TMI Blog1983 (8) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... llustrates the point. Hoteliers of Andhra Pradesh raised a hue and cry when the Government of Andhra Pradesh-the first respondent enacted and proclaimed in exercise of the powers conferred by Sec. 3 of the Essential Commodities Act, 1955 (1955 Act for short) read with the notification of the Ministry of Agriculture and Irrigation dated June 9, 1978, the Andhra Pradesh Catering Establishments (Fixation and Display of Prices of Foodstuffs) Order. 1978 (1978 Order for short) dated September 8, 1978 whereby it was made obligatory for the catering establishments to display the prices of all foodstuffs served by the establishment and simultaneously fixed the maximum price of seven items of food comprising the poorman's menu in the State of Andhra Pradesh. The seven items enumerated in the Schedule appended to the 1978 Order include idli, vada, upma, sada dosa, puree, coffee, tea and a rice plate (scheduled items for short). Cl. 3 of the Order prescribed maximum prices of the scheduled items of food and cl. 4 makes it obligatory to display in English and principal language of the area the weight or measure and price of every item of foodstuff offered for sale in the establishment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as stated that after the Order dated December 11, 1980 was issued the hoteliers resorted to some agitation which led to the Minister of Civil Supplies calling a meeting of the hoteliers. What transpired at this meeting may be extracted from the counter-affidavit: The Minister for Civil Supplies therefore convened a meeting at Hyderabad on 31.12.80 with the representatives of hoteliers all over the State and the Joint Collectors. At the said meeting all the issues involved were thoroughly discussed. After prolonged discussions, the hoteliers of the districts have agreed unanimously for reducing the prices in respect of 6 items of foodstuffs excluding meals and an undertaking to that effect was signed by the hoteliers at 1.30 a.m. on 1.1.1981. A copy of the undertaking is produced at Annexure 'B' to the counter-affidavit which inter alia also provided that the rates of the scheduled items determined with the consent of the hoteliers will be reviewed after three months. What is now demanded is that the State Government should examine the prices of inputs and overhead charges and determine afresh the maximum prices of the scheduled items, which was very much an integral ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as wheat, rice, jawar, bazra, maize etc. but not cooked food which is a perishable commodity. We see no justification for giving a restricted meaning to the expression 'foodstuffs'. If power to control prices of raw foodstuffs such as rice or wheat is conferred by Sec. 3, we see no justification for that power not comprehending within its fold the power to regulate prices of articles made out of such raw foodstuffs. Expression such as 'foodcrops' 'spices' and 'condiments' indicate different species of articles of food but the general expression 'foodstuffs' was interpreted to include spices and condiments also. In the State of Bombay v. Virkumar Gulabchand Shah(1) this Court construed the expression 'foodstuffs' in cl. (3) of the Spices (Forward Contract Prohibition) Order of 1944 read with Sec. 2 (a) of the Essential Supplies (Temporary Powers) Act, 1946 to include turmeric. After examining the definition of expression 'foodstuffs' in Oxford English Dictionary and Webster's International Dictionary and some decisions bearing on the subject, this Court held that the expressions 'food' and 'foodstuffs' c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms fixed under the impugned orders is economically unprofitable and the same have been arrived at without scientifically examining the price of inputs and overhead charges and the reasonable return on investment and therefore, the exercise of fixing maximum price suffers from the vice of arbitrariness and must be declared unconstitutional as being violative of Art. 14. While canvassing the submission, some attempt was made both on the side of the petitioners as well as on the side of the State to take us through the labyrinth of the tables drawn up by both side showing prices of inputs and overhead charges. We declined to be involved in the vortex of this cost accountant's exercise as we are neither experts of the subject nor we consider it necessary to undertake this exercise. The argument proceeded that the prices of inputs have escalated so high that the maximum prices determined by the impugned orders have become uneconomical. For this malaise, petitioners have to thank themselves because it was an integral part of their agreement with the Minister of Civil Supplies on December 31, 1980 that the maximum prices fixed by the impugned orders would be re-examined on the expirat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parture from the proposition laid down by this Court as extracted hereinabove. Before we conclude, we would like to pin-point the unfair advantage which the petitioners have obtained by ex- parte stay suppressing the material fact that the later order had already replaced the earlier orders and the latest order was issued with their consent. In the Writ Petition No. 43/81 the prayer clause reads as under: Issue a writ of mandamus or any other appropriate writ or order holding that G.O. Ms. No. 548 dated 8.9.1978 and G.O. Ms. No. 626 dated 11.12.1980 of the Government of Andhra Pradesh and the notification issued by the Collector, the second respondent herein dated 16.12.1980 in pursuance of the said impugned Orders as ultra vires, unconstitutional and void and quash the same. The bone of contention was not the power exercised by the State Government but the maximum prices fixed in exercise of the power conferred on the State Government. The maximum prices were to be regulated as per the order dated January 5, 1981, and even though this Court was moved for ex-parte stay on January 12, 1981, the fact that the latest order dated January 5, 1981 has replaced the earlier orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
