PRAG ICE & OIL MILLS & ANR. ETC versus UNION OF INDIA

PRAG ICE & OIL MILLS & ANR. ETC versus UNION OF INDIA

The Price Control Order does not derive constitutional immunity solely by virtue of its parent Act being in the Ninth Schedule; it must withstand scrutiny under Articles 14, 19(1)(f), and 19(1)(g). The Mustard Oil (Price Control) Order, 1977, is not discriminatory nor does it unreasonably infringe upon the rights of dealers. Price fixation implemented in the public interest by the government, in the absence of patent arbitrariness or discrimination, cannot be struck down. The challenge to the order fails.

Parties
Petitioner: Prag Ice & Oil Mills & Anr. etc.; Respondent: Union of India
Jurisdiction
India
Judgment Date
21 February 1978
Procedural Posture
Writ Petition / Final Judgment
Outcome
Petitions dismissed with costs
Legal Topics
Article 31 B and Ninth Schedule Protection, Essential Commodities Price Control, Judicial Review of Economic Legislation

Case Brief

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Parties

Prag Ice & Oil Mills & Anr. etc.

Petitioner

Union of India

Respondent

Procedural Posture

Writ Petition / Final Judgment

  1. 1 Whether Article 31B of the Constitution protects orders and notifications issued under Acts and Regulations included in the Ninth Schedule
  2. 2 Whether the Mustard Oil (Price Control) Order, 1977 violates Articles 14, 19(1)(f) and 19(1)(g) of the Constitution
  3. 3 Whether the government’s power under the Essential Commodities Act can be challenged on grounds of reasonableness and fairness of price fixation

Ratio Decidendi

The Price Control Order does not derive constitutional immunity solely by virtue of its parent Act being in the Ninth Schedule; it must withstand scrutiny under Articles 14, 19(1)(f), and 19(1)(g). The Mustard Oil (Price Control) Order, 1977, is not discriminatory nor does it unreasonably infringe upon the rights of dealers. Price fixation implemented in the public interest by the government, in the absence of patent arbitrariness or discrimination, cannot be struck down. The challenge to the order fails.

Court Disposition

Petitions dismissed with costs

Orders

  • The Mustard Oil (Price Control) Order, 1977, is declared constitutionally valid.
  • Petitions challenging the Order are dismissed with costs.