TMI Blog1999 (3) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... he policy decisions of the Government of Punjab whereby directions were issued to the purchasing authorities that certain medicines used in the Government hospitals and dispensaries were to be purchased from public sector manufacturers only. The High Court was pleased to allow the petition and quashed the said policy decision by a judgment dated 3-6-1988. Being aggrieved by the said judgment and order of the High Court, the State of Punjab has preferred C.A. No. 3723/88 before this Court and some of the aggrieved respondents have preferred C.A. No. 3744/88. 3. The writ petitions challenging almost similar policy decisions taken by the State of Rajasthan were also filed before the High Court of Rajasthan in D.B. Civil W.P. No. 697/88 and other connected matters. The High Court of Rajasthan negatived the petitioners' contention and dismissed the said writ petition. The aggrieved petitioners have filed C.A. Nos. 4550-51/89. 4. Since respondents in C.A. Nos. 3723/88 and 3744/88 who were the original writ petitioners before the High Court of Punjab and Haryana, are not represented before us and we have heard only the counsel for the appellants in those matters and whereas all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has created a monopoly in favour of the public sector undertakings and since the said monopoly is created not by an Act or a Statute but by an executive order the same is violative of Articles 19(1)(g) and 19(6) of the Constitution; (b) that the directions to purchase medicines only from public sector undertakings would amount to an act of discrimination. Hence, it is in violation of Article 14 of the Constitution. 7. On behalf of the State and other contesting respondents, it was contended that there was no monopoly created under the impugned policy of the State Government. Therefore, the question of offending Article 19(1)(g) or 19(6) does not arise, and the directions to purchase certain medicines from the public sector undertakings for use in the Government hospitals and dispensaries would not amount to an act of arbitrariness. Hence, there is no violation of Article 14 of the Constitution. 8. We have perused the impugned, policy whereby the State Government had directed the authorities concerned to purchase certain medicines only from public sector undertakings or their dealers. In our opinion the impugned policy only directs that certain drugs are to be purchased from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment in Rai Sahib Ram Jawaya Kapur's case (supra) that there is no right in a publisher that any of the books printed and published by him should be prescribed as text books by the school authorities or if they are once accepted as text books they cannot be stopped or discontinued in future. As a matter of fact, in the said case, this Court approved the action of the State in restricting the sale of text books not only to the State run schools but also all other institutions which sought recognition from the Government, on the ground that one of the main conditions on which recognition is granted by the State Government is that the school authorities must use as text books only those which are prescribed or authorised by he State Government. In this case as well as in Ram Jawaya's case [1955]2SCR225 (supra), the Court further accepted the authority of the State to issue directions restricting the sale of the text books by an executive order under Article 162 of the Constitution on the basis that the executive power of the State extends to all matters with respect to which the State Legislature has power to make law and in the absence of there being any law, the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of this Court in Saghir Ahmad v. State of U.P. [1955]1SCR707 : Under Clause (1)(g) of Article 19, every citizen has a freedom and right to choose his own employment or take up any trade or calling subject only to the limits as may be imposed by the State in the interests of public welfare and the other grounds mentioned in Clause (6) of Article 19. But it may be emphasised that the Constitution does not recognise franchise or rights to business which are dependent on grants by the State or business affected by public interest. 15. In Oil Natural Gas Commission v. Association of Natural Gas Consuming Industries of Gujarat [1990]3SCR157 , this Court upheld the disparities in price permitted between supply to public sector undertakings and private industries. It held that a favourable treatment of a public sector organisation, particularly ones dealing in essential commodities or services would not be discriminatory. 16. It is clear from the various judgments referred to above that a decision which would partially affect the sale prospects of a company, cannot be equated with creation of monopoly. In Ram Jawaya Kapur's [1955]2SCR225 and Naraindass's [1974]3S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dgment. In our opinion, the High Court in that case has not considered the various judgments referred to by us hereinabove, some of which are of Constitution Bench of this Court, which has upheld the classification made between private undertakings and public sector undertakings. Therefore, we are of the view that the law laid down in the said case runs contrary to the judgment of this Court relied upon by us. 19. For the above reasons, we are of the opinion that the High Court was right in coming to the conclusion that by the impugned policy, there was' no creation of any monopoly nor is there any violation Of Articles 14, 19(1)(g) or 19(6) of the Constitution. In view of the above, we are of the opinion that these appeals should fail and the same are dismissed accordingly. No costs. C.A. Nos. 3723/88 and 3744/88: 20. These appeals are preferred against the judgment and order of the High Court of Punjab and Haryana, dated 3-6-1988 made in Civil W.P. No. 6144/87 wherein the High Court was pleased to allow the writ petition filed by the respondents in these civil appeals, quashing the policy decision of the State of Punjab whereby the State had directed its authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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