K.C.Agrawal, J. - (1.) THE petitioners are the group of certain cold storages situated at various places in the State of U.P. They have challenged the validity of U.P. Regulation of Cold Storages Act, 1976 (hereinafter referred to as the Act'), on the ground that the State Legislature was not competent to enact it. They have further challenged the validity of the Explanation appended to sub -section (2) of Section 14 of the said Act. The point urged on the ground of being beyond the legislative competence is covered by a decision of this Court in M/s. Durga Bansal Cold Storage and Ice Factory v. State of U.P., 1979(5) A.L.R. 323. The Act was enacted by the State Legislature in pursuance of the power conferred by Seventh Schedule (List II) of the Constitution The present Act has been justified by the Bench aforesaid under Entry 24 of List II of the Seventh Schedule of the Constitution. The argument raised before the aforesaid Division Bench was repelled by observing: It would thus appear that the requirement of compulsory insurance of goods stored in a cold storage was only meant to protect both the hirer and the licensee. The law, in pith and substance, clearly falls within Entry 24 of List II, and the encroachment, if it can be so called, on Entry No. 47 of List I, is merely incidental, and cannot effect the competence of the State Legislature.
(2.) WHEN a similar question arose before the Supreme Court, in Ishwari Khetan Sugar Mills v. State of U.P. : A.I.R. 1980 (S.C.) 1955, it was said in paragraph 7 of the judgment that: It is, therefore, not correct to say that once a declaration is made in respect of an industry, that industry as a whole is taken out of Entry 24, List II The pronouncement made by the Supreme Court demonstratively shows that before State Legislature is denuded of power to legislate under Entry 24, List II, in respect of a declared industry, the scope of declaration and consequent control, assumed by the Union must be demarcated with precision and then proceed to ascertain whether the impugned legislation trenches upon the accepted field.
(3.) WE are, accordingly, of the view that the power of the State Legislature under Entry 24, List II, to enact any legislation in respect of cold storage is within its scope.;