TMI Blog1983 (3) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... the Rules nisi. 2. It appears that in the year 1974, an order, namely, Paper (Control of Production) Order, 1974 was passed by the Central Government in order to ensure production of minimum percentage of common writing and printing paper. The said order was, subsequently, replaced by the Paper (Regulation of Production) Order, 1978 dated March 8, 1978. In terms of both these orders, white printing paper was to be manufactured to the extent of at least 30% of the total quantity of paper manufactured by the different paper mills. 3. It appears that the Central Government also passed an order being Paper (Control) Order, 1979 under Section 3 of Essential Commodities Act, 1955. Under the Paper (Control) Order, the retention price of white printing paper was fixed by the Central Government from time to time. On December 24, 1981, the retention price of white printing paper was fixed by the Central Government at ₹ 4,200/- per metric tonne. 4. The joint committee of the paper industries which was the representative association of the paper manufacturers (including the petitioner) voluntarily undertook to effect the supply of white printing paper and announced their inten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterim order of injunction in terms of prayer (f) of the petition. The petitioners would be entitled to-sell their white printing paper at a price of ₹ 6.300/- per metric tonne pending disposal of the rule on the undertaking of the petitioner to court through its Advocate on record Mr. A.K. Dey not to deal with or dispose of the immovable assets except in the usual course of business pending disposal of the rule. In so far as the excise duty payable on the higher price is concerned, the petitioner is directed to furnish a bank guarantee in favour of the Collector having jurisdiction over the subject matter of the excise proceeding for the difference between the excise duty which is payable and the excise duty at the rate of 26.25%. Prayer (f) as mentioned in the said interim order is as follows :- Injunction restraining the respondents Nos. 1, 2 3, their servants or agents from giving any effect to and/or in taking any steps whatsoever pursuant to and/or in terms of the Paper (Control) Order, 1979 as amended . 7. Subsequently, another interim order was passed by the learned Judge on September 21, 1982 in each case, whereby the learned Judge enhanced the retentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books has been fixed under the Paper (Control) Order, 1979. The Orient Paper and Industries Ltd. has been demanding higher of the added respondent not only for the increased retention price but also for the increased excise duty at the rate of 25.5% instead of 5% of excise duty as was being paid by them previously. It is their case that in view of the above circumstances, the added respondent cannot supply exercise books to the students community. 10. The question, therefore, is whether the learned Judge was justified in passing the impugned interim orders. It cannot be denied that the object of Section 3 of the Essential Commodities Act under which the Paper (Control) Order has been passed is supply, equitable distribution and availability of the essential commodity that is to say, white printing paper, at a fair price. Under the Paper (Control) Order, it is the Central Government which is the only authority that will fix the retention price after taking into consideration certain state, including the cost of production. At this state, it may be presumed that the Central Government has, after taking into consideration all these factors, fixed the retention price at the rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs) and their mills are situate in different States other than the State of West Bengal. The Paper (Control) Order, 1979 has been passed by the Central Government in New Delhi. It has not even been averred anywhere in the writ petitions that any sale of levy paper is made in the State of West Bengal. Further, there is also no averment that there is any stock of white printing paper belonging to the writ petitioners in the State of West Bengal. It is, therefore, manifestly clear that as no sale is effected by the writ petitioners in West Bengal, the question of the sales in West Bengal being affected does not arise. Prima facie, therefore, no part of the cause of action has arisen within the territorial limits in respect of which court exercises jurisdiction. The only averment that has been made in the writ petitions is that the writ petitioners have their sales offices in Calcutta and their businesses have been seriously affected regarding supply of white printing paper because the quarterly allotment letters from the Controller appointed under the Paper (Control) Order, 1979 are received in Calcutta. In our opinion, no part of the cause of action can be said to have arisen in Calc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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