21 February 1957
Supreme Court
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BHATNAGARS AND CO. LTD. Vs THE UNION OF INDIA(and connected petitions)

Bench: DAS, SUDHI RANJAN (CJ),AIYYAR, T.L. VENKATARAMA,SINHA, BHUVNESHWAR P.,DAS, S.K.,GAJENDRAGADKAR, P.B.
Case number: Writ Petition (Civil) 377 of 1955


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PETITIONER: BHATNAGARS AND CO.  LTD.

       Vs.

RESPONDENT: THE UNION OF INDIA(and connected petitions)

DATE OF JUDGMENT: 21/02/1957

BENCH: GAJENDRAGADKAR, P.B. BENCH: GAJENDRAGADKAR, P.B. DAS, SUDHI RANJAN (CJ) AIYYAR, T.L. VENKATARAMA SINHA, BHUVNESHWAR P. DAS, S.K.

CITATION:  1957 AIR  478            1957 SCR  701

ACT: Import and ExPort, Control of--Soda ash, if can be  imported without  licence-Issue of licence, if amounts  to  delegated legislation-Trafficking   in  licence  -   Confiscation   of consignments   and  seizure  of  licence  by   Sea   Customs Authorities - -Issue of Writs- -Policy Statement 702 by  Government,  if amounts to  monopoly-Import  and  Export (Control) Act, 1947 (XVIII of 1947), s. 3(1)(a)-Constitution of India, Art. 32.

HEADNOTE: The  petitioner  obtained a licence for importing  soda  ash during  the free licencing period in 1952.  On the basis  of the  licence certain consignments of soda ash were  received in  Bombay.  ’The Customs Authorities had reason to  suspect that  the petitioner was trafficking in his licence  and  on investigation  found  that  two  of  the  consignments   had actually  been  imported by another  party  and  confiscated them’  The  petitioner  appealed to  the  Central  Board  of Revenue and thereafter moved the Government of India, but to no effect.  The Collector of Customs ordered the goods to be auctioned.   Five petitions were filed in this  court  under Art.  32  of  the  Constitution seeking  for  the  issue  of appropriate  writs  in respect of the  confiscation  of  the goods  and  seizure  of the licence.  It  was  contended  on behalf  of  the  petitioner that  the  Imports  and  Exports (Control) Act, 1947 not having re-enacted the provisions  of r.  84(2) Of the Defence of India Rules, S. 3(1)(a)  of  the Act  had  no  application to soda ash  and  no  licence  was required   to  import  it  ;  that,  in   the   alternative, legislation  authorisirig the issue of licences amounted  to delegated  legislation and was, therefore, invalid.  It  was further  contended  that the Policy Statement  made  by  the Government in the Press Note dated February 1955, and Public Notice dated June 30, 1956, created a monopoly and infringed the petitioner’s fundamental right to carry on his trade and business  and lastly, that the virtual invalidation  of  his licence having been improperly made should be set aside  and

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the  same  directed  to be  revalidated  for  the  unexpired period. Held,   that  the  contentions  raised  on  behalf  of   the petitioner must fail and the petitions must be dismissed.. I The  language  Of  S. 3(1)(a) of  the  Imports  and  Exports (Control)  Act, 1947, made it abundantly clear that  it  was intended  to apply to the import of all goods  of  specified description  covered  by r. 84(2) Of the  Defence  of  India Rules including soda ash so as to render the re-enactment of that rule wholly unnecessary.  The provision of the  section must  be  read disjunctively and distributively and  it  was wholly  unreasonable to suggest that the words ’import’  and ’export’  could  be qualified by the  expressions  ,carriage coastwise’  or ’shipment as ships’ stores’ occurring in  the section. Nor  could  the  section be held to be ultra  vires  on  the ground  of  delegated legislation as the  preamble  and  the relevant sections of the Act as also those of the Defence of India  Act,  which  it purported to continue  and  to  which reference  would  be  perfectly legitimate,  show  that  the Legislature had clearly indicated the, policy and enunciated the  principles that were to guide those entrusted with  the implementation  of  the Act which had for  its  purpose  the maintenance of supplies essential to the community. Harishankar  Bagla v. The State of Madhya Pradesh, (1955)  I S.C.R. 380, applied. 703 Pannalal  Binjraj v. The Union of India, (1957) S.C.R.  233, referred to. It  was perfectly open to the Government of India to  change its import and export policy with a view to adjust it to the varying needs of the country and if importers were found  to resort to malpractices leading to instability of prices,  it would be its duty to intervene and regulate distribution, if need  be, with the assistance of importer-stockists  working under  its  general supervision and no  exception  could  be taken  to  such  a policy on the ground that  it  created  a monopoly  or  infringed the fundamental right  to  carry  on trade or business. As, in the instant case, the goods were lawfully confiscated by   the  Sea  Customs  Authorities  as  a  result   of   an investigation which they were competent to make, it was  not open to the petitioner under Art. 32 of the Constitution  to challenge their conclusions on the ground that they had  not been  properly  drawn  and no question,  therefore,  of  any revalidation of. his licence could at all arise.

JUDGMENT: ORIGINAL JURISDICTI0N: Petitions Nos. 377 of 1955 and 42, 46, 164 and 423 of 1956. Petitions under Article 32 of the Constitution of India  for the enforcement of fundamental rights’ Petitioner  in person in Petitions Nos. 377 of 1955 and  164 and 423 of 1956. H.   J.  Umrigar and Y. Kumar, for petitioner  in  Petitions Nos. 42 and 46 of 1956. C.   K. Daphtary, Solicitor-General of India, Porus A.   Mehta  and R. H. Dhebar, for respondents  in  Petitions Nos. 42, 46 and 423 of 1956. C.   K. Daphtary, Solicitor-General of India, B. Sen and  R. H.  Dhebar, for respondents in Petitions Nos.’ 377  of  1955 and 164 of 1956. 1957.  February 21.  The Judgment of the Court was delivered

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by GAJENDRAGADKAR J.-This is a group of five petitions filed by the petitioners Messrs Bhatnagars & Co. Private Ltd.  In all these  petitions,  the  petitioner  Shri  B.  S.  Bhatnagar, Managing  Director  of the above company,  seeks  to  obtain appropriate  writs  from  this Court mainly  in  respect  of orders which have been passed by the Sea Customs Authorities against  the  petitioner.  The petitioner seems  to  feel  a grievance 704 that, in the matter of licences which had been issued to him for  importing  ’soda  ash,  he  has  not  received  a  fair treatment  from the appropriate authorities and,  since  the impugned  orders  were passed, he has been moving  the  High Court  of Punjab and this Court by several  petitions  under the Constitution.  The present petitions show obvious traces of unskilled draftsmanship.  They are extremely diffused and in  many  places  incoherent.  Statements of  fact  are  not logically  or  chronologically made and  there  is  complete confusion  in the narration of the story giving rise to  the petitioner’s claim.  In several places, the petitions  refer to facts which are both irrelevant and immaterial and, often enough, the petitioner is unable to restrain him. self  from making  unjustified and irrelevant suggestions  against  the authorities.  Even in regard to the claim ultimately made by the  petitioner,  it is not easy to find  what  exactly  the petitioner’s grievance is and what particular writ he  seeks to  obtain  from this Court.  However, since  the  petitions purport   to   invoke  the  jurisdiction   of   this   Court substantially  under  Art.  32 of the  Constitution,  it  is necessary  to deal with the relevant points in disposing  of these petitions. Three of the petitions have been argued by Shri Bhatnagar in person.  They are Petitions Nos. 423 and 164 of 1956 and No. 377  of  1955.  Petitions Nos. 42 and 46 of 1956  have  been argued  by  Shri Umrigar on behalf of the  petitioner.   The material facts which it is essential to mention are very few and they i.e within a very narrow compass.  It appears  that the petitioner obtained a licence for the import of soda ash only  worth  about Rs. 50,00,000 during the  free  licensing period  in 1952.  In pursuance of this licence, and  relying on  the same, consignments of soda ash to the extent of  100 tons,  200  tons and 20 tons respectively were  received  at Bombay;  but meanwhile the Customs Authorities had  received information  that,  though  the petitioner  had  obtained  a licence  in his name for the import of soda ash for  such  a large  amount as Rs. 50,00,000, his capital did  not  exceed Rs.  15,000  and that he was in fact  trafficking  in  these licences.  On receiving this report, investigation was  made and 705 subsequently the matter was left  in charge  of ’the Special Police   Establishment.    During   the   course   of   this investigation,  certain  documents  were  seized  from   the petitioner-company’s  office as well as from the  office  of one Messrs N. Jivanlal & Co. at Bombay.  The complaint  made against  the petitioner that he was trafficking in  licences was  confirmed by this investigation.  It transpired that  a person  carrying  on  business in the name  of  Messrs.   N. Jivanlal & Co., had a free hand in dealing with the licences of  the  petitioner  and that the petitioner  used  only  to receive  commission  for the imports that he allowed  to  be made in the name of Messrs Bhatnagars & Co., Ltd.  In regard to the two consignments of 100 tons and 20 tons of soda ’ash respectively, it was found on an inspection of the documents

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that the same had been imported by Messrs N. Jivanlal & Co., and  since  Messrs N. Jivanlal & Co., held no  licence,  the consignments  were seized by the Collector of Customs.   The offices of the petitioner and Messrs N. Jivanlal & Co., were raided  during the course of this investigation on  November 7,1952  and  February  6,  1953,  respectively.   The  goods arrived  in  Bombay in March and April 1953  and  they  were confiscated  by  the Collector of Customs in  May  and  June 1953.   Subsequently, the documents including  the  licences which had been seized were returned to the petitioner.   The confiscation  of the goods was challenged by the  petitioner by  preferring  an appeal to the Central Board  of  Revenue. The  said  appeal was, however, dismissed.   The  petitioner then moved the Central Government against this, order but on September  22,  1955,  the  Central  Government  refused  to interfere.  It appears that on March 31, 1956, the Collector of Customs ordered that the goods should be auctioned.  When this  order  was  passed, the petitioner filed  one  of  the petitions before us. - He obtained an interim order of  stay but the said order was ultimately vacated.  Broadly  stated, these  are  the  facts  which  give  rise  to  the   present petitions. Though five petitions have been presented by the petitioner, his  grievance substantially is against the confiscation  of the consignments of soda ash and 706 against  the  seizure of his licences by  the  investigating authorities: Each petition seeks to put the grievance of the petitioner  in  a  different form and,  though  the  prayers ultimately  made  are also not of the same pattern,  in  the main,  the  petitioner wants this Court to give  him  relief against what he regards as illegal seizure of the goods  and against the virtual invalidation of his licences for import. The  period during which the licences granted to  him  could have  been operated upon has expired and the petitioner,  in one of his petitions, seeks an order from this Court direct- ing the Government to revalidate the licences so as to allow the petitioner to import the article in question during  the unexpired period of his licences. Though  it  would  have been possible  to  deal  with  these petitions collectively by delivering a, common judgment,  we would prefer to deal with the matter separately and consider the points raised in each petition by itself. Petition  No. 423 of 1956 in a sense stands apart  from  the other  petitions in the present group.  The facts  which  we have already mentioned are enumerated by the petitioner even in this petition but the ,substantial relief which he  seeks to  claim and which the petitioner pressed before us in  his argument is in respect of his allegation that the -Union  of India  and other respondents to the petition have  acted  in contempt  of  this  Court  and  appropriate  action  should, therefore,  be  taken by us against  the  said  respondents. This contention arises in this way.  The petitioner had made a  similar  petition  to this Court, No.  571  of  1954,  in respect of one of the three consignments, in question.  This petition had come before this Court for hearing on March 24, 1955.   Shri  K. R. Chaudhury appeared  for  the  petitioner before  this  Court.  The order passed by this  Court  would show  that  the learned Solicitor-General of  India  made  a statement  to the Court indicating that the goods which  had been  confiscated by the Customs Authorities would  not  be, sold  or otherwise dealt with for a month from the  date  of the communication to the petitioner of the final order  that the Central Government may pass in the revisional petition 707

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preferred by him before them.  Acting on this under. taking, this Court allowed the petitioner a period of one month from the  date  of the communication to him of  the  final  order which  the Central Government might pass on  his  revisional petition to enable him to file a petition for Special  Leave to appeal if he was so advised.  Then the order recorded the undertaking given by the Solicitor-General.  Subject to this order  the  petition was dismissed.  However, no  order  was passed  as to costs.  It is common ground that  for  several months  thereafter the revisional petition preferred by  the petitioner  to the Central Government was not  disposed  of. Ultimately  it  was dismissed.  The petitioner seems  to  be under  the impression that the Solicitor-General, on  behalf of the Central Government, had given an undertaking that the petitioner’s revisional petition would be disposed of within a  certain  specified time.  Indeed the  petition  seeks  to suggest  that  the  undertaking  was  that  the   revisional petition would be dispose immediately in a day or two,  and, since the revisional petition was not disposed of within the time mentioned by the Solicitor-General, the petitioner says that  all  the respondents are guilty of  contempt.   It  is clear  that the petitioners grievance and the prayer  for  a -writ are entirely misconceived.  The petitioner is entirely in error in assuming that, on behalf of the Union of  India, any undertaking was given that his revisional petition would be disposed of within a day or two.  Indeed, the  Solicitor- General   fairly  told  us  that,  at  the  time  when   the petitioner’s  earlier  application was disposed of,  he  had expressed the hope that the petitioner’s revisional petition would  be dealt with by the Central Government at  an  early date; but the expression of this hope had nothing to do with the  undertaking which the Solicitor-General gave and  which was   included  in  the  Court’s  order.    The   petitioner presumably  thinks that the Court’s order required that  his revisional  petition  should be disposed of by  the  Central Government  within  a month.  This  assumption  is  entirely unwarranted.  The period of one month which is mentioned  in the  order was the period granted to the petitioner to  move 91 708 this  Court  for  Special Leave after the  decision  of  his revisional   petition   by  the   Central   Government   was communicated to him.  In other words, if the decision of the Central  Government  had gone against  the  petitioner,  the petitioner was given one month’s period within which to move this  Court for Special Leave and the Union of India  agreed not  to deal with the property of the petitioner or  dispose of  it  during that period.  In our opinion,  the  order  is plain  and  unambiguous and there is no scope for  any  mis- understanding  whatever.   If no undertaking  was  given  as assumed  by the petitioner, it is impossible  to  understand how   any  contempt  can  arise  on  the  ground  that   the undertaking  had  not  been  complied  with.   Besides,  the petitioner  has  not stopped to consider  which  person  the Union  of  India  represents  as Respondent  No.  1  in  his petition.  He has also not paused to consider how the  other respondents  could  be  guilty  of  contempt.   We  have  no hesitation in holding that the prayer for a writ in  respect of  the  alleged  contempt made by the  petitioner  in  this petition  is thoroughly unjustified and, we regret  to  add, wholly  irresponsible.  This was the only point,  which  the petitioner urged before us in this petition.  The result  is the petition fails and it must be dismissed with costs. In  Petition  No.  164 of 1956, so far as we  were  able  to gather, the petitioner’s grievance is in respect of a policy

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statement  made  by the Government in the Press  Note  dated February 3, 1955 and Public Notice No. 25-ITC (PN)/ 56 dated June  30, 1956.  The petitioner’s contention appears  to  be that the policy enunciated in these two documents amounts to a  monopoly  and he wants this Court  to  issue  appropriate writs  terminating  this  monopoly  and  to  ensure  to  the petitioner  his fundamental right of carrying on  his  trade and  business.   In  our  opinion,  this  petition  is  also entirely  misconceived  and  there is no  substance  in  the contention raised by the petitioner.  It is hardly necessary to  emphasize that, in modern times, the export  and  import policy of any democratic State is bound to be flexible.  The needs of the country, the position of foreign exchange,  the need to protect national industries 709 and all other relevant considerations have to be examined by the Central Government from time to time and rules in regard to   export  and  import  suitably  adjusted.    It   would, therefore,   be  idle  to  suggest  that  there  should   be unfettered and unrestricted freedom of export and import  or that  the policy of the Government in regard to  export  and import  should  be fixed and not changed  according  to  the requirements  of  the country.  It is in the light  of  this position that the policy statement in the Press Note has  to be  considered.  The Press Note covers several  commodities, but,  since  we  are concerned with Light soda  ash  in  the present case, it would be relevant to refer briefly to the - contents of the Press Note in regard to Light soda ash.   In regard to this commodity, Government have decided, says  the Press  Note,  that the import should  be  canalised  through importer-stockiats  who  would be required  to  keep  buffer stocks  and  effect  sale in a manner  so  as  to  eliminate fluctuations in prices and supplies experienced by consumers in  the recent past.  The Government realized that,  without canalisation  of distribution of this  commodity,  consumers were  always  at  the  mercy  of  the  importers  and   even distribution  of the commodity to all parts of  the  country where  it was needed was also difficult to obtain.  That  is why  the Government decided to canalise the distribution  of this.   commodity  with  the  assistance  of   two   selling organisations  of  Messrs.   Tata Oil Mills  Co.  Ltd.,  and Messrs.  I.C.I. (India) Ltd.  These two concerns had  agreed to procure soda ash from suppliers selected on the basis  of offers  which were being invited by means of  public  notice which  was issued on the same day as the Press  Note.   Then the Press Note concludes that soda ash so imported would  be stocked  at convenient centres and sold in  accordance  with the general directions that may be issued by the  Government from  time  to time.  The sale price would be fixed  by  the Government  on fo.r. Port basis and  the  importer-stockists would be paid remuneration for their services at the rate of 12  1/2% of the landed cost, additional profit, if  any,  on the  transaction being made over to Government.  The  Public Notice 710 which  was  issued about the same time  gives  the  relevant particulars  in regard to the import of soda ash  and  other commodities.   Tenders were invited and cl. 4 of the  Public Notice  shows that the offerer whose offer was  accepted  by the  Chief Controller of Imports would be required to  enter into  ’a contract of sale within ten days of the  acceptance of  the offer with the importer-distributor selected by  the Government  in that behalf, No doubt discretion was left  to the Chief Controller of Imports to reject any offer  without assigning  any reason.  Subject to the terms and  conditions

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set  out  in  the Notice, if a contract  was  concluded,  an import  licence for the quantity contracted to be  purchased would  be  issued  in favour of the buyer  subject  to  such conditions as might be imposed by the Government of India in that behalf. It appears that, prior to 1953, import licences were  freely granted.    In  1953,  licences  began  to  be  granted   to established  importers  subject to certain  conditions.   It also  appears that Government decided from time to time  the total  quantity of the specified commodity which  should  be imported.  Then the extent of the business of the  applicant for  licences  during the prescribed period was  taken  into account and the total amount of import was then  distributed pro rata amongst the several applicants.  When it was  found that  even  this  method did not  work  satisfactorily,  the Government  decided  to  canalise  distribution  but   while canalisation  was  introduced in this manner,  tenders  were invited  for  import licences and they  were  considered  on merits and licences granted to several claimants.  It may be that,  if the I.C.I. and the Tata Oil Mills Co.  Ltd.,  were amongst  the applicants for licences, their  competitors  in the line may have found it difficult to fight with these two powerful rivals but that is very different from saying that, by the method of canalisation, the Government had introduced a  monopoly in the import of the commodity in question.   It is  also important to emphasize that the petitioner  is  not even  an  established importer.  He was  granted  a  licence during the free period, and so it is difficult to understand his grievance that a monopoly had been 711 created and that -he was thereby deprived of his fundamental right  to  carry on his trade.. Government  found  that  the importers  of soda ash resorted to malpractices  leading  to speculation,  and  violent fluctuations, in  prices  of  the commodity.   It  was  open to  the  Government,  and  indeed national  interests  made it their duty,  to  intervene  and regulate  the  distribution of the commodity in  a  suitable manner.  That is all that Government purported to do by  the policy  statement to which objection has been taken  by  the petitioner.   Besides,  it  is difficult  to  entertain  the argument  from  the  present  petitioner  that  the  alleged monopoly  has  affected  his right to carry  on  trade.   In substance no monopoly has been created and the  petitioner’s application  is  entirely misconceived.  The result  is  the petition fails and must be dismissed with costs. Petition No. 377 of 1955 is directed broadly against  orders of confiscation and sale passed by the relevant  authorities and the petitioner claims that an appropriate writ should be issued  by this Court calling upon the said  authorities  to forbear  from  giving effect to the said  orders.   We  have already  mentioned  the  material facts  in  regard  to  the confiscation of the consignments of soda ash of 100 tons and 20  tons  respectively  which has given rise  to  all  these proceedings.   Now,  the order dated May 3, 1954,  has  been passed  by the Controller of Imports and Exports  for  Chief Controller of Imports and Exports and it communicates to the petitioner  the  decision of the Chief  Controller  that  no licence or customs clearance permit would be granted to  him against  his application for and upto the  licensing  period July  1953.   The  petitioner was, however,  told  that  his applications for January-June 1954 licensing period would be dealt  with  in the normal course according  to  the  policy contained in the Red Book.  Then the order adds that it  had been decided that re-validation of the licences mentioned in Annexure ’A’ to the petitioner’s advocate’s letter on  April

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20,  1954,  could  not be allowed.  That  is  why  the  said licences were returned to the petitioner.  It is this latter part  of the order by which the petitioner  feels  aggrieved and against which the petitioner seeks remedy by the 7l2 present  petition.  The petitioner’s case is that, since  he was  granted licences which were to be alive for  one’  year from  February 13, 1952, the illegal seizure of the  licence and  the  unauthorised confiscation of the  consignments  in question caused considerable. prejudice to him.  The  return of  the  licences  is poor consolation  to  the  petitioner. because the period during which the licences were to operate had  already  expired.   He,  therefore,  claims  that   the licences should be revalidated in the sense that the  period during  which he can operate upon those licences  should  be suitably  extended.   It  is  true  that  if  the   relevant authorities were inclined to revalidate the licences in that sense, it would have been open to them to do so.  But it  is difficult  to understand now the petitioner can  invoke  the jurisdiction of this Court under Art. 32 of the Constitution for  obtaining  this relief.  We do not propose  to  discuss this  matter  elaborately  because,  in  our  opinion,   the position  in law is abundantly clear.  The authorities  have found  that,  though  the  licences  were  obtained  by  the petitioner  in  his name, he has been,trafficking  in  these licences, that the, consignments had been ordered by another individual  Messrs.   N.  Jivanlal  &  Co.,  that  the  said individual  holds no licence for import of soda ash  and  as such  the consignments received by the said  individual  are liable to be confiscated.  If the petitioner’s grievance  is that  the view taken by the appropriate authorities in  this matter  is  erroneous,  that is not a matter  which  can  be legitimately agitated before us in ,a petitition under  Art. 32.   It  may perhaps be, as the  learned  Solicitor-General suggested, that the petitioner may have a remedy by suit for damages  but  that  is  a  matter  with  which  we  are  not concerned.  If the goods have been seized in accordance with law  and they have been seized as a result of  the  findings recorded  by  the  relevant authorities  competent  to  hold enquiry  under  the Sea Customs Act, it is not open  to  the petitioner to contend that we should ask the authorities  to exercise  discretion in favour of the petitioner  and  allow his  licences  a  further lease of  life.   Essentially  the petitioner’s  grievance is against the conclusions  of  fact reached by the relevant authorities.  If the said 713 conclusions  cannot be challenged before us in  the  present writ  petition,  the  petitioner  would  obviously  not   be entitled  to any relief of the kind claimed by him.  In  the result, the petition fails and must be dismissed with costs. That  leaves  two more petitions filed  by  the  petitioner, Petitions  Nos. 42 of 1956 and 46 of 1956.  These  petitions have been argued before us by Shri Umrigar and, on behalf of the petitioner, Shri Umrigar has raised three points  before us.  He contends that the Import-Export, Act does not  apply to  soda ash and that it is every citizen’s right to  import and export this commodity without a licence.  If that be the true position, confiscation of the two consignments would be illegal,  and  so, he wants an appropriate  writ  from  this Court  against the Central Government.  In the  alternative, he argues that the legislation which authorises the issue of licences amounts to a delegated legislation and -as such’ is invalid.   Again, if legislation is invalid on  the  ground’ alleged,  confiscation  of  the two  consignments  would  be invalid  and  the petitioner would be entitled  to  a  writ.

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Failing these two contentions, Shri Umrigar argues that  the conclusion  of the relevant authorities that his client  was trafficking  in licences is based on ’no legal evidence  and must,  therefore, be reversed by this Court and  appropriate relief  given  to him on the basis that the  petitioner  had obtained licences bona fide for his own personal use and the contrary  view  taken by the relevant  authorities  and  the subsequent confiscation of the consignments were illegal and ultra  vires.   We would now briefly deal with  these  three points  in the order in which they were urged before  us  by Shri Umrigar. The  first  argument  is based upon  the  fact  that,  while enacting  The Imports and Exports (Control) Act,  1947,  Act No. XVIII of 1947, the provisions contained in r. 84 (2)  of the Defence of India Rules have not been included in the Act and  the contention, which at best may be  characterised  as ingenious,   is  that  the  object  of  omitting  the   said provisions while enacting the subsequent Act of 1947 was  to release,  from  the operation of the  Import  Act,  articles which would have fallen 714 under the said omitted provisions.  R. 84 of the Defence  of India  Rules  by sub-r. (1) defines export  and  import.   ’ Import  " means bringing into British India by sea, land  or air.  " Export " -means taking out of British India by  sea, land or air.  Then sub-s. (2) provides: " The Central Government may by a notified order prohibit or restrict  the import or export of all goods or goods of  any specified  description, from or to any specified  person  or class of persons Sub-r. (3) then provides: "  The  Central  Government  may  by  notified  order   make provision   for   prohibiting,  restricting   or   otherwise controlling, in all cases or in specified classes of  cases, and subject to such exceptions, if any, as may be made by or under the order,- (i)  the import, export, carriage coastwise or  shipment  as ships’  stores  of  all  goods or  goods  of  any  specified description; (ii)the shipment of fresh water on seagoing vessels ; (iii)the bringing into any port or place in British India of goods of any specified description intended to be taken  out of  British  India without being removed from  the  ship  or conveyance in which they are being carried." Shri  Umrigar  contends that the import ’of soda  ash  could have been legitimately regulated under the provisions of  r. 84, sub-r. (2) but since this sub-rule has not been  enacted under Act XVIII of 1947, all regulations made by the Central Government  and terms and conditions laid down in regard  to the  granting of licences are ultra vires of the  Act.   Act XVIII  of 1947 gives substantially the same meaning  to  the words  " export " and " import "’ and the operative  portion of the Act is contained in s. 3 which is the same as r.  84, sub-r. (3), of the Defence of India Rules.  In order to make his  argument  plausible, Shri Umrigar seeks to put  a  very narrow,  artificial and unreasonable restriction upon s.  3, sub-s.  (1) (a) of Act XVIII of 1947.  Before  dealing  with this  argument, however, it would be convenient to  set  out the said section as under: 715 " 3. Powers to prohibit or restrict imports and exports : (1)The  Central  Government may, by order published  in  the official   Gazette,   make   provision   for    prohibiting. restricting  or  otherwise controlling, in all cases  or  in specified classes of cases, and subject to such  exceptions,

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if any, as may be made by or under the order,- (a)the  import,  export, carriage coastwise or  shipment  as ships’ stores of goods of any specified description ; (b)the bringing into any port or place in India of goods  of any specified description intended to be taken out of  India without  being removed from the ship or conveyance in  which they are being carried. (2)  All goods to which any order under sub-section (1)  applies shall be deemed to be goods of which the import or export has been prohibited or restricted under section 19 of  the  Sea Customs Act, 1878 (VIII of 1878), and  all  the provisions of that Act shall have effect accordingly, except that  section  183 thereof shall have effect as if  for  the word "shall" therein the word "may" were substituted. (3)  Notwithstanding  anything  contained in  the  aforesaid Act, the Central Government may, by order, published in  the official Gazette, prohibit, restrict or impose conditions on the clearance, whether for home consumption or for  shipment abroad, of any goods or class of goods imported into India." Shri Umrigar contends that s. 3 (1) (a) cannot apply to  the import  of soda ash, because, according to him, it  is  only goods  of  a  specified description which  are  imported  or exported, carried coastwise or shipped as ships’ stores that fall  within the mischief of the said provision.   In  other words,  he reads the expression " carriage coastwise  "  and ",shipment  as  ships’ stores " as  constituting  adjectival clauses  governing the words "import" and "export".  In  our opinion,  such  a construetion is wholly  unreasonable.   We have   no  doubt  that  this  provision  has  to   be   read disjunctively  and distributively, and so read, the  import. of goods of any specified descrip- 92 716 tion  would attract the application of the  said  provision. If we bear in mind the definition of the words "import"  and "  export  ",  it would be obvious that  articles  that  are carried coastwise would never fall within the cate. gory  of either   import   or  export.   The  assumption   that   the Legislature,  wanted to release all kinds of goods from  the application  of  s.  3  (1)  (a)  is,  in  our  opinion,  so completely inconsistent with, the plain and natural  meaning of  the  material  clause  that we  have  no  hesitation  in rejecting Shri Umrigar’s argument.  If the words used in the clause are given their natural meaning, it is clear that the Legislature  must have felt, in enacting this Act,  that  it was unnecessary to continue by reenactment the provisions of r. 84(2) in the present Act.  What was specifically provided in the said rule is in effect included in s. 3 (1) (a).   We must, therefore, hold that the argument that no licence  was required  for the import of soda ash and so all  the  orders passed  by  the  appropriate authorities in  regard  to  the confiscation of the consignments are invalid must fail. The  next argument is that the material provision  is  ultra vires as it amounts to delegated legislation.  The challenge to  the validity of legislative enactments on the ground  of delegated legislation often enough -presents problems  which are  not easy of solution.  The recent history  of  judicial decisions, however, shows that, though there is considerable divergence  of  opinion in the approach to the  question  of dealing  with such a challenge, some principles may be  said to  be  fairly  well  settled.   There  is  no  doubt   that legislation  which is conditional, properly so-called,  must be distinguished from legislation which is delegated.   Shri Umrigar  concedes  that where the Legislature  provides  and lays  down principles underlying the provisions of a  parti-

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cular   statute   and   also  affords   guidance   for   the implementation or enforcement of the said principles, it  is open  to the Legislature to leave the actual  implementation or  enforcement to its chosen delegate.  The time  when  the provision should be implemented, the period during which  it should  be  implemented  or the place  where  it  should  be applied can, according to 717 him, in appropriate oases be validly left by the Legislature to  its  delegate.   He,  however,  contends  that,  in  the impugned  Act, the Legislature does not lay  down  principle and  gives  no guidance to the delegate  while  leaving  the implementation  of  the  statutory  provisions  to  him  and consequently  the  validity  of  the  legislative  enactment suffers  from  a serious infirmity on the  ground  that  the Legislature has surrendered its legislative power in  favour of  its  delegate.  In dealing with this  narrow  ground  of challenge,  it would be necessary to consider  the  preamble and  the material provisions of the Act to find out  whether questions  of  policy  have  been  clearly  decided  by  the Legislature  -and  whether guidance has been  given  to  the delegate in the matter of implementing the provisions of the statute.   Unfortunately for Shri Umrigar his  challenge  to the  validity of the impugned section under the Imports  and Exports  Act is completely covered by the decision  of  this Court   in  Harishankar  Bagla  v.  The  State   of   Madhya Pradesh(1).   In  this case, so. -3 and 4 of  the  Essential Supplies  (Temporary  Powers) Act, 1946,  were  attacked  as ultra  vires on the ground of delegated  legislation.   This challenge  was  repelled.   In  repelling  the  argument  of delegated  legislation, Mahajan Chief Justice who  delivered the  judgment of the Court conceded that "  the  Legislature must declare the policy of the law and the legal  principles which  are  to control any given cases and  must  provide  a standard  to  guide the officials or the body  in  power  to execute  the law".  "The essential legislative  function  ", the   judgment   proceeds  to  add,  "   consists   in   the determination  or  choice of the legislative policy  and  of formally enacting that policy into a binding rule of conduct ". Then the learned Chief Justice referred to the fact  that the  Legislature  has laid down such a  principle  and  that principle  is  the  maintenance or  increase  in  supply  of essential commodities and of securing equitable distribution and  availability  at  fair prices.  It was  held  that  the principle  was clear and it offered sufficient  guidance  to the Central Government in exercising its powers under s.  3. In other words, in considering the question as to (1)  [1955] 1 S.C.R. 380. 718 whether guidance was afforded to the delegate in bring.  ing into operation the material provisions of the Act by  laying down  principles  in that behalf, the Court  considered  the statement of the principles contained in the preamble to the Act  as well as in the material provisions of s.  3  itself. This  decision shows that if we can find a reasonably  clear statement  of  policy underlying the provisions of  the  Act either in the provisions of the Act or in the preamble, then any  part  of the Act cannot be attacked on  the  ground  of delegated legislation by suggesting that Questions of policy have  been  left to the delegate.  Turning to  the  impugned sections  of  the present Act, it is necessary  to  remember that  the  present Act purports to continue  for  a  limited period  powers  to prohibit or control imports  and  exports which  had already been enacted by the Defence of India  Act and  the Rules framed thereunder.  In other words, this  Act

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does  not purport to enact the material provisions  for  the first  time  but  it purports  to  continue  the  previously existing  provisions  in  that behalf and  so  it  would  be legitimate  to consider the preamble of the predecessor  Act and  relevant  provisions  in it to  find  out  whether  the Legislature has laid down clearly the policy underlying that Act and has enunciated principles for the guidance of  those to  whom authority to implement the Act has been  delegated. The  preamble to the present Act says that it was  expedient to  continue  for  a  limited  period  powers  to  prohibit, restrict  or  otherwise control imports  and  exports.   The preamble to the Defence of India Act refers to the emergency which  had arisen when the Act was passed and refer;,  inter alia,  to the necessity to take special measures  to  ensure the  public  safety and public interest.  Section 2  of  the said  Act  further  provides  that  the  Central  Government thought  that it was essential to secure public  safety  and maintenance  of public order and, what is more relevant  and material, the maintenance of supplies and services essential to  the  life of the community.  Thus it is clear  that  the broad  and main principle underlying the present  Act,  like its  predecessor, was to maintain supplies essential to  the life of the community.  Thus, if the preamble 719 and the relevant section of the earlier Act are read in  the light  of  the  preamble of the present  Act,  it  would  be difficult  to  distinguish  this  Act  from  the   Essential Supplies  Act  with  which  this  Court  was  concerned   in Harishankar  Bagla’s case Incidentally, we may also  observe that  in Pannalal Binjraj v. The Union of India  (2),  where the vires of. a. 5 (7-A) of the Income.  Tax Act were put in issue  before  this Court, the challenge was  repelled  and, during the-course of the judgment delivered on December  21, 1956,  the previous history of the earlier  Income-Tax  Acts was  taken into account to decide what policy could be  said to underlie the provisions of the impugned section. The last argument of Shri Umrigar is patently untenable.  No doubt  Shri Umrigar began this argument by  contending  that the  finding  made  against  the  petitioner  that  he   was trafficking  in  his licences and that the  consignments  in question  did  not  really belong to him  was  based  on  no evidence but ultimately he could not help conceding the fact that   there  were  certain  circumstances  on   which   the appropriate authorities relied against the petitioner.   The contention  that a finding made by a competent authority  is based  on  no  legal  evidence is  easy  to  make  but  very difficult to establish.  Such a contention can succeed  only when  it is shown that there is really no legal evidence  in support  of the view taken by the  appropriate  authorities. In  the  present  case, it is impossible to  accede  to  the assumption  that  there  is no legal  evidence  against  the petitioner.   His poor financial resources, his  conduct  at all  material  times  when consignments  were  ordered,  the suspicions  attaching  to  the very existence  of  the  firm Messrs.  N. Jivanlal & Co. in Bombay and the prominent  part played  by  this firm at all stages of  the  transaction  in regard   to  the  consignments  as  well  as  the   reckless allegations  which  were made by the petitioner  before  the authorities which were found to be untrue by the appropriate authorities,   cannot  be  summarily  dismissed   as   being irrelevant  or as not constituting legal evidence.   At  the highest it may be said that there (1) [1955] 1 S.C.R. 380. (2) [1957] S.C.R. 233. 720

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are  some circumstances on which Shri Umrigar wants to  rely in favour of the bonafides of his client whereas there is. a large  number  of  circumstances against him.   If  all  the appropriate authorities, on considering these circumstances, concurrently found against the petitioner, that obviously is not  a  matter  which can be legitimately  agitated  in  the present  petition.   That is why we do not propose  to  deal with this aspect of the matter any further.  In the  result, both Petitions Nos. 42 of 1956 and 46 of 1956 fail and  must be dismissed with costs. Petitions dismissed. 721