TRAVANCORE RAYONS Vs. TEXTILES COMMITTEE

JUDGEMENT

(1.) THE petitioner is an incorporated company, having a factory at Rayonpuram in ernakulam District, wherein rayon yarn and cellulose film are manufactured. The term "textiles" is defined in Section 2 (2! of the Textiles Committee Act, 1963" and ravon yarn is a textile within the meaning of that definition. The Textile committee Act is a Central enactment to provide for the establishment of a committee for ensuring the duality of textiles and textile machinery and for matters connected with it. The first respondent is the 'textile Committee, constituted under 'that Act; and respondents 2 and 3 are the Union of India and the State of Kerala respectively.

(2.) SECTION 4 of the Act lays down the functions of the Committee. Section 11 provides for inspection and examination of textiles and textile machinery. Section 12 empowers the Committee to levy such fees as may be prescribed for such inspection or examination, or for any such service which the Committee may render to the manufacturers of textiles and textile machinery. It is necessary to notice the full ambit of the above provisions; and it is better to read them:--

(3.) PURPORTING to act under the above rule, the first respondent called upon the petitioner to pay a sum of Rs. 46,955/-as fees payable by it in respect of the rayon yarn manufactured in its factory during the period from 1-3-1965 to 31-31966. The amount was Paid by draft senf, to the first respondent as per the petitioner's letter, Ext. P-l dated 6-4-1966. A few months lator, the peti-iioner wrote to the first respondent by letter Ext. P-2 dated 30-12-3966, stating that the above amount was sent on the assumption that some service would be rendered by the first respondent, and requesting the first respondent to refund the said amount, since no service had been done for the rayon industry. There was no response to the above letter. On 20th February. 1969, the first respondent bv its letter Ext, P-3 wrote to the petitioner calling upon it to pay the fees in respect of rayon yarn manufactured with effect from 1-4-1966 and informing it that if a sum of Rs. 25. 881. 02. being the fees payable till 31-3-1967 was not paid 'before 1st march 1969, Proceedings would be taken to recover the same under Section 12 (2) of the Act as an arrear of land revenue. Thereupon the petitioner filed this writ petition on 22-4-69 to declare that Rule 21 of the Textiles Committee Rules as ultra vires of the Act and that the first respondent is not entitled to collect from the petitioner any fees on the basis of the said rule, to quash the demand as per ext. P-3 and to restrain the first respondent from collect-ine any amount as per the said demand, and to refund to the Petitioner the sum of Rs. 46,955/-paid as per Ext. P-2 together with interest.