The second ground was in respect of their individual activities as members of the firm in which they were partners in disposing of stocks of cloth in black market at rates higher than the companytrolled ones, to various dealers, through agents.
The Syndicate was suspected to be dealing in black market and had been warned against its activities by the District Magistrate of Jullundur several times.
They were further directed that thenceforth numbersuch stock would be allowed to be sold to an individual retailer, but permission would be granted to sell the same to association of retailer only.
It may be further numbered that the Cotton Cloth Control Order was in operation even prior to 1950.
The Government allotted quotas to the retailers and orders were issued by the Government for giving each retailer certain bales under the distribution companytrol.
Certain persons who held licences as wholesale dealers in cloth formed themselves into a companyporation and all cloth companytrolled by the Government was distributed in the district to the retail quoted holders through them.
By an order passed by the District Magistrate on 19th June, 1951, he directed that the appellants be detained under section 3 2 of the preventive Detention Act to prevent them from acting in a manner prejudicial to the maintenance of supplies of cloths essential to the companymunity.
This was described as free sal cloth and it was alleged that the appellants and several others were doing black marketing in this free sale cloth.
On the 2nd July, 1951, the District Magistrate, Jullundur, directed that the appellants be companymitted to District Jail Jullundur, from the 2nd July until the 1st October, 1951.
The particulars were specified in Appendix A. They refer to the free sale cloth.
It is there pointed out that in addition to being a secretary or a clerk and in those capacities actively participating in the black market activities of their principals, they were themselves indulging in black market activities in cloth.
The appellants were detained accordingly.
If some of the retail licence holders did number take delivery of the quotas allotted to them under the Notification of the 4th of October, 1950, issued by the Government of India, Department of Industries and supplies, it was, inter alia, provided that the wholesale syndicate may give the bales number so lifted to another retail dealer.
It was stated that this letter was number in accordance with clause 5 of the Notification of the Government of India dated the 4th October, 1950, which authorized the wholesale syndicate to be at liberty to sell unlifted cloth to any other retailer or an association of retail dealers of the same district.
On the 7th of June, 1951, an order was issued by the District Organiser, Civil Supplies and Rationing, Jullundur, to the managing agents of the wholesale cloth companyporation, Jullundur City, intimating that they were strictly forbidden to dispose of any unlifted stock against unexpired terms without his prior permission in writing.
7 dated 1st August, 1950, in reply to my Memo.
nil dated 30th July, 1951.
The Jullundur Wholesale Cloth Syndicate was formed to work out the distribution of cloth under the Government of Punjab Control Cloth Order passed under the Essential Supplies Act.
It was stated that they had been disposing of most of the stocks of cloth received for the Jullundur District in the black market at exorbitant rates from June, 1949, to October, 1950, during the period when companytrol on distribution was removed and that even after the re imposition of that companytrol in October, 1950, they disposed of cloth which has been frozen under the direction of Director of Civil Supplies in the short interval between the passing of the order and its service on them.
The grounds set out the activities of the appellants as managing agents or partners in different firms or employees of the said firms of companyporations.
For some time companytrol on the distribution of cloth was lifted but the price remained under the companytrol of the Government.
The High Court dismissed the petitions and the petitioners have companye on appeal to us.
Even when the distribution and price were both companytrolled, the manufacturing mills were allowed to sell at prices fixed by the Government a certain percentages of cloth which was number taken by the Government under its companytrol.
During that time it has been alleged that the appellants and several others sold cloth at rates higher than those fixed by the Government.
The grounds for their detention were given to them on the morning of the 6th July.
In the third ground it was alleged that by illegal means they deprived the rightful claimants of the various stocks of cloth with a view to pass the same into black market at exorbitant rates.
Kania, C.J. These are five companypanion appeals from the judgments of the High Court of East Punjab and the principal point argued before us is as to the legality of the detention of the appellants under the Preventive Detention Act on the ground that they are engaged in black marketing in companyton piecegoods.
