Research › Browse › Judgment

Patna High Court · body

1994 DIGILAW 366 (PAT)

Swarup Chemicals Pvt. Ltd. v. State of Bihar

1994-11-14

A.N.TRIVEDI, NAGENDRA RAI

body1994
Order The present application has been filed by the petitioners for quashing the order dated 9th August, 1994 passed by the Insecticides Controller cum-Agricultural Director, Bihar Patna (respondent no. 2) by which he has restrained the petitioner firm from sale, distribution, storage and exhibition for sale of the insecticides manufactured by them. By the same order a further direction has been issued to the Stockist M.R. Enterprises and licence holders under the Act to stop the sale, stock, distribution and display for sale of insecticides manufactured by the petitioner firm. A true copy of the order has been annexed as Annexure-5. 2. There is no dispute with regard to the factual matter, The petitioner no. 1 is engaged in manufacturing insecticides having its head office at Lucknow. 3. According to the assertion made on behalf of the petitioners the insecticides manufactured by the Company is sold at Lucknow to the stockist and the whole-sellers who have obtained valid licence under the Insecticides Act. The petitioner no. 1 is not engaged in manufacturing, selling stocking or exhibiting for sale or distributing any insecticide in the State of Bihar and as such no licence for the aforesaid acts is required in the State of Bihar. A notice was issued by the respondent no. 2, a copy of which has been annexed as Annexure-3 to the writ application, by which petitioners were asked to show cause as to why the sale, storage, distributing and exhibition of the insecticides in this State be not stayed for want of valid licence under the provisions of the Act. The petitioners filed a show cause stating therein that no licence is required by the petitioners as in this State they are not engaged in sale, storage, distribution and exhibition of insecticides. They sold insecticides at the place of its business at Lucknow and as such the licence is not required in the State of Bihar under the aforesaid Act. After perusal of the aforesaid show cause the impugned order has been passed under the provision of the Insecticides Act, 1968 read with rules framed thereunder. 4. It appears that under Section 13 of the Insecticides Act, 1968, a licence is required by any person desiring to manufacture, sell, stock or exhibit for sale or distribute any insecticide. Rule 10 provides licence for sale etc. 4. It appears that under Section 13 of the Insecticides Act, 1968, a licence is required by any person desiring to manufacture, sell, stock or exhibit for sale or distribute any insecticide. Rule 10 provides licence for sale etc. Sub-Rule (3) of Rule 10 provides that if any insecticide is proposed to be sold or stocked for sale at more than one place, separate applications shall be made and seperate licences shall be issued in respect of every such place. 5. According to the assertion made on behalf of the petitioners as insecticide is sold at its place of manufacturing i.e. Lucknow and the insecticide is neither stored nor sold nor exhibited for sale in this State, the licence is not required in this State by the petitioner. 6. Learned counsel for the State on the other hand contended that as the petitioners have appointed stockist in this State they have to obtain licence for stockist under the provisions of the Act for the reason that the insecticide is being stocked on its behalf in this State for the purpose of sale. He also referred to the impugned order wherein it has been stated that one R.K. Enterprises has been appointed as stockist on behalf of the petitioners for this State. 7. After going through the relevant provisions of the Act, it is clear that the licence is required at the place where a person is either engaged in the business of manufacturing, selling, stocking, distributing and exhibiting for sale the insecticides. Admittedly, the petitioner's place of manufacturing is at Lucknow. The only question is as to whether the petitioners are engaged in selling, distributing, stocking and the exhibition for sale the insecticides in the State of Bihar of not. If they are not stocking, selling or exhibiting for sale the insecticides in this State then the counsel for the State fairly concedes that no licence in required. The petitioners in his show cause has categorically stated that they are not engaged in selling, storing, distributing and exhibiting for sale the insecticides in the State of Bihar. There is nothing in the impugned order to show that any materials showing the aforesaid statement to be incorrect one was before the respondent. The petitioners in his show cause has categorically stated that they are not engaged in selling, storing, distributing and exhibiting for sale the insecticides in the State of Bihar. There is nothing in the impugned order to show that any materials showing the aforesaid statement to be incorrect one was before the respondent. However, the question as to whether the petitioners are engaged in the aforesaid activities are not to be determined on the basis of the materials and the same cannot be decided in writ jurisdiction. In that view of the matter, we are of the view that this question should be determined by respondent no. 2 after affording an opportunity to the concerned parties. Accordingly, the impugned order as contained in Annexure-5 is set aside and the matter is remitted to the Controller cum-Agricultural Director, Bihar, Patna, who will hear and dispose of the matter within ten days from the date of receipt of a copy of this order. The petitioner should appear before him on 17th November, 1994 at 11.00 A.M. on which date respondent no. 2 will fix a firm date for disposal of the matter. It goes without saying that if respondent no. 2 will find that petitioners are engaged in the business of selling, stocking etc. in this State then the licence under the Act is necessary otherwise not. 8. The other direction as contained in Annexure-5 to the effect that licences under the Act including the stockist shall stop stocking, selling, distributing arid exhibiting for sale the insecticides manufactured by the petitioners is concerned it is to be stated that they are dealing with the insecticides by virtue of valid licence granted to them under the aforesaid Act and as such they cannot be stopped from selling, stocking etc. of the insecticides manufactured by the petitioners. This apart said direction has been given against the stockists and licence holders behind their back. Accordingly, the aforesaid direction in Annexure-5 is wholly illegal and the said direction is quashed.