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1989 DIGILAW 399 (PAT)

Bankey Slaha v. State Of Bihar

1989-11-11

R.N.LAL, S.B.SANYAL

body1989
Judgment S. B. Sanyal, R. N. Lal, JJ. 1. The debatable question ia this writ petition is whether in alloting quota of coal for carrying on trade and business in coal, the Food and Civil Supplies Department can impose the condition that the applicant should file an affidavit alongwith the application from to the effect that neither the applicant nor his father or brother or any of his family member and or his partner was ever been convicted in any criminal case and or any criminal case has been filed against him and or pending or not ; and whether the said condition has any rational and nexus for alloting quota of coal to a person who is a licensee of coal under the Essential Commodities Act and Orders made thereunder. 2. The petitioners have been carrying on business in coal since the year 1965 except for the years 1977 to 1980. On 5th July, 1988 an advertisement was published by the State Government for appointment of coal agents for a period of three years commencing from 1st November, 1988 to 3rd October, 1991 (Annexure-1), The relevant Clause 11 (Cha) in Roman and english translation thereof are as follows : "roman (gha) Abedak Abedan Patra Ke Satb Ekk Sapath-Patra Vhi Aniwarjata denge Ki Abedak Ya Abedak Ke Pita Ya Bhai Ya Unke Pariwar ke Koi Sadasya Tatha Unke Hissedar Abashayak Bastu Adbiniyara 1955, Ya Kissi Fouzdari Mnkadma Ke Antargat Dandit Huey Hai ya Nahi Athava Unke Birwdh Koi Abashayak Bastu Adhimyam, 1955 Ke Tahat Ya Anna Koi Foujdari Mukadma Dayar Hua Hai ya Nahi Athava Cbalraha Hai Ya Nahi Athava Control Order ke Tahat Unhe Nirgat Kishi Byapar Se Sambandhit Anugya Patra rad Huyi Hai Ya Nahi" English translation "the applicant aiongwith the application form must submit an affidavit that the applicant or applicants father or brother or any member of his family and his partner has been convicted under the Essential commodities Act, 1955, or any criminal case or not or any case under the Essential Commodities Act, 1955, or any criminal case has been lodged or not or going on or not or any licence issued under the Control Order relating to any trade has been cancelled or not. " The advertisement also required, a part from others, filing of sales tax clearance certificate. " The advertisement also required, a part from others, filing of sales tax clearance certificate. 3 The petitioners filed affidavits stating that neither they nor their father nor their brother nor any member of their family has ever been convicted under the Essential Commodities Act nor any case under the Essential Commodities act has been filed or pending against them and their licences have never been cancelled under any Control Order vide Annexures-2 and 2/1. The applications for the petitioners appointment were however, rejected on the ground that the petitioners affidavits were not in accordance with Clause 11 (Gha) and further the petitioners did not enclose sales tax clearance certificate tide Annexure-3. 4. Learned counsel appearing on behalf of the petitioners contended that the to grounds assigned by the respondents in refusing to appoint the petitioners as coal agent are irrelevant arbitrary and capricious. 5. So far as the ground of non-filing of sales Sax clearance certificate is concerned, the authorities themselves have relaxed the condition, since in carrying on trade and business in coal no sales tax is payable by the order but by the supplier of coai on the basis of first point and, therefore, the question of annexing a certificate from the Sales Tax Department does not at aii arise, as would be evident from Annexure-3/. 6. As for as the second ground is concerned, learned counsel submits that the petitioners having disclosed in their affidavits that no case under the essential Commodities Act has ever been instituted against the petitioners or their family members nor any such case is pending against the petitioners and or against any member of their family and or any licence under any Coniiol Order has ever been cancelled should be treated as enough discloiure for the purpose of appointment of a coal agent. Whether there has been any cnnnai case filed against any member of the family ever or any criminal case pending against the members of the family has no nexus to the object and, accordingly it should be treated as irrelevant and arbitrary requirement for the purpose of appointment of coal agent. 7. After the nationalisation of coal the dealer has to obtain allotment of coal from the State Government on prior deposit of the price of the coal. 7. After the nationalisation of coal the dealer has to obtain allotment of coal from the State Government on prior deposit of the price of the coal. The goal being specified item under the Uaifianduioa Order a person desiring to deai in coal must obtain a licence from the licensing authorities as envisaged under the said order. The Order also requires furnishing of various information in the application form for the grant of licence in deciding the suitability of a person to deal in coal business. Admittedly, the petitioners having fulfiled the requirement of the application form have been granted licence to trade and do business in coal. There is a provision also for cancellation and suspension of licence under the said order. 8. The question, therefore, is whether a person who has already been granted a licence to deal in coal, is further required to pass the test laid down under Clause 11 (Gha) for allocation of coal by the State Government in order to enable him to carry on trade and business in coal. 9. It is evidence that the business of coal is controlled by the provisions of the Essential Commodities Act and or Orders made thereunder. The petitioners are found fit under the statute to deal in coal business having not been convicted for contravention of any order made under the Essential Comnodities act during the last three years. The petitioners have filed affidavits as required under Clause 11 (Gha) disclosing the information that neither they nor any members of their family members have ever been convicted under the Essential commodities Act nor any case under the Essential Commodities Act is pending against the petitioners or against any members of their family. They have also disclosed on affidavits that at no point of time any licence granted under the essential Commodities Act to them or any member of their family to cany on trade and business has ever been cancelled. 10. It is a settled law where the Government is dealing with the public : ". . . . . . . . . 10. It is a settled law where the Government is dealing with the public : ". . . . . . . . . Whether by way of giving jobs or entering into contracts or issuing quotas or licences or granting other forms of largess, the government cannot act arbitrarily at its sweet will and like a private individual, deal with any person it pleases, but its action must be in conformity with standard or nor which is not arbitrary, irrational or irrelevant. The power or discretion of the Government in the matter of grant of larges including award of jobs, contracts, quotas, licences etc , must be confined and structured by rational relevant and non-discriminatory standard or norm and if the Government departs from such standard or nor. . . . . . . . the action of the government would be liable to be struck down. " See Ramana V/s. A. Authority of India. AIR 1979 SC 1628 . The requirement to disclose under Clause 11 (Gha) of the advertisement that there has been no criminal case ever instituted against the petitioners or members of their family or any partner and or any such case is pending appears to be irrational and unreasonable norm and does not appear to have any rationable or nexus for the grant of quota of coal to a licensee under the Unification order. The norm laid down under paragraph No, 12 of the Application Form (Form-A) under the Unification Order for the grant of licence required that the person must not have suffered a conviction under the Essential Commodities Act within three years of the date of filing of the application for licence. The state Government by laying down further norms and conditions in the impugned advertisement for the purpose of allocation of quotas of coal to such dealers, is encroaching and transgressing upon the statutory provisions for the exercise of citizens fundamental right to carry on trade and business of coal. The norm that could at all be imposed for the purpose of allocation of quota of coal should be confined and structured by rational, relevant and reasonable standard. The norm that could at all be imposed for the purpose of allocation of quota of coal should be confined and structured by rational, relevant and reasonable standard. We find that the Government has departed from such standard or norm in the impugned advertisement and therefore, that part of tha advertisement which requires the petitioners to disclose institution of any criminal case against them or any member of their family ever in the past or pendency of any such case against the members of his family or partner is liable to be struck down. 11 It may, however, be stated that the patitionsri have disclosed in paragraph No.14 of the instant writ petition that they have never been convicted in any criminal case and/or subjected to any criminal case. 12. In the result, the writ petition is allowed and the respondents are directed to reconsider the petitioners case in the light of the decision and observation made above expeditiously preferably within three months of the receipt of this order bearing in view the fact that the appointment of coal agents is only for a period of three years commencing from 1st November 1988 to 31st October 1991 and considerable time has already been wasted. Petition Allowed.