M/S. RAMNARAYAN SATYANARAYAN AGRAWAL versus ASSOCIATED ALCOHOLS AND BREWERIES LTD. AND ORS.

M/S. RAMNARAYAN SATYANARAYAN AGRAWAL versus ASSOCIATED ALCOHOLS AND BREWERIES LTD. AND ORS.

An establishment employing less than 50 workers with use of power does not constitute an 'industrial undertaking' as per Section 3(d) read with Section 3(c) of the Industries (Development and Regulation) Act, 1951; thus, it does not require a license under Section 11 to manufacture potable alcohol. Licensing authority in such case resides with the State Government under Entry 8, List II of the Constitution.

Parties
Appellant: MIS. RAMNARAYAN SATYANARAYAN AGRAWAL DISTILLERIES PVT. LTD.; Respondent: ASSOCIATED ALCOHOLS AND BREWERIES LTD.; Respondent: Anand Kumar Kedia
Jurisdiction
India
Judgment Date
10 May 1995
Procedural Posture
Civil Appeal / Supreme Court Appeal by Special Leave From Madhya Pradesh High Court Judgment Dated 15.2.94
Outcome
Appeal allowed
Legal Topics
Licensing Under Industries (development and Regulation) Act, Definition of 'industrial Undertaking', Division of Powers Between Centre and State, Manufacture of Potable Alcohol, Entry 8, List II, Constitution of India
Industrial Law Constitutional Law Licensing Under Industries (development and Regulation) Act Definition of 'industrial Undertaking' Division of Powers Between Centre and State Manufacture of Potable Alcohol Entry 8, List Ii, Constitution of India

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Parties

MIS. RAMNARAYAN SATYANARAYAN AGRAWAL DISTILLERIES PVT. LTD.

Appellant

ASSOCIATED ALCOHOLS AND BREWERIES LTD.

Respondent

Anand Kumar Kedia

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal by Special Leave From Madhya Pradesh High Court Judgment Dated 15.2.94

Legal Issues

  1. 1 Whether an establishment employing less than 50 workers is an 'industrial undertaking' under Section 3(d) of the Industries (Development and Regulation) Act, 1951, and thus, whether it requires a license under Section 11 to manufacture potable alcohol.
  2. 2 Whether the State Government or Central Government has authority to license manufacture of potable alcohol in such cases.

Ratio Decidendi

An establishment employing less than 50 workers with use of power does not constitute an 'industrial undertaking' as per Section 3(d) read with Section 3(c) of the Industries (Development and Regulation) Act, 1951; thus, it does not require a license under Section 11 to manufacture potable alcohol. Licensing authority in such case resides with the State Government under Entry 8, List II of the Constitution.

Court Disposition

Appeal allowed

Orders

  • Respondents Nos. 1 and 2 to pay exemplary costs assessed at Rs. 20,000 (Rupees twenty thousand only) to the appellant.
  • Their bid pursuant to the tender floated by the State Government to manufacture potable alcohol to be considered in accordance with law.