and the Bureau of Indian Standards Act, 1986, and their implications on the requirement of an industrial licence for obtaining ISI certification. The court quashed the requirement for an industrial licence and directed the respondent to reconsider the application for ISI certification.
Fact of the Case:
The petitioner sought to quash an order requiring an industrial licence for obtaining ISI certification for Vanaspati Ghee. The petitioner's unit had provisional registration and licences under relevant orders and acts. The respondent refused to process the application without an industrial licence, causing the petitioner to suffer losses.
Finding of the Court:
The court found that the requirement for an industrial licence was not justified as per the provisions of the relevant acts. The court directed the respondent to reconsider the application for ISI certification and to inspect the petitioner's unit to ensure compliance with testing facility requirements.
Issues: The main issue was the requirement of an industrial licence for obtaining ISI certification. The court also addressed the legality of the respondent's refusal to process the application and the subsequent cancellation of the petitioner's application.
Ratio Decidendi: The court held that the provisions of the acts did not justify the requirement for an industrial licence for obtaining ISI certification. The court directed the respondent to reconsider the application and inspect the petitioner's unit to ensure compliance with testing facility requirements.
Final Decision: The petition was allowed, and the court quashed the requirement for an industrial licence. The court directed the respondent to reconsider the application for ISI certification and to inspect the petitioner's unit to ensure compliance with testing facility requirements. The court also held the cancellation of the petitioner's application to be illegal.
Ashok Khare
( 1 ) THE petitioner has sought for quashing the order dt. 11/05/1990 (Annexure 16 to the petition), passed by the Director of the Bureau of Indian Standards, Lucknow directing the petitioner to send the industrial licence or a letter of indent from the Central Government and permission from Directorate of Vanaspati according approval to manufacture of Vanaspati by it within fourteen days, otherwise the application for the grant of licence will be treated as closed without any further correspondence, and further to direct the respondent to complete the processing of the application of the petitioner for the grant of licence to use the standards mark forthwith.
( 2 ) THE petitioner is a public limited company and has established a manufacturing unit for the manufacture of Vanaspati ghee. The said unit has been granted provisional registration certificate by the Director of Industries, U. P. as a small scale unit. On 20th Jan. , 1989, and 19th Jan. , 1990, the petitioner also obtained licence under the U. P. Scheduled Commodities Dealers (Licencing and Restriction on Holdings), Order, 1989 and the unit of the petitioner is also registered under the U. P. Sales Tax Act. According to the petitioner, its manufacturing unit has been completed and the production of Vanaspati ghee has also commenced. This manufacturing unit is further regulated by two control Orders, viz. Vegetable Oil Products Control Order, 1947, and Vegetable Oil Products (Standard of Quality) Order, 1975. Under cl. 14 of the Vegetable Oil Products Control Order, 1947, the Vegetable Oil Products Controller for India is empowered to specify the specification of container etc. in which the vegetable oil products is to be marketed. Under this clause every container of vegetable oil manufactured by the petitioner is required to specify apart from other details, the I. S. I. certification mark specified under the Indian Standards Institution (Certification Marks) Act, 1952. Thereafter the Central Government issued Vegetable Oil Products (Standards of Quality) Order, 1975, by means of a notification dt. 30/05/1975, which was further amended by means of a notification dt. 4/07/1985, with effect from 1/10/1985. As per the petitioners case the only restriction under the aforesaid Order of 1975 as amended in respect of vegetable oil product is that the same should conform to the I. S. I. specifications for Vanaspati Ghee and shall carry the I. S. I. Certification mark. The petitioner contends that Vanaspati Ghee manufactured by the petitioner is in full conformity with the I. S. I. specification for Vanaspati. Before the 1952 Act, the Indian Standards Institution was set up in pursuance of a resolution of the Government of India dt. 3rd Sept. , 1946. The aforesaid 1952 Act did not contain any provision requiring compulsory user of the standard mark with regard to any particular article, nor did it confer any power upon the Institution to notify any article or process so as to require compulsory licence or compulsory user of the Standard Mark.
( 3 ) THEN, in the year 1986, the Parliament promulgated the Bureau of Indian Standards Act, 1986, which established a Bureau under the name of Bureau of Indian Standards as statutory corporation and repealed the 1952 Act. S. 10 of 1986 Act confers power on the Bureau to specify the standard marks and to grant licence for the use of the standard mark. According to the petitioner, the authorities informed under the Control Orders, referred to above, that it would be necessary to put I. S. I. certification mark on the items for sale and for that it would be necessary to obtain licence. On that basis, the petitioner applied on the 6th Feb. , 1990, for the grant of licence for use of standard mark before the Director of Bureau of Indian Standards Lucknow. Thereafter the petitioner was required to submit an application in triplicate along with the draft of Rs. 500; - which was done by the petitioner on the 7th Mar. , 1990. On