Decided on June 09,1983

STATE Respondents


B.C.Ray, J. - (1.) This application is at the instance of the petitioners, petitioner 1 of which is a Sugar Mill, namely, Bharal Sugar Mills Limited, a Company having its Registered Office at No. 9/1, R N. Mukherjee Road, Calcutta, assailing the validity and/or propriety of the order, annexed as Annexure 'B' to the writ application, whereby the Central Government by an order dated 27-1-1983 fixed the prices of levy sugar in respect of Sugar Mills of various States including Sugar Mills situated within the territory of the State of Bihar under the provisions of Section 3 (3C). Essential Commodities Act, Act X of 1955, on the ground that the aforesaid fixation has been made without complying the four norms laid down in Clauses (a), (b), (c) and (d) of Sub-section (3C). Section 3. Essential Commodities Act and as such the price fixation that has been made is wholly arbitrary and in utter violation of the provisions of the Essential Commodities Act.
(2.) It has been submitted by Mr. Bajoria, learned Advocate for the petitioner that, this order was published in the Gazette of India which also appeared in the State of West Bengal and the office of this Sugar Mill is situated at R, N. Mukherjee Road within the territorial jurisdiction of this Court and the petitioner has got a licence to sell sugar under the Sugar Licencing and Control Order. It has also been submitted that this Mill has a godown within the State of West Bengal wherefrom the Mill sells sugar to the various retailers. It has been further submitted that some of the shareholders of this Mill are residents within the State and if sugar is allowed to be sold at the price as determined by the impugned order, it will cause a substantial financial loss not only to the Sugar Mills but also to the shareholders as the price of the shares will be greatly affected. On these allegations it has been submitted by Mr. Bajoria that part of the cause of action arises within the territorial limits of this Court and as such this Court has got jurisdiction to issue appropriate Writs, Orders or Directions in accordance with the provisions of Article 226 Sub-article (2) of the Constitution. It has also been, submitted by Mr. Bajoria in this connection that already some Rules have been issued by this Court in respect of similar orders issued aiad hence interim order passed in these Rules are pending for decision before this Court. Some decisions were cited at the Bar to show that this Court has got jurisdiction to issue appropriate Writs or Orders or Directions and this application, is, maintainable in this forum
(3.) Mr. Das, learned advocate appearing on behalf of the respondents has joined issues and submitted that as no part of the cause of action does arise within the territorial limits of the jurisdiction of this Court, this application is not maintainable. The order impugned was made by the Central Government from New Delhi The Bill in question is situated in the State of Bihar, outside the territorial limits of the jurisdiction, of this Court and the levy sugar that taws to be sold to the Food Corporation of India or other agencies to whom such sale will be directed to be made by the Central Government are to be made at the entrance of the Mill premises of the petitioner, i.e., within the territory of the State of Bihar. It has further been submitted that this application is not maintainable in this jurisdiction. Mr. Das has also submitted on the merits of the impugned order fixing the price of levy sugar by the Central Government.;

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