DHANNA MAL SEHAJ RAM Vs. STATE OF PUNJAB

JUDGEMENT

(1.) IN this set of writ petitions the primary challenge is directed against the Wheat Dealers Licensing and Price Control (Fourth Amendment) Order, 1974, hereinafter referred to as the Fourth Amendment Order, and the acquisition of the stocks of wheat held by the petitioners thereunder.

(2.) IT suffices to advert to the facts in Civil Writ Petition No. 6372 of 1974. Therein it is averred on behalf of thirty-two petitioners that in the year 1973 the Central and the State Governments took up policy decision to take over the wholesale trade in wheat. Consequent thereto the Punjab Wheat Dealers Licensing and Price Control Order of 1973 was promulgated. This, in effect, excluded the wholesale dealers from trading in wheat. How- ever, certain difficulties were encountered in the implementation of the wheat trade take over policy and in March, 1974, again a policy decision to reverse the same was taken and in order to effectuate the same the State of Punjab issued the Punjab Wheat Dealers Licensing and Price Control (First Amendment) Order, dated the 18th of April, 1974. Thereby the wholesale dealers and retail dealers respectively were sought to be brought in the field of grain trade and definitions pertaining thereto were inserted in the order abovesaid. While certain limitations on the stocks of wheat which could be held by the different categories of, dealers were imposed, the quantity allowed to be held in store with the wholesale dealer was up to a maximum of 2,500 quintals at any one time. Simultaneously with the First Amendment Order the State Government also promulgated the Punjab Wheat Procurement (Levy) Order of 1974. It is the petitioners' case that the abovesaid two orders issued on the 18th of April, 1974, were made and issued under a scheme framed by the Government of India in consultation with the State Governments according to which the private dealers were again allowed to deal in the wholesale trade of wheat expressly on the condition that if they sold to the Government or its agency fifty per cent. of the stocks held by them or to be subsequently purchased by them at a fixed price of Rupees 105.00 per quintal, then they would be entitled to sell the remaining fifty per cent. in the open market or export it outside the State under export permits to be issued by the Director, Food and Supplies, Punjab. The relevant extract from the scheme issued by the Director, Food and Supplies, Punjab, Chandigarh, to all the District Food and Supplies Controllers in the State is Annexure 'p-1' to the petition.

(3.) THE method of purchase of wheat is averred to be in accordance with the provisions of the Punjab Agricultural Produce Marketing Act of 1961. Open auctions of various lots of wheat are held in the market yards and the highest bidder can purchase the quantities so put to auction. The petitioners' case is that the two semi-government corporations above were also purchasing wheat in stiff competition with them apart from the open rivalry between the private traders as well with the result that the petitioners have been purchasing wheat up to Rupees 130.00 per quintal. After delivery of the fifty per cent. of the stocks purchased to the Government the cost price of the levy free wheat in stock with the petitioners would come to be as high as Rs. 170.00 per quintal. An example of the cost price of free wheat when purchased at the rate of Rs. 127.00 per quintal is worked out in Annexure 'p3' to arrive at a figure of Rs. 167. 60 paise per quintal.