RAMA KRISHNA RICE AND GROUNDNUT OIL MILL NO 1 Vs. STATE OF ANDHRA PRADESH
LAWS(APH)-1983-8-2
HIGH COURT OF ANDHRA PRADESH
Decided on August 08,1983

RAMA KRISHNA RICE AND GROUNDNUT OIL MILL NO.1 Appellant
VERSUS
STATE OF ANDHRA PRADESH Respondents

JUDGEMENT

- (1.) The Government of Andhra pradesh introduced a scheme to supply rice to poorer sections of the society, at the rate of Rs. 2.00 per Kilogram and in the interest of that scheme, issued certain orders restricting the export of rice outside the state and also calling upon the rice-millers and dealers in the state to sell a certain quantity of food grains with them, to the Andhra pradesh state civil supplies corporation. These orders are questioned in these writ petitions. The points raised in the batch of writ petitions are common. Though the prayer in the writ petitions calls in question the validity of Cls. 4-A 4-B and 4-c of the Andhra pradesh Rice procurement (Levy) and restriction of sale order, 1967 (hereinafter referred to as the "Levy order), the said aspect was not urged before me. The arguments centred round the interpretation of the various clauses, and the validity of the Government orders. In the light of the said Rules. For the sake of convenience I will set out the facts in W.P. No. 5445/83.
(2.) The petitioners in W.P. No. 5445 of 1983 are licensed food grain dealers millers in krishna district who purchase paddy and mill the same in their mills. Under Cl. 3 of the levy order, they are obliged to supply the specified percentage of rice. So derived by them by way of levy to the state at the notified price. Currently, the levy quota is 50% for all the districts in the state the petitioners say that the remaining 50% they are entitled to sell where ever they like and at whatever price they can get and that no restriction can be placed by the state thereon. Their case is that for the Kharif season 1982-83, they have satisfied the levy quota targets fixed for them and that when they applied for permits for transport and sale of the remaining 50% of rice, the appropriate authorities have been denying and deliberately delaying the issuance of permits purporting to Act under the instructions of the Government impugned herein which permit export of only half of levy-free rice outside the state and with instructions provide further that permits for sale of rice outside the state shall be issued only after the rice meant for sale inside the state is released. It is submitted that the petitioners are entitled in law to sell the entire levy -free rice (remaining 50%) outside the state if they so wish and that as and when they apply for such permits, the respondents are bound to issue the same. It is submitted that the petitioners cannot be compelled to sell the whole of it or any portion thereof, within the state. It is complained that under the impugned orders to which I shall presently refer - the Government has been compelling them to sell half the levy-free rice within the state. And following the export of only the other half without any authority of law. It is complained further that they are being compelled to sell the levy free rice to the A.P. state civil supplies corporation at the price fixed by the Government which is resulting in huge losses to the petitioners. Even for the current Rabi season it is complained the authorities are compelling the rice-millers to deliver 2,50,000 tonnes over and above the levy quota and that such compulsion is equally unsustainable in law. This is short is the gravamen of the petitioners complaint. The legal aspect.
(3.) The essential commodities Act has been enacted in the interest of general public for the control of production, supply and distribution of and trade and commerce in certain commodities, declared as essential commodities S. 3 (1) empowers the Central Government to provide by order for regulating or prohibiting the production, supply and distribution of any essential commodity and trade and commerce therein if in its opinion it is necessary or expedient so to do for maintain in or increasing or f or securing thier equality distribution and availability at fair prices. Subsec. (2) provides that without prejudice to the generality of the powers conferred by sub-sec (1) order made under S. 3 (1) may provide among others- (a) to (c) xx xx xx (d) for regulating by licences permits or otherwise the storage transport distribudisposal acquisition use or consumption of any essential commodity: (e) xx xx xx xx (f) for requiring any person holding in stock or engaged in the production or in the business of buying or selling of any essential commodity:- (a) to sell the whole or a specified part of the quantity held in stock or produced or received by him or (b) in the case of any such commodity which is likely to be produced or received by him to sell the whole or a specified part of such commodity when produced or received by him, To the Central Government or a state Government or to an officer or agent of such Government or to a corporation owned or controlled by such Government or to such other person or class of persons and in such circumstances as may be specified in the order". Clause (c) of sub-sec. (2) empowers the central Government to control the price at which any essential commodity may be bought or sold.;


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