ASSOCIATED CEMENT COS. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) IN exercise of the powers conferred by the Jute Packaging Materials (Compulsory use in packing commodities) Act, 1987 (hereinafter referred to as the ,,said Act), the Central Government, vide order dated 15.3.1995, inter alia directed that 50 per cent of total production of cement will be in jute packaging material. The petitioner before this Court being manufacturer of cement, the aforesaid order applied to it.

(2.) VIDE show cause notice dated 11.12.1996 issued to various cement manufacturers, the Jute Commissioner, noticing that they had not been using any jute material at all for packaging of cement and thereby disobeying the aforesaid statutory order, and also referring to a judgement of the Supreme Court of April, 1996 upholding the constitutional validity of the said Act, called them upon to show cause as to why penal action be not taken against them and every person in charge of the concerned company for the conduct of its business, for continued violation of the directions contained in the aforesaid Order of the Government. The petitioner before this Court responded to the said show cause notice vide reply dated 30.12.1996 giving various reasons on account of which the aforesaid Order could not be complied with. It was further stated in the reply that since the validity of the Act had been challenged in various Courts, there was some doubt regarding the legality of the said Act. It was also stated in the reply that it would be fair and proper to await a decision of the Government after the Standing Advisory Committee gave its fresh recommendations in the matter.

(3.) WHEN the petition came up for hearing on 4.9.2002, the petitioner was directed to appear before the Jute Commissioner on 5.9.2002. It was further directed that the order, if any, passed shall be subject to the outcome of the writ petition though no coercive steps would be taken for recovery of any fine, if imposed till the next date.