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Supreme Court of India

NAGAMMAI COTTON MILLS ETC.versusASSTI. DIRECTOR, REGIONAL OFFICE OF THE TEXTILES COMMISSIONER, MINISTRY OF TEXTILES ETC.

Citation
1996 INSC 445
Decided
25 March 1996
Disposal
Appeal(s) allowed

Holding

The waiver of past liability for the period April 1 1993‑March 31 1995 per the concession also extends to the earlier period April 1 1990‑September 30 1992.

Summary

The appeal concerned Nagammayi Cotton Mills' liability under the Essential Commodities Act, 1955 and the Textile (Control) Order, 1986/1993 regarding the mandatory production of hank yarn. The petitioner sought to have past liability waived for the periods April 1 1993‑March 31 1995 and April 1 1990‑September 30 1992, relying on a concession by the Additional Solicitor General that compliance with a later notification (dated March 20 1995) would preclude any past liability. The Union of India filed a review petition against a prior order, which was dismissed. The Supreme Court held that the principle of waiving liability for the 1993‑1995 period necessarily extends to the earlier 1990‑1992 period. Consequently, all the appeals were allowed, the earlier orders were quashed, and no costs were awarded, though the Government may take steps for any future liability.

Issues considered

  • Whether the concession granting waiver of past liability for the period April 1 1993‑March 31 1995 also applies to the earlier period April 1 1990‑September 30 1992.
  • Interpretation of the Essential Commodities Act, 1955 and the Textile (Control) Order, 1986/1993 in relation to manufacturers' obligations.
  • Effect of a review petition dismissal on the present appeal.

Legislation cited

Subjects

Essential Commodities ActTextile (Control) OrderLiability waiverHank yarnConcessionReview petitionSupreme Court appeal

Judgment

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A                       NAGAMMAI COTTON MILLS ETC.
                                           v.
        ASSTI. DIRECTOR, REGIONAL OFFICE OF THE TEXTILES
            COMMISSIONER, MINISTRY OF TEXTILES ETC.

                                  MARCH 25, 1996
B
                  [K. RAMASWAMY AND G.B. PATIANAIK, JJ.]

             Essential Commodities Act, 1955 :

C          Textile (Control) Order, 1986/Textile (Developmeni and Regulation)
     Order 1993-Notification dated 29.5.1993---Manufacturers of hank
     yanr-Obligation 011 to produce the yam-Held, when the past liability was
     sought to be wiped out for the period from April 1, 1993 to March 31, 1995,
     the same pri11ciple per force would apply to the previous period from April 1,
D    1990 to Sept~mber 30, 1992.

             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6774 of
     1996.

             From the Judgment and order date_d 23.12.94 of the Madras High
E Court in W.P. No. 17988 of 1994.                                                    ·

          C.S. Vaidyanathan, K.V. Viswanathan, K. V. Venkataraman, Sri
     Vijayanarayan for thii Appellants.

             AK. Srivastava· and B.K. Prasad for the Respondents.
F
             The following Order of the Court was delivered :

             Delay condoned.

             Leave granted .
.G           We have heard learned counsel on both. sides.

        When the matter had come up in the first instance before. another
  Bench·in S.L.P. (C) No. 6611/95, pursuant to the concession made by the
  learned Additional Solicitor General, by order dated September 25, 1995
H this Court passed the order as under :
                                    882
               NAGAMMAI COITON MILLS"· ASST. DIRECTOR, REG. OFFICE OF THE 1EXTILES COMMR        883

                         In view of the statemenf made by learned '.Additional Solicitor 'A
'                        General that if the current obligation pursuant to the Notification
                         dated March 20, 1995.is carried ·out by the petitioner, the respon-
                         dents will not hold them liable for any past liability, the petitioner
                         does not intend to press the SLP which is accordingly disposed of
                         as withdrawn. The learned counsel for the petitioner has submitted · ,
                         that the petitioner has not raisedany   obje~ti~n t~ it; prospective 'B
                         liability under the said Notification dated March 20, 1995".
                                                                                   '•
                   Subsequently, the appellants claimed the same relief. In view of the
           liability which sought to be avoided by the appellants, the Union of India
           had filed a Review Petition before the Bench which came to be dismissed C
           by order dated March 13, 1996. Since the same question is involved in.these
           cases, the same order should equally follow. The learned counsel for the
         • Union of lridia seeks to contend that the 'concession relates to the period
           from April 1, 1993 to March 31, 1995. The liability ~ow sought to be wiped
           out .relates in addition to the above it .·also relates to th_e period from April
           1, 1990 to September ·30, 1992. He sought to make that distinction and D
           contends that the matter involves f~rther inve~tigation.We do not fi'nd any
          ·force in the submission made _by .the 'le.arned counsel.. When the past
           liability was sought t<i be wiped out for the period from April 1, 1993 to
          :March 31, 1995, the same principle per force would apply to the previous
           period fro~ April 1, 1990 to September 30, .1992:- ·                              E
                                                                                           ,,
                Under. those circmµstances, all the appeals are allowed and the
          orders are quashed as prayed:for. However, the oroer of.this Court does
          not preclude the Government to take such appropriate steps as are open
                                       0




    c+    to them. under. law for any future liability. No costs.
                                                                                                      F
          RP:                                                         ·Appeals are allowed.



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