Man Mohan Singh Gujral, J. - (1.) THESE two petitions (Civil Writs Nos. 2986 and 1929 of 1974) under Articles 226 and 227 of the Constitution of India which have been filed by some chakki owners carrying on the business of grinding wheat at Ludhiana and Amritsar, are mainly directed against the validity of the Punjab Wheat Procurement Levy Order, 1974.
(2.) THE facts necessary for the decision of this petition are not in dispute. In exercise of the powers conferred under Section 3 of the Essential Commodities Act, 1955 (hereinafter called the Act), Respondent No. 1, the State of Punjab, promulgated the Punjab Wheat Procurement Levy Order, 1974, (hereinafter called the Levy Order) vide Notification No. G.S.R. 47 -C.A. 10/55/S. 3/74, dated April 18, 1974. Clause 3 of the Levy Order made it incumbent on every licensed dealer to sell 50 per cent of the stock of wheat lying with him immediately before the commencement of the Levy Order to the Food Corporation of India or to the State Government or to any other person authorized by the State Government. The sale was to be made within a week from the commencement of the Levy Order. The Levy Order further provided that 50 per cent of the quantity of wheat purchased by a Licensed dealer from a person other than a licensed dealer Was also to be sold in a similar manner. According to Clause 4 of the Levy Order, the wheat so sold was to be paid for at the rate of Rs. 105 per quintal. As some of the mill -owners did not sell the wheat as directed under Clause 3 (i) (a) of the Levy Order, the District Food and Supplies Controller, Ludhiana, wrote letter dated June 23, 1974, a copy of which is Annexure P1 to Civil Writ No. 2986 of 1974, to the President of the chakki owners' association to convene a meeting and to make arrangements for selling the levy wheat to the Government. The Petitioners' case is that in order to comply with this letter, they will have to purchase the wheat at higher price and sell it to the Government at the rate of Rs. 105 per quintal and thereby suffer a loss. It is the issuance of the letter, copy Annexure P1 to Civil Writ No. 2986 of 1974, and the validity of clauses 3 and 4 of the Levy Order that have been assailed in these petitions on various grounds a reference to some of which will hereinafter be made. The Respondents have contested these petitions through the affidavits of Shri S. P. Singal, Under, Secretary to Government, Punjab, Food and Supplies Department and Shri Pritam Singh Brar, District Food and Supplies Controller, Ludhiana. In these affidavits, it is asserted that the Levy Order was constitutionally valid and it did not violate either the Essential Commodities Act, 1955, or Articles 14, 19(1) (f), 19(1)(g) and 31 of the Constitution of India. Clauses 3 (1) (a) and 4(1) of the Levy Order are sought to be defended on the basis that these placed reasonable restrictions on the carrying out of the business and are essential to ensure equitable distribution and availability of wheat at fair prices. Section 3B(i) of the Act is pressed into service to uphold the fixation of levy wheat price at Rs. 105 per quintal.
(3.) IN order to appreciate the respective contentions of the parties, reference will have to be made to some of the provisions of the Act and the Levy Order, which for facility of reference are set out below. Essential Commodities Act, 1955. 3. Power to control production, supply, distribution, etc., of essential commodities. - -(1) If the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, or for securing any essential commodity for the defence of India or the efficient conduct of military operations, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. (2) Without prejudice to the generality of the powers conferred by Sub -section (1), an order made thereunder may provide, - (c) for controlling the price at which any essential commodity may be bought or sold; (f) for requiring any person holding in stock any essential commodity to sell the whole or a specified part of the stock to the Central Government or a State Government or to an officer or agent of such Government or to such other person or class of persons and in such circumstances as may be specified in the order. (3) Where any person sells any essential commodity in compliance with an order made with reference to Clause (f) of Sub -section (2), there shall be paid to him the price therefor, as hereinafter provided: (a) where the price can, consistently with the controlled price, if any, fixed under this section, be agreed upon, the agreed price; (b) where no such agreement can be reached, the price calculated with reference to the controlled price, if any; (c) where neither Clause (a) nor Clause (b) applies, the price calculated at the market rate prevailing in the locality at the date of sale. (3 -B) Where any person is required by an order made with reference to Clause (f) of Sub -section (2) to sell any grade or variety of foodgrains. edible oilseeds or edible oils to the Central Government or a State Government or to an officer or such agent of Government and either no notification in respect of such foodgrains, edible oilseeds or edible oils has been issued under Sub -section (3 -A) or any such notification having been issued has ceased to remain in force by efflux of time, then, notwithstanding anything contained in Sub -section (3), there shall be paid as the price for the foodgrains, edible oilseeds or edible oils: (i) the controlled price, if any, fixed under this section or by or under any other law for the time being in force for such grade or variety of foodgrains, edible oilseeds or edible oils; or (ii) where no such price is fixed, the price for such grade or variety of foodgrains, edible oilseeds or edible oils prevailing or likely to prevail during the post -harvest period in the area to which that order applies. Explanation. - -For the purposes of this Sub -section, "post -harvest period" in relation to any area means a period of four months beginning from the last day of the fortnight during which harvesting Operations normally commence. Punjab Wheat Procurement (Levy) Order, 1974. 3. Procurement of Wheat from licensed dealers. - -(1) Every licensed dealer shall sell to the Food Corporation of India, or the State Government, or to such other person as may be authorised by it in such proportion as the State Government may fix, at the specified price. (a) Fifty per cent of the quantity of wheat held in stock by him immediately before the commencement of this order, Within a period of one week of such commencement; and (b) Fifty per cent of the quantity of wheat purchased by him from a person other than a licensed dealer, on any day beginning with the date of commencement of this Order, on the day the purchase is made. 4. Specified price for sate of wheat by licensed dealer. - -(1) The price of Rs. 105 per quintal for naked grain for delivery at mandi or purchase centre as specified in column 2 of Schedule I shall be the specified price payable to a licensed dealer for the wheat sold by him under Sub -clause (1) of Clause 3.;