Concurrent legislative power over controlled industry goods upheld; State molasses regulation remained valid despite Section 18G.

Section 18G of the Industries (Development and Regulation) Act, 1951 was treated as a concurrent-field measure under Entry 33 of List III, dealing with the supply, distribution and price of goods produced by controlled industries. On that construction, it did not by itself denude the State Legislature of competence to enact Sections 7, 8 and 10 of the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 regulating molasses. The doctrine of occupied field did not exclude the State law, and any repugnancy under Article 254 stood cured by Presidential assent. The State provisions were therefore upheld as valid.

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Issues: Whether Section 18G of the Industries (Development and Regulation) Act, 1951 denuded the State Legislature of competence to enact Sections 7, 8 and 10 of the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 regulating supply, distribution and price of molasses.

Analysis: The legislative scheme of the Constitution was read with the history of control over industries and goods, the Constituent Assembly materials, and the inter-relationship between Entry 52 of List I and Entries 24, 26, 27, 33 and 34 of the Seventh Schedule. On that construction, Section 18G was treated as referable to Entry 33 of List III, not as an exclusive Union enactment under Entry 52 of List I. The control of trade, commerce, supply, distribution and price of products of controlled industries was held to remain within the concurrent field, so that the State Legislature could validly legislate on molasses. The doctrine of occupied field did not exclude the State law, and the Presidential assent cured any repugnancy issue under Article 254 of the Constitution of India.

Conclusion: Section 18G did not take away the State Legislature's competence, and Sections 7, 8 and 10 of the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 were held to be valid.

Ratio Decidendi: A law under Section 18G of the Industries (Development and Regulation) Act, 1951 regulating supply, distribution and price of products of controlled industries operates in the concurrent field under Entry 33 of List III and does not, by itself, exclude a State law on the same subject if that State law is otherwise within legislative competence and has Presidential assent.

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