OLISA REALITY PVT. LTD. Vs. JUTE COMMISSIONER

JUDGEMENT

(1.) Olisa Reality Pvt. Ltd, a company incorporated under the Companies Act, 1956, carries on business of manufacturing and supplying of jute bags. The petitioner No.1- company has its jute mill at Manikpur within the P.S Sankrail in the district of Howrah. There are about 3000 workers employed in the said jute mill. It is the case of the petitioners that jute bag manufacturing business is one of the major industries in the eastern region particularly in West Bengal. It supports nearly four million farmer families, besides providing direct employment to 2.6 lakhs industrial workers and livelihood to another 1.4 lakhs persons in the tertiary sector and allied activities. The Government of India recognized the important of jute industry and has taken various remedial measures to protect the jute industry. The Central Government enacted the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1987 to provide for the compulsory use of jute packaging material in the supply and distribution of certain commodities in the interest of production of raw jute and jute packing materials and the persons engaged in the production thereof. From time to time the Ministry of Textile, Government of India have passed order under Sec. 3 of the said Act directing use of jute packaging materials by producers of certain commodities and or class of commodities. In exercise of the power conferred by Sec. 3 of the Essential Commodities Act, 1955, the Central Government made the Jute and Jute Textile Control Order, 2000 for the protection of jute farmers, the jute industry and control of the price of raw jute and jute products to boost up the industry. Subsequently, the Control Order of 2000 was replaced by the Jute and Jute Textile Control Order 2016. As per the provisions of the said Packaging Act of 1987 the jute commissioner is entitled to implement the Packaging Act and issue production control order on jute mills. Under the Control Order of 2000, the Jute Commissioner is empowered to take all steps necessary for implementation of the Packaging Act, 1987 or any other directive of the Central Government and may by order direct any manufacturer to produce such quantities of such classes or specifications or jute textiles as may prescribed in the order for such implementation. The said orders passed by the Jute Commissioner are commonly called as 'Production Control Orders.' The Jute Commissioner is also empowered to issue 'Requisition Order' as supply order to the concerned jute mill which contains the terms and conditions of sale of jute bags under the Control Order, 2000. The procedure in respect of issuance of. Production Control and Supply Order (PCSO) in the Control Order of 2016 is almost identical to the control order of 2000. The proforma respondent, Delta Jute Mill Limited used to run the jute mill at Manikchak previously and the Jute Commissioner used to issue PCSO's in favour of the proforma respondent till 10/11/2021.

(2.) Sometimes in the year 2018 there was a dispute between the proforma respondent and the Jute Commissioner in the matter of non issuance of PCSO's which had prompted the proforma respondent to file a writ petition being WP No.22091(W) of 2018. A Coordinate Bench of this Court by an order dtd. 5/11/2018 disposed of the aforesaid writ petition giving liberty to the writ petitioner to make an application before the concerned authorities for issuance of the Production Control Orders in accordance with law. The respondent authorities were directed to consider and dispose of the said application by passing a reasoned order within a period of four weeks from the date of filing of the said application. As directed by the this Court, the proforma respondent made an application before the Jute Commissioner and the Jute Commissioner passed an order dtd. 10/12/2018 commencing issuance of PCSO's in favour of proforma respondent in respect of the said jute mill.

(3.) By executing a deed of lease dtd. 9/1/2023 the proforma respondent granted lease in favour of petitioner No.1 to run and operate the jute mill at Manikchak from the factory premises for a period of 15 years with effect from 1/1/2023 as against the monthly rent of Rs.10.00 lakhs or 10% of net profit whichever is higher. On the basis of the said lease, the petitioner No.1 is operating the jute mill at the said factory premises. The petitioner No.1 submitted a representation on 8/2/2023 before the Jute Commissioner requesting him to incorporate the name of the petitioner No.1 and to issue PCSO's in favour of it from the month of February, 2023 in place and stead of the proforma respondent. The said representation was replied to by the respondent No.2 by a letter dtd. 20/2/2023 requiring the petitioner No.1 to furnish certain information/document for taking further action on the issue. The petitioners forwarded all the required/desired documents to the respondent No.1 by a forwarding letter dtd. 26/5/2023. In spite of receipt of all the documents, the respondent authorities failed and neglected to act on the basis of the petitioner's representation dtd. 8/2/2023 with the petitioner's letter dtd. 26/5/2023.