Full Judgment Text
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PETITIONER:
STATE OF ANDHRA PRADESH & ANR.
Vs.
RESPONDENT:
POTTA SANYASI RAO & ORS.
DATE OF JUDGMENT26/08/1975
BENCH:
GOSWAMI, P.K.
BENCH:
GOSWAMI, P.K.
ALAGIRISWAMI, A.
UNTWALIA, N.L.
CITATION:
1975 AIR 2030 1976 SCR (1) 423
1975 SCC (2) 480
ACT:
Essential Commodities Act, 1955, Ss. 2(a)(xi) and 5-
Delegation to State Government power to make Orders-
Declaration of commodity as essential thereafter-State
Government, if can exercise delegated power with respect to
such commodity.
HEADNOTE:
In June, 1966, the Central Government, in exercise of
the powers conferred by s. 5 of the Essential Commodities
Act, 1955. delegated its power to make Orders to the State
Governments with respect to certain matters specified in s.
3(2) in relation to all essential commodities other than
certain specified commodities. Tyres and Tubes were not
essential commodities under s. 2(a)(i) to (x), nor were they
declared to be essential commodities by the Central
Government under s. 2(a)(xi) at the time of the delegation;
but, subsequent to the delegation of the power to the State
Governments, certain types of tyres and tubes were declared
to be essential commodities under s. 2(a) (xi).
In exercise of the delegated power the State of Andhra
Pradesh issued the Andhra Pradesh Tyres and Tubes Dealers’
Licensing Order, 1973. The respondents, who are dealers in
tyres and tubes, challenged the validity of the Order on the
ground that the State Government had no power to issue an
Order with regard to tyres and tubes which were declared by
the Central Government to be essential commodities after the
delegation of powers to the State Government. The High Court
struck down the Order.
Allowing the appeal to this Court.
^
HELD : There is nothing in s. 5 to limit the power of
delegation in favour of the State Government only to the
commodities specified in s. 2(a)(i) to (x) or to those
commodities declared essential under s. 2(a)(xi) up to the
date of delegation. Delegation under s. 5 is a general
delegation and will enure in favour of exercise of power by
the State Government with respect to commodities declared
essential by the Central Government from time to time under
s. 2(a)(xi) even subsequent to the delegation. It is not
necessary that every time the Central Government declares an
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essential commodity, it has also to pass an order of
delegation with regard to that commodity. It will be
sufficient in law if on the date the State Government duly
empowered under s. 5, makes notification under s. 3 with
regard to an essential commodity within the meaning of s.
2(a) including the residuary cl. (xi) thereof. [425D- G]
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1408 of
1974.
Appeal by special leave from the Judgment and order
dated the 27th December, 1973 of the Andhra Pradesh High
Court at Hyderabad in Writ Petition No. 7413/73.
R. Ram Reddy and P. P. Rao, for the appellant.
Govind Das and Girish Chandra, for the respondent.
The Judgment of the Court was delivered by
GOSWAMI, J.-This appeal by special leave is directed
against the judgment of the Andhra Pradesh High Court
whereby the Andhra Pradesh Tyres and Tubes Dealers’
Licensing Order 1973 (briefly the Licensing Order) was
struck down as illegal and ultra vires.
424
A few facts which are material may first be noted.
By Notification S.O. 1844 dated June 18, 1966, the
Central Government in exercise of the powers conferred by
section 5 of the Essential Commodities Act, 1955 (briefly
the Act) directed "that the powers conferred on it by sub-
section (1) of section 3 of the said Act to make orders to
provide for the matters specified in clauses (d), (e), (f),
(g), (h), (i), (ii) and (j) of sub-section (2) thereof shall
in relation to all commodities other than foodstuffs and
fertilisers (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...."
Section 2(a) of the Act defines "essential commodity"
which means ten specified commodities and the residuary
clause (xi) thereof refers to-
"any other class of commodity which the Central
Government may, by notified order, declare to be an
essential commodity for the purposes of this Act, being
a commodity with respect to which Parliament has power
to make laws by virtue of entry 33 in List III in the
Seventh Schedule to the Constitution".
Tyres and tubes are not included in the ten specified
commodities in section 2(a). However, the Central Government
by three notified orders, namely, S.O. No. 2511 dated August
17, 1966, S.O. No. 2878 of August 22, 1968 and S.O. No. 85
dated January 3, 1969, declared cycle tyres and tubes, car
and tractor tyres and tubes and tyres of buses, vans,
trucks, etc. as essential commodities under section 2(a)
(xi).
The impugned Licensing Order was passed by the
Government of Andhra Pradesh on June 18, 1973 in exercise of
the powers conferred by sub-section (2) of section 3 of the
Act read with S.O. No. 1844 dated June 18, 1966 and with the
prior concurrence of the Central Government. The
respondents, who were dealers in tyres and tubes of buses,
trucks, jeeps, cars and other auto-vehicles, challenged the
validity of the Licensing Order on the ground that the State
Government had no power to issue the same with regard to
tyres and tubes which were declared by the Central
Government to be essential commodities subsequent to the
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delegation of powers to the State Government under section 5
which had been made earlier on June 18, 1966. Their
contention was accepted by the High Court and the Licensing
Order was struck down. Hence this appeal by special leave at
the instance of the State Government
The short question that arises for consideration is
whether the order of delegation of power by the Central
Government under section 5 enabling the State Government to
make orders or issue notifications under section 3 would
empower the State Government to
425
promulgate orders with regard to commodities which were
declared to be essential commodities by the Central
Government subsequent to the order of delegation.
Section 5 of the Act reads as follows:-
"The Central Government may, by notified order, direct
that the power to make orders or issue notifications
under section 3 shall, in relation to such conditions,
if any, as may be specified in the direction, be
exercisable also by-
(a) such officer or authority subordinate to the
Central Government, or
(b) such State Government or such officer or authority
subordinate to a State Government, as may be
specified in the direction."
There is nothing in section 5 to limit the power of
delegation in favour of the State Government only to the
commodities specified in section 2(a) or to those
commodities declared essential under section 2(a) (xi) upto
the date of delegation. Delegation under section 5 is a
general delegation and will enure in favour of exercise of
power by the State Government with respect to commodities
declared essential by the Central Government from time to
time under section 2(a)(xi) even subsequent to the order of
delegation. It is not necessary that every time the Central
Government declares an essential commodity it has also to
pass an order of delegation under section 5 with regard to
that commodity. Reading section 5 and section 3 together
there is no warrant for the view that the power of
delegation is confined to essential commodities specified
under the Act and such others as may be declared by the
Central Government upto the order of delegation. Delegation
of power to the State Government to act under section 3 is
not restricted to any specified essential commodity as such.
It will be sufficient in law if on the date the State
Government, duly empowered under section 5, makes a
notification under section 3 with regard to an essential
commodity within the meaning of section 2(a) including the
residuary clause (xi) thereof. All that is required is that
the commodity, on the date of the order of the State
Government, answers the description of the clauses in
section 2(a) of the Act. The fact that a commodity is
declared essential after the order of delegation does not
affect the exercise of power by the State Government under
section 3 of the Act. The High Court is, therefore, not
right in narrowly construing the order of delegation under
section 5 of the Act. The Licensing
426
Order is, therefore, not invalid on the ground that the
tyres and tubes were declared to be essential commodities by
the Central Government after the order of delegation under
section 5 of the Act.
In the result the appeal is allowed and the judgment of
the High Court is set aside. There will be, however, no
order as to costs.
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V.P.S. Appeal allowed.
427