ICE AND GENERAL MILLS Vs. STATE OF U.P.
LAWS(ALL)-1986-12-46
HIGH COURT OF ALLAHABAD
Decided on December 18,1986

ICE AND GENERAL MILLS Appellant
VERSUS
STATE OF U.P. Respondents

JUDGEMENT

B.N. Sapru, J. - (1.) THIS writ petition and the connected writ petitions have been filed by the owners of the Cold Storages in the State of Uttar Pradesh challenging the validity of the U.P. Government Notification No. 3006/XII -4 -501 -1985 dated May 26, 1986, issued by the State Government in exercise of its powers under Section 29 of the U.P. Regulation of Cold Storages Act, 1976 (hereinafter to be referred to as the 'the Act') fixing the maximum hiring charges which a licensee may charge for storing potatoes in the Cold Storages at Rs. 19 -00 per quintal for the period from 15.2.1986 to 30.11.1986. By the time this petition is being decided, the period mentioned in the Notification is over.
(2.) THE validity of Section 29 of the Act under which the maximum charge have been fixed, has not been question in this writ petition. However, the fixation of maximum charge is challenged on the ground that it is arbitrary and unreasonable and, if it is allowed to be enforced, the Cold Storages' owners will suffer such loss as will drive them out of the business. The Act was published in the U.P. Gazette Extraordinary dated April 19, 1976. Before the Act came into force, the Bill had been sent to the President, as required by Article 304(b) of the Constitution of India, because the Act was likely to impose restrictions on the freedom of trade, commerce and intercourse within the State and was required in the public interest. It received his sanction on 16.4.1976. The statement of objects and reasons to the Act reads as follows: In Uttar Pradesh there has been a marked development in the cold storage industry during the last decade and a large number of cold storages have been set up in the private sector, particularly in and around the potato growing areas. To ensure efficient maintenance of cold storages and to remove the hardship to agricultural produces proper control and regulation of the cold storage business was considered necessary in the public interest.
(3.) THE Act provides for the licensing of all Cold Storages. It further provides, in section 29, that the Government shall, from time to time, fix the maximum charges which a licensee may charge for storing agricultural produce in a cold storage or for any other services rendered in connection therewith and different charges may be fixed for different areas in Uttar Pradesh. Thereafter Section 30 of the Act provides that the maximum charges fixed under Section 29 have to be notified in the official Gazette.;


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