DISTRICT COLLECTOR OF HYDERABAD Vs. IBRAHIM AND CO

JUDGEMENT

(1.) These appeals are filed with special leave against the order of the High Court of Andhra Pradesh declaring G. O. M. No. 2976 dated December 30, 1964 "null, void and ultra vires".

(2.) The respondents are dealers in sugar and other commodities and carry on their business in the cities of Hyderabad and Secunderabad. The State of Andhra Pradesh issued the Andhra Pradesh Sugar Dealers Licensing Order, 1963 in exercise of the power conferred by Section 3 of the Essential Commodities Act, 1955. Under that order no person may carry on business as a dealer except under and in accordance with the terms and conditions of a licence issued by the specified authority. Grant and renewal of licence could be refused only on grounds reduced to writing and after giving opportunity to the party to state his case. The respondents were granted licences under the Andhra Pradesh Sugar Dealers Licensing Order, 1963. Shortly thereafter the Central Government, in exercise of the power conferred under sub-rule (2) of Rule 125 of the Defence of India Rules, 1962, promulgated the Sugar Control Order, 1963. By that order a recognized dealer was defined as a person carrying on the business of purchasing, selling or distributing sugar and licensed under the order relating to the licensing of sugar dealers for the time being in force in a State. The order provided for placing restrictions on sale, or agreement to sell or delivery by the producers, for controlling the production, sale grading, packing, making delivery, distribution etc. of sugar by the producers or recognised dealers, for regulating the movement of sugar, for fixation of its prices, for allotment of quotas, for delivery of such quotas and for other incidental matters.

(3.) The respondents being holders of licenses under the Andhra Pradesh Sugar Dealers Licensing Order, 1963, were treated as recognised dealers under the Sugar Control Order, 1963. The State Government allocated quotas of sugar received from the Central Government for distribution in different areas and nominated licensees or dealers to take delivery of the allotted quotas from the factories.