SRI VENKATA SEETARAMANJANEYA RICE AND OIL MILLS AND ORS. versus STATE OF ANDHRA PRADESH ETC

SRI VENKATA SEETARAMANJANEYA RICE AND OIL MILLS AND ORS. versus STATE OF ANDHRA PRADESH ETC

Section 3 of the Madras Essential Articles Control and Requisitioning (Temporary) Powers Act, 1949 empowers the State to regulate the supply and price of essential articles including electricity, both in its capacity as supplier and otherwise. The term 'regulate' is broad enough to cover increasing tariff rates when necessary to maintain supply and ensure fair pricing. The notified orders effecting tariff increases were reasonable, issued in response to uneconomic tariffs and consistent loss, and made in the public interest. There was no material to substantiate claims of discrimination under Article 14. The orders did not violate Articles 14 or 19(1)(f)/(g) of the Constitution.

Parties
Appellants: Sri Venkata Seetaramanjaneya Rice and Oil Mills and Others; Respondents: State of Andhra Pradesh and Others
Jurisdiction
India
Judgment Date
25 March 1964
Procedural Posture
Civil Appeals / Supreme Court Appellate Decision
Outcome
Appeals dismissed
Legal Topics
Statutory Interpretation, Essential Articles Act, Electricity Tariff, State Power to Regulate, Reasonableness of Restrictions, Equality Before Law
Constitutional Law Administrative Law Contract Law Electricity Law Statutory Interpretation Essential Articles Act Electricity Tariff State Power to Regulate +2 more

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Parties

Sri Venkata Seetaramanjaneya Rice and Oil Mills and Others

Appellants

State of Andhra Pradesh and Others

Respondents

Procedural Posture

Civil Appeals / Supreme Court Appellate Decision

Legal Issues

  1. 1 Whether section 3 of the Madras Essential Articles Control and Requisitioning (Temporary) Powers Act, 1949 empowers the State to increase electricity tariffs by notified orders during subsisting contracts
  2. 2 Whether such notified orders contravene Articles 14 and 19(1)(f) and (g) of the Constitution of India

Ratio Decidendi

Section 3 of the Madras Essential Articles Control and Requisitioning (Temporary) Powers Act, 1949 empowers the State to regulate the supply and price of essential articles including electricity, both in its capacity as supplier and otherwise. The term 'regulate' is broad enough to cover increasing tariff rates when necessary to maintain supply and ensure fair pricing. The notified orders effecting tariff increases were reasonable, issued in response to uneconomic tariffs and consistent loss, and made in the public interest. There was no material to substantiate claims of discrimination under Article 14. The orders did not violate Articles 14 or 19(1)(f)/(g) of the Constitution.

Court Disposition

Appeals dismissed

Orders

  • Appeals dismissed with costs; one set of hearing fees.