STATE OF U.P. AND ORS. versus M/S. CHHABRA BRICKS AND TILES MFG. CO.

Citation: [1999] SUPP. 5 S.C.R. 190 · Decided: 08-12-1999 · Supreme Court of India · Bench: S.P. BHARUCHA, D.P. WADHWA, N. SANTOSH HEGDE · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
STATE OF U.P. AND ORS. 
v. 
MIS. CHHABRA BRICKS AND TILES MFG. CO. 
DECEMBER 8, 1999 
B 
[S.P. BHARUCHA, D.P. WADHWA AND N. SANTOSH HEGDE, JJ.] 
U.P. Coal Control Order, 1977: 
C 
Paragraphs 5(b), 8(i) (B), 8(iv), 12, Form-D-Validity of-Applicability 
of the Coal Control Order to brick kilns using slack coal-Held, coal being 
an essential commodity, the State Government is entitled to regulate its use-
To tl}at extent it is entitled to regulate its use in brick kilns ahd require those 
who run brick kilns using coal to obtain licences under the Order-That 
power, however, does not extend to the control in any manner of the bricks 
D so produced-Provisions of the Order which control not the coal but the 
brickslare to be struck down-Sub-para (iv) of Paragraph 8 and the Note 
thereto deals, except in clause (a) thereof, entirely with the bricks and to that 
extent it is struck down-Paragraph 12 in so far as it applies to the export 
, of bricks is also quashed-In regard to para 5(b) and para 8(i) (B) it is made 
clear that no condition may be specified or direction issued that relates to 
E the sales and distribution of bricks-In so far as licence in Form-D is 
concerned, the condition that requires a licensee to comply with general or 
special directions issued in regard to the disposal or sale of any stock of 
bricks is quashed-Essential Commodities Act. 1955-S.3. 
F 
State of U.P. & Ors. v. Janta In. Udyog & Ors., (1991] Supp. 2 SCC 506, 
disapproved. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 173 of 1989. 
From the Judgment and Order dated 9.2.1988 of High Court of Allahabad 
G in Civil Misc. Writ Petition No. 2886 of 1985. 
H 
A.K. Goel, Addi. Adv. General U.P., Saurabh Samsher, Kamalendiu Misra 
R.B. Misra, Lakshmi Raman Singh and Amitesh Kumar for the appearing. 
parties. 
190 
ST ATE v. CHHABRA BRICKS AND TILES MFG. CO. 
191 
The following Order of the Court was delivered : 
A 
.. 
The appeal has been referred to a Bench of three Judges because the 
two learned Judges who earlier-heard it were of the opinion that the decision 
of this Court in State of V.P. and Ors. v. Janta In. Udyog and Ors., [1991), 
Supp 2 SCC 506, required reconsideration. 
B 
Under appeal is the order of a Division of the High Court at Allahabad 
which, following an earlier judgment of the High Court, quashed the provisions 
..... 
of the U.P. Coal Control Order, 1977 insofar as it applied to persons 
manufacturing bricks with the aid of slack coal and to brick kilns run by them 
for such manufacture of bricks. The order was passed on writ petitions filed c 
by the manufacturers of bricks who used slack coal in their brick kilns. 
The U.P. Coal Control Order ("the said Order'') was issued in exercise 
of powers conferred by section 3 of the Essential Commodities Act, 1955. It 
defined 'bricks' to mean bricks or tiles produced with the aid of slack coal 
but did not include firebricks or refractory bricks and tiles. A 'brick kiln' meant D 
any kiln in which bricks were manufactured with the aid of coal and the 
premises appurtenant thereto. Paragra!Jh 4 of the said Order dealt with licensing 
thereunder; it said that no person could import coal or carry on business as 
a coal agent or coal depot-holder or run a brick kiln with coal except under 
and in accordance with the terms and conditions of a licence issued under E· 
the said Order. Paragraph 5 dealt with the issue of licences and sub-paragraph 
(b) thereof said that every licence granted or renewed under the said Order, 
inter alia, in Form D for running a brick kiln with slack coal would be subject 
to the conditions specified therein and such other conditions as the State 
Coal Controller or District Magistrate might prescribe from time to time. 
Paragraph 8 of the said Order dealt with directions regarding import, purchase, F 
sale, storage and distributions; it required the licensee of a brick kiln under 
the said Order to comply with any direction that might be issued to him from 
time to time by the State Coal Controller or the District Magistrate, inter alia 
in respect of the sale and distribution of bricks. Sub-para (iv) of paragraph 
8 and the Note thereunder read thus : 
G 
"(iv) A licensee in Form 'D' or a person running a brick kiln with coal-
(a) 
shall not utilise or cause to be utilised coal allotted to him or in 
stock with him for a purpose other than burning bricks and shall 
, ' 
not divert or transfer any such coal to any other person or any 
other brick

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