MANNALAL JAIN versus THE STATE OF ASSAM AND OTHERS

MANNALAL JAIN versus THE STATE OF ASSAM AND OTHERS

Clause 5(e) of the Assam Foodgrains (Licensing and Control) Order, 1961 is not ultra vires Section 3 of the Essential Commodities Act, and does not by itself create a monopoly. Preference to co-operative societies is valid if exercised for the object of fair distribution and price control, but the refusal to consider individual applications solely to create a monopoly for co-operatives is discriminatory and infringes Articles 14 and 19.

Parties
Petitioner: Mannalal Jain; Respondents: The State of Assam and others
Jurisdiction
India
Judgment Date
29 September 1961
Procedural Posture
Writ Petition Under Article 32 of the Constitution of India / Supreme Court Final Judgment
Outcome
Petition allowed with costs
Legal Topics
Licensing Under Essential Commodities Act, Preference to Co Operative Societies, Monopoly Procurement Policy, Fundamental Rights (article 14, Article 19)
Administrative Law Constitutional Law Regulatory Law Licensing Under Essential Commodities Act Preference to Co Operative Societies Monopoly Procurement Policy Fundamental Rights (article 14, Article 19)

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Parties

Mannalal Jain

Petitioner

The State of Assam and others

Respondents

Procedural Posture

Writ Petition Under Article 32 of the Constitution of India / Supreme Court Final Judgment

Legal Issues

  1. 1 Is clause 5(e) of Assam Foodgrains (Licensing and Control) Order, 1961 ultra vires Section 3 read with Section 5 of the Essential Commodities Act, 1955?
  2. 2 Does the licensing authority's preference for co-operative societies violate Article 14 and 19 of the Constitution?
  3. 3 Did the licensing authority act in a discriminatory manner by refusing license based on State Government instructions?

Ratio Decidendi

Clause 5(e) of the Assam Foodgrains (Licensing and Control) Order, 1961 is not ultra vires Section 3 of the Essential Commodities Act, and does not by itself create a monopoly. Preference to co-operative societies is valid if exercised for the object of fair distribution and price control, but the refusal to consider individual applications solely to create a monopoly for co-operatives is discriminatory and infringes Articles 14 and 19.

Court Disposition

Petition allowed with costs

Orders

  • The licensing authority is directed to consider the petitioner's application for license on its merits and in accordance with the provisions of the Assam Foodgrains (Licensing and Control) Order, 1961.
  • Costs awarded to the petitioner.