JACOB PHILIP Vs. UNION OF INDIA

JUDGEMENT

(1.) This batch of cases relates to the cancellation of permits issued to the respective petitioners for the purchase of cement from stockists licenced under the Kerala Cement Distribution (Licensing and Regulation) Order, 1974. Since both the Union of India as well as the State of Kerala are made parties in O. P. No. 4398 of 1982, that case is taken as the main case for the decision of the points argued in this batch of Original Petitions.

(2.) The petitioner in O. P No. 4398 of 1982 had on 21-12-1980 applied to the Director of Industries and Commerce for the issue of a permit for purchase of 1800 bags of cement. He was initially granted a permit for 200 bags by way of a direction to the 4th respondent, the Officer in Charge of the Kerala State Civil Supplies Corporation, Cement Depot, Thrippoonithura, to sell the aforesaid quantity of cement to the petitioner. There was a second allotment as per Ext. P1 dated 10-11-1981 by the District Collector, Ernakulam, as per which the Officer in Charge of the Civil Supplies Corporation Cement Depot, Thrippoonithura was authorised to supply 200 bags of cement to the petitioner as per the terms and conditions mentioned therein. The petitioner on 5-2-1982 made an advance payment of Rs. 6000/- to the 4th respondent to cover the approximate cost of the quantity of cement allotted to him. This amount was however refunded to him on 18-3-1982 cancelling the allotment and the permit issued to him. This Original Petition is for the issue of a writ of mandamus compelling respondents 3 and 4, namely, the District Collector, Ernakulam and the Officer in Charge of the Kerala State Civil Supplies Corporation Cement Depot, Thrippoonithura to sell the 200 bags of cement allotted to the petitioner as per Ext. P1 permit. The Union of India as well as the State of Kerala hive filed separate counter affidavits ia this Original Petition. The reason for the cancellation of the permit granted to the petitioner is explained as on account of a change in the policy adopted by the Central Government in the matter of procurement and distribution of cement.

(3.) Cement had been a controlled commodity ever since the commencement of the Cement Control Order, 1967 issued by the Government of India under the provisions of S.18G and 25 of the Industries (Development and Regulation) Act, 1951. S.18G empowers the Central Government to control the supply, distribution, prices etc of articles or class of articles relating to the industries mentioned in the schedule to the Act. Cement is included in item 35 of the First Schedule S.25 authorises the Central Government to delegate its powers to the State Governments and the other authorities specified therein. The Cement Control Order issued by the Central Government is produced by the 1st respondent as Ext. R1-A, Ext. R1-A shows that the order is issued by the Central Government for securing the equitable distribution and availability of cement at fair prices and for that purpose to regulate trade and commerce as well as distribution of cement. It is not necessary to advert to the various provisions made in the order for the purpose of procurement of cement manufactured by cement factories in the country. Clause.4 of Ext. R1-A authorises the Central Government by order to ''require any producer to sell cement to such person or class of persons or to transport cement to such destinations by such modes of transport, and on such terms and conditions, as may be specified in the orders which may provide for regulating or prohibiting any class and of commercial or financial transactions relating to the sale and or purchase of cement payments therefor etc." The proviso to Clause.4 of Ext. R1-A is extracted below:-