STATE OF RAJASTHAN Vs. NATH MAL

JUDGEMENT

(1.) The question involved in this appeal relates to the constitutional validity of clause 25 of the Rajasthan Food grains Control Order, 1949, hereinafter called the Control Order, and arises in the following circumstances:

(2.) The respondents, who are grain merchants at Raniwara in Jodhpur Division, Rajasthan State, held licences for dealing in foodgrains. They held considerable stocks of 'bajra' in the ordinary course of business but on October 7, 1950, their stocks were frozen by the Deputy Commissioner, Civil Supplies, Jodhpur through the Sub-Divisional Officer. It is not disputed that the market price then prevailing was about Rs. 18/- per maund. The State, however, requisitioned the stocks at the rate of Rs. 9/- per maund and sold them at Rs. 13/5/4 per maund. The respondents claimed that they had purchased the bajra at the prevailing market rate of Rs. 17/- to Rs. 18/- per maund. They filed a petition on January 23, 1951, for the issue of a writ under Article 226 of the Constitution before the High Court of Rajasthan contending that clause 25 of the Control Order was void under Article 14, 19(1)(g) and 31(2) of the Constitution. The High Court held that clause 25 was void inasmuch as it is a restriction upon the fundamental right of the respondents to carry on business under Article 19(1)(g) of the Constitution, that the restriction is not reasonable and is not saved by clause (6) of Article 19. The High Court further held that clause 25 was also hit by Article 31(2) as fair compensation had not been fixed the law for the acquisition of the foodgrains. As the grains had already been disposed of by the Government, the High Court holding that Rs. 17/- a maund was fair compensation directed that the State of Rajasthan shall pay compensation at that rate. The State has preferred the present appeal on a certificate granted by the High Court.

(3.) The impugned clause 25 is as follows: