RUBY MILLS LIMITED Vs. TEXTILE COMMISSIONER

JUDGEMENT

(1.) BY this judgment, we are disposing of the aforesaid two writ petitions involving identical issues in respect of the notification No. 3/5/94/cotton/4 (1)/2 dated 7-4-1994 issued under Clause 4 (1) of the Cotton Control Order, 1986.

(2.) THE facts involved in Writ Petition No. 1487 of 1994 shall be sufficient for proper appreciation of the issues involved and; accordingly, for the sake of brevity, we intend to refer to the facts pertaining to Writ Petition No. 1487 of 1994 only.

(3.) PETITIONER No. 1 in Writ Petition No. 1487 of 1994 is the company registered under Companies Act engaged in the manufacture, processing, sale and export of textile products for which Indian Cotton is one of their raw materials. Petitioner No. 2 is the Vice President of petitioner No. 1 company. All the Directors of the petitioner No. 1 company are the nationals and citizens of India. Respondent No. 1 is the Textile Commissioner. Respondent No. 2 is the Union of India. Respondent No. 3 is the State of Masharashtra and respondent No. 4 is the Senior Inspector of Police at Bombay, who is authorised to file prosecution for offences under the Essential Commodities Act, 1955. On 7-4-1994, in exercise of the powers conferred under Clause 4 of the Cotton Control Order, the Textile Commissioner issued a notification which generally provided for the following : i) On commencement of the notification no manufacturer shall have at any time in his possession a quantity of Indian cotton required for consumption in excess of average consumption as specified in the said notification. ii) The exemptions for such holdings of cotton are prescribed. iii) The procedure for computation of average consumption is prescribed. iv) No manufacturer shall purchase Indian cotton unless his stock at any time comes down below the prescribed limit. v) The mills which have on the date of publication of the notification Indian cotton stocks in excess of the above limit are required to send the details thereof within 15 days from the date of publication.