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t must be remembered that Art | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
39(b) enjoins a duty on the State towards securing 'that the ownership and control of the material resources of the community are so distributed as best to subserve the common good | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Essential Commodities Act is a legislation towards that end | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
S. 3(1) of the Essential Commodities Act enables the Central Government, if it is of opinion 'that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair price', to 'provide for regulating or prohibiting by order, the production, supply and distribution thereof and trade and commerce therein | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In particular, s. 3(2)(c) enables the Central Government, to make an order providing for controlling the price at which any essential commodity may be bought or sold | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is in pursuance of the powers granted to the Central Government by the Essential Commodities Act that first the Drugs (prices Control | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Order, 1970 and later the Drugs (prices Control | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Order, 1979 were made | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Armed with authority under the Drugs (prices Control | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Order, 1979 the Central Government issued notifications fixing the maximum prices at which various indigenously manufactured bulk drugs may be sold by the manufacturers | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
These notifications were questioned on several grounds by the manufacturers and they have been quashed by the Delhi High Court on the ground of failure to observe the principles of natural justice | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Since prices of 'formulations' are primarily dependent on prices of 'buli drugs', the notifications fixing the retail prices of formulations were also quashed | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The manufacturers had also filed review petitions before the Government under paragraph 27 of the 1979 Order | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The review petitions could not survive after the notifications sought to be reviewed had themselves been quashed | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Nevertheless the High Court gave detailed directions regarding the manner of disposal of the review petitions by the High Court | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Union of India has preferred these appeals by Special leave of this Court against the judgment of the High Court | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The case for the Union of India was presented to us ably by Shri G. Ramaswami, the learned Additional Solicitor General and the manufacturers were represented equally ably by Shri Anil Diwan | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Before we turn to the terms of the Drugs (prices Control | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Order, 1979 we would like to make certain general observations and explain the legal position in regard to them | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We start with the observation, 'Price-fixation is neither the function nor the forte of the Court | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We concern ourselves neither with the policy nor with the rates | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
But we do not totally deny ourselves the jurisdiction to enquire into the question, in appropriate proceedings, whether relevant considerations have gone in and irrelevant considerations kept out of the determination of the price | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
For example, if the Legislature has decreed the pricing policy and prescribed the factors which should guide the determination of the price, we will, if necessary, enquire into the question whether the policy and the factors are present to the mind of the authorities specifying the price | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
But our examination will stop there | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We will go no further | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We will not deluge ourselves with more facts and figures | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The assembling of the raw materials and the mechanics of price fixation are the concern of the executive and we leave it to them | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
And, we will not revaluate the considerations even if the prices are demonstrably injurious to some manufacturers or producers | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Court will, of course, examine if there is any hostile discrimination | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
That is a different 'cup of tea' altogether | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The second observation we wish to make is, legislative action, plenary or subordinate, is not subject to rules of natural justice | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the case of Parliamentary legislation, the proposition is self-evident | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the case of subordinate 'legislation, it may happen that Parliament may itself provide for a notice and for a hearing-there are several instances of the legislature requiring the subordinate legislating authority to give public notice and a public hearing before say, for example, levying a municipal rate--,in which case the substantial non-observance of the statutorily prescribed mode of observing natural justice may have the effect of invalidating the subordinate legislation | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The right here given to rate payers or others is in the nature of a concession which is not to detract from the character of the activity as legislative and not quasijudicial | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
But, where the legislature has not chosen to provide for any notice or hearing, no one can insist upon it and it will not be permissible to read natural justice into such legislative activity | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Occasionally, the legislature directs the subordinate legislating body to make 'such enquiry as it thinks fit' before making the subordinate legislation | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In such a situation, while such enquiry by the subordinate legislating body as it deems fit is a condition precedent to the subordinate legislation, the nature and the extent of the enquiry is in the discretion of the subordinate legislating body and the subordinate legislation is not open to question on the ground that the enquiry was not as full as it might have been | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The provision for 'such enquiry as it thinks fit' is generally an enabling provision, intended to facilitate the subordinate legislating body to obtain relevant information from all and whatever source and not intended to vest any right in any one other than the subordinate-legislating body | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is the sort of enquiry which the legislature itself may cause to be made before legislating, an enquiry which will not confer any right on anyone | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The third observation we wish to make is, price fixation is more in the nature of a legislative activity than any other | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is true that, with the proliferation of delegated legislation, there is a tendency for the line between legislation and administration to vanish into an illusion | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Administrative, quasi-judicial decisions tend to merge in legislative activity and, conversely, legislative activity tends to fade into and present an appearance of an administrative or quasi-judicial activity | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Any attempt to draw a distinct line between legislative and administrative functions, it has been said, is 'difficult in theory and impossible in practice | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Though difficult, it is necessary that the line must sometimes be drawn as different legal fights and consequences may ensue | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The distinction between the two has usually been expressed as 'one between the general and the particular | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
A legislative act is the creation and promulgation of a general rule of conduct without reference to particular cases; an administrative act is the making and issue of a specific direction or the application of a general rule to a particular case in accordance with the requirements of policy | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Legislation is the process of formulating a general rule of conduct without reference to particular cases and usually operating in future; administration is the process of performing particular acts, of issuing particular orders or of making decisions which apply general rules to particular cases | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It has also been said "Rule making is normally directed toward the formulation of requirements having a general application to all members of a broadly identifiable class" while, "an adjudication, on the other hand, applies to specific individuals or situations | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
But, this is only a bread distinction, not necessarily always true | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Administration and administrative adjudication may also be of general application and there may be legislation of particular application only | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
That is not ruled out | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Again, adjudication determines past and present facts and declares rights and liabilities while legislation indicates the future course of action | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Adjudication is determinative of the past and the present while legislation is indicative of the future | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The object of the rule, the reach of its application, the rights and obligations arising out of it, its intended effect on past, present and future events, its form, the manner of its promulgation are some factors which may help in drawing the line between legislative and non-legislative acts | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
A price fixation measure does not concern itself with the interests of an individual manufacturer or producer | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is generally in relation to a particular commodity or class of commodities or transactions | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is a direction of a general character, not directed against a particular situation | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is intended to operate in the future | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is conceived in the interests of the general consumer public | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The right of the citizen to obtain essential articles at fair prices and the duty of the State to so provide them are transformed into the power of the State to fix prices and the obligation of the producer to charge n6 more than the price fixed | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Viewed from whatever angle, the angle of general application the prospectivity of its effect, the public interest served, and the rights and obligations flowing therefrom, there can be no question that price fixation is ordinarily a legislative activity | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Pricefixation may occasionally assume an administrative or quasi-judicial character when it relates to acquisition or requisition of goods or property from individuals and it becomes necessary to fix the price separately in relation to such individuals | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Such situations may arise when the owner of property or goods is compelled to sell his property or goods to the Government or its nominee and the price to be paid is directed by the legislature to be determined according to the statutory guidelines laid down by it | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In such situations the determination of price may acquire aquasi-judicial character | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Otherwise, price fixation is generally a legislative activity | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We also wish to clear a misapprehension which appears to prevail in certain circles that price-fixation affects the manufacturer or producer primarily and therefore fairness requires that he be given an opportunity and that fair opportunity to the manufacturer or producer must be read into the procedure for price-fixation | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We do not agree with the basic premise that price fixation primarily affects manufacturers and producers | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Those who are most vitally affected are the consumer public | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is for their protection that price-fixation is resorted to and any increase in price affects them as seriously as any decrease does a manufacturer, if not more | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The three observations made by us are well-settled and wellfounded on authority | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The cases to which we shall now refer, will perhaps elucidate what we have tried, unfelicitously, to express | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In Shree Meenakshi Mills Ltd. v. Union of India, [1974 | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
1 SCC 468 1973 Indlaw SC 291 a notification fixing the ex-factory price of certain counts of cotton yarn was questioned on the ground that the price had been arbitrarily fixed | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
After referring to Hari Shanker Bagla v. State of Madhya Pradesh, [1955] 1 SCR 380 1954 Indlaw SC 135; Union of India v. Bhanamal Gulzarimal, [1960] 2 SCR 627 1959 Indlaw SC 127; Sri Krishna Rice Mills v. Joint Director (Food) 1965 Indlaw SC 93, (unreported); State of Rajasthan v. Nathmal and Mithamal, [1954] SCR 982 1954 Indlaw SC 66; Narendra Kumar v. Union of India, [1960] 2 SCR 375 1959 Indlaw SC 61; Panipat Co-operative Sugar Mills v. Union of India, [1973] 1 SCC 129 1972 Indlaw SC 155; Anakapalle Co-operative Agricultural & Industrial Society Ltd. v. Union of India | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
1973] 3 SCC 435 1972 Indlaw SC 334 and Premier Automobiles Ltd. v. Union of India, [1972 | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
2 SCR 526 1971 Indlaw SC 291 a constitution bench of the court observed that the dominant object and the purpose of the legislation was the equitable distribution and availability of commodities at fair price and if profit and the producer's return were to be kept in the forefront, it would result in losing sight of the object and the purpose of the-legislation | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
If the prices of yarn or cloth were fixed in such a way to enable the manufacturer or producer recover his cost of production and secure a reasonable margin of profit, no aspect of infringement of any fundamental right could be said to arise | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It was to be remembered that the mere fact that some of those were engaged in the industry, trade or commerce alleged'that they were incurring loss would not render the law stipulating the price unreasonable | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It was observed, "The control of prices may have effect either on maintaining or ,increasing supply of commodity or securing equitable distribution and availability at fair prices | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The controlled price has to retain this equilibrium in the supply and demand of the commodity | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The cost of production, a reasonable return to the producer of the commodity are to be taken into account | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The producer must have an incentive to produce | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The fair price must be fair not only from the point of view of the consumer but also from the point of view of the producer | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In fixing the prices, a price line has to be held in order to give preference or pre-dominant consideration to the interest of the consumer or the general public over that of the producers in respect of essential commodities | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The aspect of ensuring availability of the essential commodities to the consumer equitably and at fair price is the most important consideration | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The producer should not be driven out of his producing business | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
He may have to bear loss in the same way as he does when he suffers losses on account of economic forces operating in the business | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
If an essential commodity is in short supply or there is hoarding, concerning or there is unusual demand, there is abnormal increase in price | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
If price increases, it becomes injurious to the consumer | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
There is no justification that the producer should be given the benefit of price increase attributable to hoarding or cornering or artificial short supply | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In such a case, if an "escalation" in price is contemplated at intervals, the object of controlled price may be stultified | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The controlled price will enable both the consumer and the producer to tide over difficulties | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
therefore, any restriction in excess of what would be necessary in the interest of general public or to remedy the evil has to be very carefully considered so that the producer does not perish and the consumer is not crippled | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The cases of Panipat Sugar Mills and Anakapalle Co-operative Agricultural Society were distinguished on the ground that they were governed by sub-section (3C) of sec | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
3 of the Essential Commodities Act and therefore, had no relevance to the case before the Constitution Bench | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The case of Premier Automobiles was distinguished on the ground that the decision was rendered by invitation and on the agreement of the parties irrespective of technical and legal questions | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Court quoted with approval a passage from Secretary of Agriculture v. Central Reig Refining Company, 330 US 604, stating: "Suffice it to say that since Congress fixed the quotas on a historical basis it is not for this Court to reweigh the relevant factors and, per chance, substitute its notion of expediency and fairness for that of Congress | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
This is so even though the quota thus fixed may demonstrably be disadvantageous to certain areas or persons | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
This Court is not a tribunal for relief from the crudities and inequities of complicated experimental economic legislation | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In Saraswati Industrial Syndicate Ltd. v. Union of India, [1974] 2 SCC 630 1974 Indlaw SC 134; the Court observed, "Price-fixation is more in the nature of a legislative measure even though it may be based upon objective criteria found in a report or other material | Precedent | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
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