A K APPANNA SETTY AND SONS Vs. STATE OF MYSORE

JUDGEMENT

(1.) The petitioners are wholesale and/or retail dealers in foodgrains in Mysore State. In these petitions under Art.226 of the Constitution, they have assailed the constitutionality of certain provisions of- (i) The Mysore Foodgrains (Wholesale) Dealers Licensing Order, 1964 (hereinafter referred to as the Wholesale Licensing Order); and (ii) The Mysore Foodgrains (Retail) Dealers Licensing Order, 1964 (hereinafter referred to as the Retail Licensing Order) , These two Orders were made by the Government of Mysore in exercise of the powers conferred by S.3 of the Essential Commodities Act, 1955 (hereinafter referred to as the Act), and delegated by the Central Government to the State Government under S.5 of the Act.

(2.) Before dealing with the contentions of the petitioners, it is useful to set out the salient features of these two orders. Sub-clause (c) of Clause 2 of the Wholesale Licensing Order defines the term 'Wholesale dealer' as a person engaged in the business of purchase, sale or storage for sale, of any one of this foodgrains in quantity of ten quintals or more at any one time or in quantity of twenty-five quintals or more, of all foodgrains taken together Persons engaged in the business of sale of foodgrains to consumers only, the Food Corporation of India and Commission Agents who do not hold stocks, are excluded from this definition of wholesale dealer. Sub-clause (e) of Clause 2 of the Retail Licensing Order defines the term 'Retail dealer' as a person engaged in the business of sale of fdodgrains to consumers only and who keeps for such sale at any one time ten quintals or more of any one foodgrain or twenty-five quintals or more of all, foodgrains taken together.

(3.) Clause 3 of each of these two Orders, provides that no person shall carry on business as a wholesale or retail dealer respectively except under and in accordance with the terms and conditions of a licence issued in this behalf by the licensing authority. Clause 4 of each these Orders, provides that every application for a licence or renewal thereof, shall be made in the prescribed form i.e., Form-A, and that every licence issued or renewed shall be in the prescribed form i.e., Form-B. Clause 8 of each of these Orders provides that no holder of a licence shall contravene any of the terms or conditions of the licence and that if such holder or his agent or servant or any other person acting on his behalf, contravenes the said terms or conditions, then, without prejudice to any other action that may be taken against him, his licence may be cancelled or suspended by order in Writing of the licensing authority. Clause 11 of each of these Orders empowers calling the production of books of accounts and documents, for entry, inspection, search and seizure. We shall set out later that Clause.