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2005 (1) TMI 668 - SC - Indian LawsWhether resort to dual price fixation classifying its customers into core sector/linked sector and non-core sector/unlinked sector by the respondent and charging different prices for coal from such customers is discriminatory treating the equals as unequals and, therefore, violative of Article 14 of the Constitution of India? Held that:- There is no such law that a particular commodity cannot have a dual fixation of price. Dual fixation of price based on reasonable classification from different types of customers has met with approval from the courts. Monopolistic organizations like Electricity Boards, Petroleum Corporations are having dual price fixation. It is a common feature that Electricity Boards which generate power sell the power at different rates to different types of customers such as domestic, agricultural and industrial consumers. Even different types of industries are charged different rates. Keeping in view the law laid down by this Court in Union of India v. Cynamide India Ltd.(1987 (4) TMI 478 - SUPREME COURT) and M/s. Shri Sita Ram Sugar Co. Ltd. v. Union of India (1990 (3) TMI 358 - SUPREME COURT), in our opinion, the High Court did not fall into an error in upholding Clause 10 of the Price Notification dated 14.3.1997. The High Court rightly came to the conclusion that Clause 10 of the Price Notification did not violate the equality clause of Article 14 of the Constitution of India. By evolving the dual price policy and charging lesser price from the core-sector industries the respondent has not treated equals as unequals or that the classification made was not rational. For the reasons stated above, we do not find any merit in these appeals and dismiss the same.
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