STATE OF BIHAR Vs. OSWAL CHEMICALS

JUDGEMENT

(1.) THE State of Bihar and its officers, namely, the Agriculture Production Commissioner and Director of Agriculture are the appellants and they have filed the present appeal under Clause 10 of the Letters Patent of the Patna High Court against the order dated 22 -6 -1999, passed by a learned Single Judge, by which, he has set aside the orders passed by the Ropistering authority and the appellate -authority under the provisions of the Fentnsosen (Control) Order, 1985, (hereinafter referred to as the 'Control Order), cancelling the certificate of registration granted to the respondents to carry on the business of selling fertiliser under E.C.A. quota as a wholesale dealer in the State of Bihar.

(2.) RESPONDENT No. 1 is a Company registered under the Companies Act and respondents No. 2 and 3 are the Director and employee of the said Company. They fifed for writ application for quashing the order dated 29 -3 -1999 passed by appellant No of the Agriculture Production Commissioner dismissing the appeal against the orders dated 18 -1 -1999 and 24 -2 -1999, passed by appellant No. 3 - Director of Agriculture, appointed as Registering Authority as well as Controller under the Control Order cancelling the Certificate of Registration granted to respondent No. 1 to sell the fertilisers as a wholesale dealer in the State of Bihar and the same has been quashed by the learned Single Judge as stated above.

(3.) THE Central Government under the provisions of the Control Order fixes the prices of urea and also makes allocation of urea to different States in different seasons. The Central Government is also empowered to issue direction to the manufacturer to sell the fertilisers produced by it in such quantity and in such States and within such period as may be specified thereunder. The Respondent -Company was directed to supply 90,000 M.T. of urea to the State of Bihar for the Rabi season 1998 -99 i.e. October 1998 to March, 1999. The Central Government, thereafter, issued different monthly movement orders under the provisions of the Fertiliser (Movement Control) Order, 1973 (hereinafter referred to as 'the Movement Control Order') for supply of urea by respondent -Company to the State of Bihar. Under Clause 3 of the Movement Control Order, direction was issued directing supply of quantity of urea mentioned therein to the State of Bihar. The movement order for the month October was issued on 30 -9 -1998. After receipt of such movement order/allocation order, the respondent -Company on 21 -10 -1998 submitted a District wise allocation of urea to the Director of Agriculture -cum -Controller of Fertiliser, who is also the Registering authority against the 90,000 M.T. of urea fertiliser allocated by the Central Government for the Rabbi season. According to the allocation issued to the respondent -Company, it was intended to make through its dealership network. A copy of the said letter was appended as Annexure 4 to the writ application.