LexSTATE OF WEST BENGAL AND OTHERS versus R.K.B.K. LTD. & ANR.
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[2015] 9 S.C.R. 309 STATE OF WEST BENGALAND OTHERS A v. R.K.8.K. LTD. &ANR. (Civil Appeal No.2825 of 2015) SEPTEMBER 04, 2015 [DIPAK MISRA AND PRAFULLA C. PANT, JJ.] West Bengal Kerosene Oil Control Order, 1968: 8 Paragraphs 5, 6, 7 and 9- Competent authority to initiate C disciplinary action in terms of Paragraph 9-Against the agent holding licence for carrying on business of superior kerosene oil - Show Cause Notice issued to the agent by Sub- Divisional Controller, Food and Supplies (SCFS) (who represents the District Magistrate) - Seeking explanation D about the discrepancy found in distribution of superior kerosene oil- Explanation submitted- SCFS forwarded the record to Director of Consumer Goods - Director passed order imposing penalty in exercise of power conferred on him under paragraph 9(ii) - Jurisdiction of Director questioned E by the agent- Held: The power to grant a licence to an agent as per Paragraph 5 is Director and to a dealer as per Paragraph 6 is the Director or the District Magistrate [including the authon"ties mentioned in Paragraph 3(e)]- But F the power to cancel or suspend such licence is given to the Director as well as the District Magistrate (including authon"zed officer) by a composite paragraph- s.21 of General Clauses Act also indicates that issuing authority would exercise the n"ght to cancel or suspend the licence unless the statute G provides to the contrary- Therefore, it would be incongruous to hold that even when the licence of an agent is granted by a superior authority (Director), a District Magistrate in 309 H 310 SUPREME COURT REPORTS [2015] 9 S.C.R. A exercise of concurrent jurisdiction can cancel or suspend that licence - Such an interpretation of Paragraph 9 would be contrary to legislative intent and would lead to absurdity and anomaly- Instead of adopting literal interpretation, a logical and reasonable interpretation, in consonance with the B principles of harmonious construction has to be adopted -A harmonious reading of Paragraphs 5, 6, 7 and 9 leads to the interpretation of Paragraph 9 that it is Director alone who had authority to show cause notice and pass an order in terms of Paragraph 9 - Interpretation of Statutes - Literal C interpretation; Harmonious construction - General Clauses Act, 1897-s. 21. Paragraphs 9 and 10 - Limitation for passing order under Paragraph 9 - Prescribed as 30 days from the date D the show cause notice was issued - The order in question was passed within 30 days but communicated after 30 days - High Court held that passing an order on the file would not tantamount to an order unless communicated; and that the order having not been communicated within 30 days was not E within limitation and hence null and void - On appeal held: An order comes into effect only when it is communicated - The words "date of the order" used in Para 10 has to be given purposive meaning- The expression "date of the order" would F construe the date on which the order comes into effect i.e. the date of its communication to the agent or dealer - Declaring the order as nullity being barred by limitation, would not serve the purpose of the Control Order or Essential CommoditiesAct, 1955. G H Interpretation of Statues - Purposive interpretation - Held: The purpose of any Act or Rule or Order has its own sanctity - While interpreting the same, the text and context have to be kept in mind. Allowing the appeal, the Court STATE OF WEST BENGALAND OTHERS v. R.K.B.K. LTD.311 HELD: 1.1 As the scheme of the Control Order would A reflect, there is a distinction between an "agent" and a "dealer", for the agent is granted licence under paragraph 5 of the Control Order whereas dealer is granted licence under paragraph 6 of the Control Order. Paragraph 7 provides for renewal of licences, licence B fees, etc. The power conferred on the Director and the District Magistrate are different, for the Director is a higher authority and the rule clothes him with more authority. It . is clear from paragraph 5 that the Director alone is authorised to grant a licence to an agent whereas a C dealer's licence can be granted either by the Director or by the District Magistrate. Sub-para 3 of Paragraph 5 of the Control Order is also indicative of the fact that the agent operates at a larger scale than the dealer. Sub- 0 para 2 of Paragraph 6 of the Control Order is differently worded as it postulates that cond
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