BIRLA COTTON SPINNING AND WEAVING MILLS Vs. TEXTILE COMMISSIONER

JUDGEMENT

(1.) THIS is a petition under section 103 of the Constitution of Jammu and Kashmir read with Art. 226 of the Constitution of India as applied to the State of Jammu and Kashmir for issuance of a writ of certiorari and mandamus declaring the staple fibre distribution order of 1972 (hereinafter referred as the Control Order of 1972) and the notification issued thereunder and also the allocations made by respondents Nos. 1 and

(2.) IN respect of staple fibre pursuant to the said order as ultra vires of Articles 14 and 19(l)(f) and (g) of the Constitution of India. The Constitutional validity of the Control Order of 1972 is called in question on the following grounds. -

(3.) THE petitioners have submitted that before coming into force of the Control order of 1972 the staple fibre required by the spinning Mills could be obtained freely by entering into contract with the producers and they did obtain diverse quality of staple fibre during 1966 to 1971 and 1972 mainly from respondent No. 4. There was no statutory control or restriction on distribution of staple fibre. The normal requirement of the petitioners for the said Mill would be about 7.50 lakhs Kgs of staple fibre per quarter. The Textile Commissioner in exercise of powers under the Control order of 1972 issued directions to respondent No. 4 for supply of staple fibre to the Mill of the petitioner No. 1 a quantity of viscose -staple fibre to the extent of the quantity acquired by the said mill during any quarter of 1972. On the basis of these orders dated 26 -2 -73 and 31 -3 -1973 the said mill received 6.77, Lakh Kgs normal quality 1.14 Kgs of special quality (vide annexure C 2&C 3). Respondent No.,1 used to purchase from respondent No. 4 staple fibre by entering into advance contracts. As such on the first January 1973 there was an outstanding quantity of about 76000 Kgs to be supplied to the petitioner in respect of the earlier contracts entered into with respondent No. 4 prior to the coming into force of the Control Order of 1972. The said quantity of 76000 kgs was purported to be adjusted against the said quantity of 6.77 lakhs Kgs and regular quality for which permits were issued by the Textile Commissioner (vide annexure ˜D). The contention of the petitioner is that the said quantity of 76000 Kgs outstanding in respect of the earlier contracts could not be in any way interfered with by respondents No. 1 and 2 as the respondent No. 4 was bound under the contract to supply the said quantity to the said Mill. Therefore the directions of respondents 1 and 2 to respondent No. 4 to adjust 76000 Kgs against allocation has the effect of depriving the petitioners of their right under the said contract. They could not be deprived without being compensated thereof in accordance with the provisions of the Constitution. No public purpose for depriving the petitioners of their rights in this respect has been disclosed. The order of adjustment was unreasonable and arbitrary and was also violative of Article 19 of the Constitution. It also violated the principles of natural justice.