SIDDALINGESHWAR TRADERS GANGAVATHI Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE petitioners have in these petitions called in question the validity of a circular issued by the State Government, whereby the Deputy Commissioners of the Districts have been directed to issue release certificates to dealers, traders, millers and transporters of rice and paddy and the existing check post authorities instructed to check the transportation of rice and paddy with a view to verifying whether the stocks being taken out of the State are covered by such release certificates. The petitioners, who are rice millers and dealers in paddy and who claim to have obtained licences for carrying on their business under the Karnataka Essential Commodities Order of 1986 contend that the Circular in question is without the sanction of law and pray for a declaration that there is no legal restriction on the transportation of rice and paddy beyond the limits of the state of Karnataka. In order to correctly appreciate the contentions urged at the bar, it is necessary to briefly refer to the Karnataka Rice Procurement (Levy) Order, 1984 (Levy order for short) issued by the Government in exercise of its power under Section 3 of the Essential Commodities Act, 1955.

(2.) THE object underlying the Order is to prevent artificial scarcity of Rice and Paddy by compulsorily acquiring a part of the stocks held by Millers, traders and dealers. The rice and paddy so acquired is utilised for public distribution thereby ensuring that the commodity is available for consumption by the general public at reasonable rates. Clause 3 of the Order obliges every miller to sell to the State. Government or the purchase agent at the purchase price 331/3 % of the total quantity of rice conforming to specifications obtained by milling paddy owned in his rice mill every day. Sub-clause (2) to Clause 3 requires the miller to deliver the rice to be sold, to the Government or the purchase agent or to such other person as may be authorised by the State Government. Sub-clause (3) prohibits the removal of rice stocks from the mill premises without delivery of the rice relating to such stocks in accordance with sub-clause (2) and without obtaining a release certificate under Clause 8 of the order. In terms of sub-clause (4) of Clause 3, a miller is obliged to mill the paddy acquired or owned by him before the close of the marketing season.

(3.) CLAUSE 4 of the Order creates, a "similar obligation for the dealers to sell to the State Government or to the purchase agent 331/3%of the total quantity of each variety of rice conforming to specifications got milled by him every day out of his stocks of paddy and each variety of rice conforming to specifications purchased or otherwise acquired by him for the purpose of sale from persons other than millers and dealers. Sub-clause (2) of clause 4 forbids removal of any stock of mill got without delivery of the levy relating to such stocks in accordance with sub-clause (l) (a) and without obtaining a release certificate under Clause 8, except in cases where the rice is obtained for personal consumption by a cultivator from the stocks of paddy grown by him or by an agricultural labourer out of the stocks of paddy earned by him as wages. In terms of sub-clause (3) of Clause 4, every dealer is required to get the paddy purchased or otherwise acquired by him milled into rice before the close of the marketing season.