K.M. NATESA GOUNDER Vs. STATE OF MADRAS, REPRESENTED BY THE SECRETARY TO GOVERNMENT, FOOD DEPARTMENT, AND ANR.

JUDGEMENT

(1.) THE petitioner is a dealer in jaggery and other foodstuffs in Tirupathur, North Arcot district. He challenges the validity of G.O.Ms. No. 1171, Food, dated 30th October, 1967, directing the licensees under the Madras Gur and Khandsari Dealers' Licensing Order, 1963, not to sell gur or khandsari sugar to any person residing or carrying on trade in gur and khandsari sugar outside the district except under and in accordance with the terms and conditions of the permit issued by the Commissioner of Civil Supplies. The validity of the notification is challenged on the ground that the notification was passed to effectuate purposes extraneous to the Essential Commodities Act, 1955, and is a colourable exercise of powers by the State Government. It was contended that the notification was in fact a prohibition on the movement of gur from Madras State to other States, and is beyond the powers of the State Government. It was submitted that as the notification has not set out that the State Government had formed the necessary opinion under Section 3 of the Essential Commodities Act, 1955, it is invalid in law. Lastly it was contended that condition (7) of the licence granted under the Madras Gur and Khandsari Dealers' Licensing Order, 1963 gives an arbitrary power to the Government or the Collector which is violative of Articles 14, 19 and 301 of the Constitution of India.

(2.) THE petitioner is dealing in jaggery with an annual turnover of about Rs. 3 to Rs. 4 lakhs. His business is buying jaggery from local dealers and jaggery manufacturers and selling it to dealers in Bombay, West Bengal, Gujarat, Bihar, Uttar Pradesh, Madhya Pradesh, Kerala, Mysore and other States. The petitioner's business is exclusively outside the district of North Arcot. As a result of the impugned notification, the petitioner's business has come to a standstill, as he is not able to export jaggery to places outside the State.

(3.) THE impugned notification was passed on 30th October, 1967. The notification purports to restrict the movement of gur and Khandsari sugar, and is stated to have been passed in exercise of the powers conferred on the State Government by Sub -clause (2) of Clause (4) of the Madras Gur and Khandsari Sugar Dealers' Licensing Order, 1963. Clause (4), Sub -clause (2) of the Order provides that every licence issued or renewed under the Order shall be in Form B and shall be subject to the conditions specified therein. Para. (7) of Form B provides that the licensee shall comply with any direction that may be given to him by the Government or the District Collector or the licensing authority in regard to purchase, sale and storage for sale of gur/khandsari sugar. The. Madras Gur and Khandsari Dealers' Licensing Order, 1963 was passed by the Madras Government in exercise of the powers conferred by Section 3 of the Essential Commodities Act, 1955 read with notifications of the Government of India in the Ministry of Food and Agricultural (Department of Food) No. GSR. 888, dated 28th June, 1961, and with the prior concurrence of the Central Government. By this Order it was provided that no person shall carry on business as a dealer except under and in accordance with the terms and conditions of a licence issued in this behalf by the licensing authority. One of the conditions of the licence is that the licensee shall comply with the direction given to him by the authority in regard to purchase, sale and storage for sale of gur and khandsari sugar. This order, it may be noted, was passed with the prior concurrence of the Central Government.