THE CHAMBER OF COMMERCE, HAPUR, AND THREE OTHERS versus THE STATE OF UTTAR PRADESH AND TWO OTHERS.

Citation: [1955] 1 S.C.R. 838 · Decided: 18-10-1954 · Supreme Court of India · Bench: MEHR CHAND MAHAJAN

Judgment (excerpt)

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838 
: . "SUPREME COURT REPORTS 
[1955) 
in England ~an argument which· we have already 
·discarded. The argument founded on an assumed 
]tl avinchandt'a legislative practice being thus out of the way, there can 
Mafatla_l 
v. 
be no difficulty in applying its natural and grammatical 
Th• Commission~ meaning to the ordinary English word "income." As 
ofl•come-taz. · already observed, the word should be given it widest 
Bombay c.1y. connotation in ·view of the fact that it occurs in a 
n.,;. 
Iegislativ"e head conferring legislative power. 
' 
For reasons stated above we are of opinion that Act 
XXII of 1947 which amended the Indian Income-tax 
, I 
I954. 
October I8.· 
. Act by enlarging the definition of the term income in 
section 2(6-0) and introducing a new head of income in 
section 6 and inserting the new section 12-B is int·ra 
vires the powers of the Central Legislature acting under 
entry 54 in List I of the Seventh Schedule of the Govern~ 
merit of India Act, 1935. In this view of the matter it 
is unnecessary for. us to consider or express any opinion 
as to the meaning, scope and ambit of entry 55 in that 
List. ·The appeal is accordingly dismis8ed with costs. 
Appeal dismissed. · 
THE CHAMBER OF COMMERCE, HAPUR, AND 
THREE OTHERS 
v. 
THE STATE OF UTTAR PRADESH AND 
T\VO OTHERS. 
[MEHR CHAND MAHAJAN C.J., s. R. DAS, 
GHULA~I HASAN, BHAGWATI and JAGANNADHADAS JJ.] 
Uttar Pradesh Food-grains (Futures and Options Prohibition) 
Order, 1951-Uttar Pradesh Food-grains (Futures and Options 
Prohibition) Order, 1945-Restrictfons on dealings in pulses other 
thangram,....:.1,. both orders-Order o/'1951 partlu declared ultra 
vires by Supreme Court-Not so s. 9 thereof which repealrd Order of 
-1945-Whether Order of 1945 still fo force-Proper procedure for 
' clarification of the matter • . 
Uttar Pradesh Food-grains (Futures and Options Prohibition) 
Order, 1951, made it illegal and a punishable offence for any 
· person to enter into any fntures in pulses other than gram, or to 
pa.y or receive or to agree to pay or receive a.ny margin rel.a.ting to 
such futures. Bys. 9 of that Order the Order of 1945·conlaining . 
similar provisions was repealed. An application qnd~r Art. S2 of 
• 
s.c.R. 
SUPREl\IE COURT REPORTS 
839 
the Constitution presented by several persons (including the 
z954 
present petitioners) for the enforcement of their fundamental right 
under Art. 19(l)(g) of the Constitution to carry on their business The Chamber of 
and restraining the State from enforcing the Order of 1951 in so Commerce,Hapur. 
far as it related to· pulses other than gram and for a declaration and three Others 
that s. 2(o) of the Order read with items 6, 7, 8 and 9 of the 
v. 
schedule thereto was illegal and ultra vire1 the State Government 
The State of 
succeeded in the Supreme Court and . the State of Uttar Pradesh Uttar Pradesh 
was directed by the Supreme Court by its judgment dated the 15th. and two Others 
1Iay, 1952, to abstain from giving effect to it. 
On the 10th June, l953, a lett~r (Exhi.bit B to th~ petition) 
was addressed by the Deputy Commissioner, Food, Uttar Pradesh, 
to all Regional Food Controllers and Deputy Food Controllsrs and 
all District Magistrates in Uttar Pradesh instructing them to 
regard all futures in foodgrains mentioned in the Schedule to the 
1945 Order including pulses other than gram as punishable. ·· -
It was contended on behalf ~f the State (i) .that section 3 of 1946 
Act which reproduced s. 3 of the 1946 Ordinance conferred on the 
Central Goverllment ! extensiTe powers to· control production,- -
supply. distribution of and trade and commerce-· in 0ssentia1 
commodities and this power was delegated by the Central Govern'. 
ment to the Provincial Government by notification dated 21st 
October, 1946, under s. 4 of the 1946 Ordinance. ·The subsequent 
amendments made by two Notifications dated 5th March, 1947, 
and dated 15th November, 1947, withdrew the power so delegated 
only with respect to "edible oils and oil seeds and pulses other than 
gram" and such withdrawal was only with regard to production, 
snpply, and distribution ol those commodities but was not with 
regard to trade and commerce therein; (ii) that the Order of 1951 
having been declared ultra "ires, the Order of 1945 which was 
continued bys. 5 of the Ordinance of 1946 and then by s.·17 of 
the Act of 1946 was still in force. 
.. 
Held, (repelling the contentions) (i) that as the Order of i945 
... 
I 
I 

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