ADARSH KRISHI SEWA KENDRA Vs. GOVERNMENT OF M P

JUDGEMENT

(1.) The petitioner in this petition under Article 226 of the Constitution carries on the business of selling fertilisers at Morena. The challenge in this petition now is to the M. P. Fertiliser (Prices Control) Order, 1974 which was made by the State Government on 23rd July 1974 in exercise of the powers conferred by Sub-rules (2) and (3) (h) of Rule 114 of the Defence of India Rules, 1971.

(2.) The Essential Commodities Act, 1955 is an Act to provide in the interest of general public, for the control of the production, supply and distribution of, and trade and commerce in certain commodities. Section 2 (a) of the Act contains the definition of "essential commodity". Apart from the enumerated commodities in Clauses (i) to (x) of this definition Clause (xi) empowers the Central Government to declare any other class of commodities to be an essential commodity for the purpose of this Act, being commodity with respect to which Parliament has power to make laws by virtue of Entry 33 in List III in Seventh Schedule to the Constitution. By notification No. 1048 of 29th March 1957, the Central Government declared fertilisers, whether organic, inorganic or mixed to be an essential commodity under the Act. Section 3 of the Act empowers the Central Government to make orders providing for regulating or prohibiting the production, supply and distribution of any essential commodity and trade and commerce therein if the Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies or for securing its equitable distribution and availability at fair prices, or for securing it for the defence of India or the efficient conduct of military operations. Without prejudice to the generality of the power conferred by Section 3 (1), the Central Government can make orders on the matters enumerated in Sub-section (2) of Section 3. Under Clause (c) of Sub-section (2) the Central Government can make an order for controlling the price at which an essential commodity may be bought or sold. Section 6 of the Act provides that any order made wider Section 3 shall have effect notwithstanding anything inconsistent, therewith contained in any enactment other than this Act or any instrument having effect by virtue of any enactment other than this Act. The Central Government in exercise of its power under Section 3 of the Act made the Fertiliser (Control) Order, 1967. Clause 3 of this Order provides that the Central Government may, with a view to regulating equitable distribution of fertilisers and making fertilisers available at fair prices, by notification in the official Gazette, fix the maximum prices or rates at which any fertiliser may be sold by a manufacturer or a dealer. By notification dated 11th October 1973, the Central Government in pursuance of Clause 3 of the Fertiliser (Control) Order, 1957 fixed the maximum prices per tonne at which the fertilisers specified in the Schedule to the notification could be sold to the tea, coffee, or rubber plantations or to cultivators. There is a note in the notification which says that when sale of any fertiliser is made in quantities not exceeding 5 kilograms at a time, the dealer may charge one paise per kilogram in addition to the proportionate maximum price specified in the schedule. By notification No. 254, dated 1st June 1974, the Central Government refixed the maximum prices of fertilisers in supersession of the earlier notification dated 11th October 1973. A perusal of both the notifications would show that by notification dated 1st June 1974 the maximum prices of various kinds of fertilisers were considerably increased. The price of Urea which is the main fertiliser in which the petitioner dealt was increased from Rs. 1050-00 per tonne to Rs. 2000-00 per tonne.

(3.) It appears that the view taken by the Directorate of Agriculture, Madhya Pradesh, was that the maximum prices fixed by the notification of the Central Government dated 1st June 1974 were not applicable to the stock that was in existence with the dealers on that date and some instructions to that effect were issued by the Director on or about 11th June 1974. These instructions were later on withdrawn by letter dated 18th June 1974 issued by the Director and it was clarified that the revised maximum prices would also be applicable to the stock existing on the date of the revision of the prices. The State Government, however, took a different view of the matter. A wireless message was issued communicating the decision of the State Government dated 27th June 1974 that the stock of fertiliser as on 31st May 1974 could be sold only at the old rates. The Deputy Director of Agriculture communicated this decision to the petitioner by his letter dated 28th June 1975. The petitioner then filed this petition praying for quashing of the order of the State Government dated 27th June 1974 and the direction of the Deputy Director of Agriculture contained in letter dated 28th June 1974 that the old stork of fertiliser should be sold at the rate prevailing on 31st May 1974.