STATE OF ANDHRA PRADESH & ANR. versus POTTA SANYASI RAO & ORS.

Citation: [1976] 1 S.C.R. 423 · Decided: 26-08-1975 · Supreme Court of India · Bench: A. ALAGIRISWAMI · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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423 
STATE OF ANDHRA PRADESH & ANR. 
v. 
POTTA SANYASI RAO & ORS. 
August 26, 1975 
[A. ALAGHZ!SWAMI, P. K. GO'SWAMI A'<D N. L. U'.'iTWALIA, JJ.J 
E"ssential C'on11noditics Act, 1955, Ss. 2(a) (xi) and 5~Deiegatio11 to S1ate 
C.iovernmenr po\l'er to 1nake Orders-Declaration of co111n10Jity as 
essential 
thercafter~State Goi:enunent, if can exercise delegated power H'irh respect 10 
.l"lu:h co'n1n1odity. 
In June, 1966_, the Central Governm·~nt, in exercise of the power-;. conferred 
by s.5 of the Essential Commodities Act, 1955. delegated its power to make 
Orders to the State Governments with respect to certain matters specified in 
s.3 ( 2} in re1ation to all_ essential commodities other than certain specified com-
modities. Tyres. and Tubes were not essential comn1odities under s.2(a) (i) to 
(x), nor were they declared to be essential commodities by the Central Govern_ 
n1ent under s.2(a)(xi) at the time of the delegation; but, subsequent to the 
delegation of the power to the State Governments, certain types of tyres and 
tubes were declared to be essential commodities under s.2(a) (xi). 
!n exercise of the delegated power the State of Andhra Pradesh i~uc<l the 
Andhra Pradesh Tyres and Tubes Dealers' Licensing O·rder, 1973. The respon-
dents, who are aealers in tyres and tubes, challenged the validity of the Order 
on the ground that the· State Government had no power to issue an Or<.kr with 
regard to tyres and tubes which were declared by the Central Government to be 
essential commodities after the delegation of powers to the State GoYernment. 
The High Court struck down the Order. 
Allowing the appeal to this CDnrt. 
HELD: There is nothing: in s.5 to limit the power of delegation in favour 
of the State Government only to the commodities specified in s.2(a)(i) to (x) 
or to those commodities declared essential under s.2(a)(xi) up to the date of 
delegation. 
Delegation under s.5 is a general delegation and will enure 
in 
favour of exercise of power by the State Government with respect to commodi-
tie5 declared essential by the Central Government from time to time under 
s.2(a) (xi) even subsequent to the delegation. 
Tt is not necessary that every 
time the Central Government declares an essential commodity, it has Lilso to 
pass an order of delegation with regard to that commodity. 
It will be sufficient 
in Jaw if on the date the State Government. duly empowered under s.5, nlakes 
notification Under s.3 with regard to an es-sential commodity within the meaning 
of s.2(a) including the residuary cl. (xi) thereof. 
(4250-GJ 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 14-08 of 1974. 
Appeal by special leave from the Judgment and order dated the 
27th December, 1973 of the Andhra Pradesh High Court at Hyderabad 
m Writ Petition No. 7413173. 
R. Ram Reddy and P. P. Rao, for the appellant. 
Govind Das and Girish Chandra, for the respondent. 
The Judgment of the Court was delivered hy 
. 
GoswAMI, J.-This appeal by special leave is directed against the 
.1udgment of the Andhra Pradesh High Court whereby the 
Andhra 
Pi:ades~ Tyres and Tubes Dealers' Licensing Order 1973 (briefly the 
L1censmg Order) was struck down as illegal and ultra vires. 
· 
424 
SUPRE11E COCRT REPORTS 
[1976] ] S.C.R. 
A few facts which are material may first be noted. 
By Notification s.o. 1844 dated June 18, 1966, 
the 
Central 
Government in exercise of the powers conferred by section 5 of th<': 
Essential Commodities Act, 1955 (bridly the Act) directed "t~at the 
powers coferred on it by sub-section (I) of section 3 of the said Act 
to make orders to provide for the matters specified in clauses 
(dJ, 
(c), (f), (g), (h), (i), (ii) and (j) of sub-section (2) thereof. ~hall 
in relation to all cununodities other than foodstuffs and fertilise.rs 
(whether inorganic, organic or mixed), be exercisable also by a State 
Government, or in relation to a Union Territory, by the administrator 
thereof. subject to the following conditions .... " 
Section 2 (a) of the Act defines 
"essential 
commodity" 
which 
means ten specified commodities and the residuary clause (xi) there-
of refers to-
"any other class of commodity which the Central Govern-
ment may, by notified order, declare to be 
an 
essential 
commodity for the purposes of this Act, being a commodity 
with respect to which Parliament has power to make laws 
by virtue of entry 33 in List JU in the Seventh Schedule 
to the Constitution". 
Tvres a11d tu
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