ASSOCIATION OF BIOTECHNOLOGY Vs. UNION OF INDIA

JUDGEMENT

(1.) These writ appeals are directed against an interim order in W.P.Nos. 15173-15174/2016 dated 3.5.2016 whereby the learned single Judge has vacated the interim order granted on 21.3.2016.

(2.) First appellant claims to be a not-for-profit pan-India association/consortium representing the Indian Biotechnology Sector. The second appellant is a duly incorporated company under the Companies Act, 1956. They have tiled W.P.Nos. 15173 to 15174/2016 to impugn the Cotton Seeds Price (Control) Order 2015 dated 7.12.2015 issued by the Department of Agriculture, Co-operation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare, wherein the first respondent has sought to delineate the modalities for imposing an upper ceiling on the sale price of genetically modified cotton seeds by regulating/fixing the seed value, licence fee including royalty or trait value, dealer margins and taxes, if any. They have also sought to impugn the order dated 27.1.2016 issued by the respondents wherein the Committee has been constituted to recommend the maximum sale price of Bt. Cotton seeds for the year 2016-2017. The validity of the order dated 8.3.2016 fixing the maximum sale price of Bt. Cotton seeds for the financial year 2016-2017 has also been challenged in the writ petitions. The appellants have sought for an interim order staying the operation of the impugned orders at Annexures 'B' and 'D' till the disposal of the writ petitions.

(3.) The main ground urged in the writ petitions is that respondent No. 1's bid to fix the maximum sale price of Bt. Cotton seeds and to regulate the components thereof including the trait value payable to technology providers is beyond the powers conferred upon the Central Government. It is contended that the Central Government does not have the power under Section 3 of the Essential Commodities Act, 1955 ('Act' for short) to regulate the sub-components of an essential commodity and treat Bt. Cotton seeds as cotton seeds; fixation of the trait value by a committee constituted by the Central Government is totally illegal. It is further contended that the impugned order dated 8.3.2016 purportedly fixes the trait value, which is already governed by pre-existing and concluded contract between the members of appellant No. 1 and different seed manufacturing companies and such an action will have a direct bearing on the integrity and sanctity of a concluded contract. It is further contended that Government has no power to regulate commercial or financial transaction relating to cotton seeds. Therefore, the impugned orders relating to fixing/regulating the licence fee including royalty or trait value are ultra vires of Sec. 3(1) of the Act. Several other contentions have been urged in support of their claim that the impugned orders are bad in law.