(1.) THESE petitions under Art. 32 of the Constitutionwere filed by Premier Automobiles Ltd., Hindustan Motors Ltd. and Standard Motor Products of India Ltd.,manufacturers of Fiat, Ambassadorand Standard motor cars respectivelyand two of the dealers of such cars.The petitioners challenged the fixationof fair price of the said three passenger cars by the Government of Indiaby the Motor Car (Distribution andSale) Control (Amendment) Order 1969promulgated linder S. 18G of theIndustries (Development and Regulation) Act 1951, hereinafter called the"Order" and the "'Act" respectively.The ex-factory prices of the three carswere fixed as follows:Hindustan Ambassador : Rs. 15,316.00Fiat 1100-D : Rs. 14,325.00Standard Herald 4 Door : Rs. 14,003.00
(2.) . These prices were inclusiveof dealer's commission but did not include the excise duties. Central Salestax and local taxes, if any, and transport charges. The manufacturers ordealers were prohibited from sellingor offering for sale or otherwise transferring or disposing of the motor carsfor a price exceeding the price givenin the order. The order was madeafter taking into consideration the recommendations of the Tariff Commission to whom the question of determination of a fair price of motor carshad been referred by the CentralGovernment under clause (d) of S. 12 ofthe Tariff Commission Act 1951.
(3.) . The Government in May1966 remitted the question of furthercontinuance of protection being accorded to the automobile industry to theTariff Commission and also directedthat Commission to enquire into thecost structure and the fair sellingprice of different types of automobiles.The Tariff Commission made comprehensive recommendations and it wason the basis of its recommendationsthat the Order was issued in September 1969 fixing the prices of the threecars. In July 1967 the Governmenthad also directed an investigationunder S. 15 of the Act into the qualityof the three cars by a Committee headed by Shri G. Pande. The Commission was to look into the complaintsrelating to deterioration in quality andother allied matters including the partplayed by the ancillary and otherindustries. The Pande Committee submitted its report in December 1967. Itrecommended inter alia that thereshould be a separate Quality Controland Inspection Department and thatcomponents carrying ISI certificationmarks should be preferred. In November 1968 the Government set up ateam of experts headed by Dr. A. N.Ghosh the then Director General ofthe Indian Standard Institution. Thisteam was required to examine the"internal expert organisation" of thethree car makers and to .make recommendations for strengthening them.The Ghosh Committee endorsed theview of the earlier Pande Committeewith regard to the establishment oftechnical audit cells. These cells wereto be established for watching the in-terest of the consumers and ensuringImprovement in quality of cars whichwere being manufactured by the threepetitioners.