Neutral Citation Number: 2023:DHC:2375-DB
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment reserved on: 13 February 2023
Judgment pronounced on: 10 April 2023
+ LPA 742/2022 & CAV 462/2022, CM APPL. 56085/2022, CM
APPL. 56087/2022, CM APPL. 56088/2022
COMMISSIONER (FOOD SAFETY), GNCTD ..... Appellant
Through: Mr. Gautam Narayan,
Additional Standing Counsel
with Ms. Asmita Singh and Mr.
Harshit Goel, Advocates for
GNCTD.
versus
SUGANDHI SNUFF KING PVT. LTD. AND ORS.
..... Respondents
Through: Ms. C.S. Vaidyanathan, Dr.
Abhishek Manu Singhvi and
Mr. Vivek Kohli, Senior
Advocates, with Mr. Nalin
Tawar, Mr. Manoj Gupta, Mr.
Sunil Tyagi, Ms. Prerna Kohli,
Ms. Yeshi Rinchhen, Mr.
Vishnu Anand, Mr. Akash
Yadav, Mr. Harshit Mahalwal,
Mr. Juvas Rawal, and Mr.
Vinayak Goel, Advocates for
Respondents No.1 & 2.
Mr. Pavan Narang, Mr.
Himanshu Sethi, Ms.
Aishwarya Chhabra & Mr.
Shiven Khurana, Advocates for
S.K. Tobacco & Gandhi
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Tobacco.
Mr. Bhagvan Swarup Shukla,
CGSC with Mr. Sarvan Kumar,
Advocate for UOI.
+ LPA 748/2022 & CM APPL. 56613/2022, CM APPL.
56615/2022
UNION OF INDIA ..... Appellant
Through: Mr. Kirtiman Singh, CGSC
with Ms. Manmeet Kaur, Mr.
Waize Ali Noor, Ms. Vidhi
Jain, Mr. Prateek Dhanda, Mr.
Taha Yasin, Ms. Kunjala
Bhardwaj, Mr. Madhav Bajaj,
Mr. Yash Upadhyay, Ms.
Shreya Mehra and Mr. Ranjit
Singh, Advs. for UOI.
versus
SUGANDHI SNUFF KING PVT LTD & ORS. .... Respondents
Through: Ms. C.S. Vaidyanathan, Dr.
Abhishek Manu Singhvi and
Mr. Vivek Kohli, Senior
Advocates, with Mr. Nalin
Tawar, Mr. Manoj Gupta, Mr.
Sunil Tyagi, Ms. Prerna Kohli,
Mr. Sandeep Bhuraria, Ms.
Yeshi Rinchhen, Mr. Vishnu
Anand, Mr. Akash Yadav, Mr.
Harshit Mahalwal, Mr. Juvas
Rawal, Advocates for
Respondents No.1 & 2.
Mr. Pavan Narang, Mr.
Himanshu Sethi, Ms.
Aishwarya Chhabra & Mr.
Shiven Khurana, Advocates for
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Neutral Citation Number: 2023:DHC:2375-DB
S.K. Tobacco & Gandhi
Tobacco.
CORAM:
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE YASHWANT VARMA
J U D G M E N T
For ease of reference, refer the table as under:-
| A. | ESSENTIAL FACTS | Paras 1 – 15 |
|---|
| B. | THE REGULATORY REGIME | Paras 16-33 |
| C. | CONTENTIONS OF GNCTD | Paras 34 - 68 |
| D. | SUBMISSIONS ADDRESSED ON<br>BEHALF OF UOI | Paras 69 - 86 |
| E. | STAND OF THE WRIT<br>PETITIONERS | Paras 87-104 |
| F. | ENTRY 52 & DECLARATION OF<br>EXPEDIENCY | Paras 105- 117 |
| G. | COTPA AND FSSA-<br>FUNDAMENTAL TENETS | Paras 118-136 |
| H. | PURPORT OF IMPUGNED<br>NOTIFICATIONS | Paras 137 - 142 |
| I. | THE “TOBACCO AS FOOD”<br>QUESTION | Paras 143 - 151 |
| J. | POWER TO PROHIBIT UNDER<br>FSSA | Paras 152 - 160 |
| K. | CEASELESS INVOCATION OF<br>S.30(2)(a) | Para 161- 173 |
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| L. | THE ARTICLE 14 ARGUMENT | Para 174-175 |
|---|
| M. | POLICY AND JUDICIAL REVIEW | Para 176 – 182 |
| N. | PERIPHERAL ISSUES | Para 183 – 185 |
| O. | OPERATIVE DIRECTIONS | Para 186 |
A. ESSENTIAL FACTS
1. The Ministry of Health and Family Welfare in the Union
1
Government together with the Government of National Capital
2
Territory of Delhi have preferred the present appeals questioning the
correctness of the judgment dated 27 September 2022 rendered by a
learned Single Judge of the Court. The judgment came to be rendered
on a batch of writ petitions which had assailed the validity of a
Notification bearing No. F.1(3)DO- I/2012/10503-10521 dated 25
March 2015 passed by the Commissioner (Food Safety), GNCTD
prohibiting the manufacture, storage, distribution or sale of tobacco,
flavoured/scented, or mixed with any of the said additives and
described as gutka, pan masala, flavoured/scented tobacco, kharra or
otherwise called by any other name in its packaged or unpackaged
form and sold either separately or as one composite product in the
National Capital Territory.
2. Undisputedly, the aforesaid directive though originally
prescribed to prevail for a period of one year from the date of
publication of the said original notification had been extended from
1
Union Government
2
GNCTD
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time to time and supplemented by identical notifications issued over
the years. Those notifications shall for the sake of brevity be
hereinafter referred to as the “Impugned Notifications” . The original
notification of 25 March 2015 read as under: -
―(TO BE PUBLISHED IN THE DELHI GAZETTE PART IV
EXTRAORDINARY)
Department of Food Safety
Government of NCT of Delhi
th
8 Floor, Mayur Bhawan
Connaught Place, New Delhi-110001
TeLNo„23413488, e-mail ID: cfss.delhi@nic.in
No. F.1(3)/DO-I/2012/I0503-I0521 Dated: 25/3/15
NOTIFICATION
WHEREAS, Gutka, Pan Masala, Flavoured/Scented Tobacco,
Kharra and similar products containing tobacco by whatsoever
name called, cause damage to the health of consumer and their
adverse impact could also lead to alterations of the genetic make-
up of future generations;
WHEREAS, tobacco, whether flavoured, scented or mixed with
other ingredients such as heavy metals, anti-caking agents (except
to the extent specifically permitted as ingredients), silver leaf,
binders, flavours, scents, fragrances, prohibited chemicals, or any
one of these ingredients (the said ingredients are hereafter
collectively or individually, as the context requires, referred to as
"the said additives") are "food" under clause (j) of section 3 of the
Food Safety and Standards Act, 2006;
WHEREAS, the Central Government has prohibited products
containing tobacco and nicotine under regulation 2.3.4 of the Food
Safety and Standards (Prohibition and Restrictions on Sales)
Regulations, 2011 and anti-caking agents (beyond the extent
permitted) under regulation 3.1.7 of The Food Safety and
Standards (Food Products Standards and Food Additives)
Regulations, 2011;
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WHEREAS, the said food articles if consumed will endanger
human health and well-being and whereas if consumption of these
food articles is allowed without prohibition the well being of
current and future generations will be compromised;
WHEREAS, under the law and in the interest of public health,
Commissioner Food Safety is responsible for prohibiting in the
interest of public health the manufacture, storage, distribution or
sale of any article of food, and whereas the undersigned is duly
authorized under section 30(2)(a) of the Food Safety and Standards
Act, 2006, to make this order;
Therefore, in exercise of these powers conferred by clause (a) of
sub-section (2) of section 30 of the Food Safety and Standards Act,
2006, the undersigned, Commissioner (Food Safety), National
Capital Territory of Delhi, prohibit in the interest of public health
for a period of one year from the date of publication of this
Notification in the official gazette, in the National Capital Territory
of Delhi the manufacture, storage, distribution, or sale of tobacco
which is either flavoured, scented or mixed with any of the said
additives, and whether going by the name or form of gutka, pan
masala, flavoured/scented tobacco, kharra, or otherwise by
whatsoever name called, whether packaged or unpackaged and/or
sold as one product, or though packaged as separate products, sold
or
distributed in such a manner so as to easily facilitate mixing by the
consumer.
Sd/-
(K.K. JINDAL, IAS)
Commissioner (Food Safety)
Government of National Capital Territory of Delhi
No.F.1(3)/DO-I/2012/10503-10521 Dated:25/3/l5‖
3. The writ petitioners had assailed the validity of the aforesaid
notification on numerous grounds which have been duly noticed and
considered by the learned Single Judge in the impugned judgment.
The principal challenge, however, appears to have centered around the
provisions of the Cigarettes and Other Tobacco Products
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(Prohibition of Advertisement and Regulation of Trade and
3
Commerce, Production, Supply and Distribution) Act, 2003 and
which, according to the petitioners, conferred a right upon them to
undertake the manufacture, production, sale and distribution of pan
masala or any other chewing material having tobacco or gutka as one
of its ingredients . The writ petitioners also appear to have contended
4
that the Food Safety and Standards Act, 2006 was not liable to be
considered as an enactment empowering the respondents to pass
prohibitory orders impeding or impinging upon the rights conferred
upon the petitioners by COTPA. The writ petitioners also questioned
the validity of the prohibitory orders in light of the ‗declaration of
expediency‘ as embodied in COTPA and the expression of public
interest of the Union taking under its control the tobacco industry by
virtue of Entry-52 falling in List-I of the Seventh Schedule of the
Constitution.
4. For the purposes of appreciating the challenge which stood
raised before the learned Single Judge, it would be apposite to
reproduce the principal arguments and issues which stood framed in
the batch of writ petitions. The learned Single Judge had, upon
noticing the submissions addressed, identified the principal issues as
the following: -
― First one being the ― scope of the ‗declaration of expediency‘
relating to the ‗Food Industry‘ under Section 2 of the FSSA .
Another question for consideration before this Court is the ―trade
3
COTPA
4
FSSA
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and commerce in, manufacture of, supply and distribution of
Tobacco covered under the term ‗Food Industry‘‖.
Second , ―Once COTPA occupies the entire domain- cradle to
grave- for tobacco; can FSSA encroach upon an ―Occupied
Field‖?
Third , ― the enactment of FSSA (in 2006) does not in any manner
impinge upon the enforceability of the COTPA (enacted in 2003)
which continues to be applicable and in force. There is no
―express‖ or ―implied‖ repeal of the COTPA by the FSSA‖.
Fourth , ―A prior ‗special law‘ (COTPA) would prevail over a
later ‗general law‘ (FSSA)‖.
Fifth , ――Food‖ as defined under the FSSA does not include
tobacco within its ambit or scope.‖
Sixth , that ―the scope, intent and purpose of the FSSA is to
establish and regulate the standards for Food. The power to
regulate the standards for Food. The power to regulate does not
include in its ambit the power to prohibit. In any case, the power to
prohibit does not vest in the Food Commissioner at all. The
distribution of powers amongst the: (i) Union; (ii) State; and (iii)
the Statutory authorities- Food Safety Authority and Food
Commissioner; clearly indicates that the Food Commissioner
cannot take the decision to prohibit and that too permanently‖.
Seventh , that ―the assessment, analysis, management and
communication of ―Risk‖ under and in terms of FSSA and the
mandatory procedure in terms of Section 18 has not been followed
demonstrating that the same has not even been considered in the
present case, let alone be followed‖.
Eighth , ―Section 30(2)(a) confers a very temporary power to
address urgent and emergency circumstances. It cannot be used to
―ban‖ or ―prohibit‖ a product or trade in a product. In any case,
temporary power cannot be perpetuated by an unfounded and
unscrupulous exercise year after year‖.
Ninth , ―Article 47 does not deal with tobacco. In fact, tobacco was
specifically left out of the purview of Article 47 after a debate in
the Constituent Assembly‖.
Tenth , ―Article 14- discrimination between Smokeless Tobacco
and Smoking Tobacco‖. ‖
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5. On due consideration of the aforenoted submissions, the learned
Single Judge proceeded to record the following conclusions: -
― 238. Considering the submissions made and documents and
judgments relied by the parties and in view of the detailed
discussion and reasoning mentioned herein above, this Court is of
the considered view that:
(a) The impugned Notifications passed by the Commissioner of
Food Safety in view of Regulation 2.3.4 in exercise of powers
under Section 30(2)(a), is beyond the scope of powers conferred
upon him by the FSSA.
(b) The COTPA is a comprehensive legislation dealing with the
sale and distribution of scheduled tobacco products and therefore,
occupies the entire field relating to tobacco products. Therefore,
the COTPA, being a special law, occupies the entire field for
tobacco and tobacco products and would prevail over the FSSA
which is a general law.
(c) It has never been the intention of the Parliament to impose an
absolute ban on manufacture, sale, distribution and storage of
tobacco and/or tobacco products. However, the intention of the
Parliament is to regulate the trade and commerce of tobacco and
tobacco products in accordance with the COTPA, a Central Act
which deals with tobacco industry.
(d) The doctrine of implied repeal has no application to the present
case as the FSSA and the COTPA occupy different fields i.e., the
former applies to the "food industry" while the latter applies to the
"tobacco industry". Therefore, the FSSA does not impliedly repeal
the provisions of the COTPA.
(e) Tobacco cannot be construed as "food" within the meaning of
the provisions of FSSA.
(f) Section 30(2)(a) of the FSSA has to be read in consonance with
Section 18 of the FSSA. The power under Section 30(2)(a) is
transitory in nature and the Commissioner of Food Safety can issue
prohibition orders only in emergent circumstances after giving an
opportunity of being heard to the concerned food operator(s). The
impugned Notifications, however, have been issued by Respondent
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No.1 year after year in a mechanical manner without following the
general principles laid down under Section 18 and 30(2)(a) of the
FSSA, which is a clear abuse of the powers conferred upon him
under the FSSA.
(g) The classification sought to be created between smokeless and
smoking tobacco for justifying the issuance of the impugned
Notifications is clearly violative of Article 14 of the Constitution.‖
6. The learned Single Judge has firstly proceeded to examine the
scope of the FSSA. The Court ultimately came to conclude that while
the FSSA may empower the food safety authorities to establish
standards for quality of food, it would not include within its purview
the power to prohibit the manufacture, sale, storage and distribution of
tobacco and this more so when tobacco products are enlisted in the
Schedule of products to be regulated by COTPA. Dealing with the
aforesaid issue, the learned Single Judge has held as follows: -
― 189. The FSSA is an Act to consolidate all laws relating to ―food‖
and to establish the FSSAI for laying down science-based
standards for articles of food. As per the Preamble of the FSSA, the
purpose of the FSSA is to provide safe, wholesome and
unadulterated food to consumers. The Statement of Objects and
Reasons of COTPA states that it is an Act for regulation of trade
and commerce in, and production, supply and distribution of,
cigarettes and ―other tobacco products and for matters connected
therewith‖.
190. The power to establish standards of quality for goods under
the FSSA would not include within its purview the power to
―prohibit‖ the ―manufacture, sale, storage and distribution‖ of any
goods, moreover, when the goods sought to be prohibited pertain to
the scheduled tobacco products under the COTPA.
191. The Hon‘ble Supreme Court in the case of Himat Lal K. Shah
(supra) has explicitly held that the power to regulate does not
normally include the power to prohibit. A power to regulate
implies the continued existence of that which is to be regulated. In
view of ratio laid down by Himat Lal (supra) and bare perusal of
the entire scheme of the FSSA, it is apparent that power to frame
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Regulations does not include the power to prohibit manufacture,
distribution, storage and sale of a product.‖
7. Turning then to the provisions of Regulation 2.3.4 of the Food
Safety and Standards (Prohibition and Restrictions on Sales)
Regulations, 2011 , the learned Single Judge observes that the intent
of Regulation 2.3.4 is not to prohibit but to merely restrict the use of
tobacco and nicotine as ingredients in food products. According to the
learned Single Judge, Regulation 2.3.4 cannot be read as empowering
the food safety authorities to regulate tobacco itself. The learned
Judge accordingly proceeded to hold that the regulation of tobacco
would be governed exclusively by the provisions of COTPA. This is
evident from the following extract of the impugned judgment: -
― 193. On the bare perusal of Regulation 2.3.4, it is apparent that
the intention is not to prohibit but restrict the use of tobacco or
nicotine as ingredients in any food product. In the considered view
of this Court, the language of Regulation 2.3.4 does not suggest
regulating manufacture, distribution, storage or sale of tobacco or
nicotine but amounts to regulating standards of food within the
purview of the FSSA. Therefore, what has to be regulated under
Regulation 2.3.4 is food without tobacco and not tobacco itself
which is a scheduled item under the COTPA, which has to
accordingly be regulated under the provisions of COTPA.‖
8. Proceeding further on the aforesaid subject, the learned Single
Judge came to the following conclusion: -
― 196. In view of the aforementioned, the impugned Notifications
passed by the Commissioner of Food Safety in view of Regulation
2.3.4 in exercise of powers under Section 30(2)(a), in so far as they
prohibit the use of tobacco and nicotine with respect to scheduled
tobacco products covered under the COTPA, are beyond the scope
of powers conferred by the FSSA.‖
9. Turing then to the question of declaration of expediency and
noticing that both COTPA as well as FSSA embodied the intent of the
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Union to take under its control the tobacco and food industries, the
learned Single Judge held as follows: -
― 197. Section 2 of FSSA provides that it is expedient in public
interest that the Union should take under its control the food
industry, whereas Section 2 of COTPA provides that it is expedient
in the public interest that the Union should take under its control
the tobacco industry. On a comparative reading of the
aforementioned provisions, it can be seen that the FSSA concerns
―food industry‖ and the COTPA relates to the ―tobacco industry‖.
It is pertinent to note that in view of Entry 52 of List I, the
Parliament has assumed to itself the legislative power to legislate
upon tobacco and food industry. The declaration under Section 2 of
FSSA purporting to take over the ―food industry‖ cannot cover
tobacco within its ambit as the same has already been covered
under the ―tobacco industry‖ with the enactment of the COTPA.
198. The COTPA was enacted by the Parliament under Entry 52
of List I to Schedule VII of the Constitution and once the
Parliament chooses to exercise its competence in terms of Entry 33
of List III, it may take over the entire gamut of activities. The
power of State Legislatures to enact laws relating to ‗Trade and
Commerce within the State‘ and ‗Production, supply and
distribution of goods‘ under Entry 26 and Entry 27 of List II is
subject to Entry 33 of List III, which enables the Parliament to
legislate with respect to the aforesaid matters in relation to the
tobacco industry amongst others. When the COTPA was enacted
under Entry 52 of List I read with Entry 33 of List III, the
Parliament took under its control the tobacco industry thereby
denuding the States to legislate qua the scheduled tobacco products
covered under COTPA. Therefore, once the Parliament has
exercised power under Entry 52 of List I in order to take the entire
tobacco industry under its control, the State Legislatures are not
competent to enact laws on the said subject.
199. The COTPA is a comprehensive, self-contained, seamless
legislation dealing with the sale and distribution of scheduled
tobacco products and therefore, occupies the entire field relating to
tobacco products. FSSA, on the other hand, is a general legislation.
Admittedly, the impugned Notifications have been issued by
Respondent No.1 as an executive action under the garb of
Regulation 2.3.4 in exercise of power conferred by Section
30(2)(a) of the FSSA. Therefore, the FSSA cannot override
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COTPA which is a Central Act enacted solely for the purposes of
regulation of tobacco and its products.
200. The COTPA is a special enactment dealing with tobacco
and exclusively and comprehensively deal with tobacco and
tobacco products. As held in the case of Godawat Pan Masala
(supra), COTPA is a special Act intended to deal with tobacco and
tobacco products, while the PFA is a general enactment, therefore,
the COTPA overrides the provisions of the PFA with regard to the
power to prohibit the sale or manufacture of tobacco products
which are listed in the Schedule of the COTPA. In Godawat Pan
Masala (supra), the Hon‘ble Supreme Court further held that
COTPA is a special Act intended to deal with tobacco and tobacco
products and hence it will override Section 7(iv) of the PFA. The
relevant portion, inter alia , reads as follows:
―The provisions of the Cigarettes and Other Tobacco
Products (Prohibition of Advertisement and Regulation of
Trade and Commerce, Production, Supply and Distribution)
Act, 2003 are directly in conflict with the provisions of
Section 7(iv) of the Prevention of Food Adulteration Act,
1954. The former Act is a special Act intended to deal with
tobacco and tobacco products particularly, while the latter
enactment is a general enactment. Thus, the Act 34 of 2003
being a special Act, and of later origin, overrides the
provisions of Section 7(iv) of the Prevention of Food
Adulteration Act, 1954 with regard to the power to prohibit
the sale or manufacture of tobacco products which are listed
in the Schedule to the Act 34 of 2003‖
202. Even the COTPA does not ban the sale and distribution of
tobacco and tobacco products except for imposition of certain
conditions and various checks and balances to regulate the
advertisement and sale thereof. Furthermore, whether an article is
to be prohibited as res extra commercium is a matter of legislative
policy and must arise out of an Act of the Legislature and not
merely by a Notification issued by an executive authority. Thus,
the trade, sale and distribution of tobacco is permissible subject to
certain restrictions imposed under the COTPA and the same has
only been regulated and not prohibited.
205. Considering the aforesaid, it clearly emerges that the FSSA
is an Act to consolidate the laws relating to food and for laying
down science-based standards for articles of food and to regulate
their manufacture, storage, distribution, sale and import to ensure
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safe and wholesome food for human consumption and incidental
matters. Whereas the COTPA is a comprehensive legislation which
deals with advertisement, trade, sale and distribution of tobacco
and tobacco products. The Union Government assumed control to
legislate with regard to both the food industry and the tobacco
industry, therefore, it is certain that at the time of enactment of the
FSSA, the Legislature was not only aware and conscious of the
existence of the COTPA, which was enacted in 2003 but made
various rules under the COTPA and carried out multiple
amendments in provisions and rules framed thereunder even after
the enactment of the FSSA in 2006.
206. Accordingly, it can be observed that the COTPA, being a
‗special law‘, occupies the field for tobacco and tobacco products
and would prevail over the FSSA which is a ‗general law‘.‖
10. Proceeding further, the learned Single Judge took up for
consideration the question of whether FSSA could be said to have
impliedly repealed COTPA. It ultimately came to conclude that, since
both FSSA and COTPA occupy distinct fields, the former cannot be
said to have impliedly repealed the provisions of COTPA.
11. One of the principal issues which appears to have been urged
for the consideration of the learned Single Judge was whether tobacco
products could be termed as ―food‖. Taking note of the divergent
views which had been expressed by different High Courts on the said
question, the learned Single Judge observed as under: -
― 218. In addition to the aforesaid, Regulation 2.3.4 prescribes that
tobacco and nicotine shall not be used as ingredients in any food
products. The said regulation has been framed under the FSSA,
admittedly to regulate standards of food within the ambit of the
FSSA and in the considered view of this Court, cannot be said to
regulate standards and/or manufacture and sale of tobacco. In fact,
the Food Safety and Standards (Food Products Standards and Food
Additives) Regulations, 2011, does not define tobacco, because no
standards can be possibly laid down for tobacco, which further
reinforces the fact that tobacco is not ―food‖. If ―tobacco‖ is
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construed and interpreted as ―food‖ within the meaning of FSSA,
then intent/objective with which Regulation 2.3.4 is framed (i.e., to
regulate standards of food under the FSSA) would be rendered
redundant. Moreover, such an interpretation would be in complete
contravention of the provisions of the FSSA, which is a
comprehensive legislation dealing with the food industry.
219. It is further worthwhile to note that Regulation 2.3.4
prohibits use of tobacco and nicotine as ingredients in food
products thereby regulating the standards for ―food‖ and not
standards or trade in ―tobacco‖. Hence, the said Regulation cannot
be said to be in conflict with any of the provisions of the COTPA.
The said Regulation merely lays down general principle for food
safety and cannot in any manner be read to construe that ―tobacco‖
is ―food‖ within the meaning of the FSSA.
220. After considering the arguments advanced and the
judgments relied by the parties,―food‖ as defined in the FSSA does
not include tobacco within its ambit or scope and therefore,
tobacco cannot be termed as ―food‖ within the meaning of the
FSSA.‖
12. The learned Single Judge then took up for consideration the
question of whether Section 30(2)(a) of the FSSA could be recognized
as empowering the Commissioner (Food Safety) to pass a prohibitory
order and which could be extended to operate beyond a period of one
year. Proceeding to rule on the aforesaid issue, the learned Single
Judge held as follows: -
― 221. In terms of Section 30(2)(a) of the FSSA, the power to
prohibit conferred upon the Commissioner of Food Safety was
limited and subjected to the product sought to be prohibited, being
an article of food in the whole of the state or any area or part
thereof upto a maximum period of one year. Thus, the power to
prohibit so conferred was temporary in nature.
222. Perusal of Section 30(2)(a) of the FSSA exhibits various
principles with regard to issuance of prohibition order by the
Commissioner of Food Safety under the said provision, which are
as follows: (a) the manufacture, sale, distribution and storage of a
food article may be prohibited in the whole or a part of the State
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only in emergent circumstances in the interest of public; (b) the
tenure of such a prohibitory order is temporary in nature and
cannot exceed one (1) year in its entirety; (c) the issuance of order
be passed/continued only after compliance of the principles of
natural justice; and (d) the prohibition must indicate the name and
brand name of the food business operator.
223. It is further a settled position of law that there is a
requirement of giving a reasonable opportunity of being heard, in
compliance of the principles of natural justice, before making an
order, which would have adverse civil consequences for the parties
affected.
224. Section 18 of the FSSA lays down the general principles
that have to be mandatorily followed in administration of the Act.
In order for a prohibition to be exercised, alternative policies are to
be evaluated; interested parties are to be consulted and risk
analysis, risk assessment and risk management has to be
ascertained; interested parties are consulted qua factors relevant for
protection of health; and appropriate prevention/control options are
selected, besides compliance of other principles as laid down under
Section 18 of the FSSA. Moreover, the use of the word ―shall‖ in
Section 18 of the FSSA clearly demonstrates its mandatory nature
of the procedure to be followed. Accordingly, the powers conferred
upon the Commissioner of Food Safety have to be exercised
subject to compliance of mandatory principles as prescribed under
Section 18 of the FSSA.
225. However, it is pertinent to mention that in the present case,
no compliance under Section 30(2)(a) read with Section 18 of the
FSSA has been undertaken before issuance of the impugned
Notifications by Respondent No.1. At the outset, no risk analysis,
risk assessment or risk management has been made in the present
case. Further, there has been no reference to emergent
circumstances which led to issuance/passing of the impugned
Notifications. In fact, no opportunity of being heard has been
provided to the stakeholders who would be adversely affected by
such prohibitory order i.e., issuance of the impugned Notifications.
226. In this regard, it has been discussed in the case of Omkar
Agency (supra):
―26. The question, now, is : whether before making an order
under Section 30, the Commissioner is required to comply
with the principles of natural justice?
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27. In Olga Tellis v. Bombay Municipal Corporation,
reported in (1985) 3 SCC 545, a Constitution Bench of
Supreme Court had the occasion to deal with the provisions
of Section 314 of the Bombay Municipal Corporation Act,
1888. It was held by the Supreme Court that Section 314
confers on the Commissioner the discretion to cause an
encroachment to be removed with or without notice. That
discretion has to be exercised in a reasonable manner so as
to comply with the constitutional mandate that the procedure,
accompanying the performance of a public act, must be fair
and reasonable. The Court must lean in favour of this
interpretation, because it helps sustain the validity of the law.
It was further held, in Olga Tellis (supra), that it must further
be presumed that, while vesting the Commissioner with the
power to act without notice, the Legislature intended that the
power should be exercised sparingly and, in cases of
urgency, which brook no delay. In all other cases, no
departure from the audi alteram partem rule could be
presumed to have been intended. On the provisions of Section
314, the Supreme Court held, in Olga Tellis (supra), that it is
so designed as to exclude the principles of natural justice by
way of exception and not as a general rule. There are
situations, which demand the exclusion of the rules of natural
justice by reason of diverse factors like time, place, the
apprehended danger and so on. The ordinary rule, which
regulates all procedure, is that persons, who are likely to be
affected by the proposed action, must be afforded an
opportunity of being heard as to why that action should not
be taken. The hearing may be given individually or
collectively depending upon the facts of each situation. A
departure from this fundamental rule of natural justice may
be presumed to have been intended by the Legislature only in
circumstances, which warrant it. Such circumstances must be
shown to exist, when so required, the burden being upon
those, who affirm their existence.
28. The relevant observations, appearing in Olga Tellis
(supra), are being reproduced herein as follows;
para 44―… (the said section) confers on the
Commissioner the discretion to cause an encroachment
to be removed with or without notice. That discretion
has to be exercised in a reasonable manner so as to
comply with the constitutional mandate that the
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procedure accompanying the performance of a public
act must be fair and reasonable. (The Court) must lean
in favour of this interpretation because it helps sustain
the validity of the law.‖
para 45…―It must further be presumed that, while
vesting in the Commissioner the power to act without
notice, the Legislature intended that the power should
be exercised sparingly and in cases of urgency which
brook no delay. In all other cases, no departure from
the audi alteram partem rule (‗Hear the other side‘)
could be presumed to have been intended. Section 314
is so designed as to exclude the principles of natural
justice by way of exception and not as a general rule.
There are situations which demand the exclusion of the
rules of natural justice by reason of diverse factors like
time, place the apprehended danger and so on. The
ordinary rule which regulates all procedure is that
persons who are likely to be affected by the proposed
action must be afforded an opportunity of being heard
as to why that action should not be taken. The hearing
may be given individually or collectively, depending
upon the facts of each situation. A departure from this
fundamental rule of natural justice may be presumed to
have been intended by the Legislature only in
circumstances which warrant it. Such circumstances
must be shown to exist, when so required, the burden
being upon those who affirm their existence.‖
29. Relying on the aforesaid observations made in the case of
Olga Tellis (supra),the Supreme Court, in the case of C.B.
Gautam v. Union of India, reported in (1993) 1SCC 78, has
held that it must, however, be borne in mind that courts have
generally read into the provisions of the relevant sections a
requirement of giving a reasonable opportunity of being
heard before an order is made, which would have adverse
civil consequences for the parties affected. This would be
particularly so in a case, where the validity of the section
would be open to a serious challenge for want of such an
opportunity.
30. In the case of Godawat Pan Masala v. Union of India,
reported in (2004) 7 SCC 68, the Supreme Court repelled the
contention put forward by the State of Maharashtra that the
impugned notifications being a legislative act, there was no
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question of complying with the principles of natural justice.
The Supreme Court, in Godawat Pan Masala (supra), held
that if such arguments were to be accepted, then, every
executive act could masquerade as a legislative act and
escape the procedural mechanism of fair play and natural
justice. In this regard, reliance was placed on the case of
State of T.N. v. K. Sabanayagam, (1998) 1 SCC 318, wherein
it has been observed that even when exercising a legislative
function, the delegate may, in a given, case be required to
consider the viewpoint, which may be likely to be affected by
the exercise of power.
31. As pointed out, in K. Sabanayagam (supra), a conditional
legislation can be broadly classified into three categories:
a. when the legislature has completed its task of enacting a
statute, the entire superstructure of the legislation is ready
but its future applicability to a given area is left to the
subjective satisfaction of the delegate.
b. where the delegate has to decide whether and under what
circumstances a legislation, which has already come into
force, is to be partially withdrawn from operation in a given
area or in given cases so as not to be applicable to a given
class of persons who are otherwise admittedly governed by
the Act; and
c. where the exercise of conditional legislation would depend
upon satisfaction of the delegate on objective facts placed by
one class of persons seeking benefit of such an exercise with
a view to deprive the rival class of persons, who, otherwise,
might have already got statutory benefits under the Act and
who are likely to lose the existing benefit, because of exercise
of such a power by the delegate.
32. The Supreme Court emphasised, in K. Sabanayagam
(supra), that in the third type of cases, the satisfaction of the
delegate must necessarily be based on objective
considerations and, irrespective of the fact as to whether the
exercise of such power involves a judicial or quasi-judicial
function, it has to be nonetheless treated a function, which
requires objective consideration of relevant factual data
pressed into service by one side, which could be rebutted by
the other side, who would be adversely affected if such
exercise of power is undertaken by the delegate.
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33. In view of the above reasoning, the following facts
emerge with respect to the issuance of prohibition orders
under Section 30(a) of the Food Act:—
a. Before passing of the order, there must be emergent
circumstances based on objective materials that in the
interest of public health, the manufacture, storage,
distribution or sale of any article of food, either in the whole
of the State or any area or part thereof, be prohibited;
b. The tenure of the prohibitory order has to be temporay in
nature and must not exceed 1 (one) year in its entirety; now,
any extension of the prohibitory order would amount to
virtually and effectively making a legislation by executive
fiat;
c. The principle of audi alteram partem applies in exercise of
powers under Section 30(a) and the aggrieved persons
should be heard before continuing with theprohibition order;
and
d. Since the prohibition is with reference to a food business
operator, the prohibition must indicate the name of food
business operator and also the brand name, if any, under
which the food business is carried out.‖
227. Section 30(2)(a) clearly stipulates that the maximum period
for which such prohibitory order may be passed is not more than
one (1) year. However, it has been noted that the impugned
Notifications under challenge in the present case have been issued
year after year in a mechanical manner without following the
general principles laid down under Section 18 and 30(2)(a) of the
FSSA, which is a clear abuse of the powers conferred upon the
Commissioner of Food Safety under the FSSA. This clearly
amounts to be an act which only the Legislature is entitled to
exercise and no such power has been vested in the Commissioner
of Food Safety in terms of the provisions of the FSSA. Thus, it is
clear that Respondent No.1 has clearly exceeded its power and
authority in issuance of the impugned Notifications in
contravention of the powers conferred upon him under the FSSA.‖
13. The writ petitioners further appear to have assailed the 2015
notification on the ground that it had resorted to an irrational and
arbitrary discrimination between smoking and smokeless tobacco.
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The writ petitioners had essentially asserted that bearing in mind the
deleterious effect of both those categories of tobacco products on
public health, there existed no justification for a prohibition having
been imposed in respect of smokeless tobacco alone. The aforesaid
submission found favour with the learned Single Judge who ultimately
came to record as under: -
― 228. It has been argued on behalf of the Petitioners that the
Respondents are purporting to ban an artificially created sub-
category of tobacco, namely, ‗smokeless tobacco‘ which includes
chewing tobacco, pan masala, gutka, etc.and other scheduled
tobacco products listed under the COTPA. However, there appears
to be no rational nexus to the object sought to be achieved by the
impugned Notifications prohibiting manufacture, storage, sale and
distribution of smokeless tobacco products. Admittedly, the object
sought to be achieved by the said prohibitory order(s) in the nature
of the impugned Notifications, is ―public health‖. However, there
is no justification whatsoever for making such a differentiation in
smokeless and smoking tobacco, which may be different in their
forms but are no different in terms of their impact on public health.
It is worthwhile to note that the COTPA, which is the Central Act
governing the tobacco industry, does not make any such distinction
between smokeless and smoking tobacco under its Schedule.
229. In the light of the aforesaid observations, it is apparent that the
said classification/distinction between smokeless and smoking
tobacco has no connection with the object sought to be achieved by
the impugned Notifications. In fact, the said discrimination which
is being promoted by the impugned Notifications encourages
smoking tobacco over smokeless tobacco, thereby being not only
clearly discriminatory but in violation of Article 14 of the
Constitution.
230. Further, the impugned Notifications have purportedly being
issued in the garb of Regulation 2.3.4 which bars the usage of
tobacco and nicotine in any food article. However, admittedly,
tobacco and nicotine are not only found in smokeless tobacco but
also in smoking tobacco, which has conveniently been excluded
from the rigours of the impugned Notifications. Therefore, there is
no justification for the classification between smokeless and
smoking tobacco sought to be created by the impugned
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Notifications issued by the Respondents. Moreover, the prohibition
imposed by virtue of the impugned Notifications by discriminating
between smokeless and smoking tobacco does not fall under
reasonable restrictions on exercise of fundamental rights under
Article 19(6) of the Constitution.
231. It has further been argued on behalf of the Petitioners that the
burden of proof rests upon the Respondents to justify that the
creation of an artificial sub-classification within tobacco products,
i.e., smokeless and smoking tobacco, bears a clear or reasonable
nexus to the object sought to be achieved by the impugned
Notifications i.e., public interest. However, considering the
arguments and submissions advanced by the Respondents, this
Court is of the view that the said burden has not been sufficiently
discharged by the Respondents, which makes the said
classifications/ distinctions falling short of passing the test of
Article 14 of the Constitution. Consequently, there is no nexus with
the object sought to be achieved by the impugned Notifications, so
as to justify a valid classification under Article 14 of the
Constitution.
232. In view of the detailed arguments advanced on behalf of the
parties and for the explanation and the reasons as discussed herein
above, this Court is of the considered view that the classification
sought to be created between smokeless and smoking tobacco is
clearly violative of Article 14 of the Constitution.‖
14. The appellants appear to have founded the impugned
notification and the imperatives for issuance of the prohibitory orders
in light of the various orders passed by the Supreme Court in Ankur
5
Gutka v Indian Asthma Care Society & Ors and Central
Arecanut & Cocoa Marketing and Processing Co-operative Ltd .
It was their submission that the impugned notification came to be
promulgated in order to give effect to the directives issued by the
Supreme Court in the aforenoted matters and which had led to various
States in the country prohibiting the distribution and sale of gutka and
5
SLP No. 16308 of 2007
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pan masala with tobacco and/or nicotine. While dealing with this
aspect, the learned Single Judge has held as follows: -
― 234. It is to be noted that it has been submitted before the Hon‘ble
Supreme Court in the matter of Ankur Gutka (supra) and Central
Arecanut (supra) that notwithstanding the complete ban imposed
on Gutka and Pan Masala with tobacco and/or nicotine in such
States, the manufacturers have devised a subterfuge for selling
Gutka and Pan Masala in separate pouches and the ban is being
flouted in this manner. In view of the interim directions issued by
the Hon‘ble Supreme Court, it is clear that compliance of the ban
imposed on manufacturing and sale of Gutka and Pan Masala with
tobacco and/or nicotine has to be ensured. Even though the main
matter(s) is pending adjudication, the aforesaid direction passed by
the Hon‘ble Supreme Court is in line with Regulation 2.3.4 as it
directs ―for compliance of the ban imposed on manufacturing and
sale of Gutkha and Pan Masala with tobacco and/or nicotine‖. The
essence of Regulation 2.3.4 is to prohibit use of tobacco and
nicotine as ingredients in any food products and not prohibit the
manufacture and sale of tobacco and/or nicotine per se. In view
thereof, the present case is distinguishable as it relates to chewing
tobacco in itself and not with Gutka and Pan Masala with tobacco
and/or nicotine.‖
15. The writ petitions ultimately came to be allowed with the
impugned notifications being quashed and the learned Single Judge
coming to conclude that the Commissioner (Food Safety) had not only
exceeded the power and the authority conferred upon him under the
FSSA but also in contravention thereof. Before proceeding to notice
the submissions, which were addressed on these appeals, the Court
deems it apposite to notice the relevant statutory provisions as it is in
the backdrop of those provisions that the challenge would ultimately
have to be evaluated.
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B. THE REGULATORY REGIME
16. COTPA came to be promulgated by Parliament in 2003. The
Preamble of COPTA reads as follows: -
An Act to prohibit the advertisement of, and to provide for the
―
regulation of trade and commerce in, and production, supply and
distribution of, cigarettes and other tobacco products and for
matters connected therewith or incidental thereto.
WHEREAS, the Resolution passed by the 39th World
Health Assembly (WHO), in its Fourteenth Plenary meeting held
on the 15th May, 1986 urged the member States of WHO which
have not yet done so to implement the measures to ensure that
effective protection is provided to non-smokers from involuntary
exposure to tobacco smoke and to protect children and young
people from being addicted to the use of tobacco;
AND WHEREAS, the 43rd World Health Assembly in its
Fourteenth Plenary meeting held on the 17th May, 1990, reiterated
the concerns expressed in the Resolution passed in the 39th World
Health Assembly and urged Member States to consider in their
tobacco control strategies plans for legislation and other effective
measures for protecting their citizens with special attention to risk
groups such as pregnant women and children from involuntary
exposure to tobacco smoke, discourage the use of tobacco and
impose progressive restrictions and take concerted action to
eventually eliminate all direct and indirect advertising, promotion
and sponsorship concerning tobacco;
AND WHEREAS, it is considered expedient to enact a
comprehensive law on tobacco in the public interest and to protect
the public health;
AND WHEREAS, it is expedient to prohibit the
consumption of cigarettes and other tobacco products which are
injurious to health with a view to achieving improvement of public
health in general as enjoined by article 47 of the Constitution;
AND WHEREAS, it is expedient to prohibit the
advertisement of, and to provide for regulation of trade and
commerce, production, supply and distribution of, cigarettes and
other tobacco products and for matters connected therewith or
incidental thereto:……. ‖
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17. Section 2 embodies the expression of intent of the Union
Government referable to Entry-52 falling in List-I of the Seventh
Schedule. That provision reads as under: -
― 2. Declaration as to expediency of control by the Union –It is
hereby declared that it is expedient in the public interest that the
Union should take under its control the tobacco industry‖
18. Sections 4 and 5 of COTPA carry the prohibitions placed by the
Legislature in respect of smoking in public places and advertisement
of cigarettes and other tobacco products. Those provisions are set out
hereinbelow: -
― 4. Prohibition of smoking in a public place– No person shall
smoke in any public place:
Provided that in a hotel having thirty rooms or a restaurant having
seating capacity of thirty persons or more and in the airports, a
separate provision for smoking area or space may be made.‖
5. Prohibition of advertisement of cigarettes and other tobacco
products .– (1) No person engaged in, or purported to be engaged in
the production, supply or distribution of cigarettes or any other
tobacco products shall advertise and no person having control over
a medium shall cause to be advertised cigarettes or any other
tobacco products through that medium and no person shall take
part in any advertisement which directly or indirectly suggests or
promotes the use or consumption of cigarettes or any other tobacco
products.
(2) No person, for any direct or indirect pecuniary benefit, shall–
(a) display, cause to display, or permit or authorise to
display any advertisement of cigarettes or any other tobacco
product; or
(b) sell or cause to sell, or permit or authorise to sell a film
or video tape containing advertisement of cigarettes or any other
tobacco product; or
(c) distribute, cause to distribute, or permit or authorise to
distribute to the public any leaflet, hand-bill or document which is
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or which contains an advertisement of cigarettes or any other
tobacco product; or
(d) erect, exhibit, fix or retain upon or over any land,
building, wall, hoarding, frame, post or structure or upon or in any
vehicle or shall display in any manner whatsoever in any place any
advertisement of cigarettes or any other tobacco product:
Provided that this sub-section shall not apply in relation to–
(a) an advertisement of cigarettes or any other tobacco
product in or on a package containing cigarettes or any other
tobacco product;
(b) advertisement of cigarettes or any other tobacco product
which is displayed at the entrance or inside a warehouse or a shop
where cigarettes and any other tobacco products are offered for
distribution or sale.
(3) No person, shall, under a contract or otherwise promote or
agree to promote the use or consumption of–
(a) cigarettes or any other tobacco product; or
(b) any trade mark or brand name of cigarettes or any other
tobacco product in exchange for a sponsorship, gift, prize or
scholarship given or agreed to be given by another person.‖
19. Sections 6 and 7 of COTPA embody the prohibition with
respect to sale of cigarettes to person below 18 years of age and the
restrictions statutorily imposed on production, supply and distribution
of cigarettes and other tobacco products and those being subject to the
pictorial warnings which must be carried compulsorily. Those two
provisions read as follows: -
― 6. Prohibition on sale of cigarette or other tobacco products to
a person below the age of eighteen years and in particular
area. –No person shall sell, offer for sale, or permit sale of,
cigarette or any other tobacco product–
(a) to any person who is under eighteen years of age, and
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(b) in an area within a radius of one hundred yards of any
educational institution.
7. Restrictions on trade and commerce in, and production,
supply and distribution of cigarettes and other tobacco
products.– (1) No person shall, directly or indirectly, produce,
supply or distribute 6 cigarettes or any other tobacco products
unless every package of cigarettes or any other tobacco products
produced, supplied or distributed by him bears thereon, or on its
label [such specified warning including a pictorial warning as may
be prescribed.]
(2) No person shall carry on trade or commerce in
cigarettes or any other tobacco products unless every package of
cigarettes or any other tobacco products sold, supplied or
distributed by him bears thereon, or on its label, the specified
warning.
(3) No person shall import cigarettes or any other tobacco
products for distribution or supply for a valuable consideration or
for sale in India unless every package of cigarettes or any other
tobacco products so imported by him bears thereon, or on its label,
the specified warning.
(4) The specified warning shall appear on not less than one
of the largest panels of the package in which cigarettes or any other
tobacco products have been packed for distribution, sale or supply
for a valuable consideration.
(5) No person shall, directly or indirectly, produce, supply
or distribute cigarettes or any other tobacco products unless every
package of cigarettes or any other tobacco products produced,
supplied or distributed by him indicates thereon, or on its label, the
nicotine and tar contents on each cigarette or as the case may be on
other tobacco products along with the maximum permissible limits
thereof:
Provided that the nicotine and tar contents shall not exceed the
maximum permissible quantity thereof as may be prescribed by
rules made under this Act.‖
20. Sections 8 and 9 then set forth the statutory requirement of
printing specific warnings on packages containing tobacco products,
along with the language in which such warnings are to be expressed.
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Section 10 prescribes the size of letters and the figures in which the
specified warnings are to be displayed on the packaging. COTPA also
envisages the establishment of a testing laboratory which may be
granted recognition by the Union and charged with the task of testing
the nicotine and tar contents in cigarettes and other tobacco products.
Sections 13 and 14 of COTPA embody the coercive measures which
the competent authorities under the enactment are entitled to adopt in
case of a violation of its provisions. Sections 20, 21, 22 of COTPA
provide for various punishments for violation of the provisions of the
said Act.
21. Tobacco products are those which are specified in the Schedule
in terms of Section 3 (p) . The said Schedule reads as under: -
―1. Cigarettes
2. Cigars
3. Cheroots
4. Beedis
5. Cigarette tobacco, pipe tobacco and hookah tobacco
6. Chewing tobacco
7. Snuff
8. Pan masala or any chewing material having tobacco as one of its
ingredients (by whatever name called).
9. Gutka
10. Tooth powder containing tobacco.‖
22. Turning then to the FSSA, the Court firstly deems it apposite to
refer to its Statement of Objects and Reasons which reads thus: -
“STATEMENT OF OBJECTS AND REASONS
1. Multiplicity of food laws, standard setting and
enforcement agencies pervades different sectors of food, which
creates confusion in the minds of consumers, traders,
manufacturers and investors. Detailed provisions under various
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laws regarding admissibility and levels of food additives,
contaminants, food colours, preservatives, etc., and other related
requirements have varied standards under these laws. The
standards are often rigid and non-responsive to scientific
advancements and modernisation. In view of multiplicity of
laws, their enforcement and standard setting as well as various
implementing agencies are detrimental to the growth of the
nascent food processing industry and is not conducive to
effective fixation of food standards and their enforcement.
2. In as early as in the year 1998, the Prime Minister's
Council on Trade and Industry appointed a Subject Group on
Food and Agro Industries, which had recommended for one
comprehensive legislation on Food with a Food Regulatory
Authority concerning both domestic and export markets. Joint
Parliamentary Committee on Pesticide Residues in its report in
2004 emphasized the need to converge all present food laws and
to have a single regulatory body. The Committee expressed its
concern on public health and food safety in India. The Standing
Committee of Parliament on Agriculture in its 12th Report
submitted in April, 2005 desired that the much needed
legislation on Integrated Food Law should be expedited.
3. As an on going process, the then Member-Secretary, Law
Commission of India, was asked to make a comprehensive
review of Food Laws of various developing and developed
countries and other relevant international agreements and
instruments on the subject. After making an indepth survey of
the International scenario, the then Member-Secretary
recommended that the new Food Law be seen in the overall
prospective of promoting nascent food processing industry given
its income, employment and export potential. It has been
suggested that all acts and orders relating to food be subsumed
within the proposed Integrated Food Law as the international
trend is towards modernisation and convergence of regulations
of Food Standards with the elimination of multi-level and multi-
departmental control. Presently, the emphasis is on (a)
responsibility with manufacturers, (b) recall, (c) Genetically
Modified and Functional Foods, (d) emergency control, (e) risk
analysis and communication and (f) Food Safety and Good
Manufacturing Practices and Process Control viz ., Hazard
Analysis and Critical Control Point.
4. In this background, the Group of Ministers constituted by
the Government of India, held extensive deliberations and
approved the proposed Integrated Food Law with certain
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| modifications. The Integrated Food Law has been named as The | | |
|---|
| Food Safety and Standards Bill, 2005. The main objective of the | | |
| Bill is to bring out a single statute relating to food and to | | |
| provide for a systematic and scientific development of Food | | |
| Processing Industries. It is proposed to establish the Food Safety | | |
| and Standards Authority of India, which will fix food standards | | |
| and regulate/monitor the manufacturing, import, processing, | | |
| distribution and sale of food, so as to ensure safe and | | |
| wholesome food for the people. The Food Authority will be | | |
| assisted by Committees and Panels in fixing standards and by a | | |
| Central Advisory Committee in prioritization of the work. The | | |
| enforcement of the legislation will be through the State | | |
| Commissioner for Food Safety, his officers and Panchayati | | |
| Raj/Municipal bodies. | | |
| 5. The Bill, Inter alia, incorporates the salient provisions of | | |
| the Prevention of Food Adulteration Act, 1954 (37 of 1954) and | | |
| is based on international legislations, instrumentalities and | | |
| Codex Alimentaries Commission (which related to food safety | | |
| norms). In a nutshell, the Bill takes care of international | | |
| practices and envisages on overarching policy framework and | | |
| provision of single window to guide and regulate persons | | |
| engaged in manufacture, marketing, processing handling, | | |
| transportation, import and sale of food. The main features of the | | |
| Bill are: | | |
| (a) movement from multi-level and multi-departmental | |
| control to integrated line of command; | |
| (b) integrated response to strategic issues like | |
| novel/genetically modified foods, international trade; | |
| (c) licensing for manufacture of food products, which | |
| is presently granted by the Central Agencies under various | |
| Acts and Orders would stand decentralized to the | |
| Commissioner of Food Safety and his officer; | |
| (d) single reference point for all matters relating to | |
| Food Safety and Standards, regulations and enforcement; | |
| (e) shift from mere regulatory regime to self- | |
| compliance through Food Safety Management Systems; | |
| (f) responsibility on food business operators to ensure | |
| that food processed, manufactured, imported or distributed | |
| is in compliance with the domestic food laws; and | |
| (g) provision for graded penalties depending on the | |
| gravity of offence and accordingly, civil penalities for | |
| minor offences and punishment for serious violations. | |
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6. The abovesaid Bill is contemporary, comprehensive and
intends to ensure better consumer safety through Food Safety
Management Systems and setting standards based on science
and transparency as also to meet the dynamic requirements of
Indian Food Trade and Industry and International trade.
The Bill seeks to achieve the aforesaid objectives.‖
23. As would be evident from the Preamble of the FSSA, it is an
Act essentially aimed at consolidating laws relating to food and to
6
establish the Food Safety and Standards Authority of India for
laying down science-based standards for articles of food and to
regulate their manufacture, storage, distribution, sale and import. The
principal objective of the Act is to facilitate food safety and to ensure
availability of safe and wholesome food for human consumption and
for matters connected therewith. The FSSA also carries a declaration
referable to Entry 52 falling in List I of the Seventh Schedule and the
said declaration stands embodied in Section 2 thereof. The Act came
to be promulgated on 23 August 2006. However, its various
provisions were enforced from different dates. For the purposes of
evaluating the challenge which stands raised in the present appeals, it
would be appropriate to refer to the following definitions as set out in
Section 3 of the FSSA: -
“3 . Definitions . – (1) In this Act, unless the context otherwise requires,–
(j) ―food‖ means any substance, whether processed,
partially processed or unprocessed, which is intended for
human consumption and includes primary food, to the
extent defined in clause (ZK) genetically modified or
engineered food or food containing such ingredients,
infant food, packaged drinking water, alcoholic drink,
chewing gum, and any substance, including water used
6
FSSAI
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into the food during its manufacture, preparation or
treatment but does not include any animal feed, live
animals unless they are prepared or processed for placing
on the market for human consumption, plants, prior to
harvesting, drugs and medicinal products, cosmetics,
narcotic or psychotropic substances:
Provided that the Central Government may declare, by
notification in the Official Gazette, any other article as
food for the purposes of this Act having regards to its
use, nature, substance or quality;
(k) ―food additive‖ means any substance not normally
consumed as a food by itself or used as a typical
ingredient of the food, whether or not it has nutritive
value, the intentional addition of which to food for a
technological (including organoleptic) purpose in the
manufacture, processing, preparation, treatment, packing,
packaging, transport or holding of such food results, or
may be reasonably expected to result (directly or
indirectly), in it or its by-products becoming a
component of or otherwise affecting the characteristics
of such food but does not include ―contaminants‖ or
substances added to food for maintaining or improving
nutritional qualities;
(y) ―ingredient‖ means any substance, including a food
additive used in the manufacture or preparation of food
and present in the final product, possibly in a modified
form;
(zw) ―substance‖ includes any natural or artificial substance
or other matter, whether it is in a solid state or in liquid
form or in the form of gas or vapour;‖
24. Section 18 of the Act sets out the general principles to be borne
in mind by appropriate governments as well as the FSSAI while
implementing the provisions of the Act. The said provision reads as
under: -
“18. General principles to be followed in administration of
Act .–The Central Government, the State Governments, the Food
Authority and other agencies, as the case may be, while
implementing the provisions of this Act shall be guided by the
following principles namely:–
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(1) (a) endeavour to achieve an appropriate level of
protection of human life and health and the protection of
consumer‘s interests, including fair practices in all kinds
of food trade with reference to food safety standards and
practices;
(b) carry out risk management which shall include taking
into account the results of risk assessment and other
factors which in the opinion of the Food Authority are
relevant to the matter under consideration and where the
conditions are relevant, in order to achieve the general
objectives of regulations;
(c) where in any specific circumstances, on the basis of
assessment of available information, the possibility of
harmful effects on health is identified but scientific
uncertainty persists, provisional risk management
measures necessary to ensure appropriate level of health
protection may be adopted, pending further scientific
information for a more comprehensive risk assessment;
(d) the measures adopted on the basis of clause (c) shall be
proportionate and no more restrictive of trade than is
required to achieve appropriate level of health protection,
regard being had to technical and economic feasibility and
other factors regarded as reasonable and proper in the
matter under consideration;
(e) the measures adopted shall be reviewed within a
reasonable period of time, depending on the nature of the
risk to life or health being identified and the type of
scientific information needed to clarify the scientific
uncertainty and to conduct a more comprehensive risk
assessment;
(f) in cases where there are reasonable grounds to suspect
that a food may present a risk for human health, then,
depending on the nature, seriousness and extent of that
risk, the Food Authority and the Commissioner of Food
Safety shall take appropriate steps to inform the general
public of the nature of the risk to health, identifying to the
fullest extent possible the food or type of food, the risk
that it may present, and the measures which are taken or
about to be taken to prevent, reduce or eliminate that risk;
and
(g) where any food which fails to comply with food safety
requirements is part of a batch, lot or consignment of food
of the same class or description, it shall be presumed until
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the contrary is proved, that all of the food in that batch, lot
or consignment fails to comply with those requirements.
(2) The Food Authority shall, while framing regulations or
specifying standards under this Act– (a) take into account–
(i) prevalent practices and conditions in the
country including agricultural practices and
handling, storage and transport conditions; and
(ii) international standards and practices, where
international standards or practices exist or are in the
process of being formulated,
unless it is of opinion that taking into account of
such prevalent practices and conditions or international
standards or practices or any particular part thereof would
not be an effective or appropriate means for securing the
objectives of such regulations or where there is a scientific
justification or where they would result in a different level
of protection from the one determined as appropriate in
the country;
(b) determine food standards on the basis of risk analysis
except where it is of opinion that such analysis is not
appropriate to the circumstances or the nature of the case;
(c) undertake risk assessment based on the available
scientific evidence and in an independent, objective and
transparent manner;
(d) ensure that there is open and transparent public
consultation, directly or through representative bodies
including all levels of panchayats, during the preparation,
evaluation and revision of regulations, except where it is
of opinion that there is an urgency concerning food safety
or public health to make or amend the regulations in which
case such consultation may be dispensed with:
Provided that such regulations shall be in force for not
more than six months;
(e) ensure protection of the interests of consumers and
shall provide a basis for consumers to make informed
choices in relation to the foods they consume;
(f) ensure prevention of–
(i) fraudulent, deceptive or unfair trade practices
which may mislead or harm the consumer; and
(ii) unsafe or contaminated or sub-standard food.
(3) The provisions of this Act shall not apply to any
farmer or fisherman or farming operations or crops or
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livestock or aquaculture, and supplies used or produced in
farming or products of crops produced by a farmer at farm
level or a fisherman in his operations.‖
25. The Impugned Notifications which had been assailed before the
learned Judge were asserted to have been promulgated by virtue of the
powers conferred upon the Commissioner of Food Safety of
respective State Governments. Those powers, as spelt out in Section
30, would be evident from the following extract of that provision: -
“30. Commissioner of Food Safety of the State . –
( 1) The State Government shall appoint the Commissioner of
Food Safety for the State for efficient implementation of food
safety and standards and other requirements laid down under this
Act and the rules and regulations made thereunder.
(2) The Commissioner of Food Safety shall perform all or
any of the following functions, namely:–
(a) prohibit in the interest of public health, the
manufacture, storage, distribution or sale of any
article of food, either in the whole of the State or any
area or part thereof for such period, not exceeding
one year, as may be specified in the order notified in
this behalf in the Official Gazette;
(b) carry out survey of the industrial units engaged
in the manufacture or processing of food in the State
to find out compliance by such units of the standards
notified by the Food Authority for various articles of
food;
(c) conduct or organise training programmes for the
personnel of the office of the Commissioner of Food
Safety and, on a wider scale, for different segments
of food chain for generating awareness on food
safety;
(d) ensure an efficient and uniform implementation
of the standards and other requirements as specified
and also ensure a high standard of objectivity,
accountability, practicability, transparency and
credibility;
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(e) sanction prosecution for offences punishable
with imprisonment under this Act;
(f) such other functions as the State Government
may, in consultation with the Food Authority,
prescribe.
(3) The Commissioner of Food Safety may, by Order,
delegate, subject to such conditions and restrictions as may be
specified in the Order, such of his powers and functions under this
Act (except the power to appoint Designated Officer, Food Safety
Officer and Food Analyst) as he may deem necessary or
expedient to any officer subordinate to him.‖
26. Section 89 confers an overriding effect on the provisions of the
FSSA over all other food related laws. That section reads thus: -
“89. Overriding effect of this Act over all other food related
laws . –The provisions of this Act shall have effect
notwithstanding anything inconsistent therewith contained in any
other law for the time being in force or in any instrument having
effect by virtue of any law other than this Act.‖
27. Since the principal controversy which stands raised centers
upon Regulation 2.3.4 of the Food Safety and Standards
7
(Prohibition and Restrictions on Sales) Regulations, 2011 , the
same is extracted hereinbelow: -
“2.3.4 : Product not to contain any substance which may be
injurious to health: Tobacco and nicotine shall not be used as
ingredients in any food products.‖
28. Pan masala as a food article is regulated by virtue of the
provisions contained in Regulation 2.11 titled ‗Other Food Products
and Ingredients‘ and forming part of the Food Safety and Standards
7
Prohibition Regulations 2011
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8
(Food Products Standards and Food Additives) Regulations 2011 .
Regulation 2.11.5 which specifically deals with the aforesaid food
article reads as follows: -
―2.11.5 Pan Masala means the food generally taken as such or
in conjunction with Pan, it may contain;—
Betelnut, lime, coconut, catechu, saffron, cardamom, dry
fruits, mulethi, sabnermusa, other aromatic herbs and spices,
sugar, glycerine, glucose, permitted natural colours, menthol and
non prohibited flavours.
It shall be free from added coaltar colouring matter and
any other ingredient injurious to health.
It shall also conform to the following standards namely:—
Total ash Not more than 8.0
per cent by weight
(on dry basis)
Ash insoluble in dilute HCl acid Not more than 0.5
per cent by weight
(on dry basis)‖
29. It would also be pertinent to notice some of the salient
9
provisions of the Prevention of Food and Adulteration Act 1954
as its stood before it came to be repealed by FSSA. The word ‗food‘
was defined under the aforesaid enactment in Section 2(v) as follows:-
“Section -2(v)
(v) "food" means any article used as food or drink for human
consumption other than drugs and water and includes—
(a) any article which ordinarily enters into, or is used in
the composition or preparation of, human food,
(b) any flavouring matter or condiments, and
8
Food Products Regulations 2011
9
PFA
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| (c) any other article which the Central Government may, | |
|---|
| having regard to its use, nature, substance or quality, | |
| declare, by notification in the Official Gazette, as food | |
| for the purposes of this Act;‖ | |
| | |
10
Products I.P. Ltd. & Anr. v. Union of India & Ors. , the Supreme
Court had been called upon to consider the jurisdiction of the Food
Health Authority to prohibit sale of food articles. The aforesaid action
of the Food Health Authority and the powers exercised were examined
in the backdrop of Section 7 of the said Act. That provision as carried
in the repealed enactment read as follows: -
“Section-7. Prohibition of manufacture, sale, etc. of certain
articles of food :-
No person shall himself or by any person on his behalf,
manufacture for sale or store, sell or distribute-
(i) any adulterated food,
(ii) any misbranded food,
(iii) any article of food for the sale of which a licence is
prescribed, except in accordance with the conditions of the
licence;
(iv) any article of food the sale of which is for the time being
prohibited by the Food (Health) Authority [in the interest of
public health;]
(v) any article of food in contravention of any other provision
of this Act or of any rule made thereunder, [or]
(vi) any adulterant.
Explanation. - - For the purpose of this section, a person shall be deemed
to store any adulterated food or misbranded food or any article of food
referred to in clause (iii) or clause (iv) or clause (v) if he stores such food
for the manufacture therefrom of any article of food for sale.‖
10
(2004) 7 SCC 68
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31. While the Court would be dealing with the decision in Godawat
in greater detail in the latter parts of this decision, it may, at this stage,
only be noted that one of the questions which stood formulated was
whether pan masala could be construed as ―food‖. That question was
unequivocally answered in the affirmative with the Court rejecting the
contention that pan masala could not be said to fall within the ambit of
Section 2(v) of the PFA. The orders issued by the Food Health
Authority however came to be set aside with the Supreme Court
noting that the notifications issued were ultra vires the Act,
unconstitutional and void. The Supreme Court while arriving at that
conclusion had held that Section 7(iv) of the PFA was not an
independent source of power which could be availed of or invoked by
the State authorities. It found that the power of the State Food Health
Authority could have been exercised only under the relevant Rules
which stood framed. It is also pertinently observed that the powers so
conferred on the Food Health Authority was transitory in nature and
that the power to prohibit or ban an article of food was one which
stood vested exclusively in the Union Government in light of the
provisions contained in Section 23(1-A)(f) of the PFA.
32. Post the decision which came to be rendered in Godawat , Rule
44J came to be inserted in the Prevention of Food Adulteration
11
Rules 1955 . That provision read as under: -
11
1955 Rules
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― 44J . Product not to contain any substances which may be
injurious to health. - Tobacco and nicotine shall not be used as
ingredients in any food products.‖
33. Pan Masala as an article of food was regulated in accordance
with the Clause A.30 falling in Appendix B of the 1955 Rules. The
said clause is extracted hereinbelow: -.
“A.30 -PAN MASALA means the food generally taken as such
or in conjunction with Pan, it may contain -
Betelnut, lime, coconut, catechu, saffron, cardamom, dry
fruits, mulathi, sabermusa, other aromatic herbs and spices,
sugar, glycerine, glucose, permitted natural colours, menthol and
non-prohibited flavours.
It shall be free from added coal tar colouring matter, and
any other ingredient injurious to health.
It shall also conform to the following standards, namely:-
Total ash.-Not more than 8.0 per cent by weight (on dry
basis).
Ash insoluble in dilute hydrochloric acid. - Not more
than 0.5 per cent by weight (on dry basis).‖
C. CONTENTIONS OF GNCTD
34. Leading the challenge in the present appeals, Mr. Gautam
Narayan, learned ASC appearing for the GNCTD, addressed the
following submissions. Mr. Narayan, at the outset, submitted that the
writ petitioners as well as the learned Single Judge clearly erred in
construing the Impugned Notifications as being directed towards the
manufacture, storage and sale of tobacco. Learned counsel submitted
that the Impugned Notifications were never intended to either regulate
or prohibit either pure tobacco or raw tobacco. Learned counsel laid
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emphasis on the fact that the notifications sought to prohibit the sale
of tobacco which is flavoured, scented or mixed with other
ingredients. It was his submissions that tobacco when mixed with
flavoring or scenting agents or other ingredients clearly falls within
the definition of food as contemplated under the FSSA. Learned
counsel submitted that the primary objective of the Impugned
Notifications was to enforce and implement the prohibition on sale of
flavoured or scented tobacco and to address the modus adopted by the
writ petitioners and other similar manufacturers of making available
for sale chewing tobacco in a pouch separated from pan masala and to
thereby defeat the ban on gutka. This ban, according to Mr. Narayan,
was sought to be circumvented by selling the aforenoted two products
in separate sachets/packets and sometimes as a composite
combination.
35. Mr. Narayan submitted that the moment tobacco is mixed with
pan masala, it would clearly fall foul of Regulation 2.3.4. It was
contended that it was the aforesaid fact which weighed upon the
appellants to issue the Impugned Notifications. Mr. Narayan further
submitted that the Impugned Notifications themselves came to be
promulgated in order to effect compliance with the orders passed by
the Supreme Court in Ankur Gutka and Central Arecanut . Learned
counsel drew the attention of the Court to the order dated 07
December 2010 passed in Ankur Gutka where amongst various other
directions, the Supreme Court called upon the Solicitor General to
require the National Institute of Public Health to undertake a
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comprehensive analysis and study with respect to the contents of
gutka, tobacco, pan masala and similar articles being manufactured in
the country and the harmful effects of consumption thereof.
36. The relevant extracts from the order of 07 December 2010 are
reproduced hereinbelow: -
―Heard learned counsel for the parties and perused the
record including the affidavit of Dr. Manoranjan Hota, Director,
Ministry of Environments and Forests, Government of India and
documents annexed with it.
Interim order dated 7.9.2007 and other similar orders passed
by this Court are vacated and the following directions are given:
1) The learned Solicitor General should instruct the concerned
Ministries to approach National Institute of Public Health to
undertake a comprehensive analysis and study of the contents
of gutkha, tobacco, pan masala and similar articles
manufactured in the country and harmful effects of
consumption of such articles. The learned Solicitor General
says that a report based on such study will be made available
within eight weeks.
2) The Plastics (Manufacture, Usage and Waste Management)
Rules, 2009 be finalised, notified and enforced within a
period of eight weeks from today.
3) The direction contained in the impugned order of the High
Court for imposition of fine shall remain stayed.
4) Respondent Nos.3 to 15 and other manufacturers of gutkha,
tobacco, pan masala are restrained from using plastic material
in the sachets of gutkha, tobacco and pan masala. This
direction shall come into force with effect from 1st March,
2011.‖
37. It was then submitted that it was in light of the aforesaid
direction that the National Institute of Health and Family
12
Welfare , New Delhi submitted a report. Drawing the attention of
the Court to the relevant parts of that report, Mr. Narayan submitted
12
NIHFW
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that NIHFW enumerated and chronicled the numerous health concerns
which arose from the consumption of gutka and chewing tobacco.
Mr. Narayan laid emphasis on the following extracts from that report:-
“Harmful Effects
CANCERS
Oral pre-malignant lesions/conditions
Several studies, majority of them from India, have reported a
strong association between smokeless tobacco use and oral
premalignant/precancerous lesions like leukoplakia,
erythroplakia, submucous fibrosis or lichen planus (either alone
or in combination) (Annexure 1(d), 39 – 45). The risk of these
lesions has been found to increase with the duration and
frequency of smokeless tobacco use (Annexure 1 (d), 39, 42).
Oral cancer
A large number of studies from India provide consistent results
of an increased risk of oral cancer with the use of different
forms of smokeless tobacco used in the country (Gutkha, mishri,
gudaku, khaini, etc) (Annexure 46 – 55). Similar results are seen
in International studies and reviews including the IARC
monograph (Annexure 1 (d), 56, 57). There is also good
evidence to suggest that the risk of developing oral cancer is
directly associated with the duration and frequency of tobacco
usage (Annexure 1 (d), 46 – 48, 52, 53).
Oesophageal cancer
Smokeless tobacco use or tobacco chewing has been reported as
an important risk factor for the cancer of the oesophagus by
multiple studies from India and abroad (Annexure 1 (d), 54, 58
– 62). Moreover study results suggest an increased risk of
oesophageal cancer with increase in the duration and frequency
of smokeless tobacco usage (Annexure 60 – 62).
Stomach cancer
Few Indian and International studies were identified which have
reported an increased risk of stomach cancer with the usage of
smokeless tobacco (Annexure 1 (d), 59, 63).
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Pancreatic cancer
All the relevant studies identified for this topic have been
conducted outside India and their results indicate a strong
association between smokeless tobacco and pancreatic cancer
(Annexure 1 (d), 58, 64 – 66). The association was significant
even after adjustment for other variables.
Throat (pharynx and larynx) cancer
Results from different studies suggest an increased risk of
pharyngeal cancer and/or laryngeal cancer with the use of
different forms of smokeless tobacco (Annexure 47, 53, 54, 67 –
69). Two studies also observed a strong dose-response
relationship between chewable tobacco and risk of pharyngeal
cancer (Annexure 54, 68).
Renal cancer
Most of the studies included in the IARC monograph have
reported an increased risk of renal cell cancer by 3-4 times with
the use of smokeless tobacco (Annexure 1 (d))
MORTALITY
Results from some studies indicate an increased risk of all-cause
mortality or all-cancer mortality in smokeless tobacco users
compared to non-users (Annexure 70 – 73), and the increased
risk was seen predominantly in female users. In addition, one
Swedish study has reported an increased risk of dying from
cardiovascular disease among the users (Annexure 74).
NON-CANCEROUS DISEASES/CONDITIONS
Oro-dental health
All the Indian studies identified under this section have shown a
close association between smokeless tobacco usage and different
types of periodontal diseases (inflammation, gingival recession
and bleeding, staining, tooth loss) and/or caries (Annexure 75 –
80). A review of oral mucosal disorders associated with gutkha
usage also found an increased risk of peri-odontal inflammation
(Annexure 43).
Hypertension & Cardiovascular diseases
Results from several studies indicate that regular use of
smokeless tobacco increases the risk of hypertension (Annexure
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81 – 86) and that of cardiovascular disease (Annexure 82, 84,
86, 87) . A systematic review of observational studies from
Sweden and USA has also shown an increased risk of fatal
myocardial infarction (Annexure 88).
Nervous system diseases
Two large studies have found a significant association between
the use of smokeless tobacco and the risk of fatal
cerebrovascular stroke (or stroke) (Annexure 89, 90).
Metabolic abnormalities
A study from Sweden reported significant association between
high-dose consumption of snus/snuff and metabolic syndrome
which is defined as 3 or more abnormalities of abdominal
obesity, high cholesterol level, high triglycerides level,
hypertension, and diabetes or hyperglycemia (Annexure 91).
Another study has found increased triglyceride and cholesterol
levels among smokeless tobacco user (Annexure 86) .
Reproductive health
Multiple studies have reported adverse effects of smokeless
tobacco on the reproductive health of men and women and
during pregnancy. A study of Indian men attending an infertility
clinic reported a strong association with decrease in sperm
quality and sperm count (Annexure 92) , while another study
found an increased risk of cervical lesions in women (Annexure
93). Its use during pregnancy is reported to be associated with
increased incidence of birth complications and anemia
(Annexure 94, 95), increased risk of fetal loss (Annexure 96, 97),
and a higher incidence of preterm babies and low-birth weight
babies (Annexure 98 – 100).
Other diseases (Gastro-intestinal and Respiratory)
Results from few studies have found increased prevalence of
benign gastrointestinal diseases (oesophagitis, sub-mucous
fibrosis) in smokeless tobacco users (Annexure 101, 102).
Moreover it has been associated with chronic bronchitis and
impaired lung function with chronic use (Annexure 103, 104).‖
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38. It becomes pertinent to note that NIHFW had taken note of the
13
Global Adult Tobacco Survey India and which had reported that
more than 35% of adults in India use tobacco in some form or the
other. That report had further recorded that out of the aforesaid
percentage, 21% adults consumed smokeless tobacco, 9% were
smokers and 5% were those who used to indulge in smoking as well
as in consumption of smokeless tobacco. The number of tobacco
users in India were estimated to stand at 274.9 million of which 163.7
million were estimated to be users of only smokeless tobacco, 68.9
million were smokers and 42.3 million users were those who indulged
in the consumption of both. GATS India had further found that the
Quit Ratio for the users of smokeless tobacco was around 5%.
Proceeding further to account for the harmful effects associated with
the use of tobacco, NIHFW found that the consumption of smokeless
tobacco was not only the leading cause of various categories of
cancers, it had a direct impact on mortality and was also the root cause
of various non-cancerous diseases including hypertension,
cardiovascular diseases, nervous system diseases, metabolic
abnormalities and poor reproductive health. NIHFW also estimated
the economic costs of treating smokeless tobacco as standing at a
staggering USD 285 million. It was further observed that the total
economic cost of tobacco use was reportedly USD 1.7 million.
39. The Summary of Evidence as forming part of that report is
reproduced hereunder: -
13
GATS India
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― Evidence summary
Most of the relevant studies identified are from India, Sweden and
USA with studies from India making the biggest contribution.
There is strong and consistent evidence from a number of studies to
indicate significant risk of oral cancer and pharyngeal cancer,
oesophageal cancer, and pancreatic cancer with smokeless tobacco
use. The risk of these cancers is found to increase with increasing
dosage and frequency of smokeless tobacco use.
Results from several studies suggest presence of strong and
consistent evidence that smokeless tobacco is significantly
associated with poor oro-dental health, risk of hypertension and
cardiovascular diseases, and adverse effects on reproductive health
(especially during pregnancy with birth complications, fetal loss,
low birth weight, prematurity). The evidence available for other
diseases/conditions is limited but consistent in reporting increased
risk of all-cause mortality and all-cause cancer mortality in female
users, and increased risk of cerebrovascular stroke, metabolic
abnormalities, oesophageal dieases, and respiratory diseases among
all users.
There is also some evidence to suggest that the total healthcare
economic cost of tobacco use in India is many times more than the
annual government expenditure on tobacco control and about 16%
more than the total tax revenue generated from tobacco.‖
40. The aforesaid report came to be duly placed before the Supreme
Court in the proceedings aforenoted. It would be pertinent to note that
by this time, FSSA had already come into force. According to the
Appellants, the Prohibition Regulations 2011 were enforced with
effect from 05 August 2011 and saw the enforcement of Regulation
2.3.4. According to Mr. Narayan, the said Regulation was directly
correlated to the various findings which had come to be recorded by
NIHFW and was clearly aimed at fighting the aforesaid scourge. Mr.
Narayan further drew the attention of the Court to a communication of
21 November 2012, issued by the Special Secretary in the Ministry of
Health of the Union Government which had advised States to consider
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the passing of necessary orders at the State level to ban the
manufacture and sale of gutka, pan masala and other chewable
products having tobacco and nicotine. The aforesaid advisory sought
to draw sustenance from Regulation 2.3.4 as well as the decision taken
by the Government of Mizoram which had proceeded to ban the
aforesaid articles.
41. Ankur Gutka thereafter came to be called on 03 April 2013
before the Supreme Court. In the aforesaid proceedings, the Supreme
Court recorded the statement made on behalf of the Union that
Governments of 23 States and Administrators of 5 Union Territories
had proceeded to issue notifications imposing a complete ban on gutka
and pan masala with tobacco. The Additional Solicitor General had
also referred to a subterfuge adopted by manufacturers of the aforesaid
articles who were stated to be attempting to overcome the ban by
selling gutka and pan masala in a convenient twin packet packaged to
facilitate mixing of tobacco with spice mixtures by consumers.
Taking note of the aforesaid, the Supreme Court proceeded to pass the
following directions: -
―Ms.Indira Jaisingh, learned Additional Solicitor
General invited the Court‘s attention to notifications issued by
the Government of 23 States and the Administrators of 5 Union
Territories for imposing complete ban on Gutkha and Pan
Masala with tobacco and/or nicotine and then stated that
notwithstanding the ban, the manufactures have devised a
subterfuge for selling Gutkha and Pan Masala in separate
pouches and in this manner the ban is being flouted.
Ms.Indira Jaisingh also placed before the Court xerox
copy of D.O.No.P.16012/12/11-Part I dated 27.08.2012 sent by
the Special Secretary, Ministry of Health and Family Welfare,
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Government of India to the Chief Secretaries of all the States
except the States of Madhya Pradesh, Kerala, Bihar, Rajasthan,
Maharashtra, Haryana, Chhatisgarh and Jharkhand and
submitted that the Court may call upon the remaining States and
Union Territories to issue necessary notifications.
In view of the statement made by the learned Additional
Solicitor General, we order issue of notice to the Chief
Secretaries of the States and the Administrators of the Union
Territories which have so far not issued notification in terms of
2006 Act to apprise this Court with the reasons as to why they
have not taken action pursuant to letter dated 27.08.2012.
We also direct the Secretaries, Health Department of all
the 23 States and 5 Union Territories to file their affidavits
within four weeks on the issue of total compliance of the ban
imposed on manufacturing and sale of Gutkha and Pan Masala
with tobacco and/or nicotine.‖
42. According to Mr. Narayan, it was in light of the aforesaid
directions issued by the Supreme Court that GNCTD proceeded to
issue the Impugned Notifications. Mr. Narayan also referred to the
order dated 23 September 2016 passed by the Supreme Court in
Central Arecanut and which had reiterated the directions issued in
A nkur Gutka. The Court deems it apposite to extract the following
relevant passages from that order: -
―At this stage, learned Amicus Curiae has invited the attention of
the Court to the Order dated 3.4.2013 passed by this Court. The
relevant part of the said order reads as follows:
―Ms. Indira Jaising, learned Additional Solicitor
General invited the Court's attention to notifications
issued by the Government of 23 States and the
Administrators of 5 Union Territories for imposing
complete ban on Gutkha and Pan Masala with tobacco
and/or nicotine and then stated that notwithstanding the
ban, the manufacturers have devised a subterfuge for
selling Gutkha and Pan Masala in separate pouches and
in this manner the ban is being flouted.
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Ms. Indira Jaising also placed before the Court
xerox copy of D.O.No.P.16012/12/11-Part I dated
27.08.2012 sent by the Special Secretary, Ministry of
Health and Family Welfare, Government of India to the
Chief Secretaries of all the States except the States of
Madhya Pradesh, Kerala, Bihar Rajasthan,
Maharashtra, Haryana, Chhatisgarh and Jharkhand and
submitted that the Court may call upon the remaining
States and Union Territories to issue necessary
notifications.
In view of the statement made by the learned
Additional Solicitor General, we order issue of notice
to the Chief Secretaries of the States and the
Administrators of the Union Territories which have so
far not issued notification in terms of 2006 Act to
apprise this court with the reasons as to why they have
not taken action pursuant to letter dated 27.08.2012.
We also direct the Secretaries, Health
Department of all the 23 States and 5 Union Territories
to file their affidavits within four weeks on the issue of
total compliance of the ban imposed on manufacturing
and sale of Gutkha and Pan Masala with tobacco and/or
nicotine.‖
Learned Amicus Curiae has also invited our attention to
paragraph 21 of the Written Submissions on behalf of the Ministry
of Health and Family Welfare, Government of India, in S.L.P. (C)
No. 16308 of 2007, which reads as follows:
―21. It is most respectfully submitted that to
circumvent the ban on the sale of gutkha, the
manufacturers are selling pan masala (without tobacco)
with flavoured chewing tobacco in separate sachets but
often conjoint and sold together by the same vendors
from the same premises, so that consumers can buy the
pan masala and flavoured chewing tobacco and mix
them both and consume the same. Hence, instead of the
earlier ―ready to consume mixes‖, chewing tobacco
companies are selling gutkha in twin packs to be mixed
as one‖
Learned Amicus Curiae has also pointed out that this Court
has not granted any stay of Regulation 2.3.4 of the Food Safety and
Standards (Prohibition & Restrictions on Sales) Regulations, 2011
and the concerned authorities are duty bound to enforce the said
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regulation framed under Section 92 read with Section 26 of the
Food Safety & Standards Act, 2006.
In view of the above, the concerned statutory authorities are
directed to comply with the above mandate of law. We also direct
the Secretaries, Health Department of all the States and Union
Territories to file their affidavits before the next date of hearing on
the issue of total compliance of the ban imposed on manufacturing
and sale of Gutkha and Pan Masala with tobacco and/or nicotine.‖
43. As would be evident and manifest from a reading of the
aforesaid extracts, the Supreme Court appears to have called upon all
concerned statutory authorities to act in furtherance of the directions
issued in Ankur Gutka and to comply with the mandatory provisions
of Regulations 2.3.4.
44. Close on the heels of the passing of the aforesaid direction, the
Ministry of Health and Family Welfare in the Union Government is
stated to have reiterated its request to the respective States and Union
Territories to ensure compliance with the aforesaid directions issued
by the Supreme Court and to prohibit any counterproductive activities
being undertaken by manufacturers so as to circumvent the ban and
overcome the prohibition comprised in Regulation 2.3.4. An identical
request is also stated to have been addressed by FSSAI to all States
and Union Territories in terms of its letter of 09 October 2017. It was
the submission of Mr. Narayan that since the impugned Notifications
had been issued principally to give effect to the binding directives of
the Supreme Court, there existed no justification for the learned Single
Judge to have quashed the same.
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45. Proceeding further with the challenge to the impugned
judgment, it was the submission of Mr. Narayan that chewing tobacco
is clearly an article which is intended for human consumption and
therefore constitutes ―food‖ as defined in Section 3(1)(j) of the FSSA.
According to learned counsel, the principal intent of Regulation 2.3.4
is to ensure that tobacco and nicotine are not used as ingredients in
any food product. Learned counsel laid emphasis upon the fact that
pan masala, undisputedly, would constitute food and would fall within
the ambit of Section 3(1)(j). Mr. Narayan laid emphasis on the subtle
and yet significant distinction between the definition of food as
contained in the Act in contrast to how the said expression was
defined under PFA. Mr. Narayan submitted that PFA had defined
food to mean ‗any article used as food or drink for human
consumption including any article which ordinarily enters into or is
used in the composition or preparation of human food‘ . According to
Mr. Narayan, the FSSA defines food in a more expansive manner by
defining it to mean ‗any substance which is intended for human
consumption‘ . Emphasis was laid on Section 3(1)(j) employing the
expressions ― means ‖, ― includes ‖ as well as ― but does not include ‖.
Mr. Narayan submitted that Section 3(1)(j) thus not only explicitly
defines and describes food as envisioned under the Act, it also and
simultaneously includes various articles which would fall within its
ambit. It was also stressed that only certain articles such as animal
feed, live animals, plants prior to harvesting, drugs and medicinal
products, cosmetics, narcotic or psychotropic substances are
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specifically excluded. Learned counsel sought to highlight the fact
that pan masala or gutka have not been placed in the list of excluded
items and thus reinforcing their submission that they would fall within
the ambit of food as defined.
46. It was submitted that pan masala in any case was a food product
which was specifically dealt with both under the PFA as well as the
Regulations framed under the Act. This, according to learned counsel,
would clearly be evident from a reading of Rule 44J of the 1955 Rules
and Clause 2.11.5 of the Food Products Regulations 2011. Mr.
Narayan then submitted that even prior to the promulgation of the
FSSA, the word ‗food‘ had consistently been conferred an expansive
meaning. Reliance in this regard was placed on the following pertinent
observations as appearing in the decision of the Supreme Court in
14
State of Bombay v. Virkumar Gulabchand Shah which had held
turmeric to be food stuff. This is evident from the following passages
of this decision:-
― 18. The English decision about tea just cited is to be contrasted
with another decision, also about tea, given a few months later
in the same year: Sainsbury v. Saunders [ Sainsbury v. Saunders ,
88 LJ KB 441] . Two of the Judges, Darling and Avory, JJ. were
parties to the earlier decision; Salter, J. was not. He held that
though tea had been held in the earlier case not to be a ―food‖
for the purpose of the Food Hoarding Order of 1917, it was a
―food‖ within the meaning of the expressions used in certain
Defence of the Realm Regulations read with the New Ministries
and Secretaries Act of 1916 which empowered the Food
Controller to regulate ―the food supply of the country‖ and the
―supply and consumption and production of food‖. Avory, J.
also considered that tea was an article of food for the purposes
14
(1952) 2 SCC 41
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| of these laws though Darling, J. preferred to adhere to his earlier | |
|---|
| view. All three Judges also held that the provisions were wide | |
| enough to enable the Food Controller to hit at articles which | |
| were not food at all, such as sacks and tin containers (Darling, | |
| J.) so long as he was able by these means even indirectly to | |
| regulate the supply of ―food‖, but that portion of the decision | |
| does not concern us here because the laws they were interpreting | |
| were more widely phrased. | |
| 19. Now the comparison of one Act with another is dangerous, | |
|---|
| especially when the Act used for comparison is an English Act | |
| and a wartime measure, and I have no intention of falling into | |
| that error. I am concerned here with the Act before me and must | |
| interpret its provisions uninfluenced by expressions, however | |
| similar, used in other Acts. I have referred to the cases discussed | |
| above, not for purposes of comparison but to show that the | |
| terms ―food‖ and ―foodstuffs‖ can be used in both a wide and a | |
| narrow sense and that the circumstances and background can | |
| alone determine which is proper in any given case. | |
| 20. Turning to the Act with which we are concerned, it will be | |
|---|
| necessary again to advert to its history. Rule 81(2) was wide and | |
| all-embracing and the Order of 1944 clearly fell within its ambit. | |
| It is also relevant to note that one of the purposes of the Order, | |
| as disclosed in its Preamble, was to ―maintain | |
| supplies essential to the life of the community‖. As turmeric was | |
| specifically included with certain other spices, it is clear that | |
| turmeric was then considered to be a commodity essential to the | |
| life of the community, that is to say, it was considered an | |
| essential commodity and not merely a luxury which at a time of | |
| austerity could be dispensed with. | |
| 21. Then, when we turn to the Ordinance and the Act of 1946, | | |
|---|
| we find from the Preamble that the legislature considered that it | | |
| was still necessary— | | |
| ―… to provide for the continuance … of powers to control | |
| the production, supply and distribution of, and trade and | |
| commerce in, foodstuffs.…‖ | |
| (emphasis supplied) | |
| Section 3(1) of the Act continues this theme: | |
| ―3. Powers to control production, supply, distribution, | |
| etc., of essential commodities.—(1) The Central | |
| Government, so far as it appears to it to be necessary or | |
| expedient for maintaining or increasing supplies of | |
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| any essential commodity, or for securing their equitable | | |
|---|
| distribution and availability at fair prices, may by notified | | |
| order provide for regulating or prohibiting the production, | | |
| supply and distribution thereof, and trade and commerce | | |
| therein.‖ | | |
| (emphasis supplied) | | |
| The Ordinance is in the same terms. | | | |
| | | |
| 22. Now I have no doubt that had the Central Government re- | | | |
| promulgated the Order of 1944 in 1946 after the passing of | | | |
| either the Ordinance or the Act of 1946, the Order would have | | | |
| been good. As we have seen, turmeric falls within the wider | | | |
| definition of ―food‖ and ―foodstuffs‖ given in a dictionary of | | | |
| international standing as well as in several English decisions. It | | | |
| is, I think, as much a ―foodstuff‖, in its wider meaning, as | | | |
| sausage, skins and baking powder and tea. In the face of all that | | | |
| I would find it difficult to hold that an article like turmeric | | | |
| cannot fall within the wider meaning of the term ―foodstuffs‖. | | | |
| Had the Order of 1944 not specified turmeric and had it merely | | | |
| prohibited forward contracts in ―foodstuffs‖ I would have held, | | | |
| in line with the earlier tea case, that that is not a proper way of | | | |
| penalising a man for trading in an article which would not | | | |
| ordinarily be considered as a foodstuff. But in the face of the | | | |
| Order of 1944, which specifically includes turmeric, no one can | | | |
| complain that his attention was not drawn to the prohibition of | | | |
| trading in this particular commodity and if, in spite of that, he | | | |
| chooses to disregard the Order and test its validity in a court of | | | |
| law, he can hardly complain that he was trapped or taken | | | |
| unawares; whatever he may have thought he was at any rate | | | |
| placed on his guard. As I see it, the test here is whether the | | | |
| Order of 1944 would have been a good order had it been re- | | | |
| promulgated after the Ordinance of 1946. In my opinion, it | | | |
| would, and from that it follows that it is saved by the saving | | | |
| clauses of the Ordinance and the Act. | | | |
| 23. I have already set out Section 5 of the Ordinance. In my | | |
|---|
| opinion, the Order of 1944 falls within its purview, and if it is | | |
| saved by that, it is equally saved by Section 17(2) of the Act. | | |
| The section is in these terms: | | |
| ―17. (2) Any order … deemed to be made under the said | |
| Ordinance and in force immediately before the | |
| commencement of this Act shall continue in force and be | |
| deemed to be an order made under this Act.…‖ | |
| | |
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| 24. In my opinion, the conviction was good and the High Court | |
|---|
| was wrong in setting it aside, but though the matter has no | |
| relevance here because of the undertaking given by the learned | |
| Solicitor General not to proceed against the respondent any | |
| further in this matter, I think it right to observe that the attitude | |
| of the learned English Judges in the first tea case would not be | |
| without relevance on the question of sentence in many cases of | |
| this kind. There can, I think, be no doubt that businessmen who | |
| are not lawyers might well be misled into thinking that the | |
| Ordinance and the Act did not intend to keep the Order of 1944 | |
| alive because the Order related to certain specified spices while | |
| the Ordinance and the Act changed the nomenclature and | |
| limited themselves to ―foodstuffs‖, a term which, on a narrow | |
| view, would not include condiments and spices. However, these | |
| observations are not relevant here because we are not asked to | |
| restore either the conviction or the sentence. In view of that, | |
| there will be no further order and the acquittal will be left as it | |
| stands.‖ | |
47. Mr. Narayan then referred to the decision of the Supreme Court
15
in Pyarli K. Tejani v. Mahadeo Ramchandra Dange which had
found supari to be ―food‖ under PFA. Learned counsel submitted that
the Constitution Bench in Pyarli K. Tejani had squarely rejected the
contention that the word ‗food‘ under the PFA was liable to be
understood as being confined to articles which were consumed for
nourishment and taste. The relevant extracts from the said decision
are extracted hereinbelow: -
“14. We now proceed to consider the bold bid made by the
appellant to convince the Court that supari is not an article of
food and, as such, the admixture of any sweetener cannot attract
the penal provisions at all. He who runs and reads the definition
in Section 2( v ) of the Act will answer back that supari is food.
The lexicographic learning, pharmacopic erudition, the ancient
medical literature and extracts of encyclopaedias pressed before
us with great industry are worthy of a more substantial
submission. Indeed, learned Counsel treated us to an extensive
15
(1974) 1 SCC 167
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study to make out that supari was not a food but a drug. He
explained the botany of betal nut, drew our attention to Dr
Nandkarni's Indian Materia Medica, invited us to great Susruta's
reference to this aromatic stimulant, in a valiant endeavour to
persuade us to hold that supari was more medicinal than edible.
We are here concerned with a law regulating adulteration of food
which affects the common people in their millions and their
health. We are dealing with a commodity which is consumed by
the ordinary man in houses, hotels, marriage parties and even
routinely. In the field of legal interpretation, dictionary
scholarship and precedent-based connotations cannot become a
universal guide or semantic tyrant, oblivious of the social context
subject of legislation and object of the law. The meaning of
common words relating to common articles consumed by the
common people, available commonly and contained in a statute
intended to protect the community generally, must be gathered
from the common sense understanding of the word. The Act
defines ―food‖ very widely as covering any article used as food
and every component which enters into it, and even flavouring
matter and condiments. It is commonplace knowledge that the
word ―food‖ is a very general term and applies to all that is eaten
by men for nourishment and takes in subsidiaries. Is supari eaten
with relish by men for taste and nourishment? It is. And so it is
food. Without tarrying further on this unusual argument we hold
that supari is food within the meaning of Section 2( v ) of the Act.‖
48. Mr. Narayan proceeded further to contend that the
nourishment argument was in any case rendered a death knell by the
16
Supreme Court in State of Tamil Nadu vs. Krishnamurthy which
had enunciated the test to be whether the article in question is
generally or commonly used for human consumption. The relevant
extracts from the decision of State of Tamil Nadu are set out
hereunder: -
“7. According to the definition of ―food‖ which we have
extracted above, for the purposes of the Act, any article used as
16
(1980) 1 SCC 167
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| food or drink for human consumption and any article which | |
|---|
| ordinarily enters into or is used in the composition or | |
| preparation of human food is ―food‖. It is not necessary that it is | |
| intended for human consumption or for preparation of human | |
| food. It is also irrelevant that it is described or exhibited as | |
| intended for some other use. It is enough if the article is | |
| generally or commonly used for human consumption or in the | |
| preparation of human food. It is notorious that there are, | |
| unfortunately, in our vast country, large segments of population, | |
| who, living as they do, far beneath ordinary subsistence level, | |
| are ready to consume that which may otherwise be thought as | |
| not fit for human consumption. In order to keep body and soul | |
| together, they are often tempted to buy and use as food, articles | |
| which are adulterated and even unfit for human consumption but | |
| which are sold at inviting prices, under the pretence or without | |
| pretence that they are intended to be used for purposes other | |
| than human consumption. It is to prevent the exploitation and | |
| self-destruction of these poor, ignorant and illiterate persons that | |
| the definition of ―food‖ is couched in such terms as not to take | |
| into account whether an article is intended for human | |
| consumption or not. In order to be ―food‖ for the purposes of the | |
| Act, an article need not be ―fit‖ for human consumption; it need | |
| not be described or exhibited as intended for human | |
| consumption; it may even be otherwise described or exhibited; it | |
| need not even be necessarily intended for human consumption; | |
| it is enough if it is generally or commonly used for human | |
| consumption or in the preparation of human food. Where an | |
| article is generally or commonly not used for human | |
| consumption or in the preparation of human food but for some | |
| other purpose, notwithstanding that it may be capable of being | |
| used, on rare occasions, for human consumption or in the | |
| preparation of human food, it may be said, depending on the | |
| facts and circumstances of the case, that it is not ―food‖. In such | |
| a case the question whether it is intended for human | |
| consumption or in the preparation of human food may become | |
| material. But where the article is one which is generally or | |
| commonly used for human consumption or in the preparation of | |
| human food, there can be no question but that the article is | |
| ―food‖. Gingelly oil, mixed or not with groundnut oil or some | |
| other oil, whether described or exhibited as an article of food for | |
| human consumption or as an article for external use only is | |
| ―food‖ within the meaning of the definition contained in Section | |
| 2(v) of the Act.‖ | |
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49. It was submitted that the tests propounded in Pyarli K. Tejani
were then reiterated by the Supreme Court in Krishna Gopal Sharma
17
& Anr. v. Govt. of NCT of Delhi where the Supreme Court held
that both pan masala as well as mouth freshener would undoubtedly
fall within the ambit of food as defined under the PFA. The relevant
parts of the aforesaid judgment are reproduced hereinbelow: -
“8. After giving our careful consideration to the facts and circumstances of
the case it appears to us that at the relevant time when the samples of the
pan masala and the mouth freshner were taken, the saccharin content as
found by the public analyst in the said articles of food was in violation of
Rule 47 of the Prevention of Food Adulteration Rules. The pan masala and
the mouth freshner are undoubtedly within the meaning of ‗food‘ under
Section 2( v ) of the Prevention of Food Adulteration Act. ‗Food‘ under the
said Act has been defined very widely. The validity of Rule 47 prior to its
amendment in 1993 restricting the user of saccharin in pan masala cannot
be challenged on the ground of arbitrary and capricious exercise of power
by the rule-making authority. It has not been demonstrated that despite
widely accepted view by the experts about the effect on saccharin on
human system on the basis of information flowing from research and
analysis, the restriction of user of saccharin in pan masala or mouth
freshner as imposed in Rule 47 of the Rules at the relevant time was
wholly arbitrary, unjust and capricious. Human knowledge is not static.
The conception about the harmful effect of saccharin on human system has
undergone changes because of information derived from further research
and analysis. The knowledge about the effect of saccharin on human
system as accepted today may undergo a change in future on the basis of
further knowledge flowing from subsequent research and analysis and it
may not be unlikely that previous view about saccharin may be found to
be correct later on. If the rule-making authority on the basis of human
knowledge widely accepted by the expert framed rule by imposing
restriction of user of saccharin in pan masala or mouth freshner at a
particular point of time, such exercise of power must be held to have been
validly made, founded on good reasons; and challenge of the Rule on the
score of arbitrary and capricious exercise of power must fail. In this
connection, reference may be made to the decision of a Constitution Bench
of this Court in Pyarali K. Tejani v. Mahadeo Ramchandra Dange [(1974)
1 SCC 167 : 1974 SCC (Cri) 87 : (1974) 2 SCR 154] . In the said case, a
17
(1996) 4 SCC 513
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| dealer in scented ‗supari‘ was charged for the offence of having sold and | |
|---|
| retained for selling scented ‗supari‘ with saccharin and cyclamate, in | |
| contravention of Section 7(i)(ii) and Rule 47 of Prevention of Food | |
| Adulteration Rules. In the said case, because of such contravention, the | |
| dealer was prosecuted for an offence punished under Section 16(1)(a)(i) of | |
| the Prevention of Food Adulteration Act. The dealer was convicted by the | |
| learned Magistrate by imposing a fine of Rs 100. On revision, the High | |
| Court enhanced the punishment to the statutory minimum of six months' | |
| imprisonment and a fine of Rs 1000. At the hearing of the appeal before | |
| this Court, there was no dispute that the article in question which was sold | |
| contained saccharin and cyclamate. It was however urged that Section | |
| 23(i)(b) empowered the framing of Rules regarding the articles of food for | |
| which standards were to be prescribed. It was contended that ‗supari‘ was | |
| not a food. It was further contended that neither saccharin nor cyclamate | |
| was a biochemical risk and the blanket ban on the use of those substances | |
| was unconstitutional amounting to unreasonable restriction on the freedom | |
| of trade guaranteed under Article 19 of the Constitution. It was also urged | |
| that although saccharin was permitted to be used in carbonated water, | |
| restriction of user of saccharin in ‗supari‘ amounted to hostile | |
| discrimination.‖ | |
50. Mr. Narayan further submitted that if any doubt could be said to
be existing on this issue, the same clearly came to be rendered a
quietus by the Supreme Court in its decision in Godawat . Reliance
was placed on the following observations as entered in that decision: -
“65. In his submission, the expression ―food‖ as defined in
the Lexicon could only be ―a substance taken into the body to
maintain life and growth‖. No one in his right mind would
consider that pan masala or gutka would be consumed for
maintenance and development of health of human being.
In Pyarali K. Tejani v. Mahadeo Ramchandra Dange [(1974) 1
SCC 167 : 1974 SCC (Cri) 87 : AIR 1974 SC 228, a case arising
under the Prevention of Food Adulteration Act, 1954.] this Court
held that the word ―food‖ is a very general term and applies to all
that is eaten by men for nourishment and takes in also
subsidiaries. Since pan masala, gutka or supari are eaten for taste
and nourishment, they are all food within the meaning of Section
2( v ) of the Act.
66. The learned counsel relied on a judgment of a Division
Bench of this Court in CAs Nos. 12746-47 of 1996 (decided on 6-
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11-2003) [ S. Samuel, M.D., Harrisons Malayalam v. Union of
India , (2004) 1 SCC 256] . In our view, this judgment is of no aid
to us. In the first place, this judgment arises under the provisions
of the Essential Commodities Act, 1955 read with the Tamil Nadu
Scheduled Articles (Prescription of Standards) Order, 1977 and
the notification dated 9-6-1978 issued by the Central Government
which laid down certain specifications ―in relation to foodstuffs‖.
The question that arose before the Court was whether tea is
―foodstuff‖ within the meaning of the said legislation. The
Division Bench of this Court came to the conclusion that ―tea‖ is
not food as it is not understood as ―food‖ or ―foodstuff‖ either in
common parlance or by the opinion of lexicographers. We are
unable to derive much help from this judgment for the reason that
we are not concerned with tea. It is not possible to extrapolate the
reasoning of this judgment pertaining to tea into the realm of pan
masala and gutka . In any event, the judgment in Tejani [(1974) 1
SCC 167 : 1974 SCC (Cri) 87 : AIR 1974 SC 228, a case arising
under the Prevention of Food Adulteration Act, 1954.] was a
judgment of the Constitutional Bench which does not seem to
have been noticed.
67. We are, therefore, unable to agree with the contention that
pan masala or gutka does not amount to ―food‖ within the
meaning of the definition in Section 2( v ) of the Act. However, we
do not rest our decision solely on this issue.‖
51. Turning then to the judgments rendered by various High Courts
on the subject, Mr. Narayan, firstly drew the attention of the Court to
the decision rendered by a Division Bench of the Bombay High Court
in Dhariwal Industries Limited & Anr. v. State of Maharashtra &
18
Ors. Dhariwal Industries was dealing with the validity of an order
issued by the Commissioner of Food Safety, Maharashtra, in terms of
which by invoking Section 30(2)(a), it had prohibited the
manufacture, storage, distribution and sale of gutka or pan masala
containing either tobacco and nicotine. Dealing firstly with the aspect
18
2013(1)Mh.L.J. 461
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of food as defined under the FSSA, the Bombay High Court held as
follows: -
“19. While the definition in the 1954 Act excluded drugs and
water, the definition in the Food Safety Act, 2006 excludes
animal feed, live animals, plants prior to harvesting, drugs and
medicinal products, cosmetic, narcotic and psychotropic
substance. Obviously, gutka and pan masala do not fall in any of
these excluded categories. The expression "any substance which
is intended for human consumption" in FSS Act 2006 is also
wider than the expression "any article used as food or drink for
human consumption" in PFA Act, 1954. It is also pertinent to
note that the definition of food in the Act of 2006 specifically
includes "chewing-gum" and any substance used into the food
during its manufacture, preparation or treatment. Hence, even if
gutka or pan masala were not to be ingested inside the digestive
system, any substance which goes into the mouth for human
consumption is sufficient to be covered by definition of food
just as chewing-gum may be kept in the mouth for some time
and thereafter thrown out. Similarly gutka containing tobacco
may be chewed for some time and then thrown out. Even if it
does not enter into the digestive system, it would be covered by
the definition of "food" which is in the widest possible terms.
The definition of "food" under section 2(v) of the PFA Act was
narrower than the definition of food under Food Safety Act, still
the Supreme Court in Ghodawat case held that pan masala and
gutka were "food" within the meaning of PFA Act. The very fact
that the petitioners themselves had obtained licences under the
PFA Act and have also obtained licences under the Food Safety
Act, 2006 is sufficient to estop them from raising the contention
that gutka and pan masala do not fall within the definition of
"food" under the Food Safety Act, 2006.
20. The next question is whether the provisions of the Food
Safety Act, 2006 make any difference to the legal position
which was laid down by the Supreme Court in Ghodawat case.
Before proceeding further, we must note that even while holding
the Cigarettes Act to be a special Act, the Supreme Court did not
accept the contention of the petitioners that the PFA Act had no
role to play in the matter of regulation of manufacture and sale
of gutka and pan masala. In fact, the Supreme Court in terms
held that the power to ban gutka or pan masala under the PFA
Act, 1954 was vested in the Central Government under section
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23(1A)(f) thereof and not in the State Government under section
7(iv) thereof. The Supreme Court thus did not accept the
petitioners' contention in Ghodawat case that Cigarettes Act was
the only legislation occupying the field of tobacco and tobacco
products and that PFA Act had nothing to do with any tobacco
product.‖
52. Their Lordships then proceeded to hold on the validity of the
ban in the following terms: -
“26. Since we have already held that the definition of "food" in
the Food Safety Act is wide enough to include gutka and pan
masala, it is obvious that the above regulations also apply to
gutka and pan masala, Apart from, and even before, conferring
powers of enforcement on the authorities under the Act in
Chapter VII, Parliament has in Chapter VI of the Act cast
special responsibilities as to food safety on the food business
operators, manufacturers, workers, distributors and sellers. Food
business operator is defined by section 3(o) as a person by
whom food business is carried on or owned and is responsible
for ensuring the compliance. Food business is defined as any
undertaking carrying out any of the activities related to any
stage of manufacture, processing, packaging, storage,
transportation, distribution of food. Section 26(1) provides that
every food business operator shall ensure that the articles of
food satisfy the requirements of the Act and the rules and
regulations made thereunder at all stages of production etc.
within the businesses under his control. The Parliament has not
stopped at requiring the food business operator to comply with
the legal requirements in such general terms alone. Clause (i) of
sub-section (2) further casts a duty on the food business operator
in the following express terms:-
No food business operator shall himself or by any person
on his behalf manufacture, store, sell or distribute any article of
food -
(i) which is unsafe; or (ii). ............ or (iii) or (iv) which is
for the time being prohibited by the Food Authority or the
Central Government or the State Government in the
interest of public health. (Emphasis supplied)
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It is, thus, clear that it is for the food business operators (which
would include the petitioners manufacturing gutka and pan
masala) to ensure that they do not manufacture any article or
food which is unsafe. The Parliament does not require the
manufacturers like the petitioners to wait for any declaration to
be made by the Food Authority or the Central Government or
the State Government to declare any food as injurious to health
or unsafe. It is the statutory duty of the manufacturers to ensure
that they do not manufacture any article of food which is unsafe.
We may, therefore, proceed now to deal with the question of the
harmful effects of the ingredients of gutka and pan masala on
public health about which ample material has been placed on
record by the respondents and the intervenors and which is not
seriously disputed at the hearing of interim relief.‖
53. The orders passed in Ankur Gutka were also taken into
consideration as would be evident from the following passage of the
aforesaid decision. Their Lordships ultimately proceeded to hold as
under:-
“30. As already noticed above, 2011 Regulations have come on the statute
book long after the Supreme Court judgment in Ghodawat case . The 2011
Regulations have been made by the Food Authority of India in exercise of
the powers under sections 16 and 92 of the Act after previous consultation
with the Central Government and have been placed before each House of
Parliament without any modifications having been made by Parliament.
Section 30(2)(a) confers independent power on the Food Safety
Commissioner in the State. As already noticed by us, section 26 of the
Food Safety Act directs that every food business operator shall not
manufacture or distribute any article of food which is unsafe and that it is
not necessary for the said obligation to be enforced that such a food article
must be first prohibited by the Food Authority of India or the Central
Government or the State Government. The Food Safety Commissioner in
the State of Maharashtra noticed that 98% out of more than 1000 samples
collected during the last seven years contained tobacco, nicotine or
magnesium carbonate which are injurious to health and that the Food
Authority of India had by statutory Regulations of 2011 already banned
the manufacture of any product containing tobacco, nicotine or magnesium
carbonate (excluding specific product like salt powder which could have
upto 2% magnesium carbonate). The Food Safety Commissioner, State of
Maharashtra was, thus, acting well within his powers to ensure that
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| manufacturers, distributors and sellers of gutka and pan masala shall not | |
|---|
| be allowed to contravene the statutory provisions contained in 2011 | |
| Regulations, such as Regulation 2.3.4, 3.1.7 and 2.11.5. We, therefore, do | |
| not find any substance in the petitioners' submission that the impugned | |
| order dated 19 July, 2012 was beyond the authority of the Food Safety | |
| Commissioner of the State of Maharashtra. | |
| 30A. Having examined the scheme of PFA Act, 1954, Cigarettes Act, | |
|---|
| 2003 and the Food Safety Act, 2006 and 2011 Regulations framed | |
| thereunder, which were laid before Parliament and not modified and | |
| having regard to the fact that Food Safety Act, 2006 is a later Act and a | |
| comprehensive legislation on food safety and contains a non-obstante | |
| clause in section 89 thereof, we are of the prima facie view that in the field | |
| of safety and standards of food (which includes gutka, pan masala and | |
| supari) the Food Safety Act, 2006 occupies the entire field.” | |
54. Mr. Narayan also sought to draw sustenance from the decision
rendered by the Madras High Court in J. Anbazhagan v. The Union
19
of India & Ors. The said decision was rendered on a Public Interest
Litigation which came to be instituted before the said High Court and
sought the constitution of a Special Investigating Team to take steps to
cease banned articles such as gutka and pan masala. While dealing
with the aforesaid issue, the Madras High Court referred to Regulation
2.3.4 and also took notice of the orders passed in Ankur Gutka and
Central Arecanut. It then proceeded to observe as follows: -
“74. Under the Food Safety Act, food means any substance,
whether processed, partially processed or unprocessed, which is
intended for human consumption. It includes primary food to the
extent defined in clause (zk), that is an article of food being a
produce of agriculture or horticulture or animal husbandry and
dairying or aquaculture in its natural form resulting from the
growing, raising, cultivation, picking, harvesting, collection or
catching in the hands of a person other than a farmer or
fisherman. It also includes genetically modified or engineered
food or food containing such ingredients, infant food, packaged
19
2018 SCC OnLine Mad 1231
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drinking water, alcoholic drink, chewing gum, and any
substance, including water, used into the food during its
manufacture, preparation or treatment. What is excluded is
animal feed, live animals unless they are prepared or processed
for placing on the market for human consumption, plants prior
to harvesting, drugs and medicinal products, cosmetics, narcotic
or psychotropic substances.
75. Significantly, in Godawat Pan Masala Products I.P. Ltd. v.
Union of India ,reported in (2004) 7 SCC 68, the Supreme Court
observed:
―6. …. Thus, the Act 34 of 2003 being a special Act,
and of later origin, overrides the provisions of
Section 7(iv) of the Prevention of Food Adulteration
Act, 1954 with regard to the power to prohibit the
sale or manufacture of tobacco products which are
listed in the Schedule to the Act 34 of 2003.‖
76. The Prevention of Food Adulteration Act, 1954 has been
repealed and replaced by the Food Safety Act. The definition of
―food‖ in Section 3(j) of the Food Safety Act is different from
and far more expansive than the definition of ―food‖ in Section
2(v) of the Prevention of Food Adulteration Act. Further, the
Food Safety Act has been enacted after the COTA.
77. The judgment of the Supreme Court in Godawat Pan
Masala Products I.P. Ltd., supra, rendered in the context of the
Prevention of Food Adulteration Act, 1954 will not have
application in the facts and circumstances of the instant case.
78. It appears that in Jayavilas Tobacco Traders LLP v. The
Designated Officer , The Food Safety and Drugs Control
Department , (W.P. No. 21 of 2017, dated 9.6.2017),
Duraiswamy, J. referred to and followed the judgment of the
Supreme Court in Godawat Pan Masala Products I.P. Ltd.,
supra. It is on that ground that the notifications impugned were
held to be void.
79. With the greatest of respect, we are unable to agree with the
Single Bench decision of Duraiswamy, J. in Jayavilas Tobacco
Traders LLP , supra, and and the decision of the Madurai Bench
in Crl.O.P.(MD) No. 5505 of 2015 [ Manufacturer, Tejram
Dharam Paul, Maurmandi, Bhatinda District, Punjab v. The
Food Safety Inspector Ambasamudram ] dated 27.04.2015.
80. In Dhariwal Industries Limited v. State of Maharashtra ,
reported in (2013) 1 Mah LJ 461, a Single Bench of the Bombay
High Court held:
―19. While the definition in the 1954 Act excluded
drugs and water, the definition in the Food Safety
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Act, 2006 excludes animal feed, live animals, plants
prior to harvesting, drugs and medicinal products,
cosmetic, narcotic and psychotropic substance.
Obviously, gutka and pan masala do not fall in any
of these excluded categories. The expression ―any
substance which is intended for human
consumption‖ in FSS Act, 2006 is also wider than
the expression ―any article used as food or drink for
human consumption‖ in PFA Act, 1954. It is also
pertinent to note that the definition of food in the
Act of 2006 specifically includes ―chewing-gum‖
and any substance used into the food during its
manufacture, preparation or treatment. Hence, even
if gutka or pan masala were not to be ingested inside
the digestive system, any substance which goes into
the mouth for human consumption is sufficient to be
covered by definition of food just as chewing-gum
may be kept in the mouth for some time and
thereafter thrown out. Similarly gutka containing
tobacco may be chewed for some time and then
thrown out. Even if it does not enter into the
digestive system, it would be covered by the
definition of ―food‖ which is in the widest possible
terms. The definition of ―food‖ under section 2(v) of
the PFA Act was narrower than the definition of
food under Food Safety Act, still the Supreme Court
in Ghodawat case held that pan masala and gutka
were ―food‖ within the meaning of PFA Act. The
very fact that the petitioners themselves had
obtained licences under the PFA Act and have also
obtained licences under the Food Safety Act, 2006 is
sufficient to estop them from raising the contention
that gutka and pan masala do not fall within the
definition of ―food‖ under the Food Safety Act,
2006.‖
81. We agree with the view of the learned Single Bench of the
Bombay High Court that gutkha and pan masala are food within
the meaning of the Food Safety Act. Gutkha also being a
tobacco product might be governed by the provisions of the
COTA. COTA deals with regulation of cigarettes or other
tobacco products. The Food Safety Act is not in conflict with the
provisions of COTA in any manner. COTA does not deal with
adulteration, though it may remotely touch upon misbranding.
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82. It is well settled that the endeavour of the Court should be to
harmonize two Acts seemingly in conflict. Of course, in this
case there does not appear to be any conflict between COTA and
the Food Safety Act. COTA is in addition to and not in
derogation of other laws relating to food products. There is no
non obstante clause in COTA which excludes the operation of
other Acts.
83 . Considering the harmful effects of consumption of chewable
tobacco, such as gutkha, which leads to fatal ailments such as
cancer, this court cannot shut its eyes to the malaise of illegal
manufacture and sale of gutkha within the jurisdiction of this
High Court, i.e., the State of Tamil Nadu and the Union
Territory of Puducherry.‖
55. The aforesaid passages from the judgment rendered by the
Madras High Court would clearly establish that the view taken in
Dhariwal Industries was adopted and affirmed. Mr. Narayan also
highlighted the fact that the decision in J. Anbazhagan ultimately
came to be affirmed by the Supreme Court in E. Sivakumar v. Union
20
of India . The attention of the Court was also drawn to the decisions
in Jeetmal Ramesh Kumar v. Commissioner, Food Safety and
21
Drug Administration Departmnet & Ors. and Urmin Products
22
Pvt. Ltd. V. The Commissioner of Food Safety & Anr. in which J.
Anbazhagan was followed
56. Mr. Narayan also placed reliance upon the judgment rendered
by the Telangana High Court in Sri Kamadhenu Traders v. State of
20
(2018) 7 SCC 365
21
2019 SCC OnLine Madras 18993
22
W.No. 3351/2019
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23
Telangana where while dealing with an identical banning order the
said High Court had held as under: -
“40. The aforesaid statutory provisions make it very clear that
‗ food‘ as defined under Section 3(j) of FSS Act 2006, means any
substance, whether processed, partially processed or
unprocessed, which is intended for human consumption and
includes primary food, to the extent defined in clause 3 (ZK)
genetically modified or engineered food or food containing such
ingredients, infant food, packaged drinking water, alcoholic
drink, chewing gum, and any substance, including water used
into the food during its manufacture, preparation or treatment
but does not include any animal feed, live animals unless they
are prepared or processed for placing on the market for human
consumption, plants prior to harvesting, drugs and medicinal
products, cosmetics, narcotic or psychotropic substances.
Keeping in view the aforesaid definition of ‗ food‘ , which is a
very wide and exhaustive definition and includes any substance
whether processed, partially processed or unprocessed, which is
intended for human consumption, certainly includes smokeless
tobacco products like gutka, pan masala, kharra, khaini or any
other similar product like chewing tobacco/flavoured tobacco
within the definition of ‗ food‘ under the FSS Act 2006.
41. The Hon'ble Supreme Court in the case of R.
Krishnamurthy (supra) has held that all that is required to
classify a product as ‗ food‘ is that it has to be used commonly
for human consumption or in preparation of human food. Not
only this, the Hon'ble Supreme Court in the case of Godawat
Pan Masala Products (supra) has held that gutka, pan masala
and supari as food articles. The Allahabad High Court in the
case of Manohar Lal v. State of U.P. , (Criminal Revision No.
318 of 1982) and in the case of Khedan Lal and Sons (supra) has
held that ‗ chewing tobacco‘ is an article of food.
42. The Food Safety Regulations, 2011 was notified on
01.08.2011 in exercise of powers conferred under Section 92
read with Section 26 of the FSS Act 2006 and Regulation 2.3.4
of the said Regulations expressly prohibits use of tobacco and
nicotine in all food products and the same is reproduced as
under.
23
2021 SCC OnLine TS 3592
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―2.3.4 Product not to contain any substance which may be
injurious to health : Tobacco and nicotine shall not be used as
ingredients in any food products.‖
43. Not only this, the FSS Act 2006 defined ‗ ingredient‘ and
‗ food additive‘ and therefore, gutka/pan masala which contains
tobacco and other kinds of tobacco products like chap tobacco,
pure tobacco, khaini, kharra, scented tobacco or flavoured
tobacco do fall within the definition of ‗ food‘ .‖
57. In so far as the contrarian views which had been taken by the
various other High Courts, Mr. Narayan referred to Annexure A to his
written submissions and sought to distinguish those judgments along
the following lines. While dealing with the decision rendered by the
Patna High in M/s Omkar Agency v. The Food Safety and
24
Standards Authority of India , it was submitted that the notification
which had been impugned in those proceedings had banned all forms
of pan masala and the same clearly did not stand restricted to those
which contained tobacco or nicotine. It was further pointed out that
the aforesaid decision was, in any case, rendered prior to the order
passed by the Supreme Court on 23 September 2016 in terms of which
the prohibition on chewing tobacco had been reiterated. Learned
counsel also the sought to assail the correctness of the view expressed
in that decision since it had failed to notice the judgment rendered by
a learned Judge of that High Court itself in Lal Babu Yadav v. State
25
of Bihar which had upheld the ban.
24
2016 SCC OnLine Pat 9231
25
2012 SCC OnLine Pat 1265
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58. Turning then to the judgment rendered by the Calcutta High
26
Court in Sanjay Anjay Stores v. Union of India & Ors. , learned
counsel submitted that the aforesaid decision proceeds on the premise
that tobacco is not food, and that food must be construed as only those
products which are a source of nutrition or energy. According to Mr.
Narayan, the aforesaid view is clearly contrary to the expansive
interpretation as placed upon the said word by the Supreme Court in
the decisions aforenoted and which had held that all articles which are
usually used for human consumption would be liable to be understood
as food and that the said expression could not stand restricted only to
those articles which may have a nutritive value or function.
59. Insofar as the judgment of the Calcutta High Court in Prabhat
27
Zarda Factory India Pvt. Ltd. v. The LG & Ors. is concerned, it
was the submission of Mr. Narayan that the same had merely followed
the judgment in Sanjay Anjay Stores . Drawing the attention of the
Court to the decision rendered by the Gauhati High Court in
28
Dharampal Satyapal Ltd. & Anr. v. State of Assam & Anr. , Mr.
Narayan submitted that the Gauhati High Court had struck down a
State legislation which sought to regulate chewing tobacco on the
ground that COTPA occupied the entire field. According to Mr.
Narayan, the said decision clearly fails to bear in consideration the
provisions of Regulations 2.3.4 and the obligation of the State
Governments to enforce the same in light of the orders passed by the
26
2017 SCC OnLine Cal 16323
27
2017 SCC OnLine Cal 6957
28
2017 SCC OnLine Gau 1196
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Supreme Court in Ankur Gutka and Central Arecanut . It was
submitted that as would be evident from a reading of the aforesaid
judgment, those orders were neither noticed nor considered.
60. Mr. Narayan also assailed the correctness of the view expressed
by a learned Single Judge of the Kerala High Court in Joshy KV &
29
Ors. v. State of Kerala & Ors. and contended that aforesaid
judgment clearly does not merit acceptance since it was rendered per
incuriam and fails to notice the judgment pronounced by another
Single Judge of the same High Court in All Kerala Tobacco Dealers‟
30
Association v. State of Kerala .
61. Mr. Narayan also assailed the correctness of the judgment
rendered by the learned Single Judge of the Andhra Pradesh High
31
Court in Uppara Veerendra v. State of Andhra Pradesh on the
ground that the said judgment also failed to take into consideration the
orders passed by the Supreme Court and in any case fails to notice the
judgment rendered by the Division Bench of that Court itself in Dasa
32
Shekar v. State of Andhra Pradesh . . According to Mr. Narayan,
Godawat as well as the judgments rendered by the Bombay, Madras
and Telangana High Courts clearly commend acceptance since they
had upon a due consideration of the various decisions rendered in the
backdrop of the provisions contained in the FSSA come to the
conclusion that ―food‖ is a word of very wide import coupled with the
29
(2013) 1 KL3 244
30
(2016) 2 SCC 161
31
2021 SCC OnLine AP 4005
32
2021 SCC OnLine AP 2907
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fact that pan masala had, in any case, been recognized as falling
within its ambit by the Supreme Court in Godawat itself. It was Mr.
Narayan‘s submission that the judgments which have taken a
divergent view have failed to appreciate the intent of Regulation 2.3.4
which clearly prohibited the introduction, incorporation or mixing of
tobacco or nicotine in any food product. Learned counsel submitted
that the moment tobacco or nicotine is introduced in pan masala, a
product which is undoubtedly covered under the FSSA, the result
would clearly be contrary to the unambiguous statutory injunct
comprised in Regulation 2.3.4 of the Prohibition Regulations 2011.
62. According to learned counsel, the learned Single Judge clearly
erred in defining the inquiry to be ― Whether tobacco would fall within
the definition of food ‖. Mr. Narayan submitted that the entire focus of
the impugned Notification was on the introduction of tobacco in a
food article and thus falling foul of the statutory injunction placed by
Regulation 2.3.4. According to learned counsel, the learned Single
Judge has clearly embarked on a wholly incorrect path while
proceeding to test whether tobacco could be construed or interpreted
as ―food‖. This, according to Mr. Narayan, is palpably clear from the
findings as recorded in paragraph 218. According to learned counsel,
the issue of whether FSSA and the Regulations framed thereunder
were intended to regulate or prescribe standards for the use tobacco
was clearly misplaced. That, according to learned counsel, was clearly
neither the scope nor the intent of the Impugned Notifications. It was
his submissions that the solitary question which could be recognized
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to have arisen was whether pan masala when mixed along with
tobacco or nicotine could be said to be an article which would fall
within the ambit of Regulation 2.3.4 and consequently whether the
Food Safety Authority could in exercise of powers conferred by
Section 30(2)(a) have issued an order banning its manufacture,
distribution, and sale.
63. Mr. Narayan further submitted that the view taken by the
learned Judge that the power to prohibit as contained in Section
30(2)(a) is temporary and fleeting in character is also untenable.
According to learned counsel, the reliance placed by the Court on the
decision in Himat Lal K. Shah v. Commissioner of Police,
33
Ahmedabad & Anr. as well as Omkar Agency was clearly
misconceived since those were decisions rendered in a wholly
different statutory context. According to learned counsel, the ultimate
findings returned on this score failed to bear in mind the undisputed
fact that Section 30(2)(a) expressly confers a power on the Food
Safety Authorities to prohibit and ban the manufacture, storage,
distribution or sale of any food article in the interest of public health.
64. Mr. Narayan also questioned the correctness of the view
expressed by the learned Single Judge while dealing with the interplay
between the provisions of COTPA and FSSA. It was at the outset
submitted that the appellants had never contended before the learned
Single Judge that COTPA stood impliedly repealed by the FSSA. In
33
(1973) 1 SCC 227
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fact, it was vehemently contended that the aforesaid findings have
come to be returned by the learned Single Judge even though no such
submission had been addressed or made by the appellants in that
regard.
65. Mr. Narayan then submitted that notwithstanding the fact that
COTPA does itemise pan masala and gutka in its Schedule, that alone
would not justify the prohibition in Regulation 2.3.4 being
disregarded. According to Mr. Narayan, on a due consideration of the
two legislations, it would be apparent that they clearly operate upon
different subject matters and over well-defined fields. According to
Mr. Narayan, it would be wholly incorrect to interpret or construe the
provisions of COTPA in a manner which would either defeat the
intent of the FSSA or render its provisions or the regulations framed
thereunder as being otiose.
66. It was submitted that the learned Single Judge also failed to
appreciate the overriding effect conferred upon the provisions of the
FSSA by virtue of Section 89 thereof. It was urged that undisputedly
FSSA came to be promulgated later in point of time to COTPA.
According to Mr. Narayan, the FSSA being a later special food law
would clearly override COTPA. Reliance in this respect was placed on
the judgment of the Supreme Court in Ashoka Marketing v. Punjab
34
National Bank .
34
(1994) 4 SCC 406
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67. Turing then to the question of whether the Impugned
Notifications could be said to be violative of Article 14, Mr. Narayan
addressed the following submissions. It was submitted that the writ
petitioners had contended that even though it may be asserted that
―smoking tobacco‖ is a more benign substance and poses lesser
dangers to health than smokeless tobacco, the appellants have chosen
to ban only the latter and thus offending Article 14. It was submitted
that undisputedly both smoking as well as smokeless tobacco have a
deleterious effect on health and welfare of individuals. According to
Mr. Narayan, if the contentions addressed on this score were to be
accepted, it would essentially amount to the principle of negative
equality being invoked. It was submitted that the respondents had on
due consideration of the Expert Committee Reports taken note of the
larger impact which smokeless tobacco had on consumers and,
consequently, compelling the respondents to take emergent steps in
respect of that category. Mr. Narayan submitted that the appellant had
borne in consideration the number of users of smokeless tobacco
which were almost double in number compared to those using other
smoking products, the Quit Ratio for users of smokeless tobacco being
much lower, the GATS survey which was undertaken all of which
clearly evidenced and justified the ban being introduced.
68. It was submitted that the classification and subcategories which
were made by the respondents were not only was based on intelligible
differentia but had a clear nexus with the object sought to be achieved.
It was his submission that the balancing of competing imperatives and
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the nature of regulatory measures which are to be adopted is one
which clearly lay within the province of the executive. According to
Mr. Narayan, the respondents had taken into consideration the
findings and conclusions recorded in various scientific reports and
studies and which clearly warranted emergent steps being taken to
curb the use of smokeless tobacco. In any case it was his submission
that in the absence of the classification suffering from patent or
manifest arbitrariness, the Notification clearly did not warrant being
set aside on this score.
D. SUBMISSIONS ADDRESSED ON BEHALF OF UOI
69. Mr. Singh, the learned CGSC advanced submissions on the
connected appeal on behalf of the Union which too has assailed the
correctness of the view expressed by the learned Single Judge in the
impugned judgment. According to Mr. Singh, the principal question
which formed the subject matter of the present dispute was whether
the products which were sought to be prohibited and regulated in
terms of the Impugned Notifications could be said to be ―food‖ within
the meaning of Section 3(1)(j) of the FSSA. According to Mr. Singh,
the learned Single Judge proceeded to frame a question as to whether
tobacco and tobacco products could be termed as ―food‖. It was his
submission that the question as framed itself loses sight of the
fundamental question which arose and which was whether the use of
tobacco in any food product could be permitted under the FSSA.
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70. According to Mr. Singh, the definition of food under the FSSA
takes within its fold any item which is intended for human
consumption. Learned counsel submitted that both under the PFA as
well as the FSSA, courts have consistently adopted the aforesaid test.
It was also highlighted that Section 3(1)(j) of the FSSA is clearly
couched in more expansive terms than the definition of ‗food‘ as it
appeared in the repealed PFA. Mr. Singh submitted that Section 2(v)
of the PFA had defined it to mean any article which ordinarily enters
into or is used in the composition or preparation of human food. The
FSSA, according to learned counsel, on the other hand, adopts the
principle of any substance intended for human consumption to be the
primary test for understanding whether any article would constitute
food for the purposes of the said enactment. This, according to Mr.
Singh, is in tune with the principles which had been enunciated by the
Supreme Court in Pyarli K. Tejani and R. Krishnamurthy .
71. Learned counsel further submitted that any doubt which may
have existed on the question of whether pan masala would constitute
food in any case stands definitively laid to rest in light of the judgment
in Godawat . Mr. Singh then submitted that both in Dhariwal
Industries as well as J. Anbazhagan , it was the aforenoted principles
which were borne in consideration by the respective High Courts who
held that gutka would constitute food. Learned counsel also placed
reliance on the decision rendered by the Telangana High Court in Sri
Kamadhenu Traders which had categorically concluded that gutka /
pan masala which contains tobacco would all fall within the ambit of
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food as defined under the FSSA. Mr. Singh also sought to draw
sustenance from the decision of the Bombay High Court in
Mohammad Yamin Naeem Mohammad vs. The State of
35
Maharashtra which too had returned findings consistent with the
same line of reasoning and had in clearly and unequivocal terms
expressed its dissent from decisions of other High Courts which had
held to the contrary.
72. It was further submitted that the correctness of the judgment
rendered by the learned Single Judge is also liable to be tested bearing
in mind the undisputed fact that the validity of Regulation 2.3.4 had
neither been questioned nor assailed. It was Mr. Singh‘s contention
that once the said Regulation was recognised as constituting the
principal plank for examining the validity of the challenge which
stood raised, it would be evident that as soon as tobacco or nicotine
came to be added to pan masala, it must necessarily be accepted to be
food and the statutory prohibition as enshrined in Regulation 2.3.4
would be violated.
73. Turning then to the scheme and the ambit of COTPA and
FSSA, learned counsel submitted that the former essentially seeks to
regulate a host of tobacco products. It was his submission that the
regulatory measures which constitute the body of COTPA have
clearly been misunderstood by the petitioners as a source of
entitlement to manufacture and sell tobacco products. Mr. Singh
35
2021 SCC OnLine Bom 26
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submitted that as would be apparent from the various provisions of
COTPA, the said enactment is clearly aimed at discouraging the
public at large from consuming tobacco-based products. That,
according to learned counsel, cannot be read conversely to amount to
a conferment of a right upon the petitioners to engage in the
manufacture, distribution and sale of tobacco products.
74. Mr. Singh then traced the history of the promulgation of PFA,
COTPA and FSSA to submit that PFA recognized different categories
of food including those for which standards had been fixed as also
those for which no parameters stood prescribed. Mr. Singh
highlighted the fact that pan masala was identified as a standardized
food items in terms of Rule 5 read with A.30 of Appendix-A. This,
according to Mr. Singh clearly established that the manufacture and
sale of chewing tobacco or pan masala as an item of food always
stood regulated even under PFA and was subject to appropriate
permissions and licenses being obtained from the competent authority.
75. Mr. Singh submitted that trade and commerce as well as
production, supply and distribution of cigarettes is essentially
regulated by the Cigarettes (Regulation of Production, Supply &
36
Distribution) Act, 1975 . It was submitted that upon a subsequent
review of the said legislation, a Parliamentary Committee had found
that the aforesaid statute had proven to be ineffective since it had
failed to have an impact on the avowed objective of making the
36
The 1975 Act
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smoking public aware of the numerous health hazards connected
therewith. According to Mr. Singh, it was the recommendations
framed by this committee for promulgation of a broader and more
effective legislation which formed the percussor for the enactment of
COTPA. Learned counsel submitted that COTPA which came to be
promulgated in 2003, adopted a different strategy in order to educate
people who consumed tobacco and consequently framed novel and
broader regulatory provisions to achieve the stated goal. It was also
pointed out that the insertion of Rule 44J of the PFA Rules with effect
from 21 August 2006 was a categorical reiteration of the intent of the
statute to ensure that the use of tobacco and nicotine as ingredients in
food products is prohibited. Mr. Singh submitted that the aforesaid
statutory imperative was only reiterated by Regulation 2.3.4.
76. It was then submitted that COTPA was enacted primarily for
discouraging the use and consumption of products that contained
tobacco. FSSA on the other hand, according to Mr. Singh, is a
comprehensive legislation which deals with food and all aspects
relating thereto. Assailing the findings returned by the learned Single
Judge who had held that COTPA would prevail over FSSA insofar as
tobacco is concerned, it was the submission of Mr. Singh that there is,
in fact, no conflict whatsoever between the two legislations which
operate in separate and distinct fields. Mr. Singh submitted that while
FSSA is concerned with matters relating to safe and wholesome food,
COTPA introduces regulatory measures which are concerned with the
sale, purchase and advertising of various tobacco products specified in
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the Schedule. According to Mr. Singh, the field of food is to be
governed solely by the provisions of the FSSA and the various
Regulations framed thereunder and thus it would be wholly incorrect
to assume that COTPA would override the provisions of the former or
that it would sanction the addition of tobacco or nicotine in a food
article.
77. Mr. Singh also questioned the correctness of the conclusions
recorded by the learned Judge in light in light of Dhariwal Industries
and Mohammad Yamin to submit that gutka and pan masala with
tobacco or nicotine would clearly be governed by the FSSA by virtue
of being articles of food. Stress was also laid upon the aforenoted two
decisions which had also alluded to the overriding effect conferred by
Section 89 on the provisions of the FSSA.
78. The validity of the impugned notification was also sought to be
sustained by Mr. Singh referring to Article 144 of the Constitution and
the obligation of all authorities to act in aid of orders passed by the
Supreme Court. According to Mr. Singh, the various orders passed in
Ankur Gutka and Central Arecanut were liable to be strictly
implemented and enforced by all authorities throughout the territory
of India. It was his submission that all States and Union Territories
were obliged and in fact placed under a duty to ensure that the ban as
imposed by the Supreme Court was effectively enforced and
implemented.
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79. Mr. Singh also questioned the conclusions recorded by the
learned Judge who had held that tobacco was a subject which would
stand governed exclusively by COTPA by virtue of the declaration of
expediency as enshrined therein. Mr. Singh submitted that a
declaration in terms of Entry-52 of List I cannot possibly be read as an
intent to exercise monopoly over the entire field and of no other
legislation being framed in a legitimate exercise of legislative powers.
It was his submission that if the aforesaid argument were to be
accepted, the various provisions which are made with respect to
tobacco and nicotine under the Environment (Protection) Act,
37
1986 and the rules made there under the Drugs and Cosmetics Act
38
1940 would also be rendered ultra vires and illegal. Reliance in this
respect was placed upon the following pertinent observations as
rendered by the Madras High Court in Designated Officer, food
safety & Drugs Control Dept. v. Jayavilas Tobacco Traders
39
LLP :-
― 20. True, the Parliament has enacted COTPA providing for
prohibition of advertisement and regulation of Trade and
Commerce, Production, Supply and Distribution of Cigarettes and
other Tobacco products. Chewing Tobacco is included as a product
in the Schedule to the said enactment. The object of the Act as
found in the objects and reasons is to reduce exposure of people to
tobacco smoke (passive smoking) and prevent the sale of tobacco
products to minors and to protect them from becoming victims of
misleading advertisements. As could be seen from the above, the
object of the enactment of COTPA is to prohibit advertisement of
37
The 1986 Act
38
The 1940 Act
39
2023 SCC Online Mad 408
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tobacco and tobacco products and to reduce exposure of people to
tobacco smoke and to prevent sale of tobacco products to minors.
The Act, in our considered opinion, does not deal with
consumption of tobacco in any form by persons other than minors.
By prohibiting smoking in public places the act intends to achieve
its object of reducing exposure to tobacco smoke (passive smoke)
21. The answer to the question whether the State Legislature can
legislate upon a particular Industry has to be essentially a firm no
in view of the very Entries, viz. Entry 52 of List I, Entries 26 and
27 of List II and Entry 33 of List III. Entries 26 and 27 of List II
which deal with Trade and Commerce within the State and
production and supply and distribution of goods are made subject
to provisions of Entry 33 and Entry 33 deals with Trade and
Commerce and Production, Supply and Distribution of products of
any Industry, the control of such Industry by the Union is declared
by the Parliament by law to be expedient in the public interest and
other goods that are enumerated therein. Therefore, once the
Parliament enacts a law invoking Entry 52 after declaring
expediency in public interest, the State Legislatures cannot
legislate on the said Industry unless the procedure under Article
254 is followed. This by itself will not answer the issue that is
raised in the Writ Petitions and the Writ Appeal.
22. There are two enactments one is COTPA enacted in the year
2003 evidently under Entry 52 of List I of Schedule VII and the
FSS Act enacted again by the Parliament under Entry 52 by
declaring an expediency in public interest. Therefore, the Union
had taken over the control of both the Tobacco Industry and the
Food Industry by enacting these two Acts after having declared an
expediency in Public interest. While the earlier enactment, viz.
COTPA deals with Tobacco Industry, the subsequent enactment,
viz. FSS Act deals with the Food Industry. There would arise an
essential conflict between the provisions of these two enactments if
one is to reach a conclusion that tobacco would be food within the
meaning of Section 3(j) of the FSS Act. Such conflict, in our
opinion, has to be resolved by attempting to harmonise the
provisions of that two enactments. Both the enactments are made
by the Parliament invoking Entry 52 and there is a chance of there
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being some overlapping in certain areas. That by itself cannot, in
our opinion, denude the Parliament of the power to enact a Law
controlling a different industry invoking Entry 52 of List I of
Schedule VII of the Constitution of India.
23. The submissions of the learned Senior Counsel appearing for
the petitioner in the Writ Petitions, to a great extent proceed on the
power of the State Legislature to enact a Law on the same subject
covered by the Law enacted by the Parliament under Entry 52. As
we had already observed such power is not available to the State
Legislatures, unless the procedure under Article 254 is followed.
Therefore, the theory of occupied field would not apply, in the
light of the above discussion, we answer the first issue to the effect
that the Parliament is not denuded of the power to make a Law
invoking Entry 52 in respect of a particular class of Industry after
having made a Law invoking Entry 52 taking over a particular
Industry merely because there is a chance of overlapping of the
provisions of the two enactments.‖
80. Mr. Singh also placed reliance upon the following observations
as appearing in the aforenoted decision and which while dealing with
the aspect of incidental entrenchment had observed as under: -
― 24. The next question that would arise is the perceived conflict
between the provisions of COTPA and FSS Act regarding Tobacco
and Tobacco products. The FSS Act, as seen from its statement of
objects and reasons is enacted to regulate Food Industry and to
provide for systematic and scientific development of Food
Processing Industry. It also attempts to fix food standards and to
regulate/monitor manufacturing, import, processing, distribution
and sale of food. While the object of the COTPA is to ban
advertisements, to regulate use of Tobacco products in public
places and to ban sale of tobacco products to minors, the object of
the FSS Act, is to regulate manufacture of food products and to
ensure food safety and standards.
25. The objects of these two enactments are by and large different.
Of course there is a possibility of over lapping, of the provisions of
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these two enactments particularly when it relates to chewing
Tobacco, Gutka or Pan Masala, since those products could be
brought within the meaning of the expanded definition of food
under Section 3(j) of FSS Act. We are unable to see any conflict
between the two enactments. If a Tobacco product answers the
definition of food under the FSS Act, the manufacture or sale or
distribution of it, could be regulated by the Commissioner of Food
Safety under the powers invested in him under the regulations and
the provisions contained in Section 30 (2)(a).
26. A contention is raised by the learned Senior Counsel appearing
for the petitioner in the Writ Petitions to the effect that there is a
conflict between the provisions of the two enactments as the
provisions of the two enactments stand and the objective sought to
be achieved by the two enactments. We are unable to see any
conflict between the two enactments except for a remote chance of
there being overlapping in terms of implementation of the
provisions of the enactments. This, as already stated, should be
resolved by adopting the Principle of harmonious construction that
attempt should be to reconcile the provisions of the enactments
with a view to advance the objectives of the enactment.
27. A Division Bench of this Court in Government of Tamil Nadu
v. K. Sevanthinatha Pandarasannathi, reported in 2009 SCC
OnLine Mad 597, had an occasion to consider the theory of
incidental encroachment while dealing with amendment to the
Tamil Nadu Hindu Religious and Charitable Endowments Act,
1959, which sought to introduce a prohibition disqualifying a non-
citizen from being a trustee of a Hindu Religious Institution within
the State which was challenged on the ground that it amounted to
transgression of rights of foreigners, which would be covered by
Entry 17 of List I of the Schedule VII, which deals with citizenship
naturalization and aliens and therefore, the State Legislature was
incompetent to enact such law.‖
81. Mr. Singh, lastly argued that numerous scientific and
authoritative reports had repeatedly expounded on the irreversible and
harmful effects flowing from the consumption of gutka, chewing
tobacco and other like products. It was submitted that it would be a
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travesty of justice if the writ petitioners were recognized to have a
right to carry on trade and business in such products.
82. Mr. Singh submitted that after the Supreme Court came to
render its decision in Godawat , various questions were raised in
Parliament with respect to the proposed course of action liable to be
th
adopted by the Union Government. Referring to the 14 Lok Sabha
Debates and which records the proceedings as they unfolded on 10
May 2006, it was pointed that the House was informed that the Union
Government was proposing an appropriate amendment in the 1955
Rules in order to empower the Union Government to effectively
introduce a ban. According to Mr. Singh, the introduction of Rule 44J
in the 1955 Rules was in implementation of the aforesaid policy
decision taken by the Union Government.
83. Reliance was also placed on a decision rendered by this Court
40
in Nava Bans Sar Vyapar Association v. Union of India & Ors. to
submit that tobacco was considered to be a substance so perniciously
harmful that trade in the same was liable to be considered as res extra
commercium. Mr. Singh placed reliance upon the following passages
from the aforesaid decision: -
― 11. Though the High Court of Allahabad in Varshney General
Sales v. State of U.P. MANU/UP/0148/1994 has held that tobacco
could not be placed at par with liquor, as hazardous to health, and
to trade wherein there could be said to be no fundamental right and
which aspect remained undealt in the appeal therefrom reported as
Godfrey Phillips India Ltd. v. State of U.P. (2005) 2 SCC 515 but
over the time the hazards of tobacco seem to have overtaken the
40
2012 SCC Online Del 5714
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hazards of liquor, leading to the legislation such as COTPA. The
Supreme Court in Khoday Distilleries Ltd. v. State of Karnataka
(1995) 1 SCC 574 observed that what may not be considered
harmful today, may be considered so tomorrow and what articles
and goods should be allowed to be produced, possessed, sold and
consumed, is to be left to the judgment of the legislative and
executive wisdom. Similarly, in Madras City Wine Merchants'
Assn. v. State of T.N. (1994) 5 SCC 509 and in Ramesh Chandra
Kachardas Porwal v. State of Maharashtra (1981) 2 SCC 722 it was
held that nothing can be expected to remain static in this changing
world of ours and a market which is suitable and conveniently
located today may be found to be unsuitable and inconvenient
tomorrow on account of the development, congestion or for a
variety of other reasons. The Parliament, in the year 2003, while
enacting COTPA, in the Statement of Objects and Reasons thereof
noted that tobacco is responsible for an estimated eight lakh deaths
annually in the country, that the treatment of tobacco related
diseases and loss of productivity caused therefrom was costing the
country almost Rs. 13,500 crores annually, offsetting completely
the revenue and employment generated by tobacco industry and
described the objective of COTPA as to prevent the sale of tobacco
products to minors and to protect them from becoming victims of
misleading advertisements, all to achieve a healthier lifestyle and
protection of right to life enshrined in the Constitution.
Undoubtedly, the Supreme Court in Godawat Pan Masala Products
I.P. Ltd. (supra) maintained that the legislature/government having
chosen not to ban the sale of tobacco products except to minors,
trade in tobacco could not be classified as res extra commercium
i.e. a business in crime, but the principles laid down in Cooverjee
B. Bharucha v. Excise Commr., Ajmer AIR 1954 SC 220 and P.N.
Krishna Lal v. Govt. of Kerala 1995 Supp (2) SCC 187, that there
is no fundamental right to trade in dangerous and noxious
substances, would nevertheless apply to tobacco which has now
been universally accepted as a major public health hazard.‖
84. Mr. Singh also sought to buttress the aforesaid contention in
terms of the following observations as rendered by the Supreme Court
in an interim order passed upon Health for Millions Trust v. Union
41
of India :-
41
(2018 SCC OnLine SC 49
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― 9. Considering the rivalised submission advanced at the Bar and
keeping in view the Objects and Reasons of the Cigarettes and
Other Tobacco Products (Prohibition of Advertisement and
Regulation of Trade and Commerce, Production, Supply and
Distribution) Act, 2003 and the measures taken by the State, we
think it appropriate to direct stay of operation of the judgment and
order passed by the High Court of Karnataka. Though a very
structural submission has been advanced by the learned counsel for
the respondents that it will affect their business, we have remained
unimpressed by the said proponement as we are inclined to think
that health of a citizen has primacy and he or she should be aware
of that which can affect or deteriorate the condition of health. We
may hasten to add that deterioration may be a milder word and,
therefore, in all possibility the expression ―destruction of health‖ is
apposite.‖
85. The attention of the Court was also drawn to the following
passages from the judgment of the Supreme Court in Union of India
42
& Ors. v. Unicorn Industries :-
― 27. Judicial notice can be taken of the fact that by various
scientific studies on betel quid and substitutes, tobacco and their
substitutes i.e. pan masala with tobacco and without tobacco, these
products have been found to be one of the main causes for oral
cancer. A detailed study has been considered by three experts,
namely, Urmila Nair, Helmut Bartsch and Jagadeesan Nair in the
Division of Toxicology and Cancer Risk Factors, German Cancer
Research Centre (DKFZ), Heidelberg, Germany. The research
paper is titled as ―Alert for an epidemic of oral cancer due to use of
the betel quid substitutes gutkha and pan masala: A review of
agents and causative mechanisms [ Mutagenesis, Vol. 19 No. 4.] ‖.
After considering the entire material in detail and considering the
various earlier studies, the paper observes thus:
“Perspectives
Banning of gutkha and pan masala has been strongly
advocated by oncologists as a preventive measure to reduce
42
(2019) 10 SCC 575
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oral cavity cancers. Recently, a number of States in India
have banned the manufacture and sale of both products and
this should reduce the incidence rate. Similar regulations
regarding other health-impairing tobacco products which
have been on the market for centuries, together with
cigarettes and bidis (an indigenous smoking product),
should also be reinforced.
However, for those who are addicted to these products or
are already affected by premalignant lesions, educational
interventions to encourage stopping the habit are essential.
Additionally, chemopreventive interventions are being
explored. Retinoids, NSAIDS and green tea are among the
promising agents (Garewal, 1994; IUSHNCC, 1997;
Papadimitrakopoulou and Hong, 1997; Lin et al., 2002a).
Although a large percentage of lesions did respond to
treatment, recurrence after terminating the
chemopreventive regime was also observed
(Sankaranarayanan et al., 1997), perhaps due in part to
continuation of the addictive habit.
As with all cancers, early diagnosis is important for
successful treatment of oral cancer, as its prognosis is still
very poor. There is, nowadays, a strong drive to apply
proteomics technology to molecular diagnosis of cancer.
Expression profiling of tumour tissues, molecular
classification of tumours and identification of markers to
allow early detection, sensitive diagnosis and effective
treatment are now being explored for oral cancers. Genes
with significant differences in expression levels between
normal, dysplastic and tumour samples have been reported
and this should help in better understanding the progression
of oral squamous cell carcinoma (Kuo et al., 2002;
Leethanakul et al., 2003).
DNA aneuploidy in oral leucoplakia in Caucasian tobacco
users has been found to signal a very high risk for
subsequent development of oral squamous cell carcinomas
and associated mortality (Sudbo and Reith, 2003; Sudbo et
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al., 2004). A risk assessment model to predict progression
of premalignant lesions that includes histology and a score
combining chromosomal polysomy, expression and loss of
heterozygosity on 3p or 9p has also been described (Lee et
al., 2000; Rosin et al., 2002). Once diagnosed, these
premalignant lesions could be treated at a much earlier
stage by chemopreventive agents, surgery, chemotherapy
and/or intense radiotherapy to prevent new lesions and
premalignant lesions from progressing to invasive cancer.
Conclusions
Gutkha and pan masala have flooded the Indian market as
cheap and convenient BQ substitutes and become popular
across all age groups wherever this habit is practised. There
is sufficient evidence that chewing of tobacco with lime,
BQ with tobacco, BQ without tobacco and areca nut are
carcinogenic in humans (IARC, 1985, 2004). These
evaluations in conjunction with the available evidence on
the BQ substitutes gutkha and pan masala implicates them
as potent carcinogenic mixtures that can cause oral cancer.
Additionally, these products are addictive and enhance the
early appearance of OSF, especially so in young users who
could be more susceptible to the disease. Although recently
some curbs have been put on the manufacture and sale of
these products, urgent action needs be taken to permanently
ban gutkha and pan masala, together with the other well-
established oral cancer-causing tobacco products. Finally,
as the consequences of these habits are significant and
likely to intensify in the future, an emphasis on education
aimed at reducing or eliminating the use of these products
as well as home-made preparations should be accelerated.‖
28. Recently, the Department of Oral Medicines and Radiology,
Dental Institute, Rajendra Institute of Medical Sciences, Ranchi
has through its experts, namely, Anjani Kumar Shukla, Tanya
Khaitan, Prashant Gupta and Shantala R. Naik conducted a study
on the subject ―Smokeless Tobacco and Its Adverse Effects on
Haematological Parameters: A Cross-Sectional Study [ Advances
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in Preventive Medicine 2019.] ‖. The study paper considered the
consumption of smokeless tobacco (SLT) in various forms in India
such as pan (betel quid) with tobacco, zarda, pan masala, khaini,
arecanut. After conducting an in-depth analysis, the paper
concludes and recommends as under:
“Conclusion and Recommendation
SLT use has severe adverse effects on haematological
parameters. The present study might serve as an early
diagnostic tool in any systemic diseases and be helpful in
spreading awareness on the deleterious effect in the
populace consuming SLT. Timely intervention among
students can prevent the initial experimentations with
tobacco from developing into addiction in adulthood.
People should be counselled to avoid all habits of tobacco
and undergo nicotine replacement therapy along with
antioxidants. Knowledge and awareness about systemic
and oral ill-effects of tobacco should be spread through
tobacco control programs in the pursuit for a tobacco-free
world.‖
29. It was sought to be argued on behalf of the manufacturers of
pan masala without tobacco, that the pan masala without tobacco
stands on a different pedestal than the pan masala with tobacco. It
was sought to be argued that, pan masala without tobacco cannot
be considered to be hazardous to health. The Department of Head
and Neck Surgery, Tata Memorial Hospital, Mumbai through its
experts Garg A., Chaturvedi P. Mishra A. and Datta S. had
conducted a study on ―A Review on Harmful Effects of Pan
Masala [ Indian Journal of Cancer (October-December 2015), Vol.
52, Issue 4.] ‖. It is to be noted that this study is of ―pan masala
without tobacco‖. It will be apposite to refer to the following
observations of the said report:
“Policy issues concerning Pan Masala
Pan masala use is rampant in India by all the sections and
age groups of the society. It has emerged as a major cause
of oral cancer in India. National Family Health Survey-2
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showed that 21% of people over 15 years of age consumed
PM or tobacco. Study in the State of Tamil Nadu showed
that the age at which people start consuming areca nut
products ranges from 12 to 70 years. 58% of the subjects
chewed the products more than twice a day. Advertising
tobacco products including PM containing tobacco is
banned in India since 1-5-2004. To bypass this ban tobacco
companies are advertising PM ostensibly without tobacco,
heavily in all forms of media. PM is surrogate for tobacco
products as the money spent on marketing, and advertising
is many times of the revenue generated from the sale of
PM. In Mumbai after the ban on PM and gutka the sale has
come down and the percentage of users quitting and
reducing the habit was 23.53% and 55.88% respectively.
The main reason of quitting and reduction in consumption
was non-availability of these products. In spite of the ban
gutka was still available but in different forms or at
increased cost. Strict law in the form of Cigarettes and
Other Tobacco Products Act, 2003 has been made in India,
but the enforcement and compliance is lax. There is a need
for strong enforcement and compliance of laws throughout
the country. The genotoxic, carcinogenic properties and
numerous other harmful effects of PM need immediate and
strict action by the Government on PM without tobacco as
it has banned PM with tobacco. The consumers should also
be made aware of the harmful effects of PM as they are
under a false impression that it is not harmful.
Conclusion
Pan masala is widely used across all the strata of society
and is freely available in many parts of the country. It is
carcinogenic, genotoxic, and has harmful effects on the oral
cavity, liver, kidneys and reproductive organs. Government
action is immediately required to restrict the consumption
and to make the people aware about its harmful effects.‖
30. The study which has been conducted in 2004, found that
gutkha and pan masala have been one of the major causes of oral
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cancer. The Oncologists as early as in 2004 had strongly advocated
banning of gutkha and pan masala. They further find that banning
the manufacture and sale of these products would reduce oral
cancer incidence rates. It is found that gutkha and pan masala have
flooded the Indian markets and become popular amongst all age
groups. It is observed that pan masala with tobacco as well as
without tobacco have been found to be having a potent
carcinogenic mixtures that can cause oral cancer. It further found
that, these products are an addictive and enhance the early
appearance of oral sub-mucous fibrosis (OSMF). It is especially so
in the young users who could be more susceptible to the disease.
31. The report further finds that, in the National Family Health
Survey-2, it has been found that 21% of people over 15 years of
age consumed pan masala or tobacco. The report finds that, though
advertising tobacco products including pan masala containing
tobacco is banned in India since 1-5-2004, to bypass this ban,
tobacco companies are advertising pan masala ostensibly without
tobacco, heavily in all forms of media. It has been found that, after
the ban on pan masala and gutkha, the sale has come down. The
2016 report finds that, in Mumbai, after the ban on pan masala and
gutkha, the sale has come down and the percentage of users
quitting and reducing the habit was 23.53% and 55.88%
respectively.
32. It could thus be seen that, by scientific research conducted by
experts in the field, it has been found that the consumption of pan
masala with tobacco as well as pan masala sans tobacco is
hazardous to health. It has further been found that, the percentage
of teenagers consuming the hazardous product was very high and
as such exposing a large chunk of young population of this country
to the risk of oral cancer. Taking into consideration this aspect, if
the State has decided to withdraw the exemption granted for
manufacture of such products, we fail to understand as to how it
can be said to be not in the public interest.
36. The Appellate Bench of the High Court observed that some of
the notifications providing modalities for exemption were issued
subsequent to the enactment of Section 154 of the Finance Act,
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2003 and, therefore, Section 154 of the Finance Act, 2003 has no
relevance in the said case. However, the Appellate Bench does not
find it necessary to even make a reference to the judgment of this
Court which was relied on by the learned Single Judge while
dismissing the writ petitions and which is specifically put in
service by the Union of India. We are unable to appreciate as to
how the Appellate Bench of the Gauhati High Court finds that
withdrawal of exemption in respect of ―pan masala with tobacco‖
is not in the public interest. The legislative policy as reflected in
Section 154 of the Finance Act was to withdraw the exemption
granted to the manufacturers of cigarettes as well as pan masala
with tobacco and that too with retrospective effect. Apart from the
fact that, it is a common knowledge that tobacco is highly
hazardous, the legislative intent was also unambiguous. In these
circumstances, the finding of the High Court that the withdrawal of
exemption for tobacco products was not in the public interest, to
say the least is shocking. We find that the approach of the
Appellate Bench of the High Court was totally unsustainable.
37. As already discussed hereinabove, we have no hesitation to
hold that the withdrawal of the exemption to the pan masala with
tobacco and pan masala sans tobacco is in the larger public interest.
As such, the doctrine of promissory estoppel could not have been
invoked in the present matter. The State could not be compelled to
continue the exemption, though it was satisfied that it was not in
the public interest to do so. The larger public interest would
outweigh an individual loss, if any. In that view of the matter we
find that the appeals deserve to be allowed.‖
86. In view of the aforesaid, it was Mr. Singh‘s submission that in
light of the unanimity of scientific and judicial opinion, the subject
products must clearly be recognized as being hazardous, dangerous
and harmful to public health and the trade business and commerce in
the same cannot be accorded the status of a fundamental right.
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E. STAND OF THE WRIT PETITIONERS
87. Supporting the judgment rendered by the learned Judge and
appearing for the writ petitioners, Mr.Vaidyanathan, Mr. Singhvi and
Mr. Kohli, learned senior counsels, addressed the following
submissions.
88. Mr. Vaidyanathan, learned senior counsel appearing for the writ
petitioners had principally addressed submissions relating to the
declaration of expediency as embodied in COTPA, the doctrine of
occupied field and the contention of the writ petitioners that the entire
gamut of activities pertaining to tobacco stand governed exclusively
by COTPA. As would be evident from the written submissions which
were filed in the writ petition as well as those which have been
tendered in these proceedings, the scope and ambit of COTPA and
FSSA, the argument of occupied field was principally addressed in the
backdrop of Entry 52 falling in List I, Entries 24, 26 and 27 falling in
List II and Entry 33 of List III as placed in the Seventh Schedule to
the Constitution. The submissions on this aspect proceeded along the
following lines.
89. Mr. Vaidyanathan taking the Court through the Statement of
Objects and Reasons as well as the Preamble of COTPA submitted
that it is a legislation which is aimed at prohibiting the advertisement
of cigarettes and other tobacco products as well as for the regulation
of trade and commerce in and production, supply and distribution of
the aforesaid. Learned senior counsel laid emphasis on the declaration
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of Parliament as embodied in the Act and evincing its intent to take
over the tobacco industry as a whole. Bearing in mind the provisions
made by Entries 52 and 33, it was submitted that upon a declaration
being made in terms of Entry 52 of List I, it is permissible for
Parliament to take over an entire industry and which would include
the manufacturing and production activities related thereto as well as
trade and commerce, production, supply and distribution activities
relating to the said industry.
90. It was in the alternative submitted that in light of the language
employed in Entries 52 and 33 falling in Lists I and III respectively,
Parliament may choose to exercise the authority conferred by the
aforementioned two entries and take over only some facets pertaining
to the concerned industry while leaving the rest for the competent
Legislature. The interplay between Entry 52 falling in List I read with
Entries 26 and 27 falling in List II and Entry 33 comprised in List III,
was explained with Mr. Vaidyanathan submitting that while under the
constitutional framework the State Legislatures stand empowered to
enact laws relating to trade and commerce within the State as well as
for production, supply and distribution of goods under Entries 26 and
27 of List II, that power becomes subject to Entry 33 of List III, once
Parliament has evinced its intent to take over an industry in exercise of
the legislative power conferred by Entry 52 in List I.
91. The petitioners, as would be evident from the written
submissions filed in the original writ proceedings, concede the legal
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position that upon such a declaration being made and Parliament
taking over control of an industry in public interest, the scope of the
control would ultimately have to be evaluated based on the provisions
of COTPA itself. Mr. Vaidyanathan submitted that a reading of the
provisions of COTPA would unerringly establish that Parliament had
in fact taken over all matters pertaining to trade and commerce in and
production, supply and distribution of cigarettes and other products by
virtue of the authority conferred by Entry 33 falling in List III of the
Seventh Schedule. It was contended that COTPA being especially
enacted with reference to Entry 52 of List I read with Entry 33 of List
III, it would be manifest that Parliament not only took under its
control the tobacco industry as a whole, it consequently denuded the
States of the jurisdiction to legislate with respect to the various
products set out in the Schedule to the aforesaid enactment.
92. Mr. Vaidyanathan drew the attention of the Court to the
definition of ―tobacco products‖ as contained in Section 3(p) to submit
that undisputedly pan masala and gutka are clearly included in the
aforesaid expression. Learned senior counsel submitted that COTPA
is an all-inclusive and a ―fully occupying seamless‖ statute, regulating
the entire field and every aspect relating to the defined tobacco
products. Mr. Vaidyanathan referred to the statutory prohibition as
contained in Sections 4, 5 and 6 of COTPA, the restrictions introduced
in terms of Section 7 and the aspect of regulation which is embodied
in Sections 8, 9 and 10 of the said enactment. It was submitted that
since COTPA occupies the entire field relating to tobacco products,
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any regulation or prohibition in respect of a tobacco product or
activities relating thereto must be found in COTPA alone. It was
submitted that the Impugned Notifications cannot possibly be
construed or read as having been promulgated in exercise of any
power traceable to the provisions of COTPA. Viewed in that light Mr.
Vaidyanathan would submit that the Impugned Notifications have
clearly transgressed into an occupied field and consequently the
learned Single Judge has correctly come to conclude that the
impugned action of the appellants cannot be sustained in law.
93. Mr. Vaidyanathan further submitted that as per the submission
of the appellant itself, neither raw tobacco nor pure tobaccos are
products which could be regulated by them. According to learned
senior counsel, if the aforesaid submission were to be accepted it
would be sufficient for the Court to uphold the quashing of the
Impugned Notifications since they clearly purport to deal with the
aforesaid products. It was contended that the submissions addressed
in this regard by the appellants are clearly untenable since they
proceed on the incorrect premise that raw tobacco or pure tobacco has
been taken over by Parliament under COTPA. Mr. Vaidyanathan
sought to highlight the fact that COTPA evidences the intent of
Parliament to take over the tobacco industry as a whole. It was
submitted that scented tobacco, chewing tobacco, cigarettes and other
like products would clearly fall within the expanse of the phrase
―tobacco industry‖. Learned senior counsel contended that once
Parliament had taken over legislative competence with respect to the
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tobacco industry and COTPA covered the entire field, no authority
purporting to exercise powers under the FSSA can possibly legislate
in respect of those products.
94. It was the submission of Mr. Vaidyanathan that the term food
industry as occurring in the declaration which finds place in Section 2
of the FSSA must thus be understood as not including products which
are already covered by a separate legislation dealing exclusively with
products of the tobacco industry. The submission in essence was that
any product of the tobacco industry can neither be regulated nor its
production, sale or distribution be prohibited by exercise of powers
conferred by FSSA.
95. Turning then to the question of whether tobacco could be said
to be food or a food product, learned senior counsel submitted that the
aforesaid issue stands conclusively settled in light of the judgment
rendered by the Constitution Bench of the Supreme Court in ITC Ltd.
43
v. Agricultural Produce Market Committee , where it came to be
categorically held that tobacco is not foodstuff and thus would not be
governed by Entry 33 of List III. The aforesaid submission was
addressed in the backdrop of the following observations as appearing
in that decision: -
“63. The subject-matter of the issue here is about the
interpretation of Entry 52 in List I of the Seventh Schedule. It
requires Parliament to make a declaration by law identifying an
industry, the control of which by the Union is expedient in the
public interest. Under the said entry only an ―industry‖ can be
43
(2002) 9 SCC 232
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| declared as an industry, the control whereof by the Union is | |
|---|
| regarded as expedient in public interest. It is, therefore, implicit | |
| that if an activity cannot be regarded as industry, Entry 52 will | |
| have no applicability to that activity. The question is about the | |
| concept of ―industry‖ in Entry 52 of List I. As already stated, the | |
| entries in the legislative list have to be construed in the widest | |
| sense cannot be disputed but it has also to be borne in mind that | |
| such construction should not make other entries totally | |
| redundant. The meaning of the word ―industry‖ in various | |
| dictionaries, reliance on which was placed by Mr Shanti | |
| Bhushan, is not of any assistance while considering the | |
| constitutional meaning of the said term. There may not be any | |
| embargo or limitation on the power of Parliament to enact the | |
| law in respect of activities other than manufacturing activities | |
| but that power is non-existent in Entry 52 of List I. It may be | |
| elsewhere. Reference in this regard can be made to Entry 33 of | |
| List III including in its ambit foodstuff and certain raw | |
| materials. Tobacco, however, is admittedly not a foodstuff. | |
96. Mr. Kohli learned senior counsel submitted that the Supreme
Court in S. Samuel, M.D., Harrisons Malayalam & Anr. v. Union
44
of India & Ors. , had used the word ―foodstuff‖ interchangeably
with ―food‖. In view of the aforesaid it was contended that the
decision of the Supreme Court in ITC Ltd. and the passage extracted
above, cannot be understood as the Supreme Court intending foodstuff
to be different from food. It was additionally urged that the aforesaid
decision had also enunciated the essential elements and characteristics
of food to mean a product which is used for nourishment or one which
satiates hunger. It was submitted that the Supreme Court had held that
a stimulant like tea cannot be food. In view of the aforesaid, it was
submitted by learned senior counsel that once tobacco has been found
44
(2004) 1 SCC 256
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not be food or foodstuff, then its addition to any product cannot be
considered to be violative of Regulation 2.3.4.
97. From the written submissions which had been filed in the writ
proceedings, the Court notes that it was the case of the petitioners that
the basic characteristic of food are nutritive, restitutive, and
promotive. Tested on the aforesaid factors, it was contended that
tobacco cannot possibly be construed as food. While reiterating the
aforesaid submissions before us, learned senior counsel submitted that
the fundamental understanding of food cannot be expanded to include
tobacco.
98. Proceeding then to the scope of Regulation 2.3.4, it was
submitted by Mr. Kohli, that the said provision prohibits the usage of
tobacco and nicotine as ingredients in any food product. It was
submitted that on a plain reading of the said Regulation, it is manifest
that it does not seek to prohibit tobacco or nicotine. Mr. Kohli further
contended that pan masala, a product which is covered under the
FSSA and chewing tobacco which is governed by COTPA, on their
own cannot possibly be viewed as violating Regulation 2.3.4.
According to him, the Impugned Notifications are based on a
complete misconstruction of Regulation 2.3.4 since tobacco in light of
the submissions noted above is not a food product and consequently,
the impugned Notifications were liable to be struck down on this
fundamental ground itself.
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99. The orders passed by the Supreme Court in Ankur Gutka and
Central Arecanut were sought to be explained with learned senior
counsel arguing that those were concerned only with gutka and pan
masala mixed with chewing tobacco. It was submitted that those
orders do not relate to the principal product namely, tobacco.
100. Learned senior counsel also assailed the Impugned
Notifications on the ground of them being ultra vires Section 30(2)(a)
of the FSSA. It was submitted that on a plain reading of the said
provision, it is manifest that the same cannot be resorted to for the
purposes of repeated or yearly prohibitory orders being issued. It was
contended that Section 30(2)(a) only contemplates a pro tem power
being exercised. It was in the aforesaid light that the writ petitioners
had argued before the learned Single Judge that the Impugned
Notifications had been issued in colourable exercise of powers and in
manifest violation of the scope and intent of Section 30(2)(a). The
ambit of Section 30(2)(a) was explained with learned senior counsel
submitting that on a reading of the said provision it clearly appears to
embody three separate dimensions. According to the writ petitioners,
the said aspect is evident from the said statutory provision comprising
of the element of territory (either in the whole of the State or any area
or part thereof), time (not exceeding one year) and scope (interest of
public health, the manufacture, storage, distribution or sale and an
article of food). Mr. Kohli contended that even if it were assumed for
the sake of argument that Section 30(2)(a) could be resorted to for
issuance of the Impugned Notifications, it would clearly be subject to
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the limitations expressly embodied in that provision itself and
therefore the prohibitory order could not have run beyond a period of
one year. It was submitted that the appellants have in complete
violation of the aforenoted express limitation repeatedly exercised that
power on a yearly basis. This, according to Mr. Kohli, is one which
has been correctly answered by the learned Single Judge in their
favour and warrants no interference.
101. Dr. Singhvi, learned senior counsel appearing for the writ
petitioners, addressed submissions on Article 14 of the Constitution
and in light of the ban being restricted to smokeless tobacco. Dr.
Singhvi submitted that the respondents have clearly discriminated
against manufactures of smokeless tobacco since undisputedly,
smoking tobacco products are equally harmful and deleterious to
public health. It was his submission that the Impugned Notifications
create an artificial sub-class of products and which classification
cannot be sustained on any reasonable or rationale differentia. It was
his submission that while Regulation 2.3.4 prohibits the use of tobacco
and nicotine as ingredients, the respondents have arbitrarily created an
artificial distinction by applying its provisions only to smokeless
tobacco.
102. Dr. Singhvi further submitted that no plausible reason has been
proffered by the appellants as to why tobacco should not be used and
understood in its plenary sense and be limited to smokeless tobacco.
It was his contention that the larger constitutional issue which arises is
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the burden of proof which stands placed upon the appellant to justify
the artificial ―intra tobacco‖ class that stands created. Dr. Singhvi
urged that there is no justification or rationale to artificially segregate
ingested tobacco from inhaled tobacco for the purposes of banning,
especially when both are tobacco products which are consumed by
users as mild intoxicants to achieve identical results. It was thus
submitted that the impugned action fails the test of a valid
classification as enunciated by various precedents rendered on the
scope of Article 14. It is these rival submissions which fall for
consideration.
103. Since elaborate submissions appear to have been addressed
before the learned Single Judge and were reiterated before us in
respect of the impact of the declaration of expediency made by
Parliament by virtue of Entry 52 of List I, it would be appropriate to
consider the aforesaid question at the very outset.
104. However, and before proceeding ahead to do so, we deem it
necessary to underline the fact that unlike the various decisions which
were cited for our consideration on this aspect, and which had dealt
with a conflict between a Parliamentary legislation and a State
enactment, in the present case we are called upon to deal with two
Parliamentary statutes and both of which carry the declaration
contemplated under Entry 52 of List I.
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F. ENTRY 52 & DECLARATION OF EXPEDIENCY
105. In order to appreciate the arguments addressed and centering
around the various entries in the Seventh Schedule and more
particularly Entry 52 falling in List I thereof, it would be beneficial to
articulate some of the fundamental and well settled principles of
interpretation which govern the subject of constitutional entries. As
has been repeatedly held, entries in the Seventh Schedule are not a
source of legislative power. They merely delineate and broadly
indicate the field of legislation. The power to legislate flows
essentially from Article 246 of the Constitution. The entries broadly
define the areas or the subjects in respect of which a legislation may
be framed. While entries are to be conferred the widest permissible
and plausible interpretation, no particular entry should be interpreted
in a manner which would deprive any other entry of its content or
render it ineffectual or insubstantial. When questions of conflict are
raised, it is the bounden duty of the Court to strike a just balance
between the scope of legislation falling in respective entries in the
Lists ensuring that no entry is rendered meaningless or devoid of
substance. Regard must also be had to the fact that Entry 52 erodes the
power that may otherwise be exercised by a competent legislature.
Courts are thus obliged to carefully discern and identify the extent and
scope of the legislation that comes to be consequently framed pursuant
to that declaration. This since the Constitution seeks to strike a just
balance between Parliament and the individual States and thus
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ensuring that the meaning that we ascribe represents federalism in its
truest form.
106. The interplay between Entry 52 of List I, Entries 26 and 27
comprised in List II and Entry 33 falling in List III was succinctly
explained by the Constitution Bench in Ch. Tika Ramji vs. State of
45
U.P. as follows: -
― 18. Production, supply and distribution of goods was no doubt
within the exclusive sphere of the State Legislature but it was
subject to the provisions of Entry 33 of List III which gave
concurrent powers of legislation to the Union as well as the States
in the matter of trade and commerce in, and the production, supply
and distribution of, the products of industries where the control of
such industries by the Union was declared by Parliament by law to
be expedient in the public interest. The controlled industries were
relegated to Entry 52 of List I which was the exclusive province of
Parliament leaving the other industries within Entry 24 of List II
which was the exclusive province of the State Legislature. The
products of industries which were comprised in Entry 24 of List II
were dealt with by the State Legislatures which had under Entry 27
of that List power to legislate in regard to the production, supply
and distribution of goods, goods according to the definition
contained in Article 366(12) including all raw materials,
commodities and articles. When, however it came to the products
of the controlled industries comprised in Entry 52 of List I, trade
and commerce in, and production, supply and distribution of, these
goods became the subject-matter of Entry 33 of List III and both
Parliament and the State Legislatures had jurisdiction to legislate in
regard thereto. The amendment of Entry 33 of List III by the
Constitution Third Amendment Act, 1954, only enlarged the scope
of that Entry without in any manner whatever detracting from the
legislative competence of Parliament and the State Legislatures to
legislate in regard to the same. If the matters had stood there, the
sugar industry being a controlled industry, legislation in regard to
the same would have been in the exclusive province of Parliament
and production, supply and distribution of the product of sugar
industry viz. sugar as a finished product would have been within
45
(1980) 4 SCC 136
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Entry 33 of List III. Sugarcane would certainly not have been
comprised within Entry 33 of List III as it was not the product of
sugar industry which was a controlled industry. It was only after
the amendment of Entry 33 of List by the Constitution Third
Amendment Act, 1954 that foodstuffs including edible oilseeds
and oils came to be included within that List and it was possible to
legislate in regard to sugarcane, having recourse to Entry 33 of List
III. Save for that, sugarcane, being goods, fell directly within Entry
27 of List II and was within the exclusive jurisdiction of the State
Legislatures. Production, supply and distribution of sugarcane
being thus within the exclusive sphere of the State Legislatures, the
U.P. State Legislature would be, without anything more, competent
to legislate in regard to the same and the impugned Act would be
intra vires the State Legislature.
19. The argument, however, was that the word ‗industry‘ was a
word of wide import and should be construed as including not only
the process of manufacture or production but also activities
antecedent thereto such as acquisition of raw materials and
subsequent thereto such as disposal of the finished products of that
industry. The process of acquiring raw materials was an integral
part of the industrial process and was, therefore, included in the
connotation of the was ‗industry‘ and when the Central Legislature
was invested with the power to legislate in regard to sugar industry
which was a controlled industry by Entry 52 of List I, that
legislative power included also the power to legislate in regard to
the raw material of the sugar industry, that is sugarcane, and the
production, supply and distribution of sugarcane was, by reason of
its being the necessary ingredient in the process of manufacture or
production of sugar, within the legislative competence of the
Central Legislature. Each entry in the Lists which is a category or
head of the subject-matter of legislation must be construed not in a
narrow or restricted sense but as widely as possible so as to extend
to all ancillary or subsidiary matters which can fairly and
reasonably be said to be comprehended in it (Vide The United
Provinces v. Mst. Atiqa Begum [(1940) FCR 110, 134] , Thakur
Jagannath Baksh Singh v. The United Provinces [(1946) FCR 111,
119] , and Megh Raj v. Allah Rakhia [(1947) FCR 77] , and the
topic ‗industries‘ should, therefore, be construed to include the raw
materials which are the necessary ingredients thereof and which
form an integral part of the industrial process.
24. It is clear, therefore, that all the Acts and the notifications
issued thereunder by the Centre in regard to sugar and sugarcane
were enacted in exercise of the concurrent jurisdiction. The
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exercise of such concurrent jurisdiction would not deprive the
Provincial Legislatures of similar powers which they had under the
Provincial Legislative List and there would, therefore, be no
question of legislative incompetence qua the Provincial
Legislatures in regard to similar pieces of legislation enacted by the
latter. The Provincial Legislatures as well as the Central
Legislature would be competent to enact such pieces of legislation
and no question of legislative competence would arise. It also
follows as a necessary corollary that, even though sugar industry
was a controlled industry, none of these Acts enacted by the Centre
was in exercise of its jurisdiction under Entry 52 of List I. Industry
in the wide sense of the term would be capable of comprising three
different aspects : (1) raw materials which are an integral part of
the industrial process, (2) the process of manufacture or
production, and (3) the distribution of the products of the industry.
The raw materials would be goods which would be comprised in
Entry 27 of List II. The process of manufacture or production
would be comprised in Entry 24 of List II except where the
industry was a controlled industry when it would fall within Entry
52 of List I and the products of the industry would also be
comprised in Entry 27 of List II except where they were the
products of the controlled industries when they would fall within
Entry 33 of List III. This being the position, it cannot be said that
the legislation which was enacted by the Centre in regard to sugar
and sugarcane could fall within Entry 52 of List I. Before sugar
industry became a controlled industry, both sugar and sugarcane
fell within Entry 27 of List II but, after a declaration was made by
Parliament in 1951 by Act 65 of 1951, sugar industry became a
controlled industry and the product of that industry viz. sugar was
comprised in Entry 33 of List III taking it out of Entry 27 of List II.
Even so, the Centre as well as the Provincial Legislatures had
concurrent jurisdiction in regard to the same. In no event could the
legislation in regard to sugar and sugarcane be thus included within
Entry 52 of List I. The pith and substance argument also cannot be
imported here for the simple reason that, when both the Centre as
well as the State Legislatures were operating in the concurrent
field, there was no question of any trespass upon the exclusive
jurisdiction vested in the Centre under Entry 52 of List I, the only
question which survived being whether, putting both the pieces of
legislation enacted by the Centre and the State Legislature together,
there was any repugnancy, a contention which will be dealt with
hereafter. ‖
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107. While dealing with the issue of the meaning to be ascribed to
the word ― industry ‖ as appearing in the aforenoted entries comprised
in the different Lists placed in the Seventh Schedule to the
Constitution, the Supreme Court in Tika Ramji had explained it to be a
term which was capable of being understood as comprising of three
different aspects, namely, (a) raw materials forming an integral part of
the industrial process (b) process of manufacture or production and (c)
the distribution of products of that industry. On facts in Tika Ramji ,
the Constitution Bench had ultimately held that raw materials being
goods would fall within the scope of Entry 27 of List II, the process of
manufacture would stand comprised in Entry 24 of List II except in a
case where the same be a controlled industry in which case it would
fall within Entry 52 of List I. Similarly, the Supreme Court had
explained that the products of the industry would be comprised in
Entry 27 of List II except where it were a controlled industry in which
case both Parliament as well as the State Legislatures would have
concurrent jurisdiction since those products would fall within Entry 33
of List III.
108. The Constitution Bench went on further to observe that by
virtue of the declaration made by Parliament with respect to the sugar
industry, it became a controlled industry and the products of that
industry would thus fall under the ambit of Entry 33 of List III and
consequently be carved out from Entry 27 of List II. However, the
Constitution Bench held that sugar and sugarcane which were merely
raw products could not be said to fall under Entry 52 of List I and the
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declaration that was made by Parliament. The authority of the State
Legislature to promulgate the enactment, the validity whereof had
been questioned, was ultimately upheld. The principles enunciated in
Tika Ramji have been consistently followed by the Supreme Court in
various judgments rendered thereafter and constitutes the locus
classicus on the subject. However, for the purposes of understanding
the essence of the principles which came to be enunciated in that
decision, it would be apposite to advert to some of the observations
which appear in the judgment of yet another Constitution Bench in
ITC Ltd.
109. The opinions penned by Y.K. Sabharwal, J., Ms. Ruma Pal, J.,
and Brijesh Kumar, J. constituted the majority. In ITC Ltd. , the
Constitution Bench was called upon to consider the correctness of the
46
earlier decision rendered in ITC limited versus State of Kartnatka
which had held that the Bihar Agricultural Produce Markets Act, 1960
insofar as it levied market fee on the sale of tobacco was ultra vires
and beyond the legislative competence of the State in light of the
Tobacco Board Act, 1975 and the declaration referable to Entry 52 on
which the said enactment was founded.
110. While answering the question which arose, Sabharwal, J. while
reiterating the interpretation accorded by Tika Ramji to the competing
entries falling in the three Lists comprised in Seventh Schedule held
as follows: -
46
(2002) 9 SCC 232
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― 61. Now, in the Seventh Schedule part of Entry 27 is in Entry 26
of the State List; markets and fairs is Entry 28 of List II;
moneylending and moneylenders (Entry 30 List II); production,
supply and distribution of goods subject to the provisions of Entry
33 of List III (Entry 27 List II); industries subject to the provisions
of Entries 7 and 52 of List I (Entry 24 List II). It would, thus, be
seen that under the 1935 Act, both production, supply and
distribution of goods as well as development of industries were
subject to the provisions of List I as provided in Entry 29. Our
Constitution-makers, however, bifurcated Entry 29 into two parts.
Industries were put in Entry 24 of List II subject to the provisions
of Entries 7 and 52 of List I. The production, supply and
distribution of goods was put in Entry 27 of List II and made
subject to Entry 33 of List III. The acceptance of the argument of
Mr Shanti Bhushan would mean that no object was sought to be
achieved by such a bifurcation. It is clear that the two entries have
been separated. One made subject to the provisions of Entry 33 of
List III and the other subject to the provisions of Entries 7 and 52
of List I. Therefore, to interpret the expression ―industry‖ to
include in it the aspect of raw material would mean that by the
same analogy the subject-matter of production, supply and
distribution of goods should also be included therein and in fact
that was the argument of Mr Shanti Bhushan. Would the
acceptance of that argument not negate the will of the Constitution-
makers? I think it would. Therefore, the argument cannot be
accepted. The same argument would equally apply to Entry 14 of
List II in respect of agriculture which is not subject to any list. It
would so become if we accept the contention of Mr Shanti
Bhushan. Further, earlier when Parliament felt the need to control
raw material, it included ―raw jute and raw cotton‖ in Entry 33 List
III by the Constitution (Third Amendment) Act, 1954. Even Article
369 indicates that agricultural raw material is in the State List for it
refers to raw cotton, cotton seed and edible oilseeds and seeks to
temporarily place it, by fiction, in the Concurrent List to enable
Parliament to make laws. The expression ―industries‖ in Entry 24
List II or Entry 52 List I, cannot be interpreted in a manner that
would make other entries of List II of the Seventh Schedule subject
to Union control, which in fact they are not. Wherever it was
intended to be made subject to such control, whether of List I or
that of List III, it was said so. A perusal of List II shows that
whenever a particular entry was intended to be made subject to an
entry in List I or III, it has been so stated specifically. Therefore, an
interpretation which tends to have the effect of making a particular
entry subject to any other entry, though not so stated in the entry,
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deserves to be avoided unless that be the only possible
interpretation. We do not think that such an interpretation on the
entries in question, namely, Entry 52 of the Union List and Entry
24 of the State List deserves to be placed.
62. The principles of interpretation are well settled. There is no
doubt that the entries in the lists in the Seventh Schedule do not
provide competence or power to legislate on the legislature for
which the source of power is contained in Article 246 of the
Constitution. In deciding the question of legislative competence, it
has to be kept in view that the Constitution is not required to be
considered with a narrow or pedantic approach. It is not to be
construed as a mere law but as a machinery by which laws are
made. The interpretation should be broad and liberal. The entries
only demarcate the legislative field of the respective legislature and
do not confer legislative power as such and if it is found that some
of the entries overlap or are in conflict with the other, an attempt to
reconcile such entries and bring about a harmonious construction is
the duty of the Court. When, however, reconciliation is not
possible, as here, then the Court will have to examine the entries in
relation to legislative power in the Constitution. ‖
111. Ruma Pal, J. in her concurring opinion made the following
pertinent observations: -
112. The underlying rationale of Tika Ramji's [AIR 1956 SC 676 :
―
1956 SCR 393] definition of the word ―industry‖ is that the
Constitution having expressly provided for particular fields of
legislation in the three lists, each field must be given a meaning.
Entry 24 of List II cannot be read so as to subsume within itself the
other entries in List II. It must be given a meaning which allows
the other entries to survive and be defined to that extent with
reference to what it is not.
113. Thus in Calcutta Gas [AIR 1962 SC 1044 : 1962 Supp (3)
SCR 1] it was held that the word ―industry‖ in Entry 24 of List II
and Entries 7 and 52 of List I did not include gas and gasworks
which was in terms provided for in Entry 25. The argument in that
case was that the State was incompetent to enact the Oriental Gas
Company Act, 1960 under Entry 25 of List II because Parliament
had passed the Industries (Development and Regulation) Act, 1951
by virtue of Entry 52 of List I. The Central Act in that case had,
under Section 2 declared that it was expedient in the public interest
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that the Union should take under its control inter alia industries of ―
‗fuel gas‘ (coal gas, natural gas and the like)‖. For the purpose of
promoting and regulating these industries, the Central Act enabled
the Central Government to investigate into the affairs of an
undertaking, to regulate its production, supply and distribution,
and, if necessary to take over the management of the undertaking.
The Court said that if the word ―industry‖ in Entry 24 of List II
and, therefore, Entry 52 of List I were interpreted to include ―gas
and gasworks‖ which were expressly covered by Entry 25 List II,
Entry 25 may become redundant and it would amount to attributing
to the authors of the Constitution ―inaptitude, want of precision and
tautology‖. As a result, the challenge to the State Act was
negatived and the Central Act, insofar as it purported to deal with
the gas industry, was held to be beyond the legislative competence
of Parliament.
119. It is unnecessary to multiply instances of the numerous
decisions which have followed the logic of Tika Ramji [AIR 1956
SC 676 : 1956 SCR 393] and accepted its conclusion that for the
purposes of Entry 24 of List II and consequently Entry 52 of List I,
―industry‖ means ―manufacture or production‖ and nothing more.
It is sufficient to note that Tika Ramji's [AIR 1956 SC 676 : 1956
SCR 393] definition of industry has been affirmed and applied
recently by a Constitution Bench in Belsund Sugar Co. Ltd. v. State
of Bihar [(1999) 9 SCC 620] and is still good law. Harakchand
Banthia case [(1969) 2 SCC 166 : (1970) 1 SCR 479] does not
strike a discordant note.
122. This provides for States to generally legislate on production,
supply and distribution of goods. Entry 33 of List III deals
particularly with the production, supply and distribution of the
products of industries where the control of such industry by the
Union is declared by law to be expedient in the public interest
under Entry 7 or 52 of List I. It would not have been necessary to
have especially provided for trade and commerce in, and the
production, supply and distribution of the products of a controlled
industry in Entry 33 of List III, had the word ―industry‖ in Entries
7 and 52 of List I covered the field. Similarly had the word
―industry‖ in Entry 24 of List II been sufficient, why have a
separate head under Entry 27 of the same list dealing with the
production, supply and distribution of goods unless we concede
that the framers of the Constitution were guilty of ―inaptitude, want
of precision and tautology‖? The concept of a ―general‖ and
―particular‖ term is necessarily relative depending upon the context
in which the term is considered. Entry 27 of List II is certainly a
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general entry but only in relation to Entry 33 of List III which deals
with trade, commerce etc. in particular kinds of products, namely,
the products of a controlled industry. Finally, it is clear from the
passage quoted, that Banthia [(1969) 2 SCC 166 : (1970) 1 SCR
479] held that the Gold Act was legislatively competent under
Entry 52 of List I because it dealt with the process of manufacture
or production of gold i.e. it was within the sweep of industry as
defined in Tika Ramji [AIR 1956 SC 676 : 1956 SCR 393] .
126. To sum up: the word ―industry‖ for the purposes of Entry 52
of List I has been firmly confined by Tika Ramji [AIR 1956 SC
676: 1956 SCR 393] to the process of manufacture or production
only. Subsequent decisions including those of other Constitution
Benches have reaffirmed that Tika Ramji case [AIR 1956 SC 676 :
1956 SCR 393] authoritatively defined the word ―industry‖ — to
mean the process of manufacture or production and that it does not
include the raw materials used in the industry or the distribution of
the products of the industry. Given the constitutional framework,
and the weight of judicial authority it is not possible to accept an
argument canvassing a wider meaning of the word ―industry‖.
Whatever the word may mean in any other context, it must be
understood in the constitutional context as meaning ―manufacture
or production‖.
127. Applying the negative test as evolved in Tika Ramji [AIR
1956 SC 676 : 1956 SCR 393] in this case it would follow that the
word ―industry‖ in Entry 24 of List II and consequently Entry 52 of
List I does not and cannot be read to include Entries 28 and 66 of
List II which have been expressly marked out as fields within the
State's exclusive legislative powers. As noted earlier, Entry 28
deals with markets and fairs and Entry 66 with the right to levy
fees in respect of, in the present context, markets and fairs. Entry
52 of List I does not override Entry 28 in List II nor has Entry 28 in
List II been made subject to Entry 52 unlike Entry 24 of List II.
This Court in Belsund Sugar [(1999) 9 SCC 620] has also accepted
the argument that Entry 28 of List II operated on its own and
cannot be affected by any legislation pertaining to industry as
found in Entry 52 of List I.
‖
112. Her Ladyship proceeded to record her conclusions as under: -
134. Section 15 [―15. Sale of agricultural produce .—(1) No
―
agricultural produce specified in notification under sub-section (1)
of Section 4, shall be made, bought or sold by any person at any
place within the market area other than the relevant principal
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market yard or sub-market yard or yards established therein, except
such quantity as may on this behalf be prescribed for retail or sale
or personal consumption.(2) The sale and purchase of such
agricultural produce in such areas shall notwithstanding anything
contained in any law be made by means of open auction or tender
system except in cases of such class or description of produce as
may be exempted by the Board.‖] prohibits notified agricultural
produce from being bought or sold by any person at any place in
the market area other than the relevant principal market yard or
sub-market yard or yards established therein unless it is for retail
sale, personal consumption or exempted by the Marketing Board
under Section 15(1) or (2). The mode of purchase and sale
specified under Section 15(2) is by means of open auction or
tender system. Sub-section (2) of Section 18 specifically authorises
the Market Committee to issue licences to persons engaged in the
purchase, storage or processing of agricultural produce to operate
in the market area and also to control and regulate the admission of
persons into the market yard or the sub-market yards and to
prosecute persons trading without a valid licence. Section 27
empowers the Market Committee to levy and collect market fee
from the buyer on the agricultural produce bought or sold in the
market area at specified rates. The remaining sections of the
Markets Act are omitted from consideration as they are not at all
relevant. We are really concerned with Section 15 and more
particularly Section 27. The setting up of market areas, market
yards and regulating use of the facilities within such area or yards
by levy of market fee is a matter of local interest and would be
covered by Entry 28 of List II and thus within the legislative
competence of the State. If any portion of the market area or the
market yards is used for the sale or purchase of tobacco, that too
will be within the State's competence. To hold to the contrary
would be to ignore the exclusive powers of the States to legislate in
respect of markets and fairs under Entries 28 and 66 of List II. The
Markets Act does not seek to regulate either the ―manufacture or
production‖ of tobacco (assuming that agricultural produce can be
manufactured) and thus does not impinge upon the Tobacco Act
insofar as it is at all relatable to Entry 52 of List I. All the
provisions of the Markets Act, in my view, are clearly relatable to
Entry 28 of List II given the scope of the entry as discussed earlier.
The State in the circumstances, was not incompetent to incidentally
also legislate with regard to tobacco and ―the semantic sweep of
Entry 52 did not come in the way of the State Legislature making
laws on subjects within its sphere and not directly going to the
heart of the industry itself‖ [(1980) 1 SCC 223 : 1980 SCC (Tax)
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90] . (SCC p. 234, para 34) In my opinion therefore Sections 15
and 27 of the Markets Act in pith and substance are relatable to
Entries 28 and 66 of List II and have been competently enacted by
the State. Incidentally it is nobody's case that the fee charged under
Section 27 does not represent a quid pro quo for the services
rendered and the facilities afforded in the market area. It follows
that Parliament is incompetent to legislate for the setting up or
regulation of ―markets and fairs‖ within the meaning of the phrase
in Entry 28 of List II, even in respect of tobacco. It may of course
incidentally trespass into the State's legislative field, provided ( 1 )
the trespass is an inseparable part of the provisions validly passed,
and ( 2 ) the State has not already fully occupied its field with
conflicting statutory provisions. ‖
113. Brijesh Kumar, J., whose opinion formed part of the majority
had held as follows: -
― 163. As noticed earlier the majority view in ITC case [1985 Supp
SCC 476 : 1985 Supp (1) SCR 145] has been upheld in the
judgment of Brother Pattanaik, on slightly different reasoning and
the decisions of this Court in M.A. Tulloch [AIR 1964 SC 1284 :
(1964) 4 SCR 461] and Baijnath Kadio [(1969) 3 SCC 838]
dealing with legislation on mining and relied upon in the majority
judgment of ITC case [1985 Supp SCC 476 : 1985 Supp (1) SCR
145] have been found to be not relevant for the decision. It is true,
while legislating on any subject covered under an entry of any list,
there can always be a possibility of entrenching upon or touching
the field of legislation of another entry of the same list or another
list for matters which may be incidental or ancillary thereto. In
such eventuality, inter alia, a broad and liberal interpretation of an
entry in the list may certainly be required. An absolute or
watertight compartmentalization of heads of subject for legislation
may not be possible but at the same time entrenching into the field
of another entry cannot mean its total sweeping off even though it
may be in the exclusive list of heads of subjects for legislation by
the other legislature. As in the present case the relevant heads of
subject in List II, other than Entry 24, cannot be made to
practically disappear from List II and assumed to have crossed over
in totality to List I by virtue of declaration of the tobacco industry
under Entry 52 of List I, in the guise of touching or entrenching
upon the subjects of List II.‖
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114. The law with respect to a declaration made under Entry 52
falling in List I can thus be said to have been conclusively settled to be
that a declaration once made under that entry, results in denuding a
State legislature of the competence to legislate on the subject of
industries to the extent to which its control has been taken over by
Parliament. As a consequence of that declaration, the products of that
industry which would have otherwise fallen within the scope of
production, supply and distribution of goods in Entry 27 of List II,
become the subject matter of Entry 33 falling in List III. Similarly, the
processes of production and manufacture of such an industry which
would have ordinarily been comprised in Entry 24 of List II would
then be governed by a legislation framed in terms of Entry 52 of List
I. However, the extent of control that Parliament ultimately takes over,
be it with respect to the industry as a whole, the aspect of production,
supply and distribution of goods or mere facets of it are issues which
would ultimately have to be answered on the basis of the actual
provisions enacted by Parliament. This would be evident from the
discussion which follows.
115. This the Court notes since it would be open to Parliament to
take over only certain facets of that industry and refrain from
exercising its complete legislative authority that may otherwise flow
from Entry 33 falling in List III. Ultimately, the extent of control and
the assumption of legislative authority would have to be evaluated
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based upon the statute and the specific measures that Parliament may
deem appropriate to adopt.
116. The Constitution Bench of the Supreme Court in Ishwari
47
Khetan Sugar Mills (P) Ltd. v. State of U.P. extensively dealt
with this aspect as would be evident from the following excerpts of
that decision: -
| ―8. Sugar is a declared industry. Is it, however, correct to say that | | |
|---|
| once a declaration is made as envisaged by Entry 52 List I, that | | |
| industry as a whole is taken out of Entry 24 List II? In respect of an | | |
| identical Entry 54 List I in the passage extracted above it is said | | |
| that to the extent declaration is made and extent of control laid, that | | |
| much and that much alone is abstracted from the legislative | | |
| competence of the State Legislature. It is, therefore, not correct to | | |
| say that once a declaration is made in respect of an industry, that | | |
| industry as a whole is taken out of Entry 24 List II. Similarly, | | |
| in State of Haryana v. Chanan Mal [(1977) 1 SCC 340, 351 : AIR | | |
| 1976 SC 1654 : (1976) 3 SCR 688, 700] while upholding the | | |
| constitutional validity of the Haryana Minerals (Vesting of Rights) | | |
| Act, 1973, after noticing the declaration made in Section 2 of the | | |
| Mines and Minerals (Regulation and Development) Act, 1957, | | |
| (―Mines and Minerals Act‖ for short), as envisaged by Entry 54 | | |
| List I it was held : (SCC p. 351, para 24) | | |
| ―Moreover, power to acquire for purposes of | |
| development and regulation has not been exercised by | |
| Act 67 of 1957. The existence of power of Parliament to | |
| legislate on this topic as an incident of exercise of | |
| legislative power on another subject is one thing. Its | |
| actual exercise is another. It is difficult to see how the | |
| field of acquisition could become occupied by a Central | |
| Act in the same way as it had been in the West Bengal | |
| case [State of W.B. v. Union of India, AIR 1963 SC 1241 | |
| : (1964) 1 SCR 371] even before Parliament legislates to | |
| acquire land in a State.‖ | |
| These pronouncements demonstrably show that before State | | |
| Legislature is denuded of power to legislate under Entry 24 List II | | |
| in respect of a declared industry, the scope of declaration and | | |
| consequent control assumed by the Union must be demarcated with | | |
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| precision and then proceed to ascertain whether the impugned | | |
|---|
| legislation trenches upon the excepted field. | | |
| | |
| 9. The declaration made in Section 2 of the IDR Act reads as | | |
| under: | | |
| ―It is hereby declared that it is expedient in the | |
| public interest that the Union should take under its | |
| control the industries specified in the First | |
| Schedule.‖ | |
| 11. Absence of the expression ―to the extent hereinafter provided‖ | | |
| was pressed into service to point out that while in respect of mines | | |
| and minerals the Union has assumed control to the extent provided | | |
| in the Mines and Minerals Act, in the case of declared industries | | |
| the control is absolute, unlimited, unfettered or unabridged and, | | |
| therefore, everything that would fall within the connotation of the | | |
| word ―control‖ would be within the competence of the Union and | | |
| to the same extent and degree the State Legislature would be | | |
| denuded of its power to legislate in respect of that industry. It was | | |
| said that in respect of declared industries total control is assumed | | |
| by the Union and, therefore, Entry 24 List II on its import must be | | |
| read industry minus the declared industry because Entry 24 List II | | |
| is subject to Entries 7 and 52 List I. Undoubtedly the Union is | | |
| authorised to assume control in respect of any industry if | | |
| Parliament by law considers it expedient in the public interest. The | | |
| declaration has to be made by Parliament, but the declaration has to | | |
| be by law and not a declaration simpliciter. The words of limitation | | |
| on the power to make declaration are ―by law‖. Declaration must | | |
| be an integral part of law enacted pursuant to declaration. The | | |
| declaration in this case is made in an Act enacted to provide for the | | |
| development and regulation of certain industries. Therefore, the | | |
| control was assumed not in abstract but for a specific and avowed | | |
| object viz. development and regulation of certain industries. The | | |
| industries in respect of which control was assumed for the purpose | | |
| of their development and regulation have been set out in the | | |
| schedule. This control is to be exercised in the manner provided in | | |
| the statute viz. the IDR Act. The declaration for assuming control | | |
| is to be found in the same Act which provides for the limit of | | |
| control. The deducible inference is that Parliament made the | | |
| declaration for assuming control in respect of declared industries | | |
| set out in the Schedule to the Act to the extent mentioned in the | | |
| Act. It is difficult to accept the submission that Section 2 has to be | | |
| read de hors the Act and not forming part of the Act. This would be | | |
| doing violence to the art of legislative draftsmanship. It is open to | | |
| Parliament in view of Entry 52 List I, to make a declaration in | | |
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respect of industry or industries to the effect that the Union will
assume its control in public interest. It is not to be some abstract
control. The control has to be concrete and specific and the manner
of its exercise has to be laid down in view of the well established
proposition that executive authority must have the support of law
for its action. In a country governed by rule of law, if the Union, an
instrumentality for the governance of the country, has to exercise
control over industries by virtue of a declaration made by
Parliament, it must be exercised by law. Such law must prescribe
the extent of control, the manner of its exercise and enforcement
and consequence of breach. There is no such concept as abstract
control. The control has to be concrete and the mode and method
of its exercise must be regulated by law. Now, Parliament made the
declaration not in abstract but as part of the IDR Act and the
control was in respect of industries specified in the First Schedule
appended to the Act itself. Sections 3 to 30 set out various modes
and methodology, procedure and power to effectuate the control
which the Union acquired by virtue of the declaration contained in
Section 2. Industry as a legislative head finds its place in Entry 24
List II. The State Legislature can be denied legislative power under
Entry 24 to the extent Parliament makes declaration under Entry 52
and by such declaration, Parliament acquires power to legislate
only in respect of those industries in respect of which declaration is
made and to the extent as manifested by legislation incorporating
the declaration and no more. The Act prescribes the extent of
control and specifies it. As the declaration trenches upon the State
legislative power it has to be construed strictly. Therefore, even
though the Act enacted under Entry 54 which is to some extent in
pari materia with Entry 52 and in a parallel and cognate statute
while making the declaration Parliament did use the further
expression ―to the extent herein provided‖ while assuming control,
the absence of such words in the declaration in Section 2 would not
lead to the conclusion that the control assumed was to be
something in abstract, total and unfettered and not as per various
provisions of the IDR Act. The lacuna, if any, is made good by
hedging the power of making declaration to be made by law.
Legislative intention has to be gathered from the Act as a whole
and not by piece-meal examination of its provisions. It would,
therefore, be reasonable to hold that to the extent Union acquired
control by virtue of declaration in Section 2 of the IDR Act as
amended from time to time, the power of the State Legislature
under Entry 24 List II to enact any legislation in respect of declared
industry so as to encroach upon the field of control occupied by the
IDR Act would be taken away. This is clearly borne out not only
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| by the decision in Baijnath Kadio case [(1969) 3 SCC 838, 847- | | |
|---|
| 848 : AIR 1970 SC 1436 : (1970) 2 SCR 100, 113] where | | |
| undoubtedly while referring to the control assumed by the Union | | |
| by a declaration made in Section 2 of the Mines and Minerals Act, | | |
| it was said that to what extent such a declaration would go is for | | |
| Parliament to determine and this must be commensurate with | | |
| public interest, and once this declaration is made and the extent | | |
| laid down, the subject of legislation to the extent laid down | | |
| becomes an exclusive subject for legislation by Parliament. It is not | | |
| merely some abstract control but the extent of the control assumed | | |
| by the Union by the provisions of the IDR Act pursuant to | | |
| declaration made by Parliament that the State Legislature to that | | |
| extent, that is, to the extent the provisions of the IDR Act occupies | | |
| this field, is denuded of its power to legislate in respect of such | | |
| declared industry. | | |
| 22. There is on the contrary a good volume of authority for the | | |
| proposition that the control assumed by the Union pursuant to | | |
| declaration to the extent indicated in the statute, making the | | |
| declaration does not comprehend the power of acquisition if it is | | |
| not so specifically spelt out. In Kannan Devan Hills Produce | | |
| Company Ltd. v. State of Kerala [(1972) 2 SCC 218 : (1973) 1 | | |
| SCR 356] constitutional validity of Kannan Devan Hills | | |
| (Resumption of Lands) Act, 1971, was challenged on the ground of | | |
| legislative competence of Kerala State Legislature to enact the | | |
| legislation. It was urged that in view of the declaration made in | | |
| Section 2 of the Tea Act, 1953, tea was a controlled industry and, | | |
| therefore, the State Legislature was denuded of any power to deal | | |
| with the industry. It was further contended that tea plantation | | |
| required extensive land and that resumption of land by the | | |
| impugned legislation would directly and adversely affect the | | |
| control taken over by the Union and, therefore, the State | | |
| Legislature was incompetent to enact the impugned legislation. | | |
| This contention was repelled holding that the impugned legislation | | |
| was in pith and substance one under Entry 18 of List II read with | | |
| Entry 42, List III. In reaching this conclusion the Court held as | | |
| under : (SCC p. 229, para 28) | | |
| ―It seems to us clear that the State has legislative | |
| competence to legislate on Entry 18 List II and | |
| Entry 42 List III. This power cannot be denied on | |
| the ground that it has some effect on an industry | |
| controlled under Entry 52, List I. Effect is not the | |
| same thing as subject-matter. If a State Act, | |
| otherwise valid, has effect on a matter in List I it | |
| does not cease to be a legislation with respect to an | |
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| entry in List II or List III. The object of Sections 4 | |
|---|
| and 5 seems to be to enable the State to acquire all | |
| the lands which do not fall within Categories (a), (b) | |
| and (c) of Section 4(1). These provisions are really | |
| incidental to the exercise of the power of | |
| acquisition. The State cannot be denied a power to | |
| ascertain what land should be acquired by it in the | |
| public interest.‖ | |
| 24. It can, therefore, be said with a measure of confidence that | | |
| legislative power of the States under Entry 24 List II is eroded only | | |
| to the extent control is assumed by the Union pursuant to a | | |
| declaration made by the Parliament in respect of declared industry | | |
| as spelt out by legislative enactment and the field occupied by such | | |
| enactment is the measure of erosion. Subject to such erosion, on | | |
| the remainder the State Legislature will have power to legislate in | | |
| respect of declared industry without in any way trenching upon the | | |
| occupied field. State Legislature which is otherwise competent to | | |
| deal with industry under Entry 24, List II, can deal with that | | |
| industry in exercise of other powers enabling it to legislate under | | |
| different heads set out in Lists II and III and this power cannot be | | |
| denied to the State. In this connection it would be advantageous to | | |
| refer to Chanan Mal case [(1977) 1 SCC 340, 351 : AIR 1976 SC | | |
| 1654 : (1976) 3 SCR 688, 700] . In that case constitutional validity | | |
| of Haryana Minerals (Vesting of Rights) Act, 1973, and the two | | |
| notifications issued thereunder was challenged on the ground that | | |
| the Act and the notifications issued thereunder were repugnant to | | |
| the Mines and Minerals Act made by Parliament after making a | | |
| declaration as contemplated by Entry 54 List I. The challenge was | | |
| that the State Legislature was incompetent to legislate on the topic | | |
| of mines and minerals under Entry 23, List II in view of the | | |
| declaration made under Entry 54 List I and the enactment of Act 67 | | |
| of 1957 (Mines and Minerals Act) by the Parliament. By the | | |
| impugned Act and the notifications issued thereunder the State | | |
| Government of Haryana purported to acquire rights to salt petre, a | | |
| minor mineral in the land described in the schedule appended to | | |
| the notification and by the second impugned notification the State | | |
| Government announced to the general public that certain salt petre- | | |
| bearing areas in the State of Haryana mentioned therein would be | | |
| auctioned on the dates given there. Repelling the contention | | |
| regarding legislative incompetence it was observed that it is | | |
| difficult to see how the field of acquisition could become occupied | | |
| by a Central Act in the same way as it had been in West Bengal | | |
| case [State of W.B. v. Union of India, AIR 1963 SC 1241 : (1964) | | |
| 1 SCR 371] even before Parliament legislates to acquire land in a | | |
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| State. At least until Parliament has so legislated as it was shewn to | | |
|---|
| have done by the statute considered by this Court in the case from | | |
| West Bengal [State of W.B. v. Union of India, AIR 1963 SC 1241 : | | |
| (1964) 1 SCR 371] the field is free for State legislation falling | | |
| under the express provisions of Entry 42 of List III. It was further | | |
| observed as under : (SCC p. 355, para 36) | | |
| ―It seems difficult to sustain the case that the | |
| provisions of the Central Act would be really | |
| unworkable by mere change of ownership of land in | |
| which mineral deposits are found. We have to judge | |
| the character of the Haryana Act by the substance | |
| and effect of its provisions and not merely by the | |
| purpose given in the Statement of Reasons and | |
| Objects behind it. Such statements of reasons are | |
| relevant when the object or purpose of an enactment | |
| is in dispute or uncertain. They can never override | |
| the effect which follows logically from the explicit | |
| and unmistakable language of its substantive | |
| provisions. Such effect is the best evidence of | |
| intention. A Statement of Objects and Reasons is | |
| not a part of the statute, and, therefore, not even | |
| relevant in a case in which the language of the | |
| operative parts of the Act leaves no room | |
| whatsoever, as it does not in the Haryana Act, to | |
| doubt what was meant by the legislators. It is not | |
| disputed here that the object and effect of the | |
| Haryana Act was to acquire proprietary right to | |
| mineral deposits in ‗land‘.‖ | |
| 25. There is thus a long line of decisions which clearly | | |
| establishes the proposition that power to legislate for acquisition of | | |
| property is an independent and separate power and is exercisable | | |
| only under Entry 42 List III and not as an incident of the power to | | |
| legislate in respect of a specific head of legislation in any of the | | |
| three lists. This power of the State Legislature to legislate for | | |
| acquisition of property remains intact and untrammelled except to | | |
| the extent where on assumption of control of an industry by a | | |
| declaration as envisaged in Entry 52 List I, a further power of | | |
| acquisition is taken over by a specific legislation.‖ | | |
117. Ishwari Khetan thus holds in unambiguous terms that a
declaration of expediency is not liable to be either viewed or
understood as a complete erosion of the authority to legislate which
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may otherwise be claimed under an entry which becomes subject to
Entry 52. The Constitution Bench explains the constitutional position
to be that the power to legislate under Entry 24 would stand eroded
and effaced only to the extent that the statutory provisions enacted
occupy the field. The principles adumbrated in Ishwari Khetan thus
command us not to be boggled by a declaration made by virtue of
Entry 52 but to delve further in order to discern the extent to which
Parliament evinces its intent to occupy the field and the spectrum
which the legislation seeks to occupy and cover.
G. COTPA & FSSA- FUNDAMENTAL TENETS
118. Having laid out the broad constitutional framework in the
backdrop of which the questions which stand posited in these appeals
are liable to be answered, we feel that this would be an appropriate
stage to briefly allude to the relevant provisions of the COTPA and
FSSA.
119. COTPA is a legislation which purports to prohibit the
advertisement of cigarettes and tobacco products as well as to regulate
trade and commerce in production, supply and distribution of
cigarettes and other tobacco products. Section 4 prohibits smoking in
a public place. Section 5 introduces a prohibition with respect to
advertisement of cigarettes and other tobacco products. Section 6
places a prohibition on the sale of cigarettes and tobacco products to
any person who is under 18 years of age and in an area within a radius
of 100 yards of an educational institution. Section 7 prescribes that no
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person shall directly or indirectly produce, supply or distribute
cigarettes or any other tobacco product unless any packet thereof
carries on its label the specified statutory warning as well as the
pictorial warning as prescribed. Sections 8, 9 and 10 stipulate the
various details with respect to a statutory and pictorial warning.
COTPA also embodies statutory measures for confiscation,
adjudication of offences and prescribes various punishments for
violations of its provisions.
120. FSSA, on the other hand, is a legislation which is primarily
concerned with food and the laying down of scientific standards for
articles of food and to regulate manufacture, storage, distribution, sale
and import thereof. The intent of the statute is aimed at ensuring
availability of safe and wholesome food in the market for human
consumption and for matters connected therewith. FSSA thus clearly
comes across as a statute which seeks to comprehensively regulate
food and food products. The arguments which were addressed based
on an asserted and perceived conflict between COTPA and FSSA
clearly appear to be misconceived for the following reasons.
121. In the considered opinion of this Court, the declaration of
expediency which stands embodied in the two aforenoted statutes is
merely an embodiment of the intent of Parliament to take under its
control both the tobacco as well as the food industry. In our
considered view, neither the subsequent promulgation of FSSA nor
Section 89 thereof constitute the key to answering the questions which
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stand posited. We are also of the firm opinion that the issue of implied
repeal and one, which according to the appellants, was not even urged
before the learned Single Judge but has been answered, neither arose
nor was germane for the purposes of considering the issues which had
arisen for consideration.
122. For the purposes of examining the question of the interplay
between legislations and conflicts arising therefrom, it is imperative to
firstly understand the scope of the respective legislations. While
COTPA does and evidently purport to regulate trade, commerce,
production, supply and distribution of cigarettes and other tobacco
products, in order to examine the extent of the regulatory measures
that came to be adopted and the areas which they cover, one would
necessarily have to bear in mind the provisions that ultimately came to
be engrafted in that legislation and the extent to which they ultimately
operate. As was eloquently explained by the Constitution Bench in
Ishwari Khetan , a mere declaration under Entry 52 is not liable to be
understood as being sufficient to deprive a competent legislature from
exercising its legislative powers conferred by the Constitution. As the
Supreme Court explained in Ishwari Khetan , the control has to be
concrete and specific as opposed to being abstract. It was then
pertinently observed that a State Legislature would stand denuded of
the authority only to the extent of the power which Parliament may
ultimately acquire.
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123. The key to answering the questions that stood raised in the writ
petitions was principally the extent of control which had been
ultimately acquired by the Parliament. Examined in the aforesaid
light, we find that the assumption of control by Parliament under
COTPA extends to the prohibitions imposed with respect to smoking
in public places, advertisements in connection therewith, the sale of
cigarettes and tobacco products to minors and the prohibition in
respect of certain areas where those products should not be available
for sale or distribution. COTPA also proceeds to prescribe the nature
and the content of statutory warnings, graphic images on packets and
issues relating thereto. The regulation of trade, commerce, production,
supply and distribution of cigarettes and tobacco products is thus
limited to the aforesaid extent only. It would thus be wholly incorrect
for it to be contended that aspects unconnected with the aforesaid and
pertaining to the products specified in the Schedule could not possibly
be regulated by legislation promulgated by a competent and
constitutionally empowered law-making body independent of
COTPA.
124. We find that the learned Single Judge has understood COTPA
to be a piece of legislation which covers the entire spectrum of
subjects and activities relating to the tobacco industry. In our
considered opinion, the learned Single Judge clearly failed to
appreciate the degree and scope of the coverage of the statutory
provisions engrafted therein. The ―extent of erosion‖ test as was
enunciated in Ishwari Khetan was neither considered nor were the
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provisions of COTPA subjected to that scrutiny. The extent of control
which COTPA purported to exercise and the field that it sought to
cover in respect of scheduled products would have to be perceived and
determined upon a due consideration of the provisions ultimately
embodied in that legislation.
125. What needs to be emphasized is that while COTPA does adopt
measures regulating smoking of cigarettes and consumption of
tobacco products in public places, in and around the vicinity of
educational institutions, the nature of written and pictorial warnings to
be displayed on packages, its provisions neither comprehensively
control nor regulate all aspects relating to those scheduled products.
The extent of the regulation, the aspects that are governed are to be
ultimately discerned from the language and the scope of the individual
sections of COTPA. No statute can be construed or understood as
legislating upon a subject or conferring a right which is neither spoken
of nor engraved therein. Tested on the aforesaid precepts, it is
manifest that while scheduled products falling under COTPA are
regulated and controlled by its individual provisions, it would be
wholly incorrect to understand the said enactment as being an all-
encompassing and comprehensive legislation pertaining thereto.
126. The fallacy of the reasoning on which the impugned judgment
proceeds is also evident from the following facts. As we read paras
197 and 198 of the impugned judgment, we find that the learned
Single Judge has observed that upon promulgation of COTPA,
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―….Parliament took under its control the tobacco industry thereby
denuding the States to legislate qua the scheduled tobacco
products…..‖. The learned Single Judge has clearly erred in failing to
notice and appreciate the nature and the extent of the control which
was taken over by COTPA. The incorrect premise on which the
judgment proceeds is further evident when the learned Judge observes
that ―…. once the Parliament has exercised power under Entry 52 of
List I in order to take the entire tobacco industry under its control, the
State Legislatures are not competent to enact laws on the said
subject .‖ The said observation clearly appear to lose sight of the fact
that the subject matter of the writ petitions was a perceived conflict
between two Parliamentary statutes, namely, COTPA and FSSA as
opposed to a legislation framed by a State. Secondly, the learned
Judge also appears to have ignored the indubitable fact that the
Impugned Notifications, albeit issued by a State authority, had in fact
been promulgated in exercise of powers conferred under FSSA, a
Parliamentary legislation.
127. The learned Single Judge while dealing with the question of a
perceived conflict between COTPA and FSSA clearly appears to have
trodden down an incorrect path while holding that FSSA constitutes a
general legislation and therefore must yield to COTPA. We find that
the aforesaid conclusion proceeds on the fallacious premise that the
respondents sought to regulate and prohibit tobacco per se . As would
be manifest from a reading of the Impugned Notifications what was
sought to be regulated and controlled was chewing tobacco, gutka and
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pan masala and tobacco sold as a mixture or in a combination
package. The question which thus principally arose was whether the
aforesaid articles could be termed as food and thus regulated under
FSSA. Rather than conferring attention and restricting its unerring
scrutiny on the aforesaid aspect, the learned Single Judge appears to
have comprehended the principal question to be whether tobacco
could be labelled as food. We are of the considered view that the same
was not a question which even remotely arose for consideration.
128. In any case, and this we do deem necessary to observe, that
while COTPA undoubtedly is a special statute regulating and
controlling certain aspects of scheduled products, it is special by
virtue of the individual and specific provisions contained therein.
Similarly, FSSA is special in its own right in light of the detailed
provisions that it adopts and engrafts relating to food safety and other
allied issues. As long as the regulatory power is exercised under the
FSSA in respect of a food article, it would not be invalidated or
discredited merely because it is viewed as incidentally entrenching
upon a provision contained in another competing statute. In the
present matters, we have not been shown any provision in the COTPA
which may be viewed as covering matters falling under the FSSA or
the Regulations framed thereunder.
129. What we seek to emphasize is that the issue of a general or
special law would have arisen provided the Court came to be faced
with a situation of an apparent or evident conflict between the
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working of two statutes dealing with the same article. However, and
as is evident from the aforesaid discussion, FSSA was neither
understood nor asserted to be a legislation which seeks to regulate
tobacco or any other tobacco products specified in a Schedule
covering issues falling under COTPA. Even if one were to consider
the article of pan masala which is covered both under the COTPA as
well as FSSA, the former would be liable to be construed as regulating
that article only to the extent of the specific provisions contained
therein. Those provisions would also have to be construed bearing in
mind that pan masala is an article which is also regulated under the
FSSA. We find that the aspects of that article which are covered and
regulated by FSSA are not regulated by the provisions of COTPA at
all. In fact, the two statutes do not even construct or erect parallel or
competing regimes of regulation.
130. The principles of interpretation which would apply for the
purposes of understanding the operation of general and special laws
were lucidly explained by the Supreme Court in Ajoy Kumar
48
Banerjee vs. Union of India where the following precepts were
culled out: -
― 39. From the text and the decisions, four tests are deducible and these
are: ( i ) The legislature has the undoubted right to alter a law already
promulgated through subsequent legislation, ( ii ) A special law may be
altered, abrogated or repealed by a later general law by an express
provisions, ( iii ) A later general law will override a prior special law if the
two are so repugnant to each other that they cannot co-exist even though
no express provision in that behalf is found in the general law, and ( iv ) It
48
(1984) 3 SCC 127
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| is only in the absence of a provision to the contrary and of a clear | |
|---|
| inconsistency that a special law will remain wholly unaffected by a later | |
| general law. See in this connection, Maxwell on the Interpretation of | |
| Statutes, Twelfth Edn., pp. 196-198.‖ | |
observations as were made by the Supreme Court in Ashoka
Marketing : -
― 50. One such principle of statutory interpretation which is applied
is contained in the latin maxim : leges posteriores priores
conterarias abrogant (later laws abrogate earlier contrary laws).
This principle is subject to the exception embodied in the maxim
: generalia specialibus non derogant (a general provision does not
derogate from a special one.) This means that where the literal
meaning of the general enactment covers a situation for which
specific provision is made by another enactment contained in the
earlier Act, it is presumed that the situation was intended to
continue to be dealt with by the specific provision rather than the
later general one (Bennion, Statutory Interpretation pp. 433-34).
51. The rationale of this rule is thus explained by this Court in
the J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. State of Uttar
Pradesh [(1961) 3 SCR 185 : AIR 1961 SC 1170 : (1961) 1 LLJ
540] : (SCR p. 194)
―The rule that general provisions should yield to specific
provisions is not an arbitrary principle made by lawyers
and judges but springs from the common understanding of
men and women that when the same person gives two
directions one covering a large number of matters in
general and another to only some of them his intention is
that these latter directions should prevail as regards these
while as regards all the rest the earlier directions should
have effect.‖
56. We arrive at the same conclusion by applying the principle
which is followed for resolving a conflict between the provisions of
two special enactments made by the same legislature. We may in
this context refer to some of the cases which have come before this
Court where the provisions of two enactments made by the same
legislature were found to be inconsistent and each enactment was
claimed to be a special enactment and had a non-obstante clause
giving overriding effect to its provisions.
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57. In Shri Ram Narain v. Simla Banking and Industrial Co.
Ltd. [1956 SCR 603 : AIR 1956 SC 614 : (1956) 26 Comp Cas
280] this Court was considering the provisions contained in the
Banking Companies Act, 1949 and the Displaced Persons (Debts
Adjustment) Act, 1951. Both the enactments contained provisions
giving overriding effect to the provisions of the enactment over any
other law. This Court has observed : (SCR pp. 613 and 615)
―Each enactment being a special Act, the ordinary
principle that a special law overrides a general law does
not afford any clear solution in this case.‖
―It is, therefore, desirable to determine the overriding
effect of one or the other of the relevant provisions in
these two Acts, in a given case, on much broader
considerations of the purpose and policy underlying the
two Acts and the clear intendment conveyed by the
language of the relevant provisions therein.‖
132. What emerges upon a consideration of the legal principles
propounded in the aforenoted two decisions, is the imperative of
understanding the scope of the respective legislations, the subjects
which are sought to be regulated, the nature of the inconsistency and
whether it is wholly irreconcilable. The question of conflict is not
liable to be answered on a facile examination of the provisions of the
respective statutes but on a more meaningful consideration of the
provisions themselves, the situations that they seek to remedy and
provision and the measures that are ultimately adopted. Courts would
also bear in mind the objects of the two legislations and the purposes
that they seek to achieve. Tested on those principles, we find
ourselves unable to recognize any element of incompatibility in the
operation and implementation of the two legislations in question.
133. It becomes pertinent to note that no provision of COTPA
incorporates provisions similar or identical to those set out in
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Regulation 2.11.5 of the Food Products Regulations 2011. The
question of conflict thus clearly did not arise at all. We are also of the
considered opinion that the conclusions which have come to be
recorded by the learned Judge in Para 198 of the impugned judgment
are legally unsustainable bearing in mind that the writ petitions did not
raise an issue of a conflict between a Parliamentary and a State
legislation. It is pertinent to recall that the State food authorities were
not exercising powers while issuing the impugned notifications under
a State enactment. Those notifications had been issued in purported
exercise of powers conferred by Section 30(2)(a) of the FSSA read
with Regulation 2.3.4 of the Food Product Regulations 2011.
134. Before closing the discussion on this particular issue, we deem
it expedient to advert to Godawat on the strength of which it was
contended that COTPA is a special statute and would thus override the
provisions of the FSSA. It would be pertinent to note the following
passages from the decision in Godawat : -
| “41. It is submitted that a reading of Act 34 of 2003 clearly | |
|---|
| suggests that it is a special law intended to deal with tobacco and | |
| its product. The Prevention of Food Adulteration Act, 1954 is a | |
| general law dealing with adulteration of food articles and a tobacco | |
| product is incidentally referred to in the said law in the context of | |
| prevention of adulteration. In case of conflict between a special law | |
| and a general law, even if both are enacted by the same legislative | |
| authority, the special law must displace the general law to the | |
| extent of inconsistency. The operation of the maxim generalia | |
| specialibus non derogant has been approved and applied by this | |
| Court in such situations. | |
xxx xxx xxx
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| 71. A reference of this Court's judgment in Dineshchandra | | |
|---|
| Jamnadas Gandhi v. State of Gujarat [(1989) 1 SCC 420, 426 : | | |
| 1989 SCC (Cri) 194] vide paras 16 and 17 makes it clear that the | | |
| object and the purpose of the Prevention of Food Adulteration Act, | | |
| 1954 is to eliminate the danger to human life from the sale of | | |
| unwholesome articles of food. This Court held that the legislation | | |
| of ―Adulteration of Food Stuffs and Other Goods‖ (Entry 18 List | | |
| III of the Seventh Schedule) is enacted to curb the widespread evil | | |
| of food adulteration and is a legislative measure for social defence. | | |
| This Court indicated the object of the Prevention of Food | | |
| Adulteration Act, 1954, its constitutional basis and its purpose in | | |
| the following observations: (SCC p. 426, paras 16 & 18) | | |
| ―16. The object and the purpose of the Act are to | |
| eliminate the danger to human life from the sale of | |
| unwholesome articles of food. The legislation is on the | |
| topic ‗Adulteration of Food Stuffs and Other Goods‘ | |
| (Entry 18 List III Seventh Schedule). It is enacted to | |
| curb the widespread evil of food adulteration and is a | |
| legislative measure for social defence. It is intended to | |
| suppress a social and economic mischief — an evil | |
| which attempts to poison, for monetary gains, the very | |
| sources of sustenance of life and the well-being of the | |
| community. The evil of adulteration of food and its | |
| effects on the health of the community are assuming | |
| alarming proportions. The offence of adulteration is a | |
| socio-economic offence. In Municipal Corpn. of | |
| Delhi v. Kacheroo Mal [(1976) 1 SCC 412, 415, para 5 | |
| : 1976 SCC (Cri) 30] Sarkaria, J. said: | |
| ‗The Act has been enacted to curb and remedy the | |
| widespread evil of food adulteration, and to ensure the | |
| sale of wholesome food to the people. It is well settled | |
| that wherever possible, without unreasonable stretching | |
| or straining, the language of such a statute should be | |
| construed in a manner which would suppress the | |
| mischief, advance the remedy, promote its object, | |
| prevent its subtle evasion and foil its artful | |
| circumvention.‘ | |
| *** | |
| 18. The offences under the ‗Act‘ are really acts | |
| prohibited by the police powers of the State in the | |
| interests of public health and well-being. The | |
| prohibition is backed by the sanction of a penalty. The | |
| offences are strict statutory offences. Intention or | |
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mental state is irrelevant. In Goodfellow v. Johnson
[(1965) 1 All ER 941, 944 : (1966) 1 QB 83] referring
to the nature of offences under the Food and Drugs Act,
1955, it was said:
‗As is well known, Section 2 of the Food and
Drugs Act, 1955, constitutes an absolute
offence. If a person sells to the prejudice of the
purchaser any food, and that includes drink,
which is not of the nature or not of the
substance or not of the quality demanded by
the purchaser he shall be guilty of an offence.
The forbidden act is the selling to the prejudice
of the purchaser….‘ ‖
(emphasis in original)
These observations make it clear that the purpose of the Act, as its
title suggests, is to prevent adulteration of food. Any attempt to
travel beyond these parameters must necessarily be looked at
askance by the court.
135. The Supreme Court recorded its conclusions on this aspect in
para 77(6) which is reproduced hereinbelow: -
| “77(6). The provisions of the Cigarettes and Other Tobacco | |
|---|
| Products (Prohibition of Advertisement and Regulation of Trade | |
| and Commerce, Production, Supply and Distribution) Act, 2003 are | |
| directly in conflict with the provisions of Section 7(iv) of the | |
| Prevention of Food Adulteration Act, 1954. The former Act is a | |
| special Act intended to deal with tobacco and tobacco products | |
| particularly, while the latter enactment is a general enactment. | |
| Thus, Act 34 of 2003 being a special Act, and of later origin, | |
| overrides the provisions of Section 7(iv) of the Prevention of Food | |
| Adulteration Act, 1954 with regard to the power to prohibit the sale | |
| or manufacture of tobacco products which are listed in the | |
| Schedule to Act 34 of 2003.‖ | |
136. It would be relevant to note that Godawat was a decision which
had come to be rendered prior to the insertion of Rule 44J in the 1955
Rules and the promulgation of Regulation 2.3.4 in the FSSA. As noted
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hereinabove, the validity of the aforesaid provisions was neither
questioned nor assailed in the writ petitions. The writ petitioners also
did not assert that the aforenoted two provisions were liable to be
struck down on that score. The decision in Godawat must also be
appreciated in the backdrop of COTPA constituting a latter legislation
having been brought onto the statute book long after PFA. It was in
this factual setting that Godawat came to be rendered. However, and
undisputedly FSSA, on the other hand, was promulgated thereafter in
2006 and in any case post the enforcement of COTPA. The statutory
regime which prevailed at the time when the judgment in Godawat
came to be handed down has undergone a paradigm shift as is
manifest from the introduction of statutory measures which
specifically prohibit the addition of tobacco and nicotine to food
products.
H. PURPORT OF THE IMPUGNED NOTIFICATIONS
137. We are of the firm view that the fundamental question which
the writ petitions raised was itself confined to whether the Impugned
Notifications could have prohibited the addition of tobacco or nicotine
in a food product. Pan Masala, indubitably, is a food product which is
regulated under the FSSA. The fundamental question which therefore
arose was whether tobacco or nicotine for that matter could be
permitted to be added to that food product.
138. The Appellants sought to support the issuance of the
notifications based upon the statutory command of Regulation 2.3.4.
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The writ petitioners, however, clearly appear to have proceeded on the
mistaken assumption that the impugned notifications sought to ban or
prohibit tobacco. The prohibition which was sought to be enforced
was of the addition of tobacco or tobacco products to a food product,
namely, Pan Masala.
139. The impugned notifications essentially sought to regulate a food
article. The learned Single Judge clearly appears to have misconstrued
the scope and intent of those notifications as being one directly aimed
at regulating tobacco. As would be manifest and evident from a
reading of the various provisions of the FSSA including the impugned
notifications, the respondents never evinced an intent to regulate
tobacco or tobacco products. In fact, and as per the appellants
themselves, FSSA does not even deal with raw tobacco or pure
tobacco.
140. The conclusions of the Court recorded hereinabove are further
buttressed from the following facts. As would be evident from a
reading of the Impugned Notifications, the GNCTD Food Authority
firstly records its conclusion that gutka, pan masala and other like
products containing tobacco are injurious to health. It then proceeds to
proclaim that tobacco when mixed with other ingredients and
additives mentioned therein, is ―food‖ as defined under the FSSA. It
then proceeds to take cognizance of the prohibition placed by
Regulation 2.3.4 of tobacco or nicotine being added to a food article.
Taking into consideration the harmful effect that those substances may
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have on public health, it proceeds to ban the manufacture, storage,
distribution or sale of tobacco which is either flavoured, scented or
mixed with any additive. The articles to which the ban is proposed to
be extended have been mentioned as gutka, pan masala,
flavoured/scented tobacco, kharra and other like products by whatever
name called.
141. A careful reading of the Impugned Notifications would
establish that what was proposed to be banned was not raw or pure
tobacco. The subject matter of the prohibitory order was tobacco when
mixed with other ingredients and additives. Those articles were
specified to be gutka, pan masala, flavoured/scented tobacco and other
like products. It would thus be wholly incorrect to assume that the
notifications sought to ban tobacco per se .
142. Undisputedly, food as defined under the FSSA would mean any
substance which is intended to be used for human consumption. As
has been noticed hereinabove, the nutritive or restitutive properties of
a substance being a sin qua non for it to be termed as food is a
principle which has been consistently and stoutly negatived both
under the PFA as well as the FSSA. What needs to be underlined is
that when tobacco is mixed or used as an ingredient or additive to a
food article, it is then that it becomes subject to the regulatory regime
constructed by the FSSA. It would be pertinent to recall that a food
additive is defined under the FSSA to mean ―any substance which is
not normally consumed as a food by itself or used as a typical
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ingredient of the food, whether or not it has nutritive value….‖ . It is
thus apparent that an additive could be one which is neither a
substance which is normally consumed as food nor one which may
have a nutritive value. Similarly, Regulation 2.11.5 of the Food
Products Regulations 2011 while prescribing the standards for pan
masala, proscribes the addition of any substance which may be
injurious to health. The aforenoted prohibition is in addition to that
contained in Regulation 2.3.4 of the Prohibition Regulations 2011.
The Impugned Notifications were thus clearly not an attempt to
regulate tobacco or nicotine but to regulate food containing those
substances. We thus find ourselves unable to countenance the
conclusions to the contrary that the Learned Judge proceeded to record
in para 193 of the impugned judgment.
I. THE „TOBACCO AS FOOD” QUESTION
143. That takes the Court to consider whether the impugned articles
which form subject matter of the Impugned Notifications could be
held to be food as defined under the FSSA. While on the question of
food and foodstuff, it would be relevant to briefly notice some of the
decisions which were commended for our consideration by the writ
petitioners. It becomes pertinent to note that S. Samuel was dealing
with an order made under the Essential Commodities Act, 1955 and
which did not define foodstuff specifically. It was in the aforesaid
backdrop that the Supreme Court employed the common parlance test
for the purposes of ascribing the meaning to be assigned to that word.
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Similar was the position in Gulati & Co . where in the context of a
fiscal statute, the Supreme Court held that the word food must be
interpreted bearing in mind how that expression is commonly
understood.
144. In contrast to the above, we are called upon to consider a
legislation, namely the FSSA, which defines food specifically. It
would be apposite to note that the nutritive element test as was
advocated had been rejected by the Constitution Bench of the
Supreme Court as far back as in Virkumar Gulabchand Shah as would
be evident from the following extracts from that decision: -
| “11. So far as ―food‖ is concerned, it can be used in a wide as | |
|---|
| well as a narrow sense and, in my opinion, much must depend | |
| upon the context and background. Even in a popular sense, | |
| when one asks another, ―Have you had your food? ‖, one means | |
| the composite preparations which normally go to constitute a | |
| meal—curry and rice, sweetmeats, pudding, cooked vegetables | |
| and so forth. One does not usually think separately of the | |
| different preparations which enter into their making, of the | |
| various condiments and spices and vitamins, any more than one | |
| would think of separating in his mind the purely nutritive | |
| elements of what is eaten from their non-nutritive adjuncts. | |
12. So also, looked at from another point of view, the various
adjuncts of what I may term food proper which enter into its
preparation for human consumption in order to make it palatable
and nutritive, can hardly be separated from the purely nutritive
elements if the effect of their absence would be to render the
particular commodity in its finished state unsavoury and
indigestible to a whole class of persons whose stomachs are
accustomed to a more spicily prepared product. The proof of the
pudding is, as it were, in the eating, and if the effect of eating
what would otherwise be palatable and digestible and therefore
nutritive is to bring on indigestion to a stomach unaccustomed to
such unspiced fare, the answer must, I think, be that however
nutritive a product may be in one form it can scarcely be classed
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| as nutritive if the only result of eating it is to produce the | |
|---|
| opposite effect; and if the essence of the definition is the | |
| nutritive element, then the commodity in question must cease to | |
| be food, within the strict meaning of the definition, to that | |
| particular class of persons, without the addition of the spices | |
| which make it nutritive. Put more colloquially, ―one man's food | |
| is another man's poison‖. I refer to this not for the sake of | |
| splitting hairs but to show the undesirability of such a mode of | |
| approach. The problem must, I think, be solved in a common | |
| sense way. | |
| 22. Now I have no doubt that had the Central Government re- | |
|---|
| promulgated the Order of 1944 in 1946 after the passing of | |
| either the Ordinance or the Act of 1946, the Order would have | |
| been good. As we have seen, turmeric falls within the wider | |
| definition of ―food‖ and ―foodstuffs‖ given in a dictionary of | |
| international standing as well as in several English decisions. It | |
| is, I think, as much a ―foodstuff‖, in its wider meaning, as | |
| sausage, skins and baking powder and tea. In the face of all that | |
| I would find it difficult to hold that an article like turmeric | |
| cannot fall within the wider meaning of the term ―foodstuffs‖. | |
| Had the Order of 1944 not specified turmeric and had it merely | |
| prohibited forward contracts in ―foodstuffs‖ I would have held, | |
| in line with the earlier tea case, that that is not a proper way of | |
| penalising a man for trading in an article which would not | |
| ordinarily be considered as a foodstuff. But in the face of the | |
| Order of 1944, which specifically includes turmeric, no one can | |
| complain that his attention was not drawn to the prohibition of | |
| trading in this particular commodity and if, in spite of that, he | |
| chooses to disregard the Order and test its validity in a court of | |
| law, he can hardly complain that he was trapped or taken | |
| unawares; whatever he may have thought he was at any rate | |
| placed on his guard. As I see it, the test here is whether the | |
| Order of 1944 would have been a good order had it been re- | |
| promulgated after the Ordinance of 1946. In my opinion, it | |
| would, and from that it follows that it is saved by the saving | |
| clauses of the Ordinance and the Act.‖ | |
145. In Pyarli K. Tejani , the Supreme Court significantly observed
that all that may be ingested by humans would be food. This was a
case which was considering whether supari could be termed as food.
Answering that question, the Supreme Court had observed as follows:-
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― 14. We now proceed to consider the bold bid made by the
appellant to convince the Court that supari is not an article of food
and, as such, the admixture of any sweetener cannot attract the
penal provisions at all. He who runs and reads the definition in
Section 2( v ) of the Act will answer back that supari is food. The
lexicographic learning, pharmacopic erudition, the ancient medical
literature and extracts of encyclopaedias pressed before us with
great industry are worthy of a more substantial submission. Indeed,
learned Counsel treated us to an extensive study to make out that
supari was not a food but a drug. He explained the botany of
bettlenut, drew our attention to Dr Nandkarni's Indian Materia
Medica, invited us to great Susruta's reference to this aromatic
stimulant, in a valiant endeavour to persuade us to hold that supari
was more medicinal than edible. We are here concerned with a law
regulating adulteration of food which affects the common people in
their millions and their health. We are dealing with a commodity
which is consumed by the ordinary man in houses, hotels, marriage
parties and even routinely. In the field of legal interpretation,
dictionary scholarship and precedent-based connotations cannot
become a universal guide or semantic tyrant, oblivious of the social
context subject of legislation and object of the law. The meaning of
common words relating to common articles consumed by the
common people, available commonly and contained in a statute
intended to protect the community generally, must be gathered
from the common sense understanding of the word. The Act
defines ―food‖ very widely as covering any article used as food
and every component which enters into it, and even flavouring
matter and condiments. It is commonplace knowledge that the
word ‗food‘ is a very general term and applies to all that is eaten by
men for nourishment and takes in subsidiaries. Is supari eaten with
relish by men for taste and nourishment? It is. And so it is food.
Without tarrying further on this unusual argument we hold that
supari is food within the meaning of Section 2( v ) of the Act.
| 15. It was next urged before us that the dealer believed in good | |
|---|
| faith that there was no cyclamate in the substance sold induced by | |
| the warranty and honestly did not know that saccharin was | |
| contraband, the Rules in this behalf having been changed | |
| frequently and recently. It is trite law that in food offences strict | |
| liability is the rule not merely under the Indian Act but all the | |
| world over. The principle has been explained in American | |
| Jurisprudence 2d. Vol. 35, p. 864) thus: | |
"Intent as element of offence:
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The distribution of impure or adulterated food for
consumption is an act perilous to human life and health,
hence, a dangerous act, and cannot be made innocent and
harmless by the want of knowledge or by the good faith of
the seller: it is the act itself, not the intent, that determines
the guilt, and the actual harm to the public is the same in
one case as in the other. Thus, the seller of food is under
the duty of ascertaining at his peril whether the article of
food conforms to the standard fixed by statute or
ordinance, unless such statutes or ordinances, expressly or
by implication, make intent an element of the offence."
Nothing more than the actus reus is needed where
regulation of private activity in vulnerable areas like
public health is intended. In the words of Lord Wright in
McLeod v. Buchanan "intention to commit a breach of
statute need not be shown. The breach in fact is enough."
Social defence reasonably overpowers individual freedom
to injure, in special situations of strict liability. Section 7
casts an absolute obligation regardless of scienter, bad
faith and mens rea. If you have sold any article of food
contrary to any of the sub-sections of Section 7, you are
guilty. There is no more argument about it. The law denies
the right of a dealer to rob the health of a supari consumer.
We may merely refer to a similar plea overruled in the
case Andhra Pradesh Grain & Seed Merchants' Asso-
ciation v. Union of India [(1971)1 SCR 166 : 1970) 2 SCC
71] .‖
146. The Supreme Court in R. Krishnamurthy took the principle even
further to hold that as long as an article is ―generally or commonly
used for human consumption‖ , that would be sufficient to hold it to be
food for the purposes of the PFA. This is evident from the following
passages of that decision: -
“7. According to the definition of ―food‖ which we have extracted
above, for the purposes of the Act, any article used as food or drink
for human consumption and any article which ordinarily enters into
or is used in the composition or preparation of human food is
―food‖. It is not necessary that it is intended for human
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| consumption or for preparation of human food. It is also irrelevant | |
|---|
| that it is described or exhibited as intended for some other use. It is | |
| enough if the article is generally or commonly used for human | |
| consumption or in the preparation of human food. It is notorious | |
| that there are, unfortunately, in our vast country, large segments of | |
| population, who, living as they do, far beneath ordinary subsistence | |
| level, are ready to consume that which may otherwise be thought as | |
| not fit for human consumption. In order to keep body and soul | |
| together, they are often tempted to buy and use as food, articles | |
| which are adulterated and even unfit for human consumption but | |
| which are sold at inviting prices, under the pretence or without | |
| pretence that they are intended to be used for purposes other than | |
| human consumption. It is to prevent the exploitation and self- | |
| destruction of these poor, ignorant and illiterate persons that the | |
| definition of ―food‖ is couched in such terms as not to take into | |
| account whether an article is intended for human consumption or | |
| not. In order to be ―food‖ for the purposes of the Act, an article | |
| need not be ―fit‖ for human consumption; it need not be described | |
| or exhibited as intended for human consumption; it may even be | |
| otherwise described or exhibited; it need not even be necessarily | |
| intended for human consumption; it is enough if it is generally or | |
| commonly used for human consumption or in the preparation of | |
| human food. Where an article is generally or commonly not used | |
| for human consumption or in the preparation of human food but for | |
| some other purpose, notwithstanding that it may be capable of | |
| being used, on rare occasions, for human consumption or in the | |
| preparation of human food, it may be said, depending on the facts | |
| and circumstances of the case, that it is not ―food‖. In such a case | |
| the question whether it is intended for human consumption or in the | |
| preparation of human food may become material. But where the | |
| article is one which is generally or commonly used for human | |
| consumption or in the preparation of human food, there can be no | |
| question but that the article is ―food‖. Gingelly oil, mixed or not | |
| with groundnut oil or some other oil, whether described or | |
| exhibited as an article of food for human consumption or as an | |
| article for external use only is ―food‖ within the meaning of the | |
| definition contained in Section 2(v) of the Act.‖ | |
147. In any case, the death knell to the nutritional or restitutive tests
as being relevant for the purposes of ascertaining the meaning to be
ascribed to food and whether pan masala or gutka would be food is
Godawat itself which had clearly held that they would fall within the
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ambit of that expression. This Court also bears in mind the plethora of
authorities starting from Khedan Lal, Manohar Lal, Dhariwal
Industries, J. Anbazhagan and Sri Kamdhenu Traders which have
held that chewing tobacco, pan masala and gutka are food. The Court
finds no justification to differ from the views expressed therein.
148. While arriving at this conclusion, the Court also bears in mind
the definition of food under the FSSA. It would be pertinent to recall
that Section 3(1)(j) not only embodies an inclusive element it also
specifically excludes certain articles. We also bear in mind the
admitted position that while the PFA defined food to mean ―any
article used as food or drink for human consumption‖, the FSSAI
clearly attempts to confer an expansive meaning upon that expression
by providing that any substance meant for human consumption would
stand included. We thus find no justification to hold that pan masala,
gutka or any other form of chewing tobacco which is meant for human
consumption would stand excluded from the ambit of Section 3(1)(j).
We are further fortified in the view that we take noting that neither
pan masala, nor chewing tobacco or gutka stand excluded from
Section 3(1)(j) of the FSSA. This too clearly appears to be evidence of
the intent of the enactment to include not only those articles but also
all others.
149. While dealing with this aspect, the learned Single Judge in para
217 of the impugned judgment proceeds to base his decision on the
fact that no scientific standards had been fixed under the FSSA for
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tobacco. In view thereof, the learned Judge concluded that tobacco
could not be considered as food. We find ourselves unable to adopt
this line of reasoning since it clearly fails to consider that what the
appellants sought to regulate and prohibit was not tobacco itself but its
introduction and addition in a food article. It becomes pertinent to
highlight that FSSA does not even attempt to lay down standards for
tobacco. It is concerned solely with substances which are meant for
human consumption. Tobacco or nicotine are noticed in that
legislation only to the extent of being identified as substances which
cannot be added to an article of food. It is our respectful view that the
learned Judge clearly erred in this regard and completely misconstrued
the principal question which arose for consideration.
150. We similarly find that the learned Judge has clearly erred in
proceeding on the premise that the Appellants sought to prohibit
tobacco in terms of Regulation 2.3.4. That does not appear to have
been their case at all. The Appellants had consistently taken the
position that what Regulation 2.3.4 proscribes is the addition of
tobacco or nicotine to food.
151. Significantly, while holding so the learned Judge observes in
para 219 of the judgment that there is no conflict between Regulation
2.3.4 and COTPA. We note that this was exactly the argument of the
Appellants before us. The judgment thus clearly appears to suffer
from inherent and apparent inconsistencies.
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J. POWER TO PROHIBIT UNDER FSSA
152. Proceeding to deal with the issues which arise out of Section
30(2)(a) of the FSSA and Regulation 2.3.4, the learned Judge has
proceeded to hold that the power to establish standards for food under
the FSSA would not include within its purview the power to prohibit
the manufacture, sale, storage and distribution of goods more so when
those which are sought to be prohibited pertain to scheduled tobacco
products. The learned Judge has sought to draw sustenance for the
aforesaid findings from the decision rendered by the Supreme Court in
Himat Lal K. Shah . While ruling on this issue, it has been additionally
observed by the learned Judge that on a consideration of the entire
scheme of the FSSA, it is apparent that the power to frame
Regulations would not include the power to prohibit manufacture,
distribution, storage and sale of a product.
153. We are constrained to observe that the aforesaid findings have
come to be returned with the learned Judge significantly ignoring the
admitted position that no challenge to Regulation 2.3.4 stood raised.
The reliance which was sought to be placed on the observations as
appearing in Himat Lal K. Shah was also clearly misplaced since the
said decision observes that the power to regulate would not
― normally ‖ include the power to prohibit. Himat Lal K. Shah thus
could not have been viewed as an authority laying down an absolute
proposition that the power to regulate would not include the power to
prohibit.
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154. More fundamentally, we note that the power to prohibit stands
specifically conferred upon the food safety authorities by virtue of
Section 30(2)(a) of the FSSA. The learned Judge thus clearly appears
to have overlooked the fact that the principal enactment itself had
conferred a power to prohibit and therefore the said power need not
have been additionally spelt out in the Regulations which came to be
framed under the FSSA.
155. In any case, Regulation 2.3.4 on its plain language prohibits the
use of tobacco or nicotine in a food product. That prohibition is
neither temporary nor one which is stipulated to operate for a
particular period of time. The statutory prohibition is permanent and
would thus apply to all food articles during the entire period that
FSSA and Regulation 2.3.4 operates. The question therefore of the
power being temporary or pro tem did not arise. As long as Regulation
2.3.4 remained on the statute book, it was incumbent upon the
appellant to implement and enforce that provision and the statutory
injunct which stood engrafted therein.
156. Insofar as the findings returned by the learned Judge with
respect to Regulation 2.3.4 not prohibiting the use of tobacco or
nicotine, this Court in the preceding parts of this decision has already
found that the said observations have clearly been rendered upon the
learned Judge having lost sight of the principal question which arose,
namely, whether tobacco and nicotine could be permitted to be used as
additives in a food article.
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157. On an overall consideration of the aforesaid discussion, we find
that both Section 30(2)(a) as well as Regulation 2.3.4 embody a power
to prohibit a particular food article as well as regulate the nature of
additives which may be permitted to be added in food articles. We
also find that neither Section 30(2)(a) nor the validity of Regulation
2.3.4 had been questioned by the writ petitioners. Since the restraint
embodied in Regulation 2.3.4 was permanent in character, the
prohibitory orders could not have been held to be bound by
prescriptions of time.
158. In light of our conclusions recorded hereinabove, we find
ourselves unable to accept the view taken by the Madras High Court
in Designated Officer and which had in any case followed the
judgment rendered by the learned Judge which forms subject matter of
the present appeals.
159. For the completeness of the record, we also deem this to be an
appropriate stage to consider a recent decision rendered by the Andhra
Pradesh High Court in Dwarapudi Sivarama Reddy Vs. State of
49
Union of India & Ors. which too has quashed similar notifications
issued by the Food Safety authorities of that State. Although the
aforesaid judgment was placed for our consideration after the present
appeals had been closed for judgment, we do not deem it appropriate
to deny the writ petitioners of the opportunity to place reliance upon
the said decision on this ground. In any case, the said decision would
49
WP(C) 30185/2021 dated 24.03.2023
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only aid us in enunciating the correct legal position. Dwarapudi
Sivarama Reddy proceeds on the premise that the entire controversy
stands conclusively settled in light of Godawat . While proceeding to
deal with the impact of the special provisions made in the FSSA and
the Regulations framed thereunder, the said High Court held as under:
| ―29. The respondents have tried to convince this Court by referring | |
|---|
| to the FSSA Regulations, 2011 and the FPSFA Regulations, 2011, | |
| by submitting that food products should not contain any substance | |
| which may be injurious to health and Tobacco and Nicotine shall | |
| not be used as ingredients in any food products generally taken as | |
| such or in conjunction with pan. Clause 2.11.5 of the FPSFA | |
| Regulations, 2011 provides that Pan Masala may contain betelnut, | |
| lime, coconut, catechu, saffron, cardamom, dry fruits, mulethi, | |
| sabnermusa, other aromatic herbs and spices, sugar, glycerine, | |
| glucose, permitted natural colours, menthol and non prohibited | |
| flavours; it should be free from added coaltar colouring matter and | |
| any other ingredient injurious to health. However, it is not legally | |
| permissible to accept the submission of the respondents for the | |
| reason that even if Pan Masala is taken to be ―food‖ under the | |
| FPSFA Regulations, 2011 though not defined as such under | |
| Section 3(j) of the FSSA, 2006, the same would remain ―food‖ till | |
| it does not contain Tobacco and Nicotine and the moment Tobacco | |
| and Tobacco products are mixed with pan masala, the same would | |
| become ―food‖, which would be covered by COTPA, 2003, as | |
| defined under the schedule of the COTPA, 2003. Therefore, the | |
| moment Pan Masala or Gutka is included in the schedule of the | |
| COTPA, 2003, the law laid down in Godawat Pan Masala Products | |
| I.P. Ltd. (supra) would operate the field and the provisions of the | |
| FSSA Regulations, 2011, framed under the FSSA, 2006, would be | |
| in direct conflict with the provisions of the COTPA, 2003. | |
30. It is significant to mention that the Hon‘ble Supreme Court in
Godawat Pan Masala Products I.P. Ltd. (supra) has already held
that COTPA, 2003 is a special Act intended to deal with Tobacco
and Tobacco products, while Prevention of Food Adulteration Act,
1954, is a general Act. In the same analogy, the FSSA, 2006 being
a general Act, would yield to the provisions of the COTPA, 2003,
which is a special Act. It is settled law that when a general Act is
specifically passed, it is logical to presume that Parliament has not
repealed or modified the former special Act, unless anything to the
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contrary appears from the subsequent general Act. For this
proposition, we may profitably refer to the judgment of the Hon‘ble
Supreme Court in U.P. State Electricity Board v. Hari Shanker Jain
and others – (1978) 4 SCC 16.‖
160. We however find ourselves unable to approve or adopt the view
expressed in Dwarapudi Sivarama Reddy since it clearly fails to
appreciate the backdrop in which Godawat had come to be rendered
and which aspects have been duly underlined by us in the preceding
parts of this decision. Significantly, in para 34 of that decision, the
said High Court seeks to sustain its conclusion that pan masala and
gutka cannot be construed as food on Godawat . The said observation
cannot possibly be accepted to be the correct position in law since,
and as was noticed hereinabove, Godawat had categorically held pan
masala to be food. The said decision in any case follows the judgment
which is impugned before us in these appeals. We for all the aforesaid
reasons thus find ourselves unable to agree with the decision in
Dwarapudi Sivarama Reddy .
K. CEASELESS INVOKATION OF S. 30(2)(a)
161. That takes us then to consider the challenge to the successive
notifications which came to be issued by the appellant/GNCTD in
purported exercise of powers conferred by Section 30(2)(a). As is
apparent from a reading of that provision, the power to prohibit as
vested in the Commissioner of Food Safety is stipulated to not exceed
a period of one year. The prohibition itself is further conditioned upon
the Commissioner of Food Safety being satisfied that such a
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prohibition is liable to be imposed in the interest of public health. It is
in the aforesaid backdrop that the writ petitioners had contended that
the power to prohibit was clearly temporary in character and did not
warrant the repetitive issuance of prohibitory orders.
162. In our considered opinion, the aforesaid submission would have
held good provided the power to prohibit stood conferred and
governed by Section 30(2)(a) alone. However, and as was noticed in
the preceding paragraphs of this decision, Regulation 2.3.4 proscribes
the use of tobacco and nicotine as ingredients in any food product.
That prohibition is clearly neither provisional nor impermanent. Thus,
as long as the Commissioner of Food Safety finds that food articles
containing tobacco or nicotine are being manufactured, distributed or
sold, it would be fully justified in issuing a prohibitory order.
163. That prohibition would clearly be sustainable on a conjoint
reading of Section 30(2)(a) read with Regulation 2.3.4. The
prohibition this Court finds is principally aimed at giving effect to the
statutory injunct contained in Regulation 2.3.4. As noticed
hereinbefore, as long as that Regulation remains on the statute book,
there would be a ban which would operate on gutka, pan masala with
tobacco or other like commodity.
164. We further note that the scheme of Section 30(2)(a) read with
Regulation 2.3.4 clearly stands on a pedestal distinct and different
from other statutory provisions which empower authorities to prohibit
or ban for a temporary period of time. For instance, Section 144 as
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50
contained in the Code of Criminal Procedure Act, 1973 stands out
as a primary example of the power to prohibit being operative for a
particular period of time. In terms of Section 144(4), an order passed
under the aforesaid section is to normally remain in force for no more
than two months. The Proviso to Section 144(4), however, empowers
the State Government to extend the validity of such a notification for a
further period not exceeding six months.
165. We are also aware of the judgments of the Supreme Court in
51
Acharya Jagdishwaranand Avadhuta vs. Commr. of Police
where while dealing with the validity of successive orders made under
Section 144, their Lordships had held as follows: -
― 16. It is the petitioner's definite case that the prohibitory orders
under Section 144 of the Code are being repeated at regular
intervals from August 1979. Copies of several prohibitory orders
made from time to time have been produced before us and it is not
the case of the respondents that such repetitive prohibitory orders
have not been made. The order under Section 144 of the Code
made in March 1982 has also been challenged on the ground that
the material facts of the case have not been stated. Section 144 of
the Code, as far as relevant, provides: ―(1) In cases where in the
opinion of a District Magistrate, a Sub-Divisional Magistrate, or
any other Executive Magistrate specially empowered by the State
Government in this behalf, there is sufficient ground for
proceeding under this section and immediate prevention or speedy
remedy is desirable, such Magistrate may, by a written order
stating the material facts of the case and served in the manner
provided by Section 134, direct.…‖ It has been the contention of
Mr Tarkunde that the right to make the order is conditioned upon it
being a written one and the material facts of the case being stated.
Some High Courts have taken the view that this is a positive
requirement and the validity of the order depends upon compliance
50
CrPC
51
(1983) 4 SCC 522
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of this provision. In our opinion it is not necessary to go into this
question as counsel for the respondents conceded that this is one of
the requirements of the provision and if the power has to be
exercised it should be exercised in the manner provided on pain of
invalidating for non-compliance. There is currently in force a
prohibitory order in the same terms and hence the question cannot
be said to be academic. The other aspect viz. the propriety of
repetitive prohibitory orders is, however, to our mind a serious
matter and since long arguments have been advanced, we propose
to deal with it. In this case as a fact from October 1979 till 1982 at
the interval of almost two months orders under Section 144(1) of
the Code have been made from time to time. It is not disputed
before us that the power conferred under this section is intended
for immediate prevention of breach of peace or speedy remedy. An
order made under this section is to remain valid for two months
from the date of its making as provided in sub-section (4) of
Section 144. The proviso to sub-section (4) authorises the State
Government in case it considers it necessary so to do for
preventing danger to human life, health or safety, or for preventing
a riot or any affray, to direct by notification that an order made by
a Magistrate may remain in force for a further period not exceeding
six months from the date on which the order made by the
Magistrate would have, but for such order, expired. The effect of
the proviso, therefore, is that the State Government would be
entitled to give the prohibitory order an additional term of life but
that would be limited to six months beyond the two months' period
in terms of sub-section (4) of Section 144 of the Code. Several
decisions of different High Courts have rightly taken the view that
it is not legitimate to go on making successive orders after earlier
orders have lapsed by efflux of time. A Full Bench consisting of
the entire Court of 12 Judges in Gopi Mohun Mullick v. Taramoni
Chowdhrani [ILR 5 Cal 7 : 4 CLR 309 : 2 Shome LR 217 (FB)]
examining the provisions of Section 518 of the Code of 1861
(corresponding to present Section 144) took the view that such an
action was beyond the Magistrate's powers. Making of successive
orders was disapproved by the Division Bench of the Calcutta High
Court in Bishessur Chuckerbutty v. Emperor [AIR 1916 Cal 472 :
20 CWN 758 : 1916 (17) Cri LJ 200] . Similar view was taken
in Swaminatha Mudaliar v. Gopalakrishna Naidu [AIR 1916 Mad
1106 : 1915 (16) Cri LJ 592] , Taturam Sahu v. State of
Orissa [AIR 1953 Ori 96] , Ram Das Gaur v. City Magistrate,
Varanasi [AIR 1960 All 397 : 1960 Cri LJ 865] , and Ram Narain
Sah v. Parmeshar Prasad Sah [AIR 1942 Pat 414 : 1942 (43) Cri
LJ 722] . We have no doubt that the ratio of these decisions
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represents a correct statement of the legal position. The proviso to
sub-section (4) of Section 144 which gives the State Government
jurisdiction to extend the prohibitory order for a maximum period
of six months beyond the life of the order made by the Magistrate
is clearly indicative of the position that Parliament never intended
the life of an order under Section 144 of the Code to remain in
force beyond two months when made by a Magistrate. The scheme
of that section does not contemplate repetitive orders and in case
the situation so warrants steps have to be taken under other
provisions of the law such as Section 107 or Section 145 of the
Code when individual disputes are raised and to meet a situation
such as here, there are provisions to be found in the Police Act. If
repetitive orders are made it would clearly amount to abuse of the
power conferred by Section 144 of the Code. It is relevant to advert
to the decision of this Court in Babulal Parate v. State of
Maharashtra [AIR 1961 SC 884 : (1961) 3 SCR 423, 437 : 1961
(2) Cri LJ 16] where the vires of Section 144 of the Code was
challenged. Upholding the provision, this Court observed:
―Public order has to be maintained in advance in
order to ensure it and, therefore, it is competent to a
legislature to pass a law permitting an appropriate
authority to take anticipatory action or place
anticipatory restrictions upon particular kinds of
acts in an emergency for the purpose of maintaining
public order....‖
It was again emphasized:
―But it is difficult to say that an anticipatory action
taken by such an authority in an emergency where
danger to public order is genuinely apprehended is
anything other than an action done in the discharge
of the duty to maintain order....‖
This Court had, therefore, appropriately stressed upon the feature
that the provision of Section 144 of the Code was intended to meet
an emergency. This postulates a situation temporary in character
and, therefore, the duration of an order under Section 144 of the
Code could never have been intended to be semi-permanent in
character.
17. Similar view was expressed by this Court in Gulam
Abbas v. State of U.P. [(1982) 1 SCC 71 : 1982 SCC (Cri) 82 :
AIR 1981 SC 2198 : (1982) 1 SCR 1077 : (1981) 2 Cri LJ 1835,
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1862] where it was said that (SCC p. 109, para 27) ―the entire basis
of action under Section 144 is provided by the urgency of the
situation and the power thereunder is intended to be availed of for
preventing disorders, obstructions and annoyances with a view to
secure the public weal by maintaining public peace and tranquillity
…‖. Certain observations in Gulam Abbas [(1982) 1 SCC 71 :
1982 SCC (Cri) 82 : AIR 1981 SC 2198 : (1982) 1 SCR 1077 :
(1981) 2 Cri LJ 1835, 1862] decision regarding the nature of the
order under Section 144 of the Code — judicial or executive — to
the extent they run counter to the decision of the Constitution
Bench in Babulal Parate case [AIR 1961 SC 884 : (1961) 3 SCR
423, 437 : 1961 (2) Cri LJ 16] may require reconsideration but we
agree that the nature of the order under Section 144 of the Code is
intended to meet emergent situation. Thus the clear and definite
view of his Court is that an order under Section 144 of the Code is
not intended to be either permanent or semi-permanent in
character. The consensus of judicial opinion in the High Courts of
the country is thus in accord with the view expressed by this Court.
It is not necessary on that ground to quash the impugned order of
March 1982 as by efflux of time it has already ceased to be
effective.
18. It is appropriate to take note of the fact that the impugned order
under Section 144 of the Code did not ban processions or
gatherings at public places even by Ananda Margis. The
prohibition was with reference to the carrying of daggers, trishuls
and skulls. Even performance of Tandava dance in public places,
which we have held is not an essential part of religious rites to be
observed by Ananda Margis, without these, has not been
prohibited.‖
166. A similar view was taken by a Division Bench of our Court in
52
Bano Bee vs. UOI and Anr. where the following observations came
to be made: -
3. This Court on 2nd August, 2010 had passed the following
―
order:—
52
2011 SCC OnLine Del 5692
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1. In this public interest litigation, the petitioner invoking the
jurisdiction of this Court under Article 226 of the Constitution
of India has called in question the legal substantiality and
th
tenability of the order dated 6 July, 2010 passed by the
Deputy Commissioner of Police whereby he has, in exercise
of powers conferred on him under Section 144 of the
Criminal Procedure Code, 1973 (for short ‗the Code‘) read
with Notification No. 11036/1/08-UTL dated 31.10.2008
issued by the Government of India, Ministry of Home Affairs,
New Delhi passed an order prohibiting certain activities.
2. It is urged in the petition that the Delhi Police has been
issuing such prohibitory orders from time to time as a result
of which the fundamental right to assemble peacefully under
Article 19(1)(b) of the Constitution which includes holding
peaceful dharna, demonstration, etc. has been destroyed. It is
contended that the impugned order does not indicate any
criteria for granting or refusing permission. It is completely
left to the discretion of Delhi Police as a consequence of
which the permission to hold dharna, public meetings in the
entire prohibited area which is the centre of power and best
suited for political dharna is denied.
3. It is averred that the petitioner is one of the members of
‗Bhopal Gas Pidit Mahila Stationary Karamchari Sangh‘ who
had come along with other activists to Delhi to raise a protest
because of the failure of the Government of India to set up an
empowered commission to look into the problems of the
victims of toxic gases leak from the plant of Union Carbide in
1984, but the same has become unfruitful because of the order
passed by the Deputy Commissioner of Police. Reference has
been made to Section 144 to show that in total violation of the
said provision, the Delhi Police have been issuing orders
under Section 144, Cr.PC in a routine manner without there
being any emergent situation. It is the case of the petitioner
that the said orders create unreasonable restriction which
affects the fundamental right of the petitioner. It is urged that
the prohibitory orders are in total violation of Article 19(1)(a)
and (b) and the same have been issued without any basis and
thereby tantamounts to abuse of the process of the mandate
contained in Section 144 of Cr.PC.
4. We have heard Mr. Prashant Bhushan, learned counsel for
the petitioner and Ms. Jasbir Kaur, learned counsel for
respondent No. 1 and Mr. N. Waziri learned counsel for
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respondent No. 2 on the question of admission. It is submitted
by Mr. Bhushan that the orders have been passed one after the
other in a routine manner without the authority addressing to
the emergent nature and taking recourse to power conferred
on it under Section 144 Cr.PC which is impermissible. It is
propounded by him that the prohibitions that have been
stipulated in the order are violative of fundamental rights and
the right to protest is totally extinguished. To buttress the
submission, he has placed reliance on the decision in Himmat
Lal K. Shah v. Commissioner of Police, Ahmedabad , (1973) 1
SCC 227.
5. Ordinarily we would have dealt with the law laid down
in Himmat Lal K. Shah Case (supra) and another decision
rendered in Babulal Parate v. The State of Maharashtra , AIR
1961 SC 884 by the Constitution Bench, but we have come
across a decision in Acharya Jagdishwaranand
Avadhuta v. Commissioner of Police, Calcutta , (1983) 4 SCC
522 : AIR 1984 SC 51, wherein it has been held as follows:
―The other aspect, viz., the propriety of repetitive
prohibitory orders is, however, to our mind a serious
matter and since long arguments have been advanced, we
propose to deal with it. In this case as a fact from October
1979 till 1982 at the interval of almost two months orders
under Section 144(1) of the Code have been made from
time to time. It is not disputed before us that the power
conferred under this section is intended for immediate
prevention of breach of peace or speedy remedy. An order
made under this section is to remain valid for two months
from the date of its making as provided in sub-section (4)
of Section 144. The proviso to sub-section (4) authorises
the State Government in case it considers it necessary so to
do for preventing danger to human life, health or safety, or
for preventing a riot or any affray, to direct by notification
that an order made by a Magistrate may remain in force for
a further period not exceeding six months from the date on
which the order made by the Magistrate would have, but
for such order, expired. The effect of the proviso,
therefore, is that the State Government would be entitled to
give the prohibitory order an additional term of life but that
would be limited to six months beyond the two months?
period in terms of sub-section (4) of Section 144 of the
Code. Several decisions of different High Courts have
rightly taken the view that it is not legitimate to go on
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making successive orders after earlier orders have lapsed
by efflux of time. A Full Bench consisting of the entire
Court of 12 Judges in Gopi Mohun Mullick v. Taramoni
Chowdhrani examining the provisions of Section 518 of
the Code of 1861 (corresponding to present Section 144)
took the view that such an action was beyond the
Magistrate's powers. Making of successive orders was
disapproved by the Division Bench of the Calcutta High
Court in Bishessur Chuckerbutty v. Emperor . Similar view
was taken in Swaminatha Mudaliar v. Gopalakrishna
Naidu , Taturam Sahu v. State of Orissa , Ram Das
Gaur v. City Magistrate, Varanasi , and Ram Narain
Sah v. Parmeshar Prasad Sah . We have no doubt that the
ratio of these decisions represents a correct statement of
the legal position. The proviso to sub-section (4) of Section
144 which gives the State Government jurisdiction to
extend the prohibitory order for a maximum period of six
months beyond the life of the order made by the Magistrate
is clearly indicative of the position that Parliament never
intended the life of an order under Section 144 of the Code
to remain in force beyond two months when made by a
Magistrate. The scheme of that section does not
contemplate repetitive orders and in case the situation so
warrants steps have to be taken under other provisions of
the law such as Section 107 or Section 145 of the Code
when individual disputes are raised and to meet a situation
such as here, there are provisions to be found in the Police
Act. If repetitive orders are made it would clearly amount
to abuse of the power conferred by Section 144 of the
Code. It is relevant to advert to the decision of this Court
in Babulal Parate v. State of Maharashtra where the vires
of Section 144 of the Code was challenged. Upholding the
provision, this Court observed:
―Public order has to be maintained in advance in order to
ensure it and, therefore, it is competent to a legislature to
pass a law permitting an appropriate authority to take
anticipatory action or place anticipatory restrictions upon
particular kinds of acts in an emergency for the purpose of
maintaining public order….‖
It was again emphasized (at p.891 of AIR):
―But it is difficult to say that an anticipatory action taken
by such an authority in an emergency where danger to
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public order is genuinely apprehended is anything other
than an action done in the discharge of the duty to maintain
order….‖
This Court had, therefore, appropriately stressed upon the
feature that the provision of Section 144 of the Code was
intended to meet an emergency. This postulates a situation
temporary in character and, therefore, the duration of an
order under Section 144 of the Code could never have been
intended to be semi-permanent in character.?
6. In view of the aforesaid enunciation of law and keeping in
view the nature of assertions made in the writ petition, we are
inclined to issue notice on the question of admission and
disposal.
7. Issue notice.
8. As Ms. Jasbir and Mr. Waziri have entered appearance, no
requisites need be filed. Counter affidavits be filed within two
weeks. Rejoinder, if any, be filed within a week thereafter.
9. Matter be listed on 25th August, 2010.‖
4. Thereafter, a counter affidavit has been filed and the matter was
debated on certain occasions. Today an affidavit has been filed by
the second respondent. In paragraph 1 of the affidavit, it has been
stated as follows:—
―1. That continuous Prohibition under Section 144 Cr.P.C.
1973 (2 of 1974) under the jurisdiction of New Delhi
District declaring certain areas as ‗Prohibited area‘ for
holding any public meeting, dharna, peaceful protest etc.
has been discontinued. The said provision of law would be
invoked as and when warranted because of an emergent
situation.‖
5. In view of the aforesaid, we are of the considered opinion that
nothing remains to be adjudicated in the writ petition. However, we
observe that the respondent No. 2 shall always be guided by the
law of the land while taking recourse to Section 144 of the Code of
Criminal Procedure. ‖
167. Both Bano Bee as well as Acharya Jagdishwaranand Avadhuta
have deprecated a repetitive exercise of powers under Section 144 and
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the promulgation of successive orders. However, the underlying theme
of Section 30(2)(a) and Regulation 2.3.4 is clearly distinguishable
from the scheme which informs Section 144 of the CrPC. Section 144
is liable to be invoked in an emergent situation and when immediate
prevention is to be ordered. It is in the aforesaid backdrop that courts
have taken the view that an order once made under Section 144 cannot
be revived and renewed for time immemorial.
168. Contrary to the above, the powers conferred under Section
30(2)(a) read with Regulation 2.3.4 are not emergency provisions per
se. Consequently, as long as the interest of public health requires a
prohibition being imposed with respect to the addition of tobacco or
nicotine in food articles, the appellant would clearly be justified in
continuing those orders till the situation is remedied or where it is
ultimately established on empirical terms that such additives would
not constitute any harm to public health.
169. From the submissions which were addressed on behalf of the
appellants the Court notes that the ban as enshrined in the impugned
notifications was also sought to be sustained in light of the various
orders passed by the Supreme Court in Ankur Gutka and Central
Arecanut . As was noted in the preceding parts of this decision, we find
that in Ankur Gutka , the Supreme Court in its order of 03 April 2013
had taken note of the contention of the Solicitor General of various
States and Union Territories having imposed a complete ban on the
sale of gutka and pan masala with tobacco and/or nicotine. The
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Solicitor General had also apprised the Supreme Court of the
malicious tactics adopted by some of the manufacturers, of selling
gutka and pan masala in two separate pouches.
170. Taking note of the aforesaid as well as the communication
issued by the Union Government addressed to all State Governments
on 27 August 2012, the Supreme Court issued notice to all State
Governments and Union Territories which had so far not issued
notifications banning the sale of gutka and pan masala with tobacco in
terms of the FSSA to apprise the Court why they had failed to take
action pursuant to the letter issued by the Union Government and
noticed hereinabove. It was the aforesaid order which appears to have
prompted the issuance of the first of the prohibitory orders in 2015.
171. The prohibition with respect to sale of gutka and pan masala
with tobacco was again noticed by the Supreme Court in Central
Arecanut and more particularly the order of 23 September 2016
passed therein where the aforenoted order passed in Ankur Gutka was
noticed yet again. The Supreme Court also took note of Regulation
2.3.4 and consequently, the obligation placed upon all to enforce the
said Regulation. It, accordingly, directed all concerned statutory
authorities to comply with Regulation 2.3.4. It also called upon all
State Governments and Union Territories to file affidavits with respect
to ― total compliance of the ban imposed on manufacturing and sale of
gutka and pan masala with tobacco and/or nicotine ‖.
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172. While the learned Single Judge has duly noticed those orders in
Para 34 of the impugned judgment, he proceeded to hold that the case
set up in the writ petition is distinguishable since it relates to chewing
tobacco and not gutka and pan masala with tobacco and/or nicotine.
173. We find ourselves unable to appreciate how the orders passed in
Ankur Gutka and Central Arecanut could have by any stretch of
imagination been held to be distinguishable. The Impugned
Notifications clearly related to gutka and pan masala with tobacco or
nicotine. The peremptory direction issued by the Supreme Court in the
aforenoted two matters was an ambiguous command to all State
Governments and Union Territories to enforce the prohibition in
respect thereof and to ensure compliance with the diktat of Regulation
2.3.4. There was thus no justification for the learned Judge holding
that they would not apply.
L. THE ARTICLE 14 ARGUMENT
174. One of the arguments which was addressed was a purported
violation of the equality principles as enshrined in Article 14 and the
prohibition being restricted to ―smokeless tobacco‖. We find that
copious material has been placed on the record in the shape of
scientific studies which had clearly indicated the nature and extent of
the issues that arise from the use of smokeless tobacco. The appellants
have also taken the Court through the detailed report which had been
submitted by NIHFW pursuant to the directions issued by the
Supreme Court on 07 December 2010 in Ankur Gutka. As would be
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evident from the conclusions which came to be recorded by the Expert
Committee, it was found that 163.7 million people in the country are
users of only smokeless tobacco. Compared to the above, the number
of persons smoking was pegged at 68.9 million. The Quit Ratio for
users of smokeless tobacco was placed at 5%. That report had also
taken note of the exponential increase in the total number of users of
smokeless tobacco over the years. As the GATS Report 2016-2017
would establish, the total number of adult smokeless tobacco users
was found to be 199.4 million and thus almost double that of current
tobacco smokers which was placed in the earlier survey at 99.5
million. It becomes pertinent to note that in GATS 1 [2009-2010], the
number of smokeless tobacco users was found to be 163.7 million. By
the time the GATS 2 [2016-17] Report came to be published, these
users had increased to 199.4 million thus evidencing the exponential
increase in the number of users of smokeless tobacco.
175. It becomes necessary to observe that the writ petitioners did not
dispute that both cigarettes as well as smokeless tobacco have a direct
and pernicious impact on public health. The submission essentially
proceeded on the premise that there existed no rationale to create an
artificial distinction between ―smoking‖ and ―smokeless‖ tobacco. We
find ourselves unable to appreciate the aforesaid submission since
once it was found and conceded that both categories of tobacco
constituted substances which had a direct impact on public health, the
impugned notifications clearly did not warrant being quashed. We
bear in mind the well settled principle that a prerogative writ would
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not issue to perpetuate an illegality or cause serious prejudice to larger
public interest. The acceptance of the submission addressed in this
regard would amount to the Court sanctioning the distribution and sale
of smokeless tobacco in addition to smoking tobacco. Article 14
cannot possibly be invoked on the ground that since a particular genre
of tobacco has not been banned, there should be no prohibition in
respect of an equally harmful article. In any case, Article 14 does not
contemplate of a negative equality. It is, as has been repeatedly held, a
positive constitutional right. The guarantee and protection conferred
by that Article cannot be invoked to assert a right to manufacture, sell
or distribute a harmful substance merely because the appellant has
failed to take identical steps in respect of an equally injurious article.
We thus find ourselves unable to either appreciate or countenance the
submissions addressed on this score.
M. POLICY AND JUDICIAL REVIEW
176. More fundamentally we find that the appellant appears to have
adopted the impugned measures bearing in mind the larger number of
users of smokeless tobacco as was evidenced from the scientific
reports coupled with the fact that it stood statutorily armed to impose a
prohibition. These were essentially policy imperatives which the
appellants appear to have borne in mind while issuing the impugned
notifications. It becomes pertinent to note that the power of judicial
review which stands conferred upon this Court does not extend to
interfering with a policy decision unless it be shown to be wholly
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erroneous, capricious or manifestly arbitrary. Courts would refrain
from interfering with such policy decisions merely on the ground that
a more prudent or wiser alternative were available. We would clearly
be crossing the well recognised rubicon if we were to impute our own
views and perceptions of what would have been a more efficacious
measure. Ultimately the balancing of imperatives, evaluation of
competing factors, exigencies of the time are all factors which must be
left for the executive to weigh while formulating an appropriate
policy. Courts are ultimately concerned not with the efficacy of the
policy but its legality.
177. Though the principles which must be borne in mind with
respect to the extent of judicial review in relation to policy decisions is
well settled, the Court deems it apposite to notice the following
decisions. In Directorate of Film Festivals vs. Gaurav Ashwin
53
Jain , while holding that the Courts cannot be called upon to examine
the correctness of a policy, the Supreme Court held as follows: -
― 16. The scope of judicial review of governmental policy is now
well defined. Courts do not and cannot act as Appellate Authorities
examining the correctness, suitability and appropriateness of a
policy, nor are courts advisors to the executive on matters of policy
which the executive is entitled to formulate. The scope of judicial
review when examining a policy of the Government is to check
whether it violates the fundamental rights of the citizens or is
opposed to the provisions of the Constitution, or opposed to any
statutory provision or manifestly arbitrary. Courts cannot interfere
with policy either on the ground that it is erroneous or on the
ground that a better, fairer or wiser alternative is available. Legality
53
(2007) 4 SCC 737
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of the policy, and not the wisdom or soundness of the policy, is the
subject of judicial review (vide Asif Hameed v. State of J&K [1989
Supp (2) SCC 364] , Sitaram Sugar Co. Ltd. v. Union of India
[(1990) 3 SCC 223] , Khoday Distilleries Ltd. v. State of
Karnataka [(1996) 10 SCC 304] , BALCO Employees' Union v.
Union of India [(2002) 2 SCC 333] , State of Orissa v. Gopinath
Dash [(2005) 13 SCC 495 : 2006 SCC (L&S) 1225] and Akhil
Bharat Goseva Sangh (3) v. State of A.P. [(2006) 4 SCC 162] )‖ ‖
54
178. In Krishnan Kakkanth v. Govt. of Kerala , the Supreme
Court observed that it is only proper to test a public policy on the
limited question of illegality and unconstitutionality: -
―36. To ascertain unreasonableness and arbitrariness in the context
of Article 14 of the Constitution, it is not necessary to enter upon
any exercise for finding out the wisdom in the policy decision of
the State Government. It is immaterial whether a better or more
comprehensive policy decision could have been taken. It is equally
immaterial if it can be demonstrated that the policy decision is
unwise and is likely to defeat the purpose for which such decision
has been taken. Unless the policy decision is demonstrably
capricious or arbitrary and not informed by any reason whatsoever
or it suffers from the vice of discrimination or infringes any statute
or provisions of the Constitution, the policy decision cannot be
struck down. It should be borne in mind that except for the limited
purpose of testing a public policy in the context of illegality and
unconstitutionality, courts should avoid ―embarking on uncharted
ocean of public policy.‖
55
179. In Shri Sitaram Sugar Co. Ltd. v. Union of India , the
Supreme Court while dealing with the extent of interference with a
policy measure observed as follows: -
54
(1997) 9 SCC 495
55
(1990) 3 SCC 223
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| ―57. Judicial review is not concerned with matters of economic | | |
|---|
| policy. The court does not substitute its judgment for that of the | | |
| legislature or its agents as to matters within the province of either. | | |
| The court does not supplant the ―feel of the expert‖ by its own | | |
| views. When the legislature acts within the sphere of its authority | | |
| and delegates power to an agent, it may empower the agent to | | |
| make findings of fact which are conclusive provided such findings | | |
| satisfy the test of reasonableness. In all such cases, judicial inquiry | | |
| is confined to the question whether the findings of fact are | | |
| reasonably based on evidence and whether such findings are | | |
| consistent with the laws of the land. As stated by Jagannatha | | |
| Shetty, J. in Gupta Sugar Works [1987 Supp SCC 476, 481] : (SCC | | |
| p. 479, para 4) | | |
| ―... the court does not act like a chartered accountant | |
| nor acts like an income tax officer. The court is not | |
| concerned with any individual case or any particular | |
| problem. The court only examines whether the price | |
| determined was with due regard to considerations | |
| provided by the statute. And whether extraneous | |
| matters have been excluded from determination.‖ | |
| ―59. It is a matter of policy and planning for the Central | | |
| Government to decide whether it would be, on adoption of a | | |
| system of partial control, in the best economic interest of the sugar | | |
| industry and the general public that the sugar factories are grouped | | |
| together with reference to geographical-cum-agro-economic factors | | |
| for the purpose of determining the price of levy sugar. Sufficient | | |
| power has been delegated to the Central Government to formulate | | |
| and implement its policy decision by means of statutory | | |
| instruments and executive orders. Whether the policy should be | | |
| altered to divide the sugar industry into groups of units with similar | | |
| cost characteristics with particular reference to recovery, duration, | | |
| size and age of the units and capital cost per tonne of output, | | |
| without regard to their location, as recommended by the BICP, is | | |
| again a matter for the Central Government to decide. What is best | | |
| for the sugar industry and in what manner the policy should be | | |
| formulated and implemented, bearing in mind the fundamental | | |
| object of the statute, viz., supply and equitable distribution of | | |
| essential commodity at fair prices in the best interest of the general | | |
| public, is a matter for decision exclusively within the province of | | |
| the Central Government. Such matters do not ordinarily attract the | | |
| power of judicial review.‖ | | |
| | |
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56
180. In State of Orissa v. Gopinath Dash and in which the Court
was yet again called upon to enunciate the parameters of judicial
review, the Supreme Court held as under: -
6. The correctness of the reasons which prompted the
―
Government in decision-making taking one course of action
instead of another is not a matter of concern in judicial review and
the Court is not the appropriate forum for such investigation.
7. The policy decision must be left to the Government as it alone
can adopt which policy should be adopted after considering all the
points from different angles. In the matter of policy decisions or
exercise of discretion by the Government so long as the
infringement of fundamental right is not shown the courts will have
no occasion to interfere and the Court will not and should not
substitute its own judgment for the judgment of the executive in
such matters. In assessing the propriety of a decision of the
Government the Court cannot interfere even if a second view is
possible from that of the Government.
― 8. The Court should constantly remind itself of what the Supreme
Court of the United States said in Metropolis Theater Co. v. City of
Chicago [57 L Ed 730 : 228 US 61 (1912)] :
―The problems of government are practical ones and may
justify, if they do not require, rough accommodations,
illogical it may be, and unscientific. But even such
criticism should not be hastily expressed. What is the
best is not always discernible, the wisdom of any choice
may be disputed or condemned. Mere errors of
government are not subject to our judicial review. ‖
181. In a more recent decision rendered in Jacob Puliyel vs. Union
57
of India and Others the Supreme Court reiterated the well-
established parameters of judicial review in regard to a policy decision
in the following terms: -
― 20. The Minister for Workplace Relations and Safety passed
COVID-19 Public Health Response (Specified Work Vaccinations)
56
(2005) 13 SCC 495
57
2022 SCC OnLine SC 533
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Order 2021, by which it was determined that work carried out by
certain police and defence force personnel could only be
undertaken by workers who have been vaccinated. Three police
and defence force workers who did not wish to be vaccinated
sought judicial review of the said order before the High Court of
New Zealand (hereinafter, the ― NZ High Court ‖). While
adjudicating the dispute, the NZ High Court in Ryan Yardley
(supra) expressed its opinion that the choices made by
governments on their response to COVID-19 involve wide policy
questions, including decisions on the use of border closures,
lockdowns, isolation requirements, vaccine mandates and many
other measures, which are decisions for the elected representatives
to make. The NZ High Court made it clear that the Court addresses
narrower legal questions and the Court's function is not to address
the wider policy questions. While referring to the evidence of
experts, the NZ High Court stressed on the institutional limitations
on the Court's ability to reach definitive conclusions but clarified
that the Court must exercise its constitutional responsibility to
ensure that decisions are made lawfully. While relying upon a
judgment of the Court of Appeal of New Zealand in Ministry of
Health v. Atkinson 15 , the NZ High Court held that the Crown has
the burden to demonstrate that a limitation of a fundamental right
is demonstrably justified. We have come to know that in the time
since the judgment in this matter was reserved, the decision of the
NZ High Court in Ryan Yardley (supra) has been appealed by the
Government of New Zealand before the New Zealand Court of
Appeal.
21. We shall now proceed to analyse the precedents of this Court
on the ambit of judicial review of public policies relating to health.
It is well settled that the Courts, in exercise of their power of
judicial review, do not ordinarily interfere with the policy decisions
of the executive unless the policy can be faulted on grounds of
mala fide, unreasonableness, arbitrariness or unfairness etc. Indeed,
arbitrariness, irrationality, perversity and mala fide will render the
policy unconstitutional. It is neither within the domain of the courts
nor the scope of judicial review to embark upon an enquiry as to
whether a particular public policy is wise or whether better public
policy can be evolved. Nor are the courts inclined to strike down a
policy at the behest of a petitioner merely because it has been
urged that a different policy would have been fairer or wiser or
more scientific or more logical. Courts do not and cannot act as
appellate authorities examining the correctness, suitability and
appropriateness of a policy, nor are courts advisors to the executive
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on matters of policy which the executive is entitled to formulate.
The scope of judicial review when examining a policy of the
Government is to check whether it violates the fundamental rights
of the citizens or is opposed to the provisions of the Constitution,
or opposed to any statutory provision or manifestly arbitrary 18 .
22. This Court in a series of decisions has reiterated that courts
should not rush in where even scientists and medical experts are
careful to tread. The rule of prudence is that courts will be reluctant
to interfere with policy decisions taken by the Government, in
matters of public health, after collecting and analysing inputs from
surveys and research. Nor will courts attempt to substitute their
own views as to what is wise, safe, prudent or proper, in relation to
technical issues relating to public health in preference to those
formulated by persons said to possess technical expertise and rich
experience. Where expertise of a complex nature is expected of the
State in framing rules, the exercise of that power not demonstrated
as arbitrary must be presumed to be valid as a reasonable
restriction on the fundamental right of the citizen and judicial
review must halt at the frontiers. The Court cannot re-weigh and
substitute its notion of expedient solution. Within the wide judge-
proof areas of policy and judgment open to the government, if they
make mistakes, correction is not in court but elsewhere. That is the
comity of constitutional jurisdictions in our jurisprudence. We
cannot evolve a judicial policy on medical issues. All judicial
thought, Indian and Anglo-American, on the judicial review power
where rules under challenge relate to a specialised field and
involve sensitive facets of public welfare, has warned courts of
easy assumption of unreasonableness of subordinate legislation on
the strength of half-baked studies of judicial generalists aided by
the adhoc learning of counsel. However, the Court certainly is the
constitutional invigilator and must act to defend the citizen in the
assertion of his fundamental rights against executive tyranny
draped in disciplinary power.
23. There is no doubt that this Court has held in more than one
judgment that where the decision of the authority is in regard to a
policy matter, this Court will not ordinarily interfere since
decisions on policy matters are taken based on expert knowledge of
the persons concerned and courts are normally not equipped to
question the correctness of a policy decision. However, this does
not mean that courts have to abdicate their right to scrutinise
whether the policy in question is formulated keeping in mind all
the relevant facts and the said policy can be held to be beyond the
pale of discrimination or unreasonableness, bearing in mind the
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material on record. In Delhi Development Authority (supra), this
Court held that an executive order termed as a policy decision is
not beyond the pale of judicial review. Whereas the superior courts
may not interfere with the nitty-gritty of the policy, or substitute
one by the other but it will not be correct to contend that the court
shall lay its judicial hands off, when a plea is raised that the
impugned decision is a policy decision. Interference therewith on
the part of the superior court would not be without jurisdiction as it
is subject to judicial review. It was further held therein that the
policy decision is subject to judicial review on the following
grounds:
a) if it is unconstitutional;
b) if it is dehors the provisions of the Act and the regulations;
c) if the delegatee has acted beyond its power of delegation;
d) if the executive policy is contrary to the statutory or a larger
policy.‖
182. Viewed in light of the aforesaid principles, we are of the firm
opinion that there existed no justification for the Impugned
Notifications being quashed on grounds which have found acceptance
with the learned Judge. In any case, Article 14 clearly did not warrant
the Impugned Notifications being set aside.
N. PERIPHERAL ISSUES
183. While parting, two additional issues which were canvassed for
our consideration may also be noticed for the sake of completeness of
the record.
184. The learned Judge has while allowing the writ petitions also
alluded to the principles of implied repeal. However, and as this Court
had noted while recording the submissions which were addressed in
these appeals, the appellants had never contended before the writ court
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that COTPA stood impliedly repealed upon promulgation of FSSA.
There was thus no necessity of the said observations being rendered.
In any case, in light of the conclusions recorded hereinabove, we find
no ground to interfere with the ultimate conclusion recorded by the
learned Judge in this respect.
185. Mr. Kirtiman Singh, learned CGSC had additionally sought to
contend that trade and commerce in tobacco is liable to be viewed as
res extra commercium . Mr. Singh had in this connection referred to
certain observations as entered in Nava Bans Sar Vyapar Association
as well as Health for Millions Trust and Unicorn Industries . However,
we find ourselves unable to enter such a declaration bearing in mind
the categorical observations as were made by the Supreme Court in
Godawat . The relevant passages of Godawat in this respect are
extracted hereinbelow: -
“53. Is the consumption of pan masala or gutka (containing
tobacco), or for that matter tobacco itself, considered so
inherently or viciously dangerous to health, and, if so, is there any
legislative policy to totally ban its use in the country? In the face
of Act 34 of 2003, the answer must be in the negative. It is
difficult to accept the contention that the substance banned by the
impugned notification is treated as res extra commercium . In the
first place, the gamut of legislation enacted in this country which
deals with tobacco does not suggest that Parliament has ever
treated it as an article res extra commercium , nor has Parliament
attempted to ban its use absolutely. The Industries (Development
and Regulation) Act, 1951 merely imposed licensing regulation
on tobacco products under Item 38(1) of the First Schedule. The
Central Sales Tax Act, 1956 in Section 14( ix ) prescribes the rates
for Central sales tax. The Additional Duties of Excise (Goods of
Special Importance) Act, 1957 prescribes the additional duty
leviable on tobacco products. The Tobacco Board Act, 1975
established a Tobacco Board for development of tobacco
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| industries in the country. Even the latest Act i.e. the Cigarettes | |
|---|
| and Other Tobacco Products (Prohibition of Advertisement and | |
| Regulation of Trade and Commerce, Production, Supply and | |
| Distribution) Act, 2003, does not ban the sale of tobacco products | |
| listed in the Schedule except to minors. Further, we find that in | |
| the Tariff Schedule of the Central Sales Tax Act there are several | |
| entries which deal with tobacco and also pan masala. In the face | |
| of these legislative measures seeking to levy restrictions and | |
| control the manufacture and sale of tobacco and its allied products | |
| as well as pan masala, it is not possible to accept that the article | |
| itself has been treated as res extra commercium. The legislative | |
| policy, if any, seems to be to the contrary. In any event, whether | |
| an article is to be prohibited as res extra commercium is a matter | |
| of legislative policy and must arise out of an Act of legislature | |
| and not by a mere notification issued by an executive authority.‖ | |
| |
O. OPERATIVE DIRECTIONS
186. Accordingly, and for all the aforesaid reasons, we find
ourselves unable to sustain the impugned judgment rendered by the
learned Judge. These appeals shall consequently stand allowed. The
impugned judgment and order dated 23 September 2022 shall stand
set aside.
187. For reasons aforenoted, we find no merit in the challenge raised
in W.P.(C) No. 3362/2015. It shall, in consequence, stand dismissed.
SATISH CHANDRA SHARMA, C.J.
YASHWANT VARMA, J.
APRIL 10, 2023
bh/ SU/ neha
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