DISTRICT COLLECTOR CHITTOOR & ORS. versus CHITTOOR DISTRICT GROUNDNUT TRADERS ASSOCIATION & ORS. ETC. ETC.

Citation: [1989] 1 S.C.R. 243 · Decided: 18-01-1989 · Supreme Court of India · Bench: K.N. SINGH · Disposal: Dismissed

Judgment (excerpt)

DISTRICT COLLECTOR CHITI'OOR & ORS. 
v. 
CHITI'OOR DISTRICT GROUNDNUT TRADERS 
ASSOCIATION & ORS. ETC. ETC. 
JANUARY 18, 1989 
[K.N. SINGH AND L.M. SHARMA, JJ.] 
A 
B 
Andhra Pradesh Scheduled Commodities Dealers (Licensing and 
Distribution) Order 1982: Clauses 3 and 12-State Government Cir-
cuiar Order dated June 21, 1985-Restrictions imposed on transport of 
groundnut oil seeds and oil-Compulsory levy requiring millers and C 
traders to supply oil to State Government at a fixed price--"Held ultra 
vires; illegal and invalid-Jn excess of power under section 3( 1) of 
Essential Commodities Act 1955-No prior concurrence under section 
3(2)(f) of 1955 Act obtained. 
Essential Commodities Act 1955: Section 3(1) and 3(2)(f) and· D 
I Central Government Notification GSR 800 dated June 9, 1978-
Validity of Andhra Pradesh Scheduled Commodities Dealers ( Licens-
ing and Distribution) Order 1982-State Government not authorised to 
place restrictions on movement of groundnut oil and seedS and subject· 
traders to compulsory levy-Object of obtaining prior concurrence of 
Central G_overnment-Exp/ained. 
E 
Administrative Law: Delegation of power-Delegate not entitled 
to exercise powers in excess or in contravention of delegated powers. 
The Essential Commodities Act, 1955 is a Central Enactment pro· 
viding for the control of the production, supply and distribution, trade F 
and commerce in certain specified essential commodities. Section 3 ·of 
the Act confers power on the Central Government to provide for 
regulating or prohibiting the production, supply and distribution 
thereof and trade and commerce therein, if it is of the opinion that it is 
necessary or expedient so to do for maintaining or increasing supply of 
any essential commodities or of securing their equal distribution and G 
availability on fair price. 
The Central Government issued the Notification No. CSR 800 
dated June 9, 1978 delegating its powers under section 3(1) of the Act to 
the State Governments to make orders iii respect of the matters 
specified in the various sub-clauses of sub-seciiiin (2) iif sedion 3 in 
H 
243 
A 
B 
c 
D 
244 
SUPREME COURT REPORTS 
[19891 1 S.C.R. 
relation to foodstuffs subject to cerll!in conditions specified therein. By 
clause (2) of the Notification the Central Government while delegating 
its powers under section 3 to the State Government for issuing orders in 
respect of matters specified therein, expressly placed restriction on the 
State Government relating to any matters specified in clauses (a), (c), 
( d) and (f) of sub-section (2) of section 3 to the extent that while making 
an order pertaining to any of the matters specified in the said clauses, 
the State Government shall obtain prior concurrence of the Central 
Government. 
The State Government of Andhra Pradesh in exercise of its 
powers under section 3(1) of the Act as delegated to it by the Notifica-
tion GSR 800 dated June 9, 1978 made the Andhra Pradesh Scheduled 
Commodities Dealers (Licensing and Distribution) Order, 1982 after 
obtaining prior concurrence of the Central Government. This order 
sought to regulate the sale and purchase of scheduled commodities as 
specified in schedule I to the Order. Edible oil seeds and edible oil were 
included in the said Schedule. 
The State Government issued a circular order dated June 21, 
1985, containing directions regulating the transport and export of 
groundnut seeds and oil outside the State. 
The oil millers and traders were permitted to export oil and 
E 
groundnut seeds only on the condition that they deliver oil to the State 
Government at a fixed price in proportion of one tonne of oil for every 
three tonnes to be transported outside the State. Similar conditions 
were imposed in respect of groundnut seeds. The oil millers and traders 
were required to execute undertaking for complying with the directions 
issued by the State Government. 
F 
The respondents who were oil millers and traders carrying on 
business in the sale and purchase of groundnut seed and groundnut oil 
which is edible challenged the validity of the 1982 Order and the 1985 
Circular in writ petitions to the High Court. A Single Judge quashed 
the order of the State Government on the findings that the directions 
G 
contained therein violated Articles 19(l)(g) and 301. On appeal by the 
State Government a Division Bench held that the order of the govern-
ment was violative of section 3(2)(f), section 3(31-B) and section 3(5) of 
t

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