The State of Bihar and Others vs Dinanath Prasad and Others

Heard learned counsel for the appellants, learned counsel for the State and perused the order under appeal. The writ petition filed by the private respondents was allowed by the writ court on its finding that cancellation of certificates of registration as wholesale dealer and as retail dealer granted to the writ petitioners under the Fertilizer (Control) Order, 1985 was against the provisions in the Control Order. The writ court has found that the cancellation order was passed upon a policy decision of the State Government that one person could not be permitted to hold registration as a wholesale dealer and as a retail dealer. It has further found that such policy decision is in the teeth of Statutory Fertilizer Control Order of the Central Government.

On going through the provisions in the Fertilizer Control Order, we find that the writ court was correct in its approach because by the policy decision, the State Government has attempted to alter the grounds of cancellation of such registration, as provided in the Control Order issued by the Central Government under statutory provisions of Section 3 of the Essential Commodities Act.

Learned counsel for the appellants has submitted that the policy decision was to achieve the Directive Principles of State Policy embodied in the Constitution of India and since they had the backing of the same hence such policy decision should be permitted to prevail over the statutory provisions of the Fertilizer Control Order. We find no merit in this appeal. It is accordingly dismissed.