TATA STEEL LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) TATA Steel Ltd., the successor-in-interest of the TATA Iron Steel Ltd. is the first writ petitioner. The petitioner has its one of the largest integrated steel manufacturing plants in the country at Jamshedpur, Jharkhand. Since its establishment, the petitioner had consistent investments in continuous modernization, research, development with various innovative ideas in respect of its integrated steel plant.

(2.) The Essential Commodities Act, 1955 (for short, the said Act of 1955) was enacted in the interest of general public for the control of production, supply, distribution of and also for trade and commerce in certain commodities. Sec. 2 (a) of the said Act of 1955 defines "Essential Commodities". Under such provision "Iron and Steel, including manufactured products of iron and steel" were declared as essential commodities. Sec. 3 of the said Act empowers the Central Government, the first respondent herein, to control the production, supply, distribution of trade and commerce for the commodities specified thereunder. The Iron and Steel (Control) Order, 1956 (for short, the Control Order of 1956) was introduced under Sec. 3 of the act of 1955. Clause 17A and 17B of the said Control Order were introduced w.e.f. March 29, 1971. Clause 15 of the said Control Order of 1956 empowered the first respondent to fix the price of Iron and Steel and Clause 17B envisaged the setting up of a committee for the purpose of giving effect to the provisions of the said Control Order.

(3.) The first respondent appointed a committee in 1963, under the Chairmanship of a noted economist Dr. K.N. Raj to examine the existing system of distribution and pricing of Steel. The committees principle recommendations were as follows: