TMI Blog1990 (5) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... his Act are illegal, unreasonable and ultra vires of Articles 14 and 19(1)(g) of the Constitution of India. The petitioner has also challenged the validity of the order, Annexure P. 1, dated 15-5-1984 whereby the District Magistrate, Ludhiana, has fixed the price of the ice. These orders have been challenged on the ground that the price has been fixed by the District Magistrate in an arbitrary manner. There was no material before the District Magistrate to fix the whole sale price and the retail price of the ice and therefore, the order of the District Magistrate is completely outside the scope of Section 3 of the Act. It is also the stand of the petitioner that the order fixing the whole sale price of ice and retail price of ice imposes un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 4-5-1989 to the District Magistrate for fixation of price of ice He also brought to his notice, how the cost of material which is being utilised for manufacturing of ice has increased. He also placed on record the notifications issued by the District Magistrate, Patiala and Amritsar fixing the whole sale price and the retail price of the ice. 3. The State has filed written statement through Shri S. S. Brar, I. A. S. District Magistrate, Ludhiana. the District Magistrate has supported the validity of the Act as well as the notification fixing the price of the ice. The petitioner filed rejoinder with the permission of this Court in which the stand taken by the District Magistrate has been rebutted. 4. Mr. Sanjay Majithia, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wers under Section 3 of the Act for fixing price. He further submitted that according to Section 3 of the Act, the District Magistrate is required to fix the price which means the price must be fair. While fixing the price of the ice, the District Magistrate, according to the scheme of the Act, is supposed to determine the manufacturing cost of ice and allow a reasonable margin of profit to the dealers he further submitted that so interpreted, the provisions of Section 3 of the Act afford sufficient guidance to the District Magistrate in the exercise of power under Section 3 of the Act. 7. There is no doubt that the Act does not contain any preamble, nor gives any guide lines to the District Magistrate to fix the price of the ice. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the respondent counters this submission by stating that the loss due to failure of electricity and in the process of handling would be considered by the Controller, while applying his mind to the cost of electricity and other incidental charges. 17. Even if the factor of cost of electricity or the other factor of losses, incidental charges would not cover the Controller is bound to consider the inevitable losses while determining what is the reasonable margin of profit. In order to be reasonable, the profit must be a tangible reasonable return on the manufacturer's investment and labour. Profit should not be allowed to be melted away while fixing the margin of profit. The Controller shall have due regard to the factor o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compense, which is a synonym for compensation . The word worth is defined as furnishing an equivalent for change on measure of damages for personal injuries, pain, and suffering held not misleading nor objectionable as placing price on pain and suffering Harb v. Hallowell, 154-A, 582, 584, 304 pa. 128. 10. In my opinion, the object of the Act was to make provision for fixing fair price so that unscrupulous dealers may not indulge in profiteering as indicated in the Statements of Objects and Reasons. The fixation of fair price under Section 3 means fixing the price after taking into consideration all relevant ' acts relating to price of the ice as well as by allowing reasonable profit to the whole seller and retailer. In the li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclare the said notification to be illegal, ultra vires and null and void. Before parting with the judgment, it must be observed that the price should be fixed by the District Magistrate under Section 3 of the Act while taking into consideration the manufacturing cost i.e. cost of electricity, labour, processing charges, incidental charges. To the is, the District Magistrate must add reasonable profit of the whole seller and retailer. In the case before Delhi High Court in New Indian industrial Corporation's case (supra) where the question regarding fixing of price of ice was under consideration, the margin of profit allowed to the whole seller was 25% over the purchase price and of the retailer 40% of the purchase price. The District M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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