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Commissioner of Civil Supplies and Consumer Affairs, Hyd. and Another Vs. Government of India and Another - Court Judgment

SooperKanoon Citation

Subject

Commercial;Contract

Court

Andhra Pradesh High Court

Decided On

Case Number

WA No. 1546 of 1998 and Batch

Judge

Reported in

2000(2)ALD578; 2000(1)ALT14

Acts

Pulses, Edible Oilseeds and Edible Oil (Storage Control) Order, 1977; Andhra Pradesh Scheduled Commodities Dealers (Licensing and Distribution) Order, 1982; Edible Oils (Storage Control) Amendment Order, 1987; Andhra Pradesh Foodgrains Dealers Licensing Order, 1963; Andhra Pradesh Foodgrains Dealers Licensing Order, 1964; Edible Oils (Regulation or Trade and Licensing) Order, 1978; Central Order, 1977 - Rule 3

Appellant

Commissioner of Civil Supplies and Consumer Affairs, Hyd. and Another

Respondent

Government of India and Another

Appellant Advocate

Government Pleader

Respondent Advocate

Mr. B. Adinarayana Rao, SC, ;Mr. S.R. Ashok and ;Mr. Vedula Srinivas, Advs.

Excerpt:


.....oilseeds and edible oil (storage control) order,1977 and a.p. scheduled commodities dealers (licensing and distribution) order, 1982 - central and state orders prescribes compulsory licensing for sale and storage of commodities mentioned thereunder - amendment of central order deleting edible oil and oilseeds from purview of order - held, in view of amendment of central order state cannot insist dealers to take license for edible oil and oilseeds under state order. - all india services act, 1951.sections 8 & 11 & a.p. buildings (lease, rent and eviction) control rules, 1961, rule 5: [v.v.s. rao, g. yethirajulu & g. bhavani prasad, jj] refusal by landlord to receive rent - deposit of rent in court - held, a tenant has the option to take recourse to section 8 in case of refusal or evasion by landlord to receive rent and if landlord were to not name a bank or refuse even the money order of rent, the tenant can deposit the rent in accordance with sub-rules (1) to (3) of rule 5. the notice to person entitled to rent and proper maintenance of accounts of such deposits under sub-rules (4) and (5) of rule 5 are solely dependent on compliance with sub-rule (3) by the tenant. the.....orderb. subhashan reddy, j.1. these four writ appeals are directed against the judgments in four writ petitions filed impugning the action of the state government in still requiring the obtaining of the licence for dealing in business of purchase and sale of edible oilseeds and edible oils.2. the writ appeals 1546 to 1549 of 1998 are directed against the writ petition nos.3816, 7753, 17987, 17979 of 1998 respectively.3. the matters are traceable to essential commodities act, 1955 and orders issued thereunder. essential commodities act is meant for control of production and supply and distribution of certain notified essential commodities. edible oilseeds and edible oils were among such notified essential commodities in the order issued by the state government in exercise of the power under section 3. one such order passed is 'pulses, edible oilseeds and edible oils (storage control) order, 1977'. 'dealer' is defined in clause (2-f) as 'a person engage in the business of purchase, sale or storage for sale of any pulses, edible oilseeds or edible oils, whether or not in conjunction with any other business and includes his representative or agent.' 'producer' is defined in clause.....

Judgment:


ORDER

B. Subhashan Reddy, J.

1. These four writ appeals are directed against the judgments in four writ petitions filed impugning the action of the State Government in still requiring the obtaining of the licence for dealing in business of purchase and sale of edible oilseeds and edible oils.

2. The Writ Appeals 1546 to 1549 of 1998 are directed against the Writ Petition Nos.3816, 7753, 17987, 17979 of 1998 respectively.

3. The matters are traceable to Essential Commodities Act, 1955 and orders issued thereunder. Essential Commodities Act is meant for control of production and supply and distribution of certain notified essential commodities. Edible oilseeds and edible oils were among such notified essential commodities in the order issued by the State Government in exercise of the power under Section 3. One such order passed is 'Pulses, Edible Oilseeds and Edible Oils (storage control) Order, 1977'. 'Dealer' is defined in clause (2-f) as 'a person engage in the business of purchase, sale or storage for sale of any pulses, edible oilseeds or edible oils, whether or not in conjunction with any other business and includes his representative or agent.' 'Producer' is defined in clause (2-j) as ' a person carrying on the business of milling any of the pulses or expelling, extracting, manufacturing or refining any edible oil (i) by buying pulses or edible oilseeds for being processed by himself and selling the finished products to a wholesaler or through a commission agent; or (ii) by doing any of the processes of milling, expelling, extracting or manufacturing or refining on behalf of another. Clause (2-(1)) defines 'Retailer' as 'a dealer in pulses or in edible oilseeds or in edible oils, who is not a wholesaler'. Under clause 2(n) 'wholesaler' means a dealer in pulses or in edible oilseeds or in edible oils who sells such commodities to other dealers or to bulk consumers. Clause (3) deals with licensing of dealer and producers which reads:

'Notwithstanding anything contained in any State order, no person shall carry on business as dealer after the expiration of a period of fifteen days from the coming into force of this clause or as a producer, after the expiry of a period of fifteen days from the date of coming into force of the Pulses Edible Oilseeds and Edible Oils (Storage Control) Amendment Order, 1987, in pulses or in edible oilseeds or in edible oil, expect under and in accordance with the terms and conditions of a licence granted under a State Order, if the stocks of pulses or edible oilseeds or edible oils in his possession exceeds the quantities specified below:'

Clause (4) reads:

'No dealer shall after a period of fifteen days from the coming into force of this clause, either by himself or by any person on his behalf store or have in possession at any time any pulses, edible oilseeds or edibleoils in excess of the quantities specified below.'

Clause (6) clarifies that the provisions of the State Orders relating to storage of pulses, edible oilseeds or edible oils shall apply in respect of any matter for which no provision has been specifically made in this order.

4. The respondents herein are the dealers in edible oilseeds and edible oils and hitherte they were holding licenses, but, their contentions is that since Central Government issued notification deleting the edible oil seeds or edible oils from the purview of Pulses, Edible Oilseeds and Edible Oils (Storage Control) Order, 1977, there is no requirement of obtaining of any licence for dealing in edible oilseeds and edible oils. The stand of the State government, who is the appellant herein, was that the Centra! Government Order of 1977 only pertains to storage of edible oilseeds and edible oils and is no way concerned with other aspects like distribution and transportation etc., and as such, the storage limits which were hitherto fixed in A.P. Scheduled Commodities Dealers' (Licensing and Distribution) Order, 1982 has been deleted and that other provisions like obtaining licences and maintaining accounts etc., need to be followed while dealing in edible oilseeds and edible oils. The contention putforth by the respondents i.e., the writ petitioners was upheld by the learned single Judge holding that once the edible oilseeds and edible oils are deleted from the Central Storage Order, 1977, the same is also liable to be carried out by the State, as per the directions issued by the Central Government dated 13-11-1997 and 23-12-1997 and consequently, edible oilseeds and edible oils wherever occuring in A.P. Scheduled Commodities Dealers (Licensing and Distribution) Order, 1982 stand deleted and that not only the restriction on stock limits, but also the licensing of the dealer and other requirements stand dispensed with. Aggrieved by the same, the Government has filed these writ appeals.

5. It is contended on behalf of the State that since there were separate orders for sugar, foodgrains and edible oilseeds and edible oils, namely (1) Andhra Pradesh Sugar Dealers Licensing Order, 1963 (2) The Andhra Pradesh Foodgrains Dealers Licensing Order, 1964 and the A.P. Edible Oilseeds and Edible Oils (Regulation or Trade and Licensing) Order, 1978, the Government thought it fit to consolidate all the orders into one and promulgated the A.P. Scheduled Commodities Dealers (Licensing and Distribution) Order, 1982 (hereinafter referred as 'A.P. Order, 1982) and that the said Order deals not only with the stock limits, but regarding other aspects like sale, purchase, maintenance of accounts, transportation and distribution etc. The Central Order of 1977 had to be understood that licence is required for other activities excepting the lifting of embarge on the stock limits of edible oilseeds and edible oils and that no omnibus direction ought to be issued by the learned single Judge that edible oilseeds and edible oils are to be taken away from the purview of the A.P. Order, 1982. The stand of the respondents is the same as was taken before the learned single Judge and they support the judgment contending that Central Government is the authority under Section 3 of the Act and it can delegate the power to the State Government and the delegate cannot exceed the power given by the Central Government and when the Central Government has done away with the licensing of edible oilseeds and edible oils, the State Government is not competent to retain the said commodities in the State Order, 1982 requiring a licence for activities other than storage limits.

6. If one goes by the caption or title of the Central Order i.e., Pulses, Edible Oilseeds and Edible Oils (Storage Control) Order, 1977, the contention of the appellants State has got to be accepted. But the captionor title of the Statute or the Orders made therein cannot govern the contents and for proper interpretation, the contents of the Statute and the Orders made thereunder have to be gone into. If Rule 3 of Central Order, 1977 was not to be therein, then straight away, the contention of the appellants-State has to be accepted. If the Central Order, 1977 was to deal only with storage limits of edible oilseeds and edible oils, then it would not have contained clause (3). A reading of clauses (3) and (4) of the Central Order, 1977 makes it clear that they operate in different fields i.e., clause (3) dealing with requirement of obtaining a licence subject to the person possession more than required limits of stock (which is meant for his personal consumption) both by the dealer and purchaser, clause (4) places a restriction on a dealer on his possession, at a time of the quantum of the edible oilseeds and edible oils by specifying the maximum limits. The distinction is obvious. Clause (3) deals with the business and clause (4) deals with storage beyond the maximum limits. Apart from this, there is yet another important circumstance to affirm the judgment of the learned single Judge. The State Government was labouring under misconception that it had power to fix the price, regulate the distribution and also movement of edible oilseeds and edible oils. For exercising such power, it depended on clause (12) of A.P. Order, 1982. In exercise of that power, when restrictions were placed on movement, distribution and also fixation of price by seeking levy, litigation ensued when traders filed writ petitions before this Court and a learned single Judge has ruled that there is no control regarding price, movement or distribution and the same was upheld by a Division Bench and further affirmed by the Supreme Court. The judgment rendered by the Supreme Court was in District Collector, Chittoor v. Chittoor District Groundnut Traders' Association, : [1989]1SCR243 , in which the Supreme Court had categorically held that there was no concurrence from the Central Government for the fixation of any price or placing restrictions on movement or distribution of edible oilseeds and edible oils ( in those cases, groundnuts was the subject matter). The only requirement being of liability to obtain licence in dealing with groundnuts, if the person was possessing more than the specified quantities of edible oilseeds and edible oils, and under the licence, to furnish returns regarding the storage limits and as the edible oilseeds and edible oils are now deleted from the purview of the Central Order, 1977, as a necessary corollary, the State Government is bound to obey the same and now cannot insist upon obtaining of licence by dealers or producers relating to edible oilseeds and edible oils.

7. In view of what is stated supra, we do not see any grounds to interfere in the order passed by the learned single Judge and accordingly dismiss these writ appeals, but, without costs.


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