AGARWAL INDUSTRIES PER PROP AGARWAL INDUSTRIES LTD Vs. GOVERNMENT OF ANDHRA PRADESH
LAWS(APH)-1992-9-52
HIGH COURT OF ANDHRA PRADESH
Decided on September 15,1992

AGARWAL INDUSTRIES, PER PROP: AGARWAL INDUSTRIES LTD., HYDERABAD, REP. BY ITS WHOLETIME DIRECTOR, NARESH GUPTA Appellant
VERSUS
GOVT OF A.P. Respondents

JUDGEMENT

DJ.Jagannadha Raju - (1.)The Writ Petitioner is the appellant in this Writ Appeal. The appellant filed W.P.No.3995 of 1991 for a writ of mandamus for a declaration that the petitioner is entitled to sell Vanaspathi to bulk consumers like the biscuit manufacturers, confectioneries etc., in quantities of more than five quintals without insisting for production of a licence from the bulk consumer under me provisions of the A.P.Scheduled Commodities Dealers (Licensing & Distribution) Order, 1982 (hereinafter called 'the Order')- The learned single judge, by judgment dated 12-4-1991, dismissed the writ petition. The learned Judge, mainly relying upon the judgment of a single Judge of this court in W.P.No.11688 of 1985 dated 28-9-1988 and the judgment of another single judge in W.P.No.7800 of 1985 dated 2-11-1988, came to the conclusion that the bulk consumers like the biscuit manufacturers and the confectionery manufacturers require a licence under the Order to purchase quantities of Vanaspathi in excess of fivequintals. Aggrieved by the judgment of the learned single Judge, the present appeal is filed.
(2.)The facts which are not in dispute are as follows: The petitioner is a manufacturer of Vanaspathi and Vegetable Oils. He holds a licence both as a producer and as a wholesaler. He was selling large quantities of Oils and Vanaspathi to bulk consumers like Biscuit Manufacturers, Confectionaries and other bulk consumers. On 7-2-1991, the third respondent viz., Inspector of Police, Vigilence Cell, Civil Supplies Department, inspected the premises of the petitioner. He inspected the stocks and books of account and finding that large quantities of Vanaspathi were sold to M/s. Ashoka-Wafers, Amberpet, seized the stocks of 11,458 tins of Vanaspathi weighing 1,71,870 K.Gs. and valued at Rs.62,44,610/-on the specific ground that on different dates he sold Vanaspathi to M/s.Ashoka-Wafers in bulk quantities without Ashoka Wafers producing a dealer's licence under the provisions of the Order. Proceedings under the Essential Commodities Act were initiated. The main allegations are that the petitioner violated Conditions Nos.9 and 10 of the licence issued under Clause (3) of the Control Order.
(3.)Sri. Duba Mohan Rao, appearing for the petitioners-appellant contends that the vigilance officials are not justified in effecting seizure. Their seizing the stocks is based on a misapprehension and a wrong understanding of the legal provisions. He claims that as the law stands, the petitioner, who is a manufacturer of Vanaspathi, is certainly entitled to sell Vanaspathi in bulk quantities in excess of 5 quintals even though bulk consumers may not have a dealer's licence. He claims that as a result of the seizure made on 7-2-1991, many of his bulk consumer customers are now shying away from purchasing his products and hence his trade is adversely affected. Hence he had to file the writ petition for a declaration that he is entitled to sell to bulk consumers quantities of more than five quintals of Vanaspathi and edible oils without the bulk-consumer having dealer's licence.
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