1964 (3) TMI 132 - SC - Indian Laws

Court upholds validity of State orders under Essential Articles Control Act, 1949. Orders justified for public interest.

V.S RICE AND OIL MILLS AND OTHERS ETC. Versus STATE OF ANDHRA PRADESH ETC.

The court upheld the validity of the notified orders issued by the State of Andhra Pradesh under Section 3 of the Madras Essential Articles Control and ... - Issues Involved:1. Construction of Section 3 of the Madras Essential Articles Control and Requisitioning (Temporary Powers) Act, 1949.2. Validity of the notified orders issued by the State of Andhra Pradesh under Section 3.3. Applicability of the Act to the State Government's supply of electricity.4. Whether the impugned orders contravene Articles 19(1)(f) and (g) of the Constitution.5. Whether the impugned orders contravene Article 14 of the Constitution.Issue-wise Detailed Analysis:1. Construction of Section 3 of the Madras Essential Articles Control and Requisitioning (Temporary Powers) Act, 1949:The main question was whether Section 3 of the Act allowed the State Government to issue notified orders to regulate the supply and price of essential articles, including electricity. The appellants argued that Section 3 did not confer such power on the State to alter the terms of existing contracts. The court held that Section 3(1) is intended to secure supplies of essential articles and to arrange for their equitable distribution and availability at fair prices. The language of Section 3(1) is clear, unambiguous, and wide enough to include the power to regulate the supply of electricity, even if supplied by the State Government. Thus, the court concluded that Section 3(1) did confer the authority to issue the impugned orders.2. Validity of the notified orders issued by the State of Andhra Pradesh under Section 3:The appellants contended that the notified orders increasing the electricity tariffs were outside the purview of Section 3. The court held that the power to regulate under Section 3(1) includes the power to increase or decrease rates to ensure fair prices. The impugned orders were justified as they aimed to address the uneconomic tariffs that resulted in losses for the State. Therefore, the court found that the notified orders were valid under Section 3.3. Applicability of the Act to the State Government's supply of electricity:The appellants argued that the Act was intended to regulate transactions between private citizens and not the State's supply of electricity. The court referred to the legislative history and the general scheme of the Act, concluding that the words in Section 3 were wide enough to include the State's supply of essential articles. The court emphasized that the purpose of the Act is to ensure the equitable distribution and fair pricing of essential articles, regardless of whether the supplier is the State or a private entity.4. Whether the impugned orders contravene Articles 19(1)(f) and (g) of the Constitution:The appellants claimed that the impugned orders violated their rights under Articles 19(1)(f) and (g) by altering the agreed rates for electricity supply. The court acknowledged that the orders altered the contractual terms but justified the change due to the outdated tariffs and the financial losses incurred by the State. The court held that the revised tariffs were reasonable and in the interests of the general public, as they ensured the continued supply of electricity. Therefore, the orders did not contravene Articles 19(1)(f) and (g).5. Whether the impugned orders contravene Article 14 of the Constitution:The appellants argued that the impugned orders violated Article 14 by creating discriminatory rates between different consumers. The court found the allegations vague and unsupported by specific evidence. The court reiterated that a challenge under Article 14 requires clear and unambiguous allegations of discrimination, which were not present in this case. Consequently, the court dismissed the argument that the orders contravened Article 14.Conclusion:The appeals were dismissed with costs. The court upheld the validity of the notified orders issued under Section 3 of the Act, finding them reasonable, justified, and in the public interest. The orders did not contravene Articles 19(1)(f), (g), or 14 of the Constitution.