A P VELAYUDHAN NAIR Vs. STATE OF KERALA

JUDGEMENT

(1.) THE petitioner is a wholesale dealer in sugar. Sugar is distributed to the dealers by the Government which controls and fixes the selling price of the commodity. The distribution and control of sugar is regulated by the provisions of the Kerala Sugar Dealers' Licensing Order 1967. Clause (2) (c) of the same defines 'free sale sugar' as sugar supplied by the State Government to the dealers directly by sugar factories from the quota allotted to them for free sale by the Central Government. Clause 2 (d) defines 'levy sugar' as sugar supplied by the State from the sugar made available to them by the Central government. Clause 3, Sub-clause (1) enacts that no person is to carry on business as dealer in levy sugar or free sale sugar except under and in accordance with the terms and conditions of a licence issued by the Licensing authority. The petitioner was accordingly granted licence as a wholesale dealer for the sale of sugar. He executed an agreement dated 2nd April, 1965, to the governor of Kerala. Clause 13 of the agreement stipulated that the wholesale dealers were bound to obey the directions regarding the proper sale and distribution of sugar issued from time to time by the specified authorities. Ext. P-l is a copy of the circular dated 15-2-1967. issued by the Board of Revenue and Civil Supplies, embodying certain directions. Para. 4 of the same recalls the quota of sugar allotted to the Kerala State. Para. 5 notes that the sugar is issued to the consumer taking into account the transport charges of the wholesale dealer, the margin of profit due tc the wholesaler, administrative surcharge due to Government and the margin due to the retailer. Para. 6 recalls the decision to fix the uniform price throughout the State for sugar; and in connection with the same, instructions to be issued are given in para. 7. Dealing with the wholesale stage of distribution of sugar, the same paragraph states that the wholesale dealer was not entitled to anything more than the actual transport charges and the margtn of Rs 2. 68 per quintal. Sub-para (6) of para. 7 relates to price equalisation charge which reads as follows :

(2.) IN pursuance of their powers to fix the price of sugar under the terms of the agreement, the Government have been fixing the prices. Exts. P1, P2 and P3 filed by the petitioners, are copies of the orders or proceedings of the government, thus fixing the prices. To take Ext. P1 by way of example, that fixes the total retail selling price at Rs. 180. This is made up of: rs. E28

(3.) THE petitioner was. served with Ext. P5 notice stating that a total sum of Rs. 11,172. 42 was outstanding against him towards the arrears of price equalisation charges on the sugar for the period from February 1967 to May 1971 and was directed to remit the entire amount He has filed this writ petition to quash Ext P5 and for consequential reliefs.