1990 (3) TMI 358 - SUPREME COURT

Validity of notifications dated 28th November, 1974 and 11th July, 1975 (Annexures 8 & 9) issued by the Central Government in exercise of its power under sub-section (3-C) of section 3 of the Essential Commodities Act, 1955 challenged - Held that:- What the learned Judge had in mind was an order by which the "amount" was calculated in terms of sub-section (3-C) in respect of each individual producer and not an order determining the "price of sugar". While the former is non-legislative, the latter, by the very test adopted by the learned Judge, is legislative in character. We, therefore, understand the observation of the learned Judge on this point as applicable only to the individual order fixing the "amount" in terms of the sub-section and not to orders determining the "price of sugar" which are what the impugned orders are. Any other construction of the sub-section would conflict with what was adopted by the Constitution Bench in Panipat (1972 (11) TMI 91 - SUPREME COURT) and would, therefore, be unsustainable.

The individual orders, calculating the "amounts" payable to the individual producers, being administrative, orders rounded on the machanics of price fixation, they must be left to the better instructed judgment of the executive, and in regard to them the principle of audi alteram partem is not applicable. All that is required is reasonableness and fair play which are in essence emanations from the doctrine of natural justice. Petitions dismissed.