OBEROI MOTORS Vs. UNION TERRITORY ADMINISTRATION CHANDIGARH

JUDGEMENT

(1.) BRIEFLY the case of the petitioner is that petitioner No. 2 is a partner of petitioner No. 1, which carries on the business of sale of automobile spare parts, tyres and tubes, at Chandigarh. On July 27, 1974, one Balbir Singh lodged a first information report against the petitioners to the effect that they were selling truck tyres in black market. A s REFERRED TO a consequence of the first information report, the house of petitioner No. 2 was searched by the police from where 11 truck tyres were recovered, which were taken into possession by the police. Petitioner No. 2 was arrested under section 7 of the Essential Commodities Act (hereinafter referred to as the Act) on the ground that he had violated the provisions of Chandigarh Motor Car and Tractor Tyres and Tubes Control Order, 1968 (hereinafter referred to as the 1968 Order) as amended by the Chandigarh Motor Car and Tractor Tyres and Tubes Control Order. 1968 (Chandigarh Ist Amendment) Order, 1973 (hereinafter referred to as the first Amendment Order), and another Order, called the Chandigarh Fixation of Retail Prices of Automobile Tyres and Tubes Control Order, 1971 (hereinafter referred to as the 1971 Order ). The petitioners have filed this writ petition praying that the clauses relating to the control of prices of automobile Tyres and Tubes in the 1968 Order and 1971 Order, be declared void and ultra vires of the powers of respondents Nos. 1 and 2 and be struck down, and the prosecution of petitioner NO. 2, on the basis of the aforesaid Orders, be set aside.

(2.) THE respondents have contested the writ petition but did not file any return. The writ petition came up for hearing before a Division Bench on April, 21, 1977. It referred the case for hearing before a Full Bench of five judges on the ground that the petitioners had challenged that the petitioners had challenged the vires and constitutional validity of the 1968 Order and 1971 Order.

(3.) ON June 18, 1966, the Central government acting under section 5 of the Act, made an order (Annexure P. 1) by which it delegated its powers to issue order under section 3 (1) to the State Government and in relation to the Union Territory, to the Administration. It was published in the Government of India Gazette of even date, which is as follows:-" S. O. No 1844.--In exercise of the powers conferred by S. 5 of the Essential Commodities Act 1955 (10 of 1955) the Central Government hereby directs. . . . . . . . . . . . . . . . . . (a) That the powers conferred on it by sub-section (1) of S. 3 of the said Act to make orders to provide for the matters specified in clauses (d), (e), (f), (g), (h), (i) and (ii) and (j) of Sub--Section (2) thereof shall in relation to all commodities other than food stuffs and fertilizers (whether inorganic, organic or mixed), be exercisable also by a State Government or, in relation to a Union Territory by the administrator thereof subject to the following conditions namely:- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . On December 27, 1968, the Chief Commissioner, Chandigarh made the 1968 Order which was published in the Government of India Gazette, dated 14-3-1969. This order was made by him under the powers conferred in him vide Annexure P. 1. The preamble of the Order is as follows:- "no. HI (2h)-68/46448--Whereas for maintaining supplies and securing equitable distribution and availability at fair prices of tyres and tubes of motor cars and tractors in the Union Territory of Chandigarh, the Chief Commissioner, Chandigarh, is of the opinion that it is necessary and expedient so to do. Now, therefore, in exercise of the powers conferred by S. 3 of the Essential Commodities Act, 1955 (10 of 1955), read with Government of India, Ministry of Commerce Order No. S. O. 1844, dated the 18th June, 1966, and all other powers enabling him in this behalf, the Chief Commissioner hereby makes the following order namely,- . . . . . . . . . . . . . . . . . . . . . . . . . . . .