PAHARI MATA IRON AND STEEL WORKS PVT. LTD. Vs. A.C. ROY AND OTHERS

JUDGEMENT

(1.) Pahari Mata Iron & Steel Works Private Limited, petitioner No. 1 (hereinafter referred to as the said Company), is an existing Company within the meaning of Company's Act and it carries on business inter alia as iron founders, iron master, iron mongers, iron smith, iron makers. Steel converters, smelters, engineers, tin plate makers and re-rolling in all their respective branches. The same was incorporated for the objects contained in the Memoradum of Association and the petitioner No. 2, Shri Sheo Bhagwan Kajaria (hereinafter referred to as the said Director), is a Director and shareholder of the same.

(2.) Those petitioners have impeached in this rule, the validity and bonafide of an order dated 22nd June, 1974, as mentioned in paragraph 20 of the petition of motion and whereby all supplies of raw materials to them have been directed to be suspended forthwith, on the allegations that they have mis-utilised pig-iron, received by them for their consumption in their foundry, in contravention of clause 7 of the Iron and Steel (Control) Order, 1956 as amended (hereinafter referred to as the said order), which again was issued in terms of clause 11(a) thereunder.

(3.) There is no doubt or any dispute that in exercise of powers conferred by section 3 of the Essential Commodities Act, 1955 (hereinafter referred to as the said Act), and in supersession of all previous orders on the subject, the Central Government has promulgated the said order and the Iron & Steel Controller concerned has been appointed by the said Government, in terms of the powers as conferred by the said order. The said order also shows that under its various provisions, the Iron & Steel Controller has been given diverse powers. The powers which are relevant for the purpose of this rule are quoted hereunder:-