SHRINIWAS FERTILIZERS LTD. Vs. STATE OF M.P.

JUDGEMENT

(1.) THESE Letters Patent Appeals are directed against common judgment of the learned single Judge dated 12.9.1996 whereby the learned single Judge has dismissed the petitions filed by the appellants/petitioners.

(2.) BRIEF facts giving rise to these appeals are that in the year 1993, Government of India granted price concession on various fertilizers including Single Super Phosphate (for short 'SSP'). The price concession was to bring down the price of the fertilizers to a level comparable and competitive with the price at which the imported product is being sold. The Central Government asked the State Government to continuously monitor market price of the imported product while implementing the scheme. The principle underlying the price concession extended by the Government of India is to make decontrolled fertilizers widely available and more affordable to the farmers. According to the decision of the Central Government, suitable mechanism for effective implementation of the scheme as per the guidelines was required to be evolved by the State Government. The price concession given by the Government of India for SSP was Rs. 340/ - per ton. According to the scheme, the manufacturers of the aforesaid fertilizer were required to sell the same at a price less by Rs. 340/and the same amount was to be reimbursed by the Central Government. It is alleged that earlier the Central Government, placed at the disposal of the State Government, the funds for the said purpose but later on the amount of price concession has been decided to be paid by the Central Government on certification by the State Government. The aforesaid scheme which was contemplated by the Government of India is Ex. P -2 dated 16th June, 1993. The Scheme reads as under : -

(3.) IT appears that when some of the private manufacturers of fertilizers took up the matter with the Central Government contending that this concession is being made available by the State through the State agencies only and private agencies are not being permitted to avail benefit of this concession. then a letter appears to have been addressed by the Agriculture Minister. Government of India to the Governor of Madhya Pradesh on 23rd July, 1993 (Annex. P -5) wherein it was requested that all channels should be permitted to sell the fertilizers at concessional rate so that the objective of reaching decontrolled fertilizers with concession to all farmers is achieved and the funds allotted are utilized in full. But no response seems to have evoked from the State. Thereafter, some fresh guidelines were also issued by the Government of India vide Ex. P -6 dated 9.6.1994 which contained a condition that suitable mechanism should be evolved by the State for implementing the scheme. Again a notification dated 29th June, 1994 (Annex. P -7) was issued by the Government of India to the same effect and it also impressed upon the State to take steps for sale of decontrolled fertilizers with concession after negotiating with the manufacturers and after taking into consideration all relevant factors.