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1981 (2) TMI 245 - SUPREME COURT OF INDIA

1981 (2) TMI 245 - SUPREME COURT OF INDIA - 1981 AIR 1001, 1981 (2) SCR 841, 1981 (2) SCC 270, 1981 (1) SCALE 314 - W.P.(C) 3464 of 1980 - Dated:- 16-2-1981 - PATHAK, R.S. REDDY, O. CHINNAPPA, AND ISLAM, BAHARUL, JJ. For the Petitioner : . S. N. Kacker, K. N. Bhatt and Surendara Raju, And Soli J. Sorabjee, E. C. Agarwala, R. Satish and V. K. Pandita, And L. N. Sinha, Att. Genl. and Altaf Ahmed, Y. S. Chitaley and Vineet Kumar, R. P. Bhatt and N. R. Chaudhary, Anil Dev Singh and Ashok Grover. For .....

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milar. The industries of which the petitioners are partners are admittedly small scale industries for the manufacture of resin and turpentine oil. The industries of the petitioners' in Writ Petitions Nos. 3465 of 1980 and 3231 of 1980 were provisionally registered but revalidated for short periods. The industry of the petitioner in Writ Petition No. 3464 of 1980 was provisionally registered, revalidation was applied for but was not granted. The industry of the petitioner in Writ Petition No. .....

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admittedly a forest product extracted from "Chir trees". It has been alleged that only three States of India, namely, Himachal Pradesh, Uttar Pradesh and Jammu and Kashmir have Chir forests. The petitioners have alleged that the State of Himachal Pradesh and Uttar Pradesh stopped selling resin for the last several years in view of establishment of factories in public and joint sectors and that the State of Jammu and Kashmir was selling resin by public auction. Sometime after October 1 .....

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, being unable to procure raw- materials for their industries, the petitioners approached the relevant authorities including the Deputy Minister of Industry and the Chief Minister of Jammu and Kashmir for allotment of raw-materials but to no avail. (For the sake of convenience we shall hereinafter refer only to the respondents and Annexures in W. P. No. 3231 of 1980). The petitioners further allege that while they were refused allotment of supply of raw- materials, respondent No. 1 made allotmen .....

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nexures N to Z-1. The letter of allotment (Annexure 'X') in favour of M/s. Sud Pine Industries (respondent No. 27) is in the following terms:- "Sub: Supply of resin to M/s. Sud Pine Industries Kunwani for their factory at Talab Jammu. Government Order No. 175 DIC/1980 dated 30-5-1980. In partial modification of Government order No. 2. DIC of 1979 dated 20-1-1979 sanction is accorded to the supply of crude (oleo) resin 700 tonnes per annum by the Forest Deptt. to M/s. Sud Pine Indust .....

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is quoted. It runs thus. "Sanction is accorded to the supply of crude (oleo) resin by the Forest Department to M/s. Kashmir R & T Works, Srinagar, for their factory at Srinagar, subject to the terms and conditions of the agreement to be entered into between the Forest Department and the party and on the following specific conditions:- 1. The Forest Department will supply Crude (oleo) resin @ 700 TPA to the firm from the date the Unit is formally registered subject to its being reviewed .....

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of allotment. 6. The State of Jammu and Kashmir (Respondent No. 1) have filed a counter affidavit. They have not denied the material allegations of the petitioners but they say that the allocations have been made in order to implement the industrial policy of the State Government as enunciated in a "Report of the Development Review Committee, Jammu and Kashmir" a committee headed by Shri L. K. Jha, the Governor of the State. Respondent No. 1 has quoted from the report the 'Goals&# .....

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to achieve the maximum possible F rate of economic growth, consistently with the need to secure a degree of balanced regional development as well as balance between the rural areas and the urban, to maximise State per capita income, and to generate the maximum employment potential. Many areas of the State are as cut off, isolated and poor as they were at the dawn of independence. We have to improve the living standards in these specially backward areas for whom in terms of the quickest mode of t .....

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e applications received from different regions. It is as follows: Jammu 63 Udaypur 10 Rajouri 1 Poonch 1 Doda 1 Kathua 9 Anantnag 2 Srinagar 11 Outsiders 12 GRAND TOTAL 110 Applications - They have also shown the allotments of resin districtwise. The industries of the respondents No. 4 to 16 are also small scale industries. The break-up of the small scale industries as given in Annexure R.II (in W.P. No. 3464) shows that Jammu has the largest number of units namely, 10, Second comes Srinagar wit .....

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tate Government and it was decided on May 30, 1980 as follows: (a) The allotment of resin to the existing unit should be rationalised; (b) Applications received from various districts be considered for allotment of resin. The State Government have submitted that they made no promise of supply of raw-material in favour of any of the petitioners. The petitioners have submitted, in our opinion, correctly, that as there were already 10 units functioning in small scale sector in the Jammu region and .....

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ding those of the petitioners coming from industrialists of different parts of the country. They have stated, and their statement is corroborated by the documents, that there is preponderance of industries in the Jammu region and industries of the petitioners as well as respondents No. 4 to 16 were also functioning in the same region. Respondent No. 1 has not explained as to how and on what basis, if any, the allotments were made by the impugned orders in favour of the new allottees whose indust .....

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was provisionally registered in the year 1975. He was also approaching the Government from time to time to get allotment of the raw-materials but got no favourable reaction from the Government. He states that he had already established his factory and got it insured for a sum of ₹ 6.80 lakhs. He obtained raw-material from the open market and was running his industry. Petitioner, Ravindra Dutt of M/s. Dinesh Resin and Turpentines in W.P. No. 3465 of 1980 alleges that his industry was provi .....

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formally registered with the Government of J & K. He alleges that his industry was functioning for a long time and trying to get necessary quota of raw-materials from respondent No. 1. He was approaching the Government to get requisite quota. Sud Pine Industries, was provisionally registered on 10-3- 1978 and formally registered on 10-10-1978. It appears from Annexure N, in respect of respondent M/s Kashmir R & T Works (respondent No. 17), Annexure O in respect of M/s. Sun Shine R & .....

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V in respect of M/s. Rajindra R & T (respondent No. 25) and Annexure W in respect of M/s. Bharat Paints and Chemicals (respondent No. 26) that the allotments were made in their favour "from the date the unit is formally registered" which shows that industries were not even registered at the time of the impugned orders of this allotment. Respondent M/s. Rajindra R & T Industries, Udhampur, appears to stand on a different footing. He appears to have fulfilled all the conditions r .....

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in 1970 and formal registration was granted on 29-2-1974. It applied for adequate quantities of raw-materials and was allotted only 200 tons although it had been sanctioned 1500 per ton per annum since 1975. Respondent M/s. Sud Pine Industries, M/s. Kashmir R & T Works, Bakshi Resin & Turpentine and M/s. K. C. Soni Bakshi also appear to be on different footings. It appears from Annexures 'X' and 'Y' that the first two industries have already been formally registered. They .....

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ion of the laws" within the meaning of Article 14 of the Constitution of India means absence of any arbitrary discrimination by the law or in their administration. No undue favour to one or hostile discrimination to another should be shown. A classification is reasonable when it is not an arbitrary selection but rests on differences pertinent to the subject in respect of which the classification is made. The classification permissible must be based on some real and substantial distinction, .....

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he law. In order to pass the test, two conditions must be fulfilled, namely, (1) that the classification must be founded on an intelligible differentia which distinguishes those that are grouped together from others, and (2) that differentia must have a rational relation to the object sought to be achieved by the Act. The differentia which is the basis of the classification and the object of the Act are distinct things and what is necessary is that there must be a nexus between them. We are not .....

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