GUJCHEM DISTILLERS INDIA LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE proceedings arise in the following background. The petitioner GUJCHEM Distillers is engaged in the manufacturing of Absolute Alcohol and Rectified Spirit (here -in -after referred to as "the Control products"). These items were subject to price control under the Ethyl Alcohol (Price Control) Order, 1971 (here -in -after referred to as "the Price Control Order") as amended from time to time. The Price Control Order is effective from 1.10.1987 providing the maximum price which the manufacturer of the said products could charge from the intermediate consumers. The product had industrial use in chemical and other industries. Under the Price Control Order, the following maximum price was fixed:

(2.) SUCH Price Control Order was issued in exercise of powers under section 18 -G of the Industries (Development and Regulation) Act, 1951 ("the Act for short).

(3.) SEVERAL manufacturers therefore, approached the High Court by filing writ petition challenging such Price Control Order. One of the consumers of the petitioner namely, Wood Polymer Ltd. filed Special Civil Suit No. 64/1983 against the petitioner alleging that the petitioner had breached the said Control Order as amended from time to time and charged for the said product far in excess of the maximum price permitted under the said Order. As per the plaintiff, the petitioner had overcharged the plaintiff by a total of Rs. 28,73,620/ - for which the said suit was filed praying for decree of recovery of the said sum with interest. In such proceedings, the defendant the present petitioner took a stand that the Price Control Order itself was invalid. The petitioner desired to challenge the constitutionality of the said Price Control Order and therefore, applied to the trial Court for making a reference to the High Court in this respect. The learned Judge dismissed such application on the ground that the Civil Court can make a reference to the High Court if the defendant is able to show prima facie that the Act is ultra vires. Learned Judge was of the opinion that this was not a fit case in which reference regarding validity of Ethyl Alcohol (Price Control) Order, 1971, was required to be referred to the High Court. Counsel for the petitioner pointed out that when this order dated 10.1.1995 was passed by the learned Judge, several writ petitions challenging the very Price Control Order were pending before the High Court. The petitioner therefore, filed a Civil Revision Petition No. 210/1995 challenging such order of the learned trial Judge. Both these proceedings have therefore, been combined for common consideration. At one stage, by an order dated 24.4.2009, Division Bench disposed of the Special Civil Application in the following terms: