G S SHARMA Vs. DEPUTY COMMISSIONER

JUDGEMENT

(1.) These two writ applications have been filed on behalf of the petitioners for a writ of mandamus on the respondents, directing them not to interfere with the transit and transport of coal or coke by the petitioners from the State of Bihar to different destinations in other States of India. It has been alleged that the petitioners procure coal and coke from different collieries situated in the State of Bihar and then they despatch them in gunny bags to different destinations, through railway. It is further their case that on 3.4.1978 and 7.4.1978 coal and coke packed in gunny bags, lying near Bhaga and Jharia Railway Stations in the district of Dhanbad for being transported to outside the State of Bihar, were seized at the instance of the District Supply Officer, Dhanbad, because, according to him, the petitioners, while despatching the coal and coke, were contravening the provisions of the Bihar Coal Control Order, 1956 (hereinafter referred to as the 'Bihar Order'). According to the petitioners the provisions of the said order are not applicable, as such the action of the respondents amounts to an arbitrary interference with the right of the petitioners to carry on trade and business. The questions involved in the two writ applications are the same, as such they were heard together with the consent of both the parties and are' being disposed of by a common judgment.

(2.) First, I propose to take up C.W.J.C. No. 178 of 1978 (R), which was heard as the main case. According to the petitioners the disposal of the stocks of coal raised in different States in India used to be regulated by Colliery Control Order, 1945 (hereinafter referred to as the 'Central Order*), which had been framed under the then Defence of India Rules and had remained in force by virtue of Section 16 of the Essential Commodities Act, 1955 (hereinafter referred to as the said Act). According to them this Central Order made provisions for regulating the storage, transport, distribution of coal throughout India. Later, the Central Government exempted some varities of coal from the applicability of restrictions made in the aforesaid Central Order. The petitioners were dealing in only those varieties of coal which had been exempted from all restrictions and as such on the relevant date there was no justification on the part of the repondents as to seize the different quantities of coal. In order to appreciate the arguments advanced on behalf of the petitioners some relevant provisions of the Central Order as well as the Bihar Order have to be referred to.

(3.) Under the Central Order, by Clause 4 the Central Government was authorised to fix the price of coal for different grades of coal which may be sold by the colliery owners. Under Clause 8 the Central Government could issue direction to any colliery owner regulating the disposal of his stocks of coal or of expected output of coal during any period and such colliery owner to whom a direction was given had to dispose of coal in accordance therewith. Under Clause 12A, the competent authorities were to be notified who could allot quotas of coal to any person or class of persons. Clause 12B provides that a person who has been allotted coal shall not use it otherwise than in accordance with the condition contained in the order of allotment. Clause 12D requires the person to whom coal is allotted to maintain records showing the quantity of coal allotted the quantity of coal consumed, etc. Clause 12E, which regulates the purchase and sale of coal is as follows: