KALLAR CARDAMOM AUCTION COMPANY Vs. CARDAMOM BOARD

JUDGEMENT

(1.) THESE Original Petitions raise a common question of law. They have corns up before us on a reference by a learned single judge of this Court as the petitions relate to an important question of law regarding the limit and ambit of the powers of the Cardamom Board constituted under the cardamom Act, 1965, hereinafter referred to as the Act.

(2.) THE petitioners are auctioneers conducting auction of cardamom produce entrusted to them by the growers of cardamom. THEy are in effect middlemen between the cardamom growers and the Cardamom Board. THE cardamom Board imposed some conditions for the issuance of licences to the auctioneers. One of the conditions so imposed is that the auctioneers should produce a bank guarantee of Rs. 50,000/-to the Board. In both the petitions, this condition is attacked as being beyond the jurisdiction of the Board. In O. P. No. 5428 of 1970, in addition to the attack made above, the condition to provide a godown also has been subjected to attack. THE contention of the petitioners is that the imposition of conditions is not provided for either under the Act or under the rules framed thereunder and hence is beyond the jurisdiction of the Board.

(3.) THE main argument is built on the wording of S. 9 (3) of the Act which has been extracted above. It lays down that the Board shall perform its functions in accordance with and subject to such rules as may be made by the Central Government. THE emphasis is given to the expressions :in accordance with" and "subject to such rules as maybe made". THE argument is that the Board has to be subservient to the rules made. Indirect is contented that the Board has no jurisdiction to unilaterally impose any conditions in matters not covered by the rules. This contention, according to us, cannot be accepted. If this contention is to be accepted, the Board reduces itself to a mere clerical office of accepting applications for licences on the payment of necessary licence fees.