JAIPUR UDHYOG LTD Vs. UNION OF INDIA
LAWS(RAJ)-1968-8-8
HIGH COURT OF RAJASTHAN
Decided on August 12,1968

JAIPUR UDHYOG LTD Appellant
VERSUS
UNION OF INDIA Respondents


Cited Judgements :-

ROHTAS INDUSTRIES LTD VS. UNION OF INDIA [LAWS(PAT)-1970-10-5] [REFERRED TO]
MUNICIPAL BOARD SHEOGANJ VS. STATE OF RAJASTHAN [LAWS(RAJ)-1975-4-6] [REFERRED TO]
R D AGGARWALA VS. UNION OF INDIA [LAWS(DLH)-1974-5-24] [REFERRED TO]


JUDGEMENT

LODHA, J. - (1.)THIS writ petition has been filed under Article 226 of the Constitution of India challenging the constitutionality and validity of the Cement Control Order. 1967.
(2.)THE petitioner is a Limited Company, it is carrying on business in the manufacture of cement and has a factory at Sawai Madhopur in the State of Rajasthan.
In exercise of the powers conferred by Sections 18G and 25 of the Industries (Development and Regulation) Act, 65 of 1951 (which will hereinafter be called 'the Act') and other powers enabling it in that behalf, the Central Government made the Cement Control Order, 1967, (which will hereinafter be called 'the Order'), Section 18G of the Act, which deals with the powers of the Central Government to control supply, distribution, price, etc., of certain articles, reads as follows: - -

' 18 -G. (1) The Central Government, so far as it appears to it to be necessary or expedient for securing the equitable distribution and availability at fair prices of any article or class of articles relatable to any scheduled industry, may, notwithstanding anything contained in any other provision of this Act, by notified order, provide for regulating the supply and distribution thereof and trade am commerce therein.

(2) Without prejudice to the generality of the powers conferred by Sub -section (1), a notified order made thereunder may provide - - -

(a) for controlling the prices at which any such article or class thereof may be bought or sold;

(b) for regulating any licences, permits or otherwise the distribution, transport, disposal, acquisition, possession, use or consumption of any such article or class thereof;

(c) for prohibiting the withholding from sale of any such article or class thereof ordinarily kept for sale;

(d) for requiring any person manufacturing, producing or holding in stock any such article or class thereof to sell the whole or part of the articles so manufactured or produced during a specified period or to sell the whole or a part of the articles so held, in stock to such person or class of persons and in such circumstances as may be specified in the order;

(e) For regulating or prohibiting any class or commercial or financial transactions relating to such articles or class thereof which in the opinion of the authority making the order are, or if unregulated are likely to be detrimental to public interest;

(f) for requiring persons engaged in the distribution and trade and commerce in any such article or class thereof to mark the articles exposed or intended for sale with the sale price or to exhibit at some easily accessible place on the premises the price -lists of articles held for sale and also to similarly exhibit on the first day of every month, or at such other time as may be prescribed, a statement of the total quantities of any such articles in stock;

(g) for collecting any information or statistics with a view to regulating or prohibiting any of the aforesaid matters; and

(h) for any incidental or supplementary matters, including, in particular, the grant or issue of licences, permits or other documents and the charging of fees therefor.

(3) Where, in pursuance of any order made with reference to clause (d) of subsection (2), any person, sells any article, there shall be paid to him the price therefor -

(a) where the price can consistently with the controlled price, if any, be fixed by agreement, the price so agreed upon ;

(b) where no such agreement can be reached, the price calculated with reference to the controlled price, if any, fixed under this section ;

(c) where neither Clause (a) nor Clause (b) applies, the price calculated at the market rate prevailing in the locality at the date of sale,

(4) No order made in exercise of any power conferred by this section shall be called in question in any Court.

(5) Where an order purports to have been made and signed by an authority in exercise of any power conferred by this section, a Court shall, within the meaning of the Indian Evidence Act, 1812, presume that such order was so made by that authority.

Explanation. - -In this section, the expression 'article or class of articles' relatable to any scheduled industry includes any article or class of articles imported into India which is of the same nature or description, as the article or class of articles manufactured or produced in the scheduled industry Section 25 deals with delegation of powers and it runs as under: - -

'25. (1) The Central Government may, by notified order, direct that any power exercisable by it under this Act (other than the power given to it by Ss. 16 and 18 -A) shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisable also by such officer or authority (including in the said expressions any Development Council, State Government or officer or authority subordinate to the Central Government) as may be specified in the direction.

(2) Any power exercisable by a State Government by virtue o a direction under Sub -section (1) may, unless otherwise provided in such direction, be exercised also by such officer or authority subordinate to that State Government as it may, by notified order, specify in this behalf.'

(3.)WE may at this stage also refer to the provisions of the Order as it is their validity that is the main point for our determination in this petition. The Preamble of the Order recites that -
'For the purpose of securing the equitable distribution and availability at fair prices of cement, the supply and distribution of, and trade and commerce in, cement should be regulated.'

Clause (2) of the Order is the definition clause. Sub -clause (b) defines 'Controller' as meaning the Cement Corporation of India Limited.

Clause (3) deals with the power of the Central Government to prohibit removal of cement and runs as follows: - -

'3. Power to prohibit removal. - -No producer shall remove or permit the removal of any cement, whether sold or unsold, from the precincts of his factory or from any other part of his premises to any place outside the precincts of such factory or premises except with the previous permission in writing of the Central Government.'

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