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BHAGWATI SARAN AND ANOTHER versus THE STATE OF UTTAR PRADESH.

Citation: [1961] 3 S.C.R. 563 · Decided: 20-01-1961 · Supreme Court of India · Bench: BHUVNESHWAR PRASAD SINHA · Disposal: Dismissed

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Judgment (excerpt)

3 S.C.R. 
SUPREME COURT REPORTS 
563 
tribunal has considered all the relevant factors and 
has come "to the conclusion that five months' bonus Standa:.i-;,., โ€ขโ€ข ,. 
would meet the ends of justice. 
We do not see any 
Refining co. of 
reason to interfere with this award. 
India 
In the result both the appeals fail and are dis-
v. 
b h 
Its Worknten 
missed. There will be no order as to costs in 
ot 
the appeals. 
Gajendragadkar ]. 
Appeals dismissed. 
BHAGWATI SARAN AND ANOTHER 
v. 
THE STATE OF UTTAR PRADESH. 
(B. P. SINHA, C.J., s. K. DAS, A. K. SARKAR, 
N. RAJAGOPALA AYYANGAR AND 
J. R. MUDHOLKAR, JJ.) 
Iron a~d Steel Control-Notification fixing maximum prices-
W hether ultra vires-If notification discriminates between "controlled 
stockholders" and" registered stockholders "-Report to Magistrate-
Facts constituting the offence, meaning of-New Point-Iron and 
Steel (Control of Production and Distribution) Order, r94I, Cl. IIยทB 
-Essential Supplies (Temporary Powers) Acl, r946 (XXIX of 
r9~). s. II-Constitution of India, Art. r4. 
A police officer made a report under s. II of the Essential 
Supplies (Temporary Powers) Act, 1946, regarding a contraven-
tion of cl. .n-B(III), Iron and Steel (Control of Production and 
Distribution) Order, 1941, read with s. 8 of the Essential Com-
modities Ordinance, 1955ยท to the Magistrate against the appellants 
who were registered stockholders that they had sold iron bars at 
prices higher than the controlled rate. After enquiry the Magis-
trate framed a charge against the appellant under s. 7, Essential 
Supplies (Temporary Powers) Act โ€ข. 1946, read with cl. ll-B(III) 
of the Control Order. The appellants contended that the charge 
ought to be quashed on the grounds, (i) that the notification of 
the Controller fixing the maximum sale price of the several cate-
gories of iron and steel was ultra vj1es the rule-making power in 
cl. n-B(i) of the Control Order, (ii) that the notification was 
discriminatory and violated Art. 14, and (iii) that the complaint 
could not be taken cognisance of by the Magistrate because the 
report of the police officer did not set out the facts constituting 
the offence as required by s. II of the Act. The first two grounds 
were raised for the first time before the Supreme Court. 
Held, that the notification fixing the rates was intra vires 
cl. n-B(i) of the Control Order. The notification did not omit 
any class mentioned in cl. n-B(i) from its purview; it included 
I96I 
January io. 
I96I 
Bhagwati Sara'lt 
v. 
Stale of 
Uttar Praiesh 
564 
SUPREME COURT REPORTS 
[1961] 
"registered producers" and it was not shown that there were 
any "producers" other than " registered producers" enumerated 
in the notification. The notification governed "registered stock-
holders"' also as they were included in the residuary category of 
persons other than " registered producers " and " controlled 
stockholders ". 
The notification was not discriminatory and did not offend 
Art. 14 of the Constitution. The notification no doubt permitted 
the grant of credit facilities and the right to charge for cutting 
and wastage in sales to "controlled stockholders'" but not 
to "registered stockholders" in regard to sales by them. Differ-
entiation was not per se discrimination. There was no material 
to show that there was any unfair or irrational discrimination 
which could attract Art. 14. 
H ela, further, that the police report on which the prosecu-
tion was launched satisfied the requirements of s. rr of the Act. 
The purpose of s. rr was to eliminate private persons from initi-
ating prosecutions and to confine it to public servants. The 
requirement of the section that the report should be in writing 
and should set out the fact's constituting the offer.ce was to 
ensure that there was a record that the public servant was satis-
fied that a contravention of the law had taken place. If the 
contravention was sufficiently designated in the report the 
requirements of the section were satisfied. Section II did not 
require the mention in the report of details which would be 
necessary to be proved to bring home the guilt to the accused. 
Dr. N. G. Chatterji v. Emperor (1946) 47 Cr. L.J. 876 and 
Rachpal Singh v. Rex (1947) 50 Cr. L.J. 469, not applicable. 
Additional grounds, other than those urged before the High 
Court, would not lJe permitted to be raised before the Supreme 
Court as a matter of course, but only, in exceptional circum-
stances like cas<!s of subsequ

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