INDIAN JUTE MILLS ASSOCIATION Vs. UNION OF INDIA
LAWS(CAL)-2013-8-10
HIGH COURT OF CALCUTTA
Decided on August 08,2013

INDIAN JUTE MILLS ASSOCIATION Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) The second petitioner is the Secretary of the first petitioner, a company incorporated under the provisions of the Companies Act, 1956. It has been formed to represent the interest of several jute mills in the country.
(2.) In this writ petition, the petitioners seek the following relief: "(a) Declaration that the amendment to clause 19 of the general conditions of contract being DGS&D 68 (Revised) dated May 31, 2013 is not applicable to the members of the petitioner No. 1 relating to supply of jute bags under the Jute and Jute Textiles Control Order, 2000; (b) A Writ of and/or in the nature of Mandamus do issue commanding the respondent Nos. 1 to 4 and each of them to issue Supply Orders with payment terms in accordance with the special conditions of contract dated November 29, 1985; (c) A Writ of and/or in the nature of Certiorari do issue calling upon the respondent nos. 1 to 4 and each of them to forthwith certify and transmit to this Hon'ble Court the records of the case culminating in the impugned decision to unilaterally change the payment terms in the Supply Orders on the basis of amendment to clause 19 of general conditions of contract being DGS&D-68(Revised), so that upon consideration thereof the same are quashed and conscionable justice is rendered to the members of the petitioner No.1; (d) A Writ of and/or in the nature of Prohibition do issue prohibiting the respondent nos. 1 to 4 and each of them from changing the "payment terms" in the Supply Orders on the basis of the amendment to clause 19 of general conditions of contract being DGS&D-68(Revised) dated May 31, 2013 or from withholding 10% or any amount from the pending bills of the members of the petitioner No. 1 on the basis thereof, in any manner whatsoever;"
(3.) Shorn of unnecessary details, the jute mills represented by the first petitioner are under an obligation to comply with orders passed by the Jute Commissioner called "Production Control Orders" (hereafter the PCOs) in exercise of power conferred by paragraph 4 of the Jute Textiles Control Order, 2000 (hereafter the Control Order). The procedure that is followed for production, requisition and supply of jute bags by a jute mill/manufacturer under the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1987 read with the Control Order is pleaded in paragraph 15 of the writ petition, which reads as under: "15. The procedure followed for production, requisition and supply of jute bags by a jute mill/manufacturer under the said Packaging Act read with the said Control Order, is as under:- a) The Jute Commissioner in exercise of powers conferred under clause 4 of the said Control Order issues PCOs directing any jute mill/manufacturer to produce such quantities of and classes of jute textiles, as he may specify in his order for the implementation of the Packaging Act and any directive of the Central Government. In the PCOs, the Jute Commissioner also directs the manufacturer to sell the bags to the persons nominated by Director of Supplies and Disposals (hereafter referred to as "DS&D"). b) The said production of jute bags are requisitioned by the DS&D by an order under para 10 of the said Control Order read with notification dated August 31, 2000, called "Requisition Order". c) Thereafter, a "Supply Order" is issued by the DS&D on the basis of PCO and the Requisition Order, providing the terms and conditions of supply. d) The Director, Quality Assurance, the Inspection Wing of DS&D, is the statutory authority empowered under para 10 of the said Control Order read with the said notification dated August 31, 2000 to inspect the quality of jute bags, prior to dispatch to the consignee, nominated by DS&D. After inspection, the jute bags are dispatched to the consignee. e) If on receipt of the jute bags, the consignee complains about quality of the same, a joint inspection is held in presence of representatives of the concerned jute mill, consignee, DS&D, Bureau of Indian Standards. If on joint inspection the jute bags are found to be defective, the jute mill replaces the same. f) DS&D deducts amounts from the pending bills of the jute mills in case of complaint about quality of the jute bags.";


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