TATA ENGINEERING AND LOCOMOTIVE CO. LTD. versus THE STATE OF BIHAR AND ANR.

Citation: [2000] 3 S.C.R. 219 · Decided: 24-04-2000 · Supreme Court of India · Bench: V.N. KHARE · Disposal: Dismissed

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Judgment (excerpt)

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TATA ENGINEERING AND LOCOMOTIVE CO. LTD. 
A 
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v. 
THE STATE OF BIHAR AND ANR. 
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APRIL 24, 2000 
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[V.N. KHARE AND DORAISWAMY RAJU, JJ.] 
B 
., 
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Bihar Saw Mills (Regulation) Act, 1990-'-Pre.q,_mble, Sections 2(g}, 2(h}, 
2(i), 5, 9, JO and 25-Bihar Saw Mills (Regulation) Rules, 1993-Regulation 
7-Sawing License for-Liability to obtain-Of the company engaged in 
sawing activities-Claim-That sawing activity was ancillary and incidental c 
to the main business-Plea, that it is not liable, since the sawing activities of 
the company are not in course of trade as such-Held, the law is·confined not 
only to the trade of sawing but also for regulation of the protection and 
conservation of forest and environment-The definition of-'Sawing' ropes in 
all kinds of activities connected with the use and consumption of wood-
D 
Hence, liable. 
Interpretation of Statutes-General words and collocation of phrases to 
be interpretedfrom the context and scheme underlying the text of the statute-
Bihar Saw Mills (Regulation) Act, 1990. 
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The appellant engaged in the business of manufacturing and selling 
automobiles of various types, used to purchase timber from registered 
dealers and used in their saw mills, located in their factories, in order to 
_,. -. 
make articles and components made of wood to be used in the main 
business. 
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On inspection it was found that the appellant was running saw mills 
within its premises, without obtaining any license under Saw Mills Act, nor 
had it obtained license under Forest Act for transfer of timber. The re-
....; 
spondent, vide a notice to the appellant asked it to obtain license under the 
Act. 
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)... 
Appellant challenged the notice in High Court by filing a Writ Peti-
ti on, contending that they were not liable under the Act to take license or to· 
pay license fee as they were not carrying on any trade in timber as suclt or 
the activities of saw trading. High Court rejecting the contention of the 
appellant, held that admitted nature of the activities of the appellant were 
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219 
220 
SUPREME COURT REPORTS 
[2000] 3 S.C.R. 
A 
sufficient to attract the provisions of the Act; and the definitions contained 
..lit. .... 
in the Act of 'saw mill', 'saw pit' and 'sawing' are of sufficient amplitude to 
cover the activities of the appellant. 
In appeal to this Court, it was contended by the appellant that the 
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existence of 'saw mills' or 'saw pits' or the mere activity of 'sawing' by 
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themselves are not sufficient to attract the provisions of the Act and the 
Rules made thereunder as the activities of the appellant in the timber were 
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only ancillary and incidental to their main business; that it is necessary to 
find out the object and reason as well as the reach of the statutory provi-
sions. The respondent contended that the Act is applicable to the appel-
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lants; that the object and reason as well as the reach of the provisions is not 
only to regulate 'The Trade of Sawing' but also the establishment and 
operation of saw mills and saw pits and for the protection and conservation 
of the forests and environment in the State, in public interest; and that the 
provisions of the Act were deliberately couched in the widest possible 
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language to regulate and control, for the protection and conservation of the 
forests and environment and viewed iri the context of the mischief sought to 
be prevented. 
Dismissing the appeal, this Court 
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HELD : 1.1. The assumption to confine or restrict and construe the 
law in question to be one made to regulate the trade of sawing is contrary to 
the very Preamble which reads. "To make provisions for regulating in the 
public interest the establishment and operation of saw mills and saw pits 
,.. 
and trade of sawing for the protection and conservation of forest and the 
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environment''. [228-F -G] 
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1.2. The words 'business of saw mill or saw pit' used in relation to 
submission of returns have to be construed in its generic sense of calling, 
occupation and pursuit and not restrict the same to the use of words ir. a 
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commercial sense or trade parlance. The object underlying Sections 9 and 
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10 seem to be to trace the origin or identity as well as the source of timber/ 
wood and keep track of the transit/movement of the wood utilised to 
prevent and effectively check ultimately indiscriminate and illicit felling of 
..... 
trees resulting in deforestation. Apparently conscious of the nature of evil 
to be c

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