ANANDEYA SILICA PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a writ petition filed by a manufacturer of precipitated Silica in the small scale sector. The purpose of the petition is to restrain the Central Government from granting an industrial licence or any other facility or permission which would enable the third respondent H.S. Bharatia to establish an industrial undertaking to manufacture wide grades of Silica, which the respondents described as "Specialised Silica" but which according to the petitioners is nothing else but precipitated Silica. The petitioners have also prayed that the proposal of the third respondent for foreign collaboration with Messrs Degussa for the manufacture of these grades of specialised Silica should not be granted and for other reliefs.

(2.) Under Section 29B(2A) of the Industries (Development and Regulation) Act, 1951 the Central Government has the power to reserve the production of any article or class of articles by Small Scale Industries Undertakings. In exercise of this power "Precipitated Silica except fumed Silica" has been reserved for the Small Scale Sector. The capital investment which would qualify an undertaking for being classified as a Small Scale undertaking is up to Rs. 35 lakhs. The application of respondent No. 3 for production of certain grades of silica is for a plant which involves a much larger capital base. According to the petitioners this application cannot be granted because the product which is sought to be produced is reserved exclusively for the Small Scale Sector.

(3.) The dispute basically relates to the classification of the product which is going to be manufactured by the third respondent. This product is proposed to be manufactured in collaboration with Messrs Degussa of West Germany. Five grades of Silica which are proposed to be manufactured are Sipernat 22, Sipernat 22 S, Ultrasil VN 3, Wessalon and Wessalon S. Wessalon appears to be another trade name for Sipernat 22 while Wessalon-S appears to be another trade name for Sipernat 22 S. From the technical literature of Degussa which is annexed these brands have been described as different grades of precipitated Silica. It seems that Degussa uses a variety of specifications to manufacture Silicas and Silicates. It is not necessary to describe in detail the process of manufacture except that under the wet process it is necessary to carry out drying. Depending the method of drying and thereafter grinding, particle sizes of the requisite order are produced. The five grades sought to be manufactured involve spray drying which is apparently a costly process. The advantages of spray drying are set out in the technical material. It is said to yield more spherical, softer Silica agglomerates. These special grades of Silica have uses which are said to be somewhat different from precipitated Silicas produced by other drying processes which involve subsequent grinding. It seems that the spray-dried Silicas are more suitable for reinforcement of various materials such as rubber and so on.