KRISHNA RICE MILLS TADEPALLIGUDEM Vs. DEPUTY DIRECTOR FOOD GOVT OF INDIA OFFICE OF THE JOINT DIRECTOR OF FOOD DEPT 17 270 VIJAYAWADA 2

JUDGEMENT

(1.) These petitions under Article 228 of the Constitution are Sled by rice millers of West Godavari, East Godavari, Krishna and Guntur Districts. They mainly raise a question relating to the validity of the Essential Commodities Act, 1955 (Act X of 1955) as amended by Acts XIII and XXVIII of 1657 (hereinafter referred to as the Act) and certain notifications and orders issued thereunder.

(2.) The relevant facts may be briefly stated. A notification issued by the Government of India acting under Sub-section (3-A) of Section 3 of the Act as amended by Act XIII of 1957 directed that the price at which rice or paddy shall be sold in any locality in the States and union territories in compliance with, an order made with reference to Clause (f) of Sub-section (2) of the said Section 3 shall be regulated in accordance with the provisions of the said Sub-section (3-A), having entertained the opinion that it was necessary so to do for controlling the rise in prices and for preventing the hoarding of rice and paddy in the States and union territories specified in the schedule thereto. This notification was to remain in force for a period of three months.

(3.) On the 10th of July 1957, the Ministry of food and Agriculture, Central Government, in exercise of the powers conferred by Section 3 of the Act, passed an order called "The Rice (Southern Zone) Movement Control Order. 1957 extending it to the States of Andhra Pradesh, Kerala, Madras and Mysore, which were constituted the southern Zone, by the said order, which came into force at once. Under the said order, it was ordained that no person shall export rice from any place within the southern Zone except under and in accordance with a permit issued by the State Government concerned or any officer authorised in this behalf by the Government subject to the condition that such exports under permit shall be regulated in accordance with the export quotas fixed by the Central Government in this behalf from time to time. On representations made by the millers of these districts, they were given permits on 23-7-1957 to export a quota of 20,000 tons of rice to Bombay and West Bengal. This quota was distributed by the Andhra Pradesh Millers Association between the millers of the districts of East Godavari, West Godavari, Krishna and Guntur. A further quota of 10,000 tons was allotted and permits were issued thereunder on 3-8-1957 for the month of August 1957. At the same time, the time for export of the July quota was extended to 20-8-1957 on representations received from the Association. But the quota allotted could not be fully exported within the extended time. Thereafter, under instructions from the Central Government, the Government of Andhra Pradesh stopped the further export of rice to the States of Bombay and West Bengal and the permits, which would not be utilised by the millers, were cancelled. Meanwhile on 31-7-1957, the Ministry of Food and Agriculture published an order in the official gazette notifying that, in exercise of the powers conferred by Section 5 of the Act, the Central Government delegated to one Sri Krishnan, the Deputy Director of Food, Government of India, Vijayawada, the powers conferred on the Central Government by Section 3 of the Act to make orders providing for the matters specified in Clause (f) and for matters specified in Clauses (h), (I) and (j) in so far as they relate to Clause (f) of Sub-section (2) of Section 3 in relation to the stocks of rice and paddy held in any locality in the State of Andhra Pradesh. This notification also was to be operative for a period of three months. By another Order of the same date, the Central Government authorised the said Sri Krishnan pursuant to Clause (iv) of Sub-section (3-A) of Section 3 of the Act to determine the average market rate of rice and paddy prevailing in any locality in the State of Andhra Pradesh.