H.N.Seth, J. - (1.) IN these connected petitions under Article 226 of the Constitution, common questions of law arising in identical circumstances, are involved. Accordingly, all these petitions are being disposed of by a common judgment. Petitioners in all these cases are owners of cold storages located in the State of U. P. They carry on the business of providing cold storage facility to those who agree to pay charges for hiring space for storage of potato.
(2.) ON 16th of March 1972, the State of U. P. Purporting to exercise its powers under rule 114 of the Defence of India Rules 1971, promulgated an Order entitled U. P. Cold Storage Order 1972. This order sought to regulate the running of cold storage business by issue of licences and by obliging the cold storage owners not to levy hire charges for storage of agricultural produce at a rate higher than that specified in the second schedule of the Order (storage charges specified for storing potato were not to exceed Rs. 8.00 per quintal for the entire period February to November or part thereof). Aforesaid Order was subsequently amended on 27th June, 1972, 9th February, 1973, and 20th March, 1975. By these petitions under Article 226 of the Constitution, the petitioners challenge the validity of the Cold Storage Order 1972, and particularly, its clause which fixes the maximum hiring charges for storage of agricultural produce, inter alia on the ground that neither the provisions contained in the order fall within the ambit or scope of the powers conferred by Rule 114 of the Defence of India Rules, the conditions precedent for making the order existed. Relevant portion of Rule 114 of the Defence of India Rules under which the impugned Order was made, runs thus:- "114. General Control of Industries etc. (1) In this rule unless the context otherwise requires- (a) any reference to any article or thing shall be construed as including a reference to electrical energy; (b) the expression 'undertaking' means any undertaking by way of any industry, trade or business and includes the occupation of handling, loading or unloading of goods in the course of transport. (2) If the Central Government or the State Government is of opinion that it is necessary or expedient so to do for securing the defence of India and civil defence, the efficient conduct of military operations or the maintenance or increase of supplies and services essential to the life of the community or for securing the equitable distribution and availability of any article or thing at fair prices, it may, by order, provide for regulating or prohibiting the production, manufacture, supply and distribution, use and consumption of articles or things and trade and commerce therein or for preventing any corrupt- practice or abuse of authority in respect of any such matter. (3) Without prejudice to the generality of the powers conferred by sub-rule (2) an order made thereunder may provide for- (a) regulating by licence, permits or otherwise the, production, manufacture, treatment, keeping, storage, movement, transport, distribution, disposal, acquisition, use and consumption of articles or things of any description whatsoever: (b) regulating or prohibiting any class of commercial or financial transactions in respect of any article or thing, which in opinion of the Government are, or if not regulated or prohibited, are likely to be detrimental to any of the Purposes specified in sub-rule (2). ......... ........... ......... ........ ........ ......... (h) controlling the price or rates at which articles or things of any description whatsoever may be sold or hired or for relaxing any maximum or minimum limits otherwise imposed on such price or rates. ......... ................. .......... ............. ........... ........... (4) Notwithstanding anything contained in sub-rules (2) and (3) an order under these sub-rules for regulating by licences, permits or otherwise the movement or transport of any foodstuffs, including edible oil seeds and edible oils or for controlling the prices or rates at which any such foodstuffs may be bought or sold, shall not be made by the State Government except with the prior concurrence of the Central Government."
(3.) A perusal of Rule 114 (2) shows that the Power under this rule can be exercised if certain conditions pre-exist, namely, that the State Government has formed an opinion that it is necessary or expedient so to do for securing either- (a) Defence of India and Civil Defence; or (b) The efficient conduct of military operations: or (c) The maintenance or increasing of supplies and services essential to the life of the community or (d) Equitable distribution and availability of any article or thing at a fair price. ;