THOMAS Vs. STATE OF KERALA

JUDGEMENT

(1.) The Essential Commodities Act, (the Act) has been enacted to provide, in the interests of the general public, for the control of the production, supply and distribution of, and trade and commerce, in certain commodities. Sub-section (I) of section 3 of the Act empowers the Central Government, if it is of opinion that it is necessary or expedient so to do for maintaining or increasing supply of any essential commodity, or for securing its equitable distribution, and availability at fair prices, to provide, by order, for regulating or prohibiting the production, supply and distribution of the essential commodity, and trade and commerce therein. Section.5 enables the Central Government by notified order to direct that the power to make orders, or to issue notifications, under section 3 shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisable also by a State Government as may be specified in the direction.

(2.) The Act has been included in the Ninth Schedule of the Constitution as item No. 126by the Constitution (Amendment) Act, 1976., The Act is thus immune from attack inconsistent with, or taking away or abridging any of the rights conferred by any provisions of Part III of the Constitution. But the immunity does not extend to orders issued under section 3 (1) as held by the Supreme Court in Prag Ice & Oil Mills v. Union of India, A.IR 1978 S.C. 1296.

(3.) Coconut husk is an essential commodity covered by the Act, being item No. 19 in the list of commodities notified as such under section 2(a)(xi). By a notified order dated 30th April, 1986, a copy of which is marked as Ext. P2, the Central Government directed that the powers conferred on if by section 3(1) of the Act to make orders to provide for the, matters specified in clauses (a),(c), (d),(e),(t),(h) and (j)of sub-section (2) thereof, shall in relation to Coconut husks be exercisable also by the Government of Kerala subject to the conditions mentioned. Two of these conditions specified in sub-clause (iii) and (iv) are as follows: (iii) that the State Government shall not put any interstate or intranstate restriction on the transport of Coconut husk under clause (d) of sub-section (2) of section 3 of the said Act, except to the extent necessary for operating the scheme for levy of coconut husk referred to in clause (iv). (iv) that the State Government shall, as soon as, may be after the coming into force of this order, notify a scheme providing for the procurement by way of levy from every retter not more than Thirty per cent of the Coconut husk held in stock by him on the date of coming into force of the said scheme and any stock acquired by him thereafter.