PANCHAL, J. - (1.) In this petition, filed under Article 226 of the Constitution of India, the petitioners have challenged the Constitu-tional validity of Section 3 of the Essential Commodities Act, 1955 and Clause 21A of the Cotton Textile (Control) Order, 1948 as well as the legality and validity of the orders dated 7-1-1978, 7-4-1978, 27-4-1978, 11-8-1978, 27-12-1978, 29/ 30/12/1978 passed by the Textile Commissioner and the order dated 8/07/1979 passed by the Central Government under the provisions of the Cotton Textile (Control) Order, 1948, which have been produced at Annexures E (i), D, E (ii), G. H, I. J and K respectively to the petition. The petitioners have given up the challenge to clauses 20 and 22 of the Cotton Textile (Control) Order, 1948 after the peti-tioners were permitted to carry out the amendment in the petition.
(2.) It is necessary to refer to certain factual background to appreciate the contentions raised by Mr. Joshi before us in this petition. The petitioner No. 1 is a Company incor-porated and registered under the provisions of the Indian Companies Act and is engaged in the business of manufacturing textiles. The 2nd petitioner is both - a shareholder and the Managing Director of the first petitioner Company. Under the provisions of the Essen-tial Supplies (Temporary Powers) Act, 1946, which came into force on and from 19/11/1946, the Cotton Textile (Control) Order, 1948 (hereinafter referred to as the "Order of 1948") was issued. It came into force on and from August, 1948. On coming into force of the Essential Commodities Ordinance, 1955 with effect from 26/01/1955, the Essential Supplies (Temporary Powers) Act, 1946, came to an end. The Essential Com-modities Ordinance, 1955 was repealed by the Essential Commodities Act, 1955 (hereinafter referred to as the "Act"), which came into force on and from 1/04/1955. The Order of 1948 issued under the provisions of the Essential Supplies (Temporary Powers) Act, 1946 has been continued to be in force under the Essential Commodities Act, 1955. The Control Order has been amended from time to time thereafter.
(3.) . Section 3 of the Act provides that if the Central Government is of the opinion that it is necessary or expedient for maintaining or increasing supplies of any essential commo-dity or for securing their equitable distribu-tion and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, regular supply and distribu-tion thereof and trade and commerce therein. Section 3(2)(c) and (f) empowers the Central Government to control the prices at which any essential commodity may be bought or sold and also to require any person engaged in the production of any essential commodity to sell the whole or a specified part of the quantity of the essential commodities to Cen-tral Government or State Government or an Agent appointed by the State Government. Sub-Section (3) of Section 3 requires the person to sell the essential commodities at the price specified therein.;