STATE OF MAHARASHTRA Vs. DHANRAJ MILLS LTD

JUDGEMENT

(1.) These are four companion appeals which raise for determination common question common questions. We propose to deal with appeal No. 1225 of 1958, and the reasons set out for the decisions in this Appeal will govern the other three appeals.

(2.) Before the Presidency Magistrate, 25th Court, Mazgaon, Bombay, the Dhanraj Mills Ltd., which will hereafter be referred to as the Company and its three officers were charged with contravention of Clayse (3) (c) of the Cotton Textiles (Control) Order, 1948, read with Government Notification No. SRO-509, dated 27th April 1951, and hereby committing offences punishable under sections 7 and 8 of the Essential Supplies (Temporary Powers) Act (24 of 1946). During the pendency of the proceedings the fourth accused, Meherji M. Pastakia, who was the manager of the company died on 21st March 1958 and his name was struck off. The learned Magistrae acquitted the remaining three accused, and against the orde of acquittal, this appeal has been preferred.

(3.) Dhanrj Mills Liited is a public limited Company, which has its textile factory in the town of Bombay. In the year 1949-50, in the factory of the Company were installed a Spinning and a Weaving Plant. there were 780 looks and approximatly 36,000 spindles - including ring, mule and bump mule, installed in the factory. From the returns submitted by thecompany, it appears that in the factory there were on 1st January 1950, 35476 spindles, muse, ring roving, doubling and other types. On 1st January 1950, there were 36316 spindles, and on 1st January 1951, the total number of spindles also remained at 36316. Some of the mule spindles were old, and it was represented by the company to the Textile commissioner in the returns made from time to time that a certain number of mule and bump mule spindles had remained idle in the year 1951. These bump mule, and mule spindles were permitted by the Textile Commissioner to be dismantled in the year 1953. The mule and bumb mule spindles were primarily used for manufacturing yarn of low count and constituted about 5 per cent of the total number of spindles installed in the factory. In the year 1949-50, all the yarn manufactured on the mule spindes was packed for disposal, and the yarn manufactured on the other spindles was utilised by the Company for its own weaving plant. In the year 1949 and 1950, the Company manufactured an aggregate of 653 bales of low count yarn and that yarn was packed andsold. For use in the factory however, 93 bales of higher count yarn were purchased in the year 1949, and 8 bales of yarn were purchased in 1950. In and after the year 1951, the mule and the bump mule spindles werekept idle and there was no production of low count yarn. the yarn produced by the other spindles in the factory was utilised for veaving cotton fabrics. The higher count yarn produced by the spindles was insufficient for the requirement of the factory for weaving cloth, and from time to time applications were submitted requesting the Textile Commissioner, to release yarn for consumption in the mill, but on account of the prevailing shortages, the applications were turned down.