C.M. Nayar, J. - (1.) The present judgment will dispose of two petitions being C.W.P.No-5424/93 (Ballarpur Industries Ltd. and others v. Union of India and others) and C.W.P.No-546/1995 (M/s Balsara Hygiene Products Ltd. and another v. Union of India and others). The First petition is filed for issuance of writ in the nature of certiorari for quashing the impugned notification dated 26th August, 1993 and for an appropriate order or direction including writ of prohibition prohibiting the respondents from in any manner implementing and acting upon or enforcing the provisions of the aforesaid notification. It may only be necessary to state the facts of the first petition as both the petitions raise common questions of law in respect of the challenge to the same notification.
(2.) Petitioner No.1 is engaged in the business of paper, chemicals, edible oils etc. and is alleged to be one of the biggest manufacturer of edible oils with large turnover. Petitioner No.2 is engaged in the business of dry-fruits and petitioner No.3 is engaged in the business of manufacturing of labels and the annual turnover is estimated to be Rs.5.1 crores. Similarly, petitioner No.4 is engaged in the business of manufacturing of labels. The respondents are under the Ministry of Food and Supplies and, therefore, fall within the definition of 'State' within the meaning of Article 12 of the Constitution of India. The said respondents through their officers have powers to prosecute the petitioners for violating the provisions of Standards of Weights and Measures Act and the Rules framed thereunder. The object which is sought to be achieved by the Act, it is contended, is to lay down the standards of weights and measures or number pertaining to different commodities in conformation with the standards laid down by the International Bureau of Weights and Measures. The basic intention of the Act is that the commodities commonly used by people should be packed in rationalised standards quantities by weight, measure or number so as to facilitate the purchase and comparison of price by the people. Thus the prices are to be mentioned for comparison with the net quantity sought to be sold. The main controversy in these petitions is the manner in which the information is sought to be printed on the label to be affixed for each item of goods which is put up in the market for sale. Section 2(n) of the Standards of Weights and Measures Act, 1976 (hereinafter referred to as 'the Act') defines the label and reads as follows: "2. Definitions In this Act, unless the context otherwise requires,- (n) "label" means any written, marked, stamped, printed, or graphic matter affixed to, or appearing upon, any commodity or package containing any commodity;"
(3.) The commodities in package form must bear the label when intended to be sold or distributed in the course of inter-state trade or commerce. Section 39 of the Act, which is of relevance and has been cited by the learned counsel may also be reproduced as under: "Quantities and origin of commodities in packaged form to be declared :- (1) No person shall :- (a) make, manufacture, pack, sell or cause to be packed or sold ; or (b) distribute, deliver, or cause to be distributed or delivered ; or (c) offer, expose or possess for sale, any commodity in packaged form to which this Part applies unless such package bears thereon or on a label securely attached thereto a definite, plain and conspicuous declaration, made in the prescribed manner, of :- (i) the identity of the commodity in the package ; (ii) the, net quantity, in terms of the standard unit of weight or measure, of the commodity in the package ; (iii) where the commodity is packaged or sold by number, the accurate number of the commodity contained in the package ; (iv) the unit sale price of the commodity in the package ; and (v) the sale price of the package. Explanation :- In this sub-section, the expression "unit sale price" means the price according to such unit of weight, measure or number as may be prescribed (2) Every package to which this Part applies shall bear thereon the name of the manufacturer and also of the packer or distributor. (3) Where the package of a commodity to which this Part applies or the label thereon bears a representation as to the number of servings, of the commodity contained therein, such package or label shall also bear a statement as to the net quantity (in terms of weight, measure or number) of each such serving. (4) The statement on a package or label as to the net weight, measure or number of the contents thereof shall not include any expression which tends to qualify such weight, measure or number : PROVIDED that the Central Government may, by rules, specify the commodities, the weight or measure of which is likely to increase or decrease beyond the prescribed tolerance limits by reason of climatic variations ; and it shall be lawful for the manufacturer or packer of the commodity so specified to qualify the statement as to the net content of such commodity by the use of the words "when packed". Explanation :- The words "when packed" shall not be used in any case except a case to which the proviso to sub-section (4) applies. (5) Where the Central Government has reason to believe that there is undue proliferation of weight, measure or number in which any commodity is, or reasonably comparable commodities are, being packed for sale, distribution or delivery and such undue proliferation impairs in the opinion of that Government, the reasonable ability of the consumer to make a comparative assessment of the prices after considering the net quantity or number of such commodity, that Government may direct the manufacturers and also the packers or distributors to sell, distribute or deliver such commodity in such standard quantities or number as may be prescribed. (6) Whenever the retail price of a commodity in packaged form to which this Chapter applies is slated in any advertisement, there shall be included in the advertisement, a conspicuous declaration as to the net quantity or number of the commodity contained in the package and retail unit sale price thereof. (7) No person shall sell, distribute or deliver for sale a package containing a commodity which is filled less than the prescribed capacity of such package except where it is proved by such person that the package was so filled with a view to- (a) giving protection to the contents of such package, or (b) meeting the requirements of machines used for enclosing the contents of such package. (8) The Central Government may, by rules, specify such reasonable variations in the net contents of the commodity in a package as may be caused by the method of packing or the ordinary exposure which may be undergone by such commodity after it has been introduced in trade or commerce. (9) The Central Government may, by rules, specify the classes of commodities or packages in relation to which all or any of the provisions of this section shall not apply or shall apply with such exceptions or modifications as may be specified therein.";