M/S. DIWAN SUGAR & GENERAL MILLS (PRIVATE) LTD. AND OTHERS versus THE UNION OF INDIA

M/S. DIWAN SUGAR & GENERAL MILLS (PRIVATE) LTD. AND OTHERS versus THE UNION OF INDIA

The Central Government’s notification fixing ex-factory sugar price was legally authorized under s. 3 of the Essential Commodities Act, 1955 and cl. 5 of the Sugar (Control) Order, 1955, was not an unreasonable restriction under Article 19(1)(g), and brought about no effective discrimination under Article 14 since the controlled states were the principal surplus producing regions supplying the rest of India.

Parties
Petitioner: M/S. Diwan Sugar & General Mills (Private) Ltd. and Others; Respondent: The Union of India
Jurisdiction
India
Judgment Date
23 January 1959
Procedural Posture
Writ Petition Under Article 32 of the Constitution / Final Judgment
Outcome
Petition dismissed with costs.
Legal Topics
Price Control, Trade Restriction, Discrimination Under Article 14, Right to Trade Under Article 19(1)(g)
Administrative Law Constitutional Law Economic Regulation Price Control Trade Restriction Discrimination Under Article 14 Right to Trade Under Article 19(1)(g)

Case Brief

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Parties

M/S. Diwan Sugar & General Mills (Private) Ltd. and Others

Petitioner

The Union of India

Respondent

Procedural Posture

Writ Petition Under Article 32 of the Constitution / Final Judgment

Legal Issues

  1. 1 Whether the notification fixing ex-factory sugar price is within the authority conferred on the Central Government by s. 3 of the Essential Commodities Act, 1955 and cl. 5 of the Sugar (Control) Order, 1955.
  2. 2 Whether the Act and the Order authorize fixation of ex-factory prices without fixing consumer prices.
  3. 3 Whether the notification imposes unreasonable restriction on the petitioners’ right to trade under Article 19(1)(g).

Ratio Decidendi

The Central Government’s notification fixing ex-factory sugar price was legally authorized under s. 3 of the Essential Commodities Act, 1955 and cl. 5 of the Sugar (Control) Order, 1955, was not an unreasonable restriction under Article 19(1)(g), and brought about no effective discrimination under Article 14 since the controlled states were the principal surplus producing regions supplying the rest of India.

Court Disposition

Petition dismissed with costs.

Orders

  • The writ petition is hereby dismissed with costs.