NORTHBROOK JUTE CO. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) WRIT petition has been filed, inter alia, praying for issuance of production of control orders in favour of the petitioner no. 1/company, which carries on business in the manufacture and sale of jute and various jute products including B -Twill jute bags. The Central Government had enacted Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 (hereinafter referred to as the 'Packaging Act of 1987') for compulsory use of jute packaging material in the supply and distribution of certain commodities in the interests of production of raw jute and jute packing material.

(2.) IN terms of the aforesaid legislation as well as under the Jute and Jute Textiles Control Order, 2000 (hereinafter referred to as the 'Control Order') Jute Commissioner is entitled to issue requisition for jute bags from manufacturers of jute products/jute mill owners. It has been pleaded that the petitioner was manufacturing B -Twill jute bags and supplying the same as per such requisitions issued by the Jute Commissioner in favour of the jute mills owned by petitioner no. 1, company. It has also been pleaded that necessary undertakings for supply of such B -Twill jute bags have been submitted with the Jute Commissioner till date. It has been further pleaded that in an arbitrary manner the requisition of B -twill jute bags were gradually reduced in respect of the jute mills owned by the petitioner no. 1/company. In the month of June, 2014 an unfortunate incident occurred in the premises of one of the Jute Mills owned by the petitioner no. 1, company resulting in the death of one of its Managers allegedly at the hands of irate workmen. It appears that a criminal case has been registered with regard to the aforesaid incident. Owing to such circumstances beyond its control there was a temporary suspension of work in the concerned Jute Mill. It appears that pursuant to negotiation between the management and the operating unions on 30th June, 2014, the Jute Mill again commenced functioning from July, 2014. The Jute Commissioner issued monthly allotment chart of production control orders to various jute mills for the month of July, 2014. To the utter surprise of the petitioners it was noticed that no allotment of production control order have been made in favour of the petitioner no. 1 for the month of July, 2014. The petitioners requested the Jute Commissioner to issue control orders for the month of July, 2014 but to no effect. On the other hand, it appears that pursuant to inspections conducted in the mill premises of the petitioner no. 1, company by the officials of the Jute Commissioner it has been alleged by the latter that severe irregularities have been detected in the manufacture and sale of B -twill jute bags in violation of the directions issued by the Commissioner under the aforesaid Control Order. In this regard hearing was also given to the petitioner on 10th July, 2014. Notices had also been issued upon the petitioners to submit necessary documents in course of preliminary enquiry undertaken by the Jute Commissioner. It appears that notice dated 15th July, 2014 was issued by Jute Commissioner calling upon the petitioner to supply details of shipment within fifteen days from the date of issuance of letter failing which allocation of production of control order may be withheld. It has been pleaded that in view of such arbitrary withholding of production control orders, the petitioners have been put into a precarious condition as the running of the Jute Mill which is limping back to normalcy commenced functioning on and from 1st July, 2014 has received a severe blow. Accordingly, petitioners have approached this court, inter alia, for direction upon the respondent no. 2/Jute Commissioner to allot production control orders in favour of Jute Mill of petitioner no. 1/company in accordance with law. During pendency of this writ petition, notice dated 21.07.2014 has been issued upon the petitioner no. 1 calling upon it to appear before the office of the Jute Commissioner on 28th July, 2014 with all supportive documents in rebuttal to the allegations contained therein. A supplementary affidavit has been filed placing on record the said show -cause notice issued upon the petitioners.

(3.) MR . Chanda, learned senior counsel appearing for Union of India and learned counsel for Jute Commissioner submit that adequate opportunities were given to the petitioners in the course of investigation and enquiry. It is further submitted that unimpeachable materials collected during investigations show that the petitioners blatantly violated directions issued by Jute Commissioner under the Control Order. It is also submitted that the conditions prevailing the Jute Mill were not conducive to the manufacture and supply of jute bags. It is disputed that the respondent authorities have acted in an unfair manner or had already formed any opinion prejudicial to the interest of the petitioner prior to issuance of show cause notice. On the contrary, as the petitioners were unable to discharge their responsibilities under the Control Order, production control orders were withheld.