RAMASWAMI, - (1.) THE Judgment of the court was delivered by -
(2.) IN these petitions which have been filed under Article 32 of the Constitution common question is presented for determination, namely, whether the Gold (Control) Act, 1968 (Act No. 45 of 1948), is constitutionally valid. The Gold (Control) Act, (hereinafter called the impugned Act) was passed by Parliament and received assent of the President on September I, 1968. The impugned Act begins with the following preamble, namely, "an Act to provide in the economic and financial interests of the community, for the control of the production, manufacture, supply, distribution, use and possession of, and business in, gold, ornaments and articles of gold and for matters connected therewith or incidental thereto". Section 2 contains a number of definitions. Section 2(b) defines an "article" to mean anything (other than ornament), in a finished form, made of, manufactured from or containing, gold, and including (i) any gold coin, (ii) broken pieces of an article, but not including primary gold. Clause (d) defines a "certified goldsmith'' to mean a self-employed goldsmith who holds a valid certificate, referred to in Section 30. Clause (h) defines a dealer as follows : " 'dealer' means any person who carries on, directly or otherwise, the business of making, manufacturing) preparing, repairing, polishing, buying, selling, supplying, distributing, melting, processing or converting gold, whether for cash or for deferred payment or for commission, remuneration or other valuable-consideration, ...." X X X X" Clause (i) states: " 'declaration' means a declaration which is required by this Act or was required by Rule 126-1 of the Defence of India Rules, 1962, or the Gold (Control) Ordinance, 1968, to be made with regard to the ownership, possession, custody or control of gold ; " Clause (J) defines 'gold' to mean gold, including its alloy (whether virgin, melted or re-melted, wrought or unwrought), in any shape or form, of a purity of not less than nine carats and including primary gold, article and ornament. Clause (p) reads as follows : " 'Ornament' means a thing, in a finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship, made of, or manufactured from; gold, whether or not set with stones or gems (real or artificial), or with pearls (real, cultured or imitation) or with all or any of them, and includes parts, pendants or broken pieces of ornament. Explanation.-For the purposes of this Act, nothing made of gold, which resembles an ornament, shall be deemed to be an ornament unless the thing (having regard to its purity, size, weight, description or workmanship) is such as is commonly used as ornament in any State or Union Territory;" 171 Clause (r) states : " 'primary gold' means gold in any unfinished or semi-finished form and includes ingots, bars, blocks, slabs, billets, shots, pellets, rods, sheets,foils and wires ; " Clause (u) defines a "standard gold bar" as primary gold of such fineness, dimensions, weight and description and containing such particulars as may be prescribed. Section 4 deals with the appointment and functions of the Administrator and Gold Control Officers and reads as follows : "(1) The central government shall, by notification) appoint an Administrator for carrying out the purposes of this Act. (2) The central government may, by notification, appoint as many persons as it thinks fit to be Gold Control Officers for the purpose of enforcing the provisions of this Act. (3) The Administrator shall discharge his functions subject to the general control and directions of the central government. (4) The Administrator may authorise such person as he thinks fit to also exercise all or any of the powers exercisable by him under this Act other than the powers under Ss. (6) of this section or under clause (a) of Ss. (I) of Section 80 or under Section 81, and different persons may be authorised to exercise different powers. (5) Subject to any general or special direction given or condition imposed by the Administrator, any person authorised by the Administrator to exercise any powes may exercise those powers in the same manner and with the same effect as if they had been conferred on that person directly by this Act and not by way of authorisation. (6) The Administrator may also- (a) perform all or any of the functions of, and (b) exercise all or any of the powers conferred by this Act or any rule or order made thereunder on, any officer lower in rank than himself. (7) A Gold Control Officer, shall, subject to such limitations, restrictions and conditions as the central government may think fit to impose, exercise such powers and discharge such functions as are specified or conferred, as the case may be, by or under this Act." S.5 confers powers on the Administrator to issue directions and orders. "(1) The Administrator may, if he thinks fit, make orders, not inconsistent with the provisions of this Act, for carrying out the provisions of this Act. (2) The Administrator may, so far as it appears to him to be necessary or expedient for carrying out the provisions of this Act, by order- (a) regulate, after consultation with the Reserve Bank of India, the price at which any gold may be bought or sold, and (b) regulate by licences, permits or otherwise, the manufucture, 172 distribution, transport, acquisition, possession, transfer, disposal, use or consumption of gold."
(3.) CH. III contains a number of restrictions relating to the manufacture, acquisition, possession, or delivery of gold. Section 16 provides for declarations as to articles and ornaments. CH. VII relates to dealers. Section 27 of this CH. as regards licensing of dealers may be quoted : "(1) Save as otherwise provided in this Act, no person shall commence, or carry on, busineaa as a dealer unless he holds a valid licence issued in this behalf by the Administrator. (2) A licence issued under this section,- (a) shall be in such form as may be prescribed, (b) shall bevalid for such period as may be specified therein, (c) may be renewed, from time to lime, and (d) may contain such conditions, limitations and restrictions as the Administrator may think fit to impose and different conditions, limitations and restrictions may be imposed for different classes of dealers. X X X X (5) A person who intends to commence, after the commencement of this Act, business as a dealer, shall make an application (in such form and on payment of such fees, not exceeding one hundred rupees, as may be prescribed) for the issue of a licence. (6) On receipt of an application for the issue or renewal of a licence under this section, the Administrator may, after making such inquiry, if any, as he may consider necessary, by order in writing, either issue or renew the licence, or reject the application for the same : Provided that no licence shall be issued or renewed under this section unless the Administrator, having regard to the following matters, is satisfied that the licence should be issued or renewed, namely : (a) the number of dealers existing in the region in which the applicant intends to carry on business as a dealer, (b) the anticipated demand, as estimated by him, for ornaments in that region, (c) the turnover of the applicant, if he had been carrying on business as a dealer prior to the commencement of Part XII-A of the Defence of India Rules, 1962, during the two years, immediately preceding such commencement, or, in the case of an application for the renewal of a licence, the date of the application for such renewal, (d) the previous experience, if any, of the applicant with regard to the making, manufacturing, preparing, repairing or polishing of, or dealing in, ornaments, (e) the suitability of the applicant, (f) the suitability of the premises where the applicant intends to carry on business as a dealer, (g) the public interests, and (h) such other matters, as may be prescribed. X X X X" 173 Ch. VIII deals with certified goldsmiths. Section 39 of this Ch. provides: "(1) Save as otherwise provided in this Act, no person shall commence, or carry on, business as a goldsmith after the commencement of this Act, unless he holds a valid certificate recognizing him as a goldsmith. (2) The certificate referred to in Ss. (1)- (a) shall be in such form as may be prescribed, (b) shall be valid until the death of the holder, or the cancellation thereof, whichever is earlier, and (c) may contain such conditions, limitations, and restrictions, as the Administrator may think fit to impose and different conditions, limitations and restrictions may be imposed for different classes of certified goldsmiths. (3) Every certificate granted to a person under Part XII-A of the Defence of India Rules, 1962, or under the Gold (Control) Ordinance, 1968, recognising him as a goldsmith, shall, if in force immediately before the commencement of this Act, continue to be in force until the death of the holder, or the cancellation) thereof whichever is earlier. X X X X (5) Every application for the grant of a certificate referred to in Ss. (1) shall be made in such form, in such manner and on payment of such fee, not exceeding ten rupees, as may be prescribed. X X X X. (8) A certified goldsmith may engage not more than one hired labourer -to assist him in his work as a goldsmith but such hired labourer shall not make, manufacture, prepare, repair or process any article or ornament." ;