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High Court Of Madhya Pradesh
G. P. Singh, C. J. and Faizanuddin, J.
M.P.OIL EXTRACTION PVT.LTD., RAIPUR - Appellant
Versus
STATE OF MADHYA PRADESH - Respondents
Misc. Petn. 592 Of 1981
Decided On : 08/21/1981
The industrial policy laid down by the Government in 1977 envisaged supply of Sal seed to the old units also. This industrial policy changed in 1981 and therefore, no reservation was made in favour of the old units. It cannot be disputed that the Government can modify any industrial policy and evolve a new policy. It was therefore open to the Government to take a policy decision in 1981 that no reservation would be made in favour of any party excepting Sal Udyog and Marketing Federation provided this policy was not discriminatory. [Para 7]
(2) Constitution of India-Art. 19-Government deciding to grant concession to new industries-petitioners also applying to establish new industries-application of opposite parties accepted-no discrimination can be alleged at time of execution of contract.
The Government policy was well known and a number of parties including K.N. Oil industries and M.P. Oil Extraction the petitioners in M.P Nos. 559 and 650 applied for opening new units and for entering into contract on a long term basis for purchase of Sal seed. After consideration of all the applications the Government accepted the applications of Sa Uiyog and Bastar Oil products and entered into contracts with them for a long term supply of Sal seed. In this back ground there was no question of any discrimination in favour of any party at the stage of entering into the contracts for it was open to all to apply for establishing new plants and for obtaining Sal seed on a long term basis. [Para 9]
(3) Constitution of India-Art. 19-classffication between new and old industries-object to encourage new units and production-is a reasonable classification.
The petitioner's contention that similar reservations should be made in their favour for 1981 cannot be accepted for the reason that the petitioners do not belong to the same class as Udyog and Bastar Oil Products The classification of old and Sal new units is based upon a real differentia is which has reasonable relation with the object of encouraging new units so that they may attain full productive capacity without undue financial hardship which will also help in increasing the production of Sal seed. It was open to the petitioners to apply for purchase of 94 units which were disposed of by inviting tenders we are informed that some of the petitioners did apply for purchasing some units and some of their tenders have been accepted Be that as it may as the classification of old units and new units is a reasonable classification, the reservation made in favour of the new units without making any similar reservation in favour of old units cannot be struck down as discriminatory AIR 1980 SC 1001 and AIR 1980 SC 1992 distinguished [Paras 9 & 10]
(4) Constitution of India-Art. 38-benefits and concessions to co-operative societies-ultimately benefit to persons of small means and promote social justice in accordance with directive principles-individual cannot claim such benefits.
Co-operative societies stand as a class. Benefits and concessions granted to them ultimately benefit persons of small means and promote social justice in accordance with the directive principles. The petitioners cannot claims to come in the same class as a co-operative society. MP No 266 of 1980; decided on 22-9-80, MP 109 of 1981 decided on 19-3-81 and MP No. 723 of 1980 decided on 13-4-81 relied on. [Para 15]
(5) Constitution of India-Arts, 226 and 299-writ petition under Art. 226-relief based on contract whether or not executed in accordance with Art. 299-cannot be granted-remedy is to sue for specific performance or for damages.
No relief can be granted on the basis of any contract in a writ petition under Article 226 of the constitution. Firstly, these contracts are not in the form as required under Article 299. The Under Secretary who sent to the petitioners draft agreements and asked them to come to Bhopal on 8th February 1981 for signing the agreements was not authorised to sign any agreement on behalf of the-State. The offer made by him and the acceptance by the petitioners could not therefore, result in a formal contract as required by Article 299 Moreover, even assuming that Article 299 was complied with the petitioner's remedy would be to sue for specific performance or for damages, for it is well settled that contractual rights cannot be enforced under Article 226. AIR 1981 SC 1368 followed. [Para 16]
( 1 ) THIS order shall also dispose of Misc. Petitions Nos. 525, 592 and 650 all of 1981.
( 2 ) THE petitioners in all these petitions an owners of solvent extraction plants. The solvent extraction plants of the petitioners in Misc. Petitions Nos. 525, 559 and 650 are located at Raipur and of the petitioner in Misc. Petition No. 592 at Bilaspur. The petitioners use sal seed as raw material for extraction of sal oil. The petitioners also use rice-bran, oil calces and ground nut for extraction of other oils. The industrial units of the petitioners were set up long back. The dispute in these petitions relates to orders of reservation of sal seed made by the State Government.
( 3 ) SAL forests in the State are divided into 190 units. By order dated 21st April, 1981, 66 units were reserved for the Madhya Pradesh State Co-operative Marketing Federation Limited, for short marketing Federation which is an APEX Co-operative Society. By another order dated 6th Feb. , 1981, 27 units were reserved in favour of M/s. Sal Udyog Pvt. Ltd. , for short, Sal Udyog who have established a new industrial plant for extraction of sal oil and with whom the Government entered into an agreement on 30th Aug. , 1979 for supply of sal seed for a period of twelve years. The remaining 94 units were disposed of by inviting tenders in accordance with the policy decision of the Government taken on 13th April, 1981. The yearly produce of sal seed from all the units for the year 1981 was estimated at 54,000 tonnes. The State Government also entered into an agreement for supply of sal seed for periods of twelve years with M/s. Bastar Oil Products Pvt. Ltd. , for short, Bastar Oil Products on 5th Oct. , 1979. The agreement is of the same nature as with Sal Udyog. Bastar Oil Products have not yet gone in production. There was, therefore, no reservation made in their favour for the year 1981.
( 4 ) BASTAR Oil Products and Marketing Federation have been joined as parties only in Misc. Petitions Nos. 559 and 650 of 1981. Sal Udyog are parties in all the four petitions. All the petitioners pray for quashing of the reservation made in favour of Sal Udyog. The petitioners in Misc. Petitions Nos. 650 and 559 of 1981 also pray for quashing of reservations made in favour of Bastar Oil Products and Marketing Federation. The petitioners pray that the area reserved in favour of all these parties be disposed of by auction or by inviting tenders. In the alternative, the petitioners pray that similar reservation should be made in their favour. In Misc. Petition No. 650 of 1981, there is also an alternative prayer for directing execution of a formal deed of agreement for supply of 8000 tonnes of Sal seed for four years on the basis of a concluded contract. There is a further prayer in Misc. Petition No. 650 of 1981 for quashing of notification dated 22nd April, 1981 by which the Government has invited applications for establishment of new solvent extraction plants in the districts of Surguja, Raigarh and Bilaspur with the assurance of supply of 10,000 tonnes of Sal seed per year.
( 5 ) SAL seed is a forest produce as defined in Section 2 (d) of the M. P. Van Upaj (Vyapar Viniyaman) Adhiniyam, 1969. The State Government has monopoly for collection and purchase of Sal seed. Forest produce purchased by or belonging to the Government is sold or disposed of in such manner as the Government may direct (see Section 12 ). Manufacturers, traders and consumers of forest produce are required to be registered under Section 11. Retail business in any forest produce cannot be carried on except under a licence granted under Section 13.
( 6 ) THE relevant information relating to industrial policy for forest-based industries in Madhya Pradesh is available from the report of a Committee appointed by the Government which was published in May, 1977. Sal forests in the State are mostly located in Bastar, Mandla, Balaghat, Raipur, Raigarh, Bilaspur, Surguja, Sidhi and Shah-dol distric
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