TMI Blog1989 (1) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... the groundnut seed and groundnut oil and sell the same in the State and outside the State of Andhra Pradesh. The State Government issued a Circular Order dated 21.6.1985 containing directions regulating the transport and export of groundnut seeds and oil outside the State. The oil millers and traders were permitted to export oil and groundnut seeds only on the condition contained in the Order according to which all millers and traders were required to deliver oil to the State Government at a fixed price in proportion of one tonne of oil for every three tonnes to be transported outside the State and similarly a trader was required to supply to the State Government one tonne of oil for every five tonnes of groundnut seeds proposed to be transported outside the State on the price fixed by the State Government. The oil millers and traders were required to execute undertaking for complying with the directions issued by the State Government. The Government Order warned the oil millers and traders that action would be taken against them if they failed to comply with the directions of the Government. In substance the State Government imposed compulsory levy on oil millers and traders on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd distribution thereof and trade and commerce therein if it is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices. The Central Government has the legal sanction to issue orders under the aforesaid provisions for securing the aforesaid objectives which may include control of price, regulation of production and manufacture of any essential commodity, regulation, movement, transport, sale and distribution of the essential commodities and other allied matters. Section 5 empowers the Central Government to delegate its powers under Section 3 for issuing orders or notifications to such officers or authorities subordinate to the Central Government or to State Government or such officers or authorities subordinate to State Government as may be specified in the order in relation to such matters and subject to such condition as it may specify in the order. The Central Government is competent to delegate powers to the State Government or its officers and it may further specify restrictions and conditions for the exercise of the delegated power. Any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government for issuing orders in respect of the matters specified therein, expressly placed restriction on the State Government relating to any matters specified in clauses (a), (c), (d) and (f) of sub-section (2) of Section 3 of the Act to the extent that while making an order pertaining to any matters specified in the aforesaid clauses the State Government shall obtain prior concurrence of the Central Government. The Notification is manifestly clear that the Central Government did not delegate to the State Government its general power to pass any order under Section 3(1) of the Act for regulating or prohibiting the production, supply and distribution of the specified essential commodities and trade and commerce therein. On the other hand the State Government was delegated limited power to make orders in relation to foodstuffs subject to certain conditions specified in the Notification after obtaining prior sanction of the Central Government. Any order made by the State Government regulating matters specified in clause (2) of the Notification without obtaining the prior sanction of the Central Government would be in contravention of the delegated power. A delegate is not entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il millers and traders were told to ensure that the price of edible oils are maintained around ₹ 14 per k.g. in the retail market. By a circular letter dated 6th December, 1983 the State Government directed the licensing authorities, Collectors and other officers of the State to ensure that producers, millers and traders are not permitted to transport the groundnut seeds or oil outside the State and it further directed that the restriction imposed on movement of groundnut be removed with immediate effect so far as bona fide farmers are concerned but so far as the millers and traders were concerned movement of oil seeds and oil was subject to their agreement to supply certain quantities of groundnuts seeds and oil to the State Government at the price fixed by it. Since there was problem of storage the millers and traders were required to give undertaking in writing that they would deliver the quantities due from them whenever demanded and on the basis of such undertakings they were permitted to transport three times quantity of oil for which undertaking was furnished. The policy as set out in the Government's Order dated 6.12.1983 was enforced for the year 198384. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of agreement the price payable would be at the market rate prevailing in the locality on the date of sale. The 1982 Order which was framed by the State Government in exercise of the delegated powers does not contain any provision placing any restriction on the transport or movement of the edible oil or oil seeds nor it provide for imposition of compulsory levy, further it does not fix any price. The directions issued by the Government placing restriction on the movement of oil seeds and oil and imposing compulsory levy and requiting millers and traders to sell oil seeds and oil at a price fixed by it, are outside the purview of the 1982 Order. Those directions have no sanction of law. If the State Government was facing any problem it could have made amendments in the 1982 Order regulating matters specified in clauses (d) and (f) of Section 3(2) of the Act after obtaining the prior concurrence of the Central Government. No such course was followed. There is therefore no escape from the conclusion that the directions contained in the impugned Government Order are illegal and void as the same have been issued in exercise of and in contravention of the power delegated to the State Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est of all concerned, it may withhold concurrence for imposing restrictions on free movement of essential commodities. It is in this context that while delegating the powers to the State Government under Section 3 of the Act for making orders in respect of the matters specified in Section 3 of the Act the Central Government placed limitations in respect of matters specified in clause (f) of Section 3(2) of the Act by providing that such power shall not be exercised by the State Government without obtaining its prior concurrence. Before the learned single judge the entire correspondence which passed between the State Government and the Central Government was placed and on perusal of the same the learned Single Judge recorded a positive finding that the Central Government was opposed to restrictions on export of groundnut seeds and groundnut oil. The State Government's directions requiring the millers and traders to sell groundnut oil to the State Government is a matter directly specified within the terms of Section 3(2)(f) of the Act it is therefore clear that the State Government had no authority to place any such restriction without the prior concurrence of the Central Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy or to fix price for the essential commodities supplied to the Government. As already noticed, restriction on transport, imposition of levy and fixation of price was not the subject matter of the 1982 Order therefore the State Government had no authority in law to issue orders in respect of the aforesaid matters in exercise of its powers under Clause 12 of the 1982 Order. If the submissions made on behalf of the State Government are accepted it would nullify the restrictions and limitations placed by the Notification dated 9th June 1978 delegating legislative power to the State Government. The State Government could not impose any restriction on the export of groundnut seed or oil to outside State and further it could not issue directions for the compulsory levy at the specified price in view of the limitations placed on exercise of its powers under the Notification dated 9th June 1978. What it could not do directly could not be permitted to be done indirectly by virtue of clause 12 of the 1982 Order. The scope and ambit of clause 12(2) of the 1982 Order could not and did not authorise the State Government to impose the impugned restrictions. We are therefore of the opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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