LARSEN AND TOUBRO LTD Vs. STATE OF MP

JUDGEMENT

(1.) Petitioner M/s. Larsen & Toubro Limited has filed instant writ petition challenging Form B, prescribed under Clause 2 (g) of M.P. Scheduled Commodities Dealers (Licensing & Restriction on Hoarding) Order, 1991 (hereinafter referred to as 'Order, 1991'), styled as licence for a Wholesaler/ Producer/Commission Agent/Retailer. It is submitted that Clause 3 of Order, 1991 prescribes licensing of dealers only and does not include in its ambit grant of licence for Processor, therefore, Form B annexed to the Order is ultra vires of Clause 3 and deserves to be struck down as far as Processor is concerned. There is no requirement for a Processor to take out a licence under the Order. The order passed by the Additional Collector, Ratlam on 25-8-2000 in Case No. 9/98 under the Essential Commodities Act, 1955 and notice of demand issued by Collector (Food), Ratlam dated 20-5-2003 have also been assailed.

(2.) It is averred in the petition that petitioner is a public limited company and is India's largest Engineering and Construction conglomerate with additional interest in Cement, Electrical and Electronics, Information Technology, Mechanical Equipment etc. It manufactures products like Switch Gear, Medical Equipments, Control and Automation Equipment, Mechanical Equipments like Reactors, Crushers and Equipments for various Industries like Heat Exchangers, Reactors etc. It is a pioneer in manufacture of medical equipments as well as surgical equipments. The company also undertakes construction of roads, bridges, dams and buildings besides building of various chemical plants and power plants. The company is engaged in different activities in the country and abroad and earning huge foreign exchange. The petitioner company engaged itself in purchase of edible oil seeds namely, Soyabean at Ratlam and was getting it processed from Maheshwari Proteins Ltd. The petitioner Company does not carry on any business of sale and purchase of oil seeds for edible oil at Ratlam. The petitioner company only purchases oil seeds and gets the same processed from Maheshwari Proteins Limited for its stock transfer to its Head Office at Mumbai. Though the company was not a processor, but got its oil seeds processed from Maheshwari Proteins Limited, it enquired whether it was required to take any licence for the purpose. On getting information, the petitioner obtained licence (P-l) as Processor (Utpadak). Reliance has been placed on the definition of dealer as defined in Clause 2 (e), definition of Processor as defined in Clause 2 (m) and on Clause 3, of the Order, 1991.

(3.) The Collector, Ratlam issued a show-cause notice on 1-12-1994 that on inspection made by the Food Inspector on 23-11-1994, following irregularities were found :-