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        Case ID :

        1970 (11) TMI 109 - SC - Indian Laws

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        Essential Commodities control orders upheld as valid subordinate legislation; restrictions on rice regulation survived constitutional and delegation challenges. Control Orders issued under the Essential Commodities Act were treated as valid subordinate legislation made under statutory authority and not as mere ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Essential Commodities control orders upheld as valid subordinate legislation; restrictions on rice regulation survived constitutional and delegation challenges.

                          Control Orders issued under the Essential Commodities Act were treated as valid subordinate legislation made under statutory authority and not as mere executive instructions. The challenge based on Article 303 failed because there was no proper material showing prohibited State preference or discrimination, and the restrictions were directed to regulation of rice export and movement in the public interest. The absence of an express recital of the Central Government's opinion under Section 3(1), and the absence of a formal appeal or revision against refusal of permits, did not render the orders invalid or unreasonable. Section 3(2)(d) was also upheld, with the delegation framework sustained by existing authority and sufficient statutory policy and guidance.




                          Issues: (i) Whether the Control Orders made under the Essential Commodities Act, 1955 were invalid for offending Article 303 of the Constitution or for being mere executive instructions rather than subordinate legislation; (ii) whether the absence of an express recital of the Central Government's opinion under Section 3(1) of the Essential Commodities Act, 1955 and the absence of appeal or revision against refusal of permits rendered the orders invalid or unreasonable; (iii) whether Section 3(2)(d) of the Essential Commodities Act, 1955 suffered from excessive delegation.

                          Issue (i): Whether the Control Orders made under the Essential Commodities Act, 1955 were invalid for offending Article 303 of the Constitution or for being mere executive instructions rather than subordinate legislation.

                          Analysis: The Control Orders were issued under Section 3 of the Essential Commodities Act, 1955 and were laid before Parliament as required by Section 3(6). They were therefore treated as law made under statutory authority and not as mere executive instructions. The challenge under Article 303 was not supported by proper pleadings or material showing prohibited preference or discrimination between States, and the restrictions were directed to regulation of export and movement of rice in the public interest.

                          Conclusion: The challenge under Article 303 failed, and the Control Orders were upheld as valid subordinate legislation.

                          Issue (ii): Whether the absence of an express recital of the Central Government's opinion under Section 3(1) of the Essential Commodities Act, 1955 and the absence of appeal or revision against refusal of permits rendered the orders invalid or unreasonable.

                          Analysis: The requirement of the Central Government's opinion under Section 3(1) was held to be implicit in the recital that the orders were made under Section 3 of the Act. The permitting power was vested in the State Government or responsible senior officers, and refusal by such officers could be taken up by representation to the State Government. In that setting, the absence of a formal appeal or revision provision did not make the restriction unreasonable.

                          Conclusion: The orders were not invalid on either ground, and the restriction on trade was held to be reasonable.

                          Issue (iii): Whether Section 3(2)(d) of the Essential Commodities Act, 1955 suffered from excessive delegation.

                          Analysis: The Court treated the question as settled by earlier authority sustaining the delegation framework in Section 3 of the statute. The Central Government had sufficient guidance from the statutory policy to regulate supplies, distribution, transport, and trade in essential commodities.

                          Conclusion: The plea of excessive delegation failed, and Section 3(2)(d) was upheld.

                          Final Conclusion: The constitutional and statutory challenges to the Control Orders and to the enabling provision were rejected, leaving the writ petition and appeals liable to dismissal.

                          Ratio Decidendi: A control order issued under a valid statutory power and laid before Parliament is subordinate legislation, and regulatory restrictions on essential commodities will not be struck down for want of an express recital, absence of appeal, or excessive delegation where the statute supplies sufficient policy and guidance.


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