VYAVASAYA SEVA SAHAKARA NEMA CO OPERATIVE SOCIETY SHIRALAKOPPA SHIMOGA DISTRICT Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE writ petitions have been filed for quashing memo dated 28-12-1995 (Annexure-A) issued by the respondent-Deputy commissioner permitting the 4th respondent to sell kerosene oil to the card holders by opening a fair price depot at Belgavi village. The said memo seems to have been issued pursuant to the order dated 4-11-1995 (Annexure-R1) passed by the Minister for Food and Civil Supplies Department.

(2.) FOR proper appreciation of the rival contentions raised by the parties at the Bar, I find it more convenient first to refer to the statutory provisions which have material bearing on the issues involved in the present case. Section 3 of the Essential commodities Act, 1955 ('act' for short) empowers the Central government to frame orders, inter alia, to secure equitable distribution and availability at fair prices of essential commodities. Section 5 of the Act authorises the Central government to delegate legislative powers to make orders or issue notifications under Section 3 of the Act to the State government. It is not in dispute that such delegation has been made by the Central Government in favour of the State government. Admittedly, kerosene oil is also an essential commodity for the purposes of the Act. Therefore both the central Government as also the State Government can make orders in terms of Section 3 of the Act for the purposes enumerated in the said Section.

(3.) THE State Government pursuant to the powers conferred on it under Section 3 of the Act has made the Karnataka Essential commodities Licensing Order, 1986 (in short 'the Licensing order' only ). This order inter alia makes it mandatory for the commission agents, dealers and purchasers of essential commodities, as detailed in Schedule I to the Licensing Order, to obtain licences for carrying on their business under and in accordance with the provisions of the Licensing Order and the terms and conditions of the licence granted to them. Kerosene oil is also one of the commodities mentioned in Schedule I of the licensing Order. Therefore, any person who intends to carry on business in any capacity in kerosene oil has to necessarily obtain licence under this order.