Hansaria, J. - (1.) The respondent, M/s. Gulshan Sugar and Chemicals Limited, is a company carrying on the business of manufacturing of chemicals. For undertaking the manufacturing work, it has to consume coal, which is an essential commodity and attracts the provisions of the Uttar Pradesh Coal Control Order, 1977 (the 'Control Order'), which has been issued under Section 3 of the Essential Commodities Act, 1955. The Government of Uttar Pradesh vide its Memo dated 6-6-1985 required the District Magistrate, Bulandshahar, to see if any industrial unit was selling unused coal or coal dust improperly; and if so, to take action, inter alia, under clause 15 of the Control Order. By Memo of 19-9-1985 all District Magistrates of the State were required to take action against the industrial units if they sell or transfer unused coal/coal dust without obtaining licence under the provisions of the Control Order.
(2.) The respondent challenged the validity of these two Government Orders by filing a petition under Article 226 of the Constitution before the Allahabad High Court. A Division Bench of High Court by its judgment, which has been impugned in this appeal, held that the aforesaid Orders could not have been issued and it was further held that the respondent was not required to obtain licence for the transfer of the surplus or rejected coal or coal dust. The legality of the judgment has been assailed by the State of Uttar Pradesh in this appeal.
(3.) There is no dispute of facts. The same are that the respondent consumed coal for running its factory. Sometimes quality of coal supplied is not of the kind required by the respondent. The same, is therefore, rejected. Further, a huge quantity of coal dusts collected during the storage, loading and unloading of coal. Coal dust is also produced when coal is broken into pieces of required sizes. The rejected coal and the coal dust being of no use to respondents it disposes of the same without obtaining any licence under the Control Order.;