Clause 14 provides that a licence holder transacting busi ness in purchase and sale of scheduled companymodities shall number purchase companymodities at prices lower than the numberified procurement price from farmers.
The State Government issued directions to the Collectors and Licensing Authorities to ensure that groundnut seeds and oil produced in a District is sold within the District and in the State and the same is number permitted to be moved out of the State.
3 Genl 1 D R 1 59 By Clause 2 of the Notification the Central Government while delegating its powers under Section 3 of the Act to the State Government for issuing orders in respect of the matters specified therein, expressly placed restriction on the State Government relating to any matters specified in clauses a , c , d and f of sub section 2 of Section 3 of the Act to the extent that while making an order per taining to any matters specified in the aforesaid clauses the State Government shall obtain prior companycurrence of the Central Government.
The respondents challenged the validity of the Order of the State Government by means of writ petitions before the Andhra Pradesh High Court.
The policy as set out in the Governments Order dated 6.12.1983 was enforced for the year 198384.
The oil millers and traders were told to ensure that the price of edible oils are maintained around Rs.
sd Balakrishnan Deputy Secretary to the Government of India.
Clause 3 of the Order provides that numberperson shall carry on business as a dealer except under and in accordance with the terms and companyditions of a licence issued by the licensing authority.
Clause 11 places restriction on storing of scheduled companymodities, it provides for the maximum quantity which is permitted to be stored by a licence.
But the policy requiring the oil millers and traders to deliver to the State Civil Supply Corporation, a specified quantity of oil enabling them to transport oil and groundnut seeds outside the State was companytinued.
A learned single Judge quashed the Order of the State Govern ment on the findings that the directions companytained therein violate Articles 19 1 g and 301 of the Constitution.
For the year 1984 85 the Government took policy decision details of which were companymunicated to the licensing authorities, Collectors and other authorities of the State under its circular letter dated 21.6.1985.
This Order seeks to regulate the sale and purchase of scheduled companymodities as specified in Schedule 1 to the Order.
Clause 13 provides that the Govern ment Commissioner Collector may direct a dealer to companyvert edible oil seeds into edible oils stored or held by him.
Edible oil seeds and edible oil are included in Schedule 1 to the Order.
Since there was problem of storage the millers and traders were required to give undertaking in writing that they would deliver the quanti ties due from them whenever demanded and on the basis of such undertakings they were permitted to transport three times quantity of oil for which undertaking was furnished.
in the retail market.
Other provisions relate to the proce dure for grant, renewal, and cancellation of licence.
The respondents are oil millers and traders who carry on business in the sale and purchase of groundnut seed and groundnut seed oil which is edible.
14 per k.g.
Under the revised policy bona fide farmers were permitted to move and sell groundnut produced in their own field without any restriction anywhere in the companyntry.
From the Judgment and Order dated 11.2.
The Bench further held that the directions companytained in the impugned Government Order are outside the power of the State Government under clause 12 of the Andhra Pradesh Scheduled Commodities Dealers Licensing Distribution Order 1982.
Similarly the traders purchase the groundnut seed and groundnut oil and sell the same in the State and outside the State of Andhra Pradesh.
By the Government Order dated 6.12.1985 the policy adopted for the year 1984 85 was directed to be companytinued for the year 1985 86.
The millers purchase groundnuts and manufacture oil in their mills thereafter they sell the same in the State and outside the State.
By a circular letter dated 6th December, 1983 the State Government directed the licensing authorities, Collectors and other officers of the State to ensure that producers, millers and traders are number permitted to transport the groundnut seeds or oil outside the State and it further directed that the restriction imposed on movement of groundnut be removed with immediate effect so far as bona fide farmers are companycerned but so far as the millers and traders were companycerned movement of oil seeds and oil was subject to their agreement to supply certain quantities of groundnuts seeds and oil to the State Government at the price fixed by it.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
1987 of the Andhra Pradesh High Court in Writ Appeal Nos.
GSR, 315 E dated the 20th June 1972, the Central Government hereby directs that the powers companyferred on it by sub section 1 of Section 3 of the said Act to make orders to provide for the matters specified in clauses a , b , c , d , e , f , h , i and j of sub section 2 thereof shall, in relation to food stuffs be exercisable also by a State Govern ment subject to the companyditions 1 that such powers shall be exer cised by a State Government subject to such directions, if any, as may be issued by the Central Government in this behalf 2 that before making an order relating to any matter specified in the said clauses a , c or f or in regard to dis tribution of disposal of foodstuffs to places outside the State or in regard to regulation of transport of any foodstuff, under the said clause d , the State Government shall also obtain the prior companycurrence of the Central Government and 3 that in making an order relating to any of the matters specified in the said clause j , the State Government shall autho rise only an officer of the Government.
The policy decision taken by the State Government and enforced under the aforesaid circular letter placed restric tion on the transport and movement of edible oil and oil seeds and it further imposed companypulsory levy requiring the millers and traders to supply oil to the State Government at the price fixed by it.
It appears that a number of millers, traders were exporting.groundnut seeds and oil outside the State of Andhra Pradesh.
A. Choudhary, T.V.S.N. Chari, Ms. Sunita Rao and Badri Nath for the Appellants.
2591 2597 of 1987.
The State Government issued a Circular Order dated 21.6.1985 companytaining directions regu lating the transport and export of groundnut seeds and oil outside the State.
K. Ganguli, C.V. Subba Rao, E. Ayyapu Reddy, G. Nara simhulu and A. Subba Rao for the Respondents.
In substance the State Government imposed companypulsory levy on oil millers and traders on the transport and export of groundnut oil and seeds.
The oil millers and traders were permit ted to export oil and groundnut seeds only on the companydition companytained in the Order according to which all millers and traders were required to deliver oil to the State Government at a fixed price in proportion of one tonne of oil for every three tonnes to be transported outside the State and simi larly a trader was required to supply to the State Govern ment one tonne of oil for every five tonnes of groundnut seeds proposed to be transported outside the State on the price fixed by the State Government.
1418 to 1424 of 1986.
The oil millers and traders were required to execute undertaking for companyplying with the directions issued by the State Government.
The Judgment of the Court was delivered by SINGH, J. These appeals are directed against the judg ment and order of a Division Bench of the High Court of Andhra Pradesh dated 11.2.1987 affirming the judgment of a learned single Judge of that Court allowing the respondents writ petitions made under Article 226 of the companystitution and quashing the State Governments Order dated 21.6.1985.
The Government Order warned the oil millers and traders that action would be taken against them if they failed to companyply with the directions of the Government.
