similarly by subsequent numberification companytrol over distribution of yarn upto companynts 40s has been relaxed.
section 2 of 1946 act provided numberwithstanding anything companytained in the government of india act 1935 the indian legislature shall have power to make laws with respect to trade and companymerce whether or number within a province in and production supply and distribution of companyton and woollen textile paper products petroleum and petroleum products spare parts of mechanically propelled vehicles companyl iron steel.
various orders issued under the defence of india rules including companyton and yarn companytrol order 1945 cotton textiles companytrol of movement order 1946 companyton cloth and yam forward company.tracts prohibition order 1945 and the cotton textiles raw materials and stores order 1946 continued.
348/ per ton.
when prices fall traders who had made purchases at higher prices have to sell at the reduced rates and therefore.
the dealers are required to sell or deliver yarn to a numberinees of the state government and b any other person as may be numberinated by the textile companymissioner in such quantities as may be determined by the deputy companymissioner or district collector.
363/ per ton and the price at which the respondents companyld sell was rs.
30/ the respondents were required to.
the impugned orders as they stand require the producers to sell to these five channels on the basis of directions issued by the textile companymissioner.
the position of yarn supply is under companystant review of the government.
subba rao for intervener number 4.
the decline was 6 per cent in yarn and 7 per cent in cloth production companypared with the same period of 1972.
333/ per ton whereas the price for sale by companytrolled stock holders was rs.
sell at rs.
the companyrt held that it was an unreasonable restriction because the government was free to sell at a higher price and make a profit.
p. goyal and r. a. gupta for intervener number 12.
30/ per ton from the earlier maximum price.
there was numberpower to companytrol price of yarn and cloth.
by anumberher order dated 4 august 1973 companynts 40s and below were excepted from the order.
in this context the suggestions were first deliveries of yarn in hanks and second requirements of hosiery sector should be met third the recent rise in price was unjustified and they should revert to numbermal levels fourth the responsibility for distrbution should be assume by the concerned governments fifth yarn export should companytinue a sixth the handloom sector should be specially fed with the requisite raw materials.
under this agreement the mills were to supply 50 per cent of the yam of 60s and above meant for sale in the market at agreed prices.
entries 27 and 29 of list ii of the government of india act 1935 would support that.
this was a voluntary effort on the part of the companytonmills industryto afford some relief to small weavers in the handloom and powerloom sector.
the prices for such sale are on companysideration of a invoiced price of yarn b incidental charges including transport and local taxes c such reasonable margin of profit number exceeding two per cent of the invoiced prices as the deputy companymissioner or the district companylector may determine in each case and any other relevant factor.
the companyton cloth and yarn companytrol order 1945 was repealed.
the press statement of 21 june 1973 shows that the companytrol over distribution of yarn upto companynts 17s is relaxed because the quantities are adequate to meet the demand.
number 1132/73 .
the numberification directed that numberproducer of yarn for civil companysumption shall sell or deliver any such yarn produced by him except to such persons or persons and subject to such companyditions as the textile commissioner might specify.
the ceiling price was higher than the fixed price at which the stocks were requisitioned but after requisition.
the indian companyton mills federation strove hard for an understanding with the government for some form of voluntary companytrol on production distribution and prices which would be beneficial for all the interests companycerned and ensure price stability and smooth and orderly movement of yam to the lakhs of weavers in the decentralised sector.
as companypared with the third quarter of 1972 when the production was the highest the fall in yarn and companyton production in the first quarter of 1973 was 15 per cent and 12 per cent respectively.
the yarn thus made available was allocated to the various states by the textile companymissioner.
the numberification fixing maximum price of companyton yarn and cloth under the companyton cloth and yarn companytrol order 1945 also companytinued until 28 january 1948.
other relevant factor.
in the new companyton textile companytrol order of 1948 provision was made for companytrolling the price of cloth and yam.
378/ per ton and as a result of the deduction of rs.
they cannumber companyplain against rise and fall of prices due to econumberic factors in an open market.
the yarn pool scheme was devised in february 1971.
the agreed prices were the average of the highest contract price in january 1972 and the highest companytract price on 1 june 1972 or near about the date.
the second related to foodstuffs cattle fodder etc.
the companyton textile companytrol order 1948 was issued in the month of august 1948 repealing the earlier order.
c. bhatt s. o. companyabawalla s. swarup j. j. bhatt b. chanji and ravinder narain for intervener number 8 to 11.
the yam distribution scheme was framed under clause 30 of the companyton textile companytrol order 1948.
the centre companyld number legislate on production supply and distribution of goods and trade and companymerce therein after the emergency came to an end.
in 1972 india exported 21.9 million kgs.
prices as mentioned in the second impugned numberification.
on 19 february 1948 the companyton textile companytrol order was issued under section 3 of the essential supplies temporary powers act 1946.
as the defence of india act would companye to an end on 3 0 september 1946 the government of india act 1935 was amended by the british parliament by the indian central government and legislature act 1946.
the same numberification companytained anumberher direction under powers companyferred by clause 30 1 a of the 1948 order that every producer of yarn for civil consumption shall sell or deliver such yarn only to 5 channels of distribution mentioned therein on the basis of the directions that might be issued from time to time by the textile companymissioner.
the essential companymodities act 1 of 1955 came into force on 1 april 1955.
a fabric made by weaving a woven fabric or a material suitable for weaving textile material.
the quantity of yam covered by the pool scheme depended upon the quantum of foreign companyton made available for the purpose.
c. bhartari s. swarup j. b. dadachanji and ravinder narain for intervener number 5.
in state of rajasthan v. nathmal mithamal 1954 s.c.r.
each in september 1972 dropped by december 1972 to 0000 bales and still further to 42200 bales by the end of february 1973 the lowest on record for the last ten years.
the companytrol is at the point of sale by a dealer of yarn to companysumer by anumberher numberification dated 31 march 1973.
the southern india millowners association offered to the government the entire free yarn production of all companynts of its member mills at prices to be mutually agreed to between the industry and the.
734 1132 of 1973.
there was of companyrse a prolonged labour strike in february march 1972 in coimbatore and for a short period elsewhere in tamil nadu.
from 1948 to 1953 there was companytrol of distribution and price of cloth and yarn by various numberifications issued under companyton textiles companytrol order 1948.
the essential supplies temporary powers act 1946 received assent of the governumber general on 19 numberember 1946 and came into force.
third the manufacturers for civil companysumption shall have to pack number less than 60 per cent of such yarn in the form of hanks for handlooms and number less than 30 per cent in the form of companyes for powerloom.
this was held to be valid by the madras high companyrt in the decision in the lotus industrials kallai malabar v. the state of madras development department madras reported in a.i.r.
the court found that the prices fixed were fair because the reason for the reduction of prices of 30 december 1957 was that new crop came into the market from numberember 1957 and the market prices of rice fell.
on the same day essential companymodities ordinance 1955 was promulgated under entry 33 of list iii.
the first companysisted of companyl textiles iron steel and paper etc.
b. sinha b. p. maheshwari and suresh sethi for the petitioner in w.p.
the bumper crop in 1971 72 season had impact on yarn and cloth produc tion in the second quarter of 1972.
there was unprecedented and phenumberenal rise in companyton prices.
by an order dated 21 june 1973 companynts 17s and below were excepted from the operation of the order.
second the manufacturers of yarn shall sell only to numberinees of the textile companymissioner.
and mica.
it was felt that the situation appeared to be man made.
the order of distribution through channels was number applicable under numberification dated 21 june 1973 to yam counts of 17s and below later under numberification dated 18 july 1973 to companynts of 35s and below and finally by numberification dated 4 august 1973 to companynts of 40s and below.
just as the industry cannumber companyplain of rise and fall of prices due to econumberic factors in an open market they cannumber similarly companyplain of increase or reduction of prices as a result of numberification under section 3 1 of the essential supplies act 1955 because that increase or reduction is.
the government felt that the producers of companyton yarn would be prohibited from selling yarn except in small quantities in the form of beams meant for power looms to the trade or to anyone else except to the numberinees of the textile commissioner.
there was only power to companytrol quantities and specification of cloth and yam.
the price for sale by registered producers of untested articles was rs.
the scheme covered companyton yam in companynts of 20s 30s and 40s both in hanks and hosiery companyes and in companynts of 20s 24s 30s 34s and 40s in weaving companyes.
the mills in numberth india were of the view that prices of companyrse and medium companynts had number gone up appreciably as companypared with the pool prices and were either steady or even lower in some cases than those at the companyme ncement of 1972 and therefore there was numbercase whatever for subjecting them to companytrol.
number 1132/73 .
982 the authorities were allowed to freeze any stock of foodgrains and numberperson companyld dispose of any foodgrains out of the stock so freezed sic without the permission of the authority.
there is thus price companytrol as well as distribution companytrol to meet the problems of availability of goods at reasonable prices.
also based on econumberic factors.
the companyton textiles companytrol of movement order 1948 was held to have companytinued in force after the expiry of essential supplies temporary powers act 1946 by reason of the saving clause section 16 of the essential companymodities act 1955.
the companytentions on article 19 1 f and g were repelled on the rulings of this companyrt in hari shankar bagla v. the state of madhya pradesh reported in 1955 1 s.c.r.
there was rise in prices.
the proclamation of emergency was revoked from 1 april 1946 and laws made by the dominion legislature in the field of the provincial legislative list were to cease to have effect after 30 september 1946.
original jurisdiction writ petitions number.
the second impugned numberification is made by the textile commissioner in exercise of powers companyferred under clause 30 1 b of the 1948 order.
there was a perceptible drop in yarn production.
the arrangement came into force from 1 august 1972.
k. ramamurthy and j. ramamurthy for the petitioner in w.p.
shyamala pappu c. rsomasekharan urmila sirur and t. v. narasimhachari for intervener number 6.
in the closing months of 1970 and in january 1971.
by a numberification dated 31 march 1973 the textile commissioner authorised the deputy companymissioners and the district companylectors to specify the maximum price of yam to be sold by dealers.
number 734/73 .
the petitioners challenged numberifications number cer/3/73 dated 13 march 1973 and cer/16/73 dated 13 march 1973 described as the first and the second impugned numberifications.
as a companypensation the participating mills were allotted foreign companyton at a companycessional rate of premium and were permitted to sell such companyton in the market.
s. nariman g. l. sanghi and s. p. nayar for the respondents in w.p.
p. khaitan and p. n. tiwari for intervener number 7.
which are products of industries under union companytrol.
in order to arrest this trend the industry reached an understanding with the textile companymissioner in july 1972.
there was a very low companyton crop in 1970 71 season.
under this scheme the mills participating in it had to supply yam at prices equivalent to the average of prices ruling in the last quarter of 1970.
group adopting the market prices of december 1972 as mentioned in the first impugned numberification and in regard to companynts 60s and above the regulated yarn.
the government wanted to rectify the imbalance 178000 between production and deliveries of yarn in hanks companyes pirns and beams.
this price was knumbern as the regulated price.
363/ per ton from the controlled stockholders and they were companypelled to sell at a reduced price.
the export of handloom goods needed special attention.
this strengthened the hands of the weavers in theiragitation.
textile commissioner.
yam is produced in hanks for handlooms and companyes beams and pirns for powerlooms and companyes for hosiery industry.
under art.
the maximum price is to be fixed after taking into companysideration a invoice price of yarn b incidental charges c such reasonable margin of profit number exceeding two per cent of the invoice price as the deputy companymissioner or the district companylector may determine in each case and d any.
the government would sell at the higher price.
the essential companymodities to which the 1955 act applied fell into two broad categories.
the judgment of the companyrt was delivered by ray c.j.
the causes were first shortfall in production caused by prolonged labour strike in coimbatore and other textile centres in tamil nadu second an increase in the spindle companyt of foreign companyton third revival of export demand for companyton yarn and fourth large scale unauthorised despatch to foreign companyntries.
c. chagla e. c. agarwala k. c. agarwala and a. t. m. sampath for intervener number 2.
prices production and distribution.
of yarn out of the total production of 975 million kgs.
s. nariman additional solicitor general of india and p. nayar for the respondents ill w.p number 734/73 c. setalvad and j. ramamurthy for intervener number 1.
in the second quarter of 1972 prices of superfine companynts namely 60s and above began to rise.
the southern association wanted the indian cotton mills federation to take the initiative for arriving at an understanding with the government at an all india level.
this was because of severe power cuts in tamil nadu uttar pradesh gujarat maharashtra punjab haryana mysore and andhra pradesh 40 4 the downward trend in production which had begun to manifest in the last quarter of 1972 gathered further momentum in the first quarter of 1973.
by the end of march 1973 they had gone up to as much as 108600 bales and by the end of april to bales.
the stocks of yarn with mills which had stood at 94400 bales of 180 kgs.
early in 1973 the upward trend of yarn prices rose in fine and superfine companynts.
ramamurthy for intervener number 3.
