Kerala High Court
A.Murali vs Union Of India on 16 October, 2018
Author: Anu Sivaraman
Bench: Anu Sivaraman
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN
TUESDAY ,THE 16TH DAY OF OCTOBER 2018 / 24TH ASWINA, 1940
WP(C).No. 26740 of 2018
PETITIONER/S:
1 A.MURALI
AGED 47, S/O. ANDAVAR K., 419,SURULI ROAD,
SURULIPATTI, THENI DISTRICT, TAMIL NADU.
2 ABRAHAM
AGED 62, S/O. CHERIAN, THAGADIPURATHU
HOUSE,VALLARAMKUNNU P.O., PATHUMURI, KUMULI
VIA,PEERMEDU TALUK, IDUKKI DISTRICT.
3 G.BIBINNATH
AGED 47, S/O. C.N.GOPINATH,MADHUBHAVAN,
PATHUMURI,VELLARAMKUNNU P.O., PIN - 685 535.
4 CHERIAN T.J
AGED 62, S/O. JOSEPH, THAGADIPURATHU
HOUSE,VALLARKUNNU P.O., PATHUMURI,KUMULI VIA,
PEERMEDU TALUK,IDUKKI DISTRICT.
5 C.MAHANDRAN
AGED 46, S/O. CHINAYA GOWNDER,24/15W, KRISHNASAMY
STREET,MELAGADALOOR, THENI DISTRICT,TAMIL NADU.
6 S.THANGARAJ
AGED 68, S/O. SIKKAYA GOWNDER,4/14W, WATER TANK
STREET,MELAGADALOOR, THENI DISTRICT,TAMIL NADU.
BY ADVS.
SRI.SANTHOSH MATHEW
SMT.KARTHIKA MARIA
SMT.MARIA ROY
SMT.VEENA RAVEENDRAN
SRI.ANIL SEBASTIAN PULICKEL
SRI.ARUN THOMAS
SRI.JENNIS STEPHEN
SRI.VIJAY V. PAUL
WP(C).26740/18 2
RESPONDENT/S:
1 UNION OF INDIA
REPRESENTED BY SECRETARY TO GOVERNMENT,DEPRTMENT OF
COMMERCE AND INDUSTRY,NEW DELHI - 110 001.
2 SPICES BOARD
SUGANDHA BHAVAN, N.H.BY-PASS,P.B.NO.2277,
PALARIVATTOM P.O.,COCHIN - 682 025, REPRESENTED BY
ITS SECRETARY.
3 THE CHAIRMAN
SPICES BOARD, SUGANDHA BHAVAN,N.H.BY-PASS,
P.B.NO.2277,PALARIVATTOM P.O., COCHIN - 682 025.
4 SECRETARY
SPICES BOARD, SUGANDHA BHAVAN,N.H.BY-PASS,
P.B.NO.2277,PALARIVATTOM P.O., COCHIN - 682 025.
5 MS. SPICES MORE TRADING COMPANY
KP XIV-11, VETTATHARA BUILDING,MUNNAR ROAD, KUMILY -
685 509,REPRESENTED BY IT'S MANAGING DIRECTOR.
6 MS. THE STATE TRADING CORPORATION OF INDIA LIMITED
K.S.H.B OFFICE COMPLEX, 4TH FLOOR,PANAMPILLY NAGAR,
KOCHI - 682 036,REPRESENTED BY IT'S MANAGING
DIRECTOR.
7 MS. GREEN CARDAMOM TRADING COMPANY
32-W/45-1, RAILWAY STATION ROAD,BODINAYAKANUR, THENI
(DISTRICT),TAMILNADU - 625513, REPRESENTED BY IT'S
MANAGING DIRECTOR.
BY ADVS.
SMT.C.G.PREETHA, CGC
SMT.K.RADHAMANI AMMA, SC, SPICES BOARD
SMT.C.G.PREETHA CGC
SMT.K.RADHAMANI AMMA, SC, SPICES BOARD
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
26.9.2018, THE COURT ON 16.10.2018 DELIVERED THE FOLLOWING:
WP(C).26740/18 3
ANU SIVARAMAN, J.
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W.P(C).No. 26740 of 2018
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Dated this the 16th day of October, 2018
JUDGMENT
This writ petition is filed by cardamom planters seeking a declaration that the Secretary of the Spices Board does not have authority to grant new auctioneers licence in the absence of the Spices Board. A declaration is also sought that the fresh auctioneer licences granted by the 4th respondent after the amendment to the Spices Board Rules, 1987, (for short, 'the Rules') by Exhibit P4 are bad in law. It is stated that the 2nd respondent Spices Board was constituted on 26.2.1987 under the Spices Board Act, 1986 (for short, 'the Act'). It is stated that every cardamom auctioneer is liable to obtain a licence in terms of Rule 3 of the Cardamom (Licensing and Marketing) Rules, 1987.
2. Rule 3 of the said Rules reads as under:
"3. Conditions to carry on business in cardamom, - (1) No person shall carry on business as auctioneer or dealer of cardamom except under and in accordance with the terms and conditions of a licence issued under these rules and such other instructions as may be issued, from time to time, by the Board for the development of the cardamom industry.
(2) No producers of cardamom shall sell his produce otherwise than through a licensed auctioneer or to a dealer licensed to purchase cardamom from producers.
Provided that the Board may, if it is necessary to route all cardamom through auctions, require producers to sell their produce WP(C).26740/18 4 to the licensed dealers through auctions alone."
3. It is stated that the Rules have been amended from time to time and Exhibits P1 to P3 are the amendments. It is stated that Section 7(vii) of Act empowers the Board to issue licences subject to such terms and conditions as may be prescribed. Section 7(2)(vii) of the Act also provides that the Board may register and licence brokers (including auctioneers) and persons engaged in the business of cardamom. It is stated that the Secretary is only an officer of the Board and has no power whatsoever to exercise the powers of the Board. The Rules provide for formation of committees to which certain functions including registration of traders and exporters and monitoring of auctions of spices may be delegated. It is therefore contended that every action relating to cardamom, including licensing and registration of auctioneers is to be done by the Spices Board and the committee constituted under the Rules.
4. It is stated that Rule 14 of the Rules enumerates the powers of the Chairman and Rule 14B provides for the powers and duties of the Secretary. It is stated that the emergency power to take a decision in respect of matters that cannot wait disposal by the Board or a committee, as the case may be, is relied upon by the 4 th respondent to indiscriminately issue licences to auctioneers without any manner of power. It is stated that the power of the Secretary is confined to taking a decision in emergency matters and placing it for sanction before the next Board or committee and in a case where there is no Board or committee WP(C).26740/18 5 available, the emergency power is also non existent.
5. The learned Standing Counsel for the Spices Board would submit that the power of the Secretary to take appropriate action with regard to licensing of auctioneers and traders is an emergency power in terms of Rule 14B of the Rules. It is stated that in the absence of a Board, in case such emergency powers are not provided, the entire functioning of the functions including conduct of auctions would come to a standstill. It is stated that it is precisely in situations where the Board is not available or is unable to meet that the emergency power of the Secretary is contemplated. It is stated that the applications for renewal of licences submitted by the existing auctioneers have also been considered and ordered by the Secretary exercising the emergency powers and the decisions taken by the Secretary shall be placed before the Spices Board as soon as it is available. It is stated that the procedure for renewal of licences and for issuance of fresh licences are identical in nature and that in case such power is not exercised by the Secretary, the entire functioning of the Board would come to a standstill.
6. The learned counsel appearing for the 7 th respondent would submit that the petitioners who claim to be planters, cannot have any grievance against grant of auctioneer licences to the 7 th respondent, who was otherwise entitled to the same. It is stated that grant renewal of auctioneer licences are matters which require urgent orders and it is in WP(C).26740/18 6 such circumstances that the emergency powers have been specifically made available to the Secretary to pass orders on such applications. It is contended that existence of the power under Rule 14B of the Rules being an admitted fact, the petitioners cannot challenge the grant of licence to the 7th respondent. It is further contended that apart from question of lack of jurisdiction raised in the writ petition, there is absolutely no whisper as to any ineligibility of 7th respondent in the matter of grant of lcence.
7. On considering the rival contentions, I find that there is an emergency power conferred on the Secretary of the Spices Board to issue orders and seek ratification from the Board, if the situation warrants so. The auction of cardamom conducted in terms of the Cardamom (Licensing & Marketing) Rules, 1987 is admittedly a crucial function which cannot await the formation of the Board. The lack of a duly constituted Board and its committees is clearly a situation which warrants exercise of the emergency power by the Secretary. The grant of new licences as well as renewal of licences of existing auctioneers obviously cannot await the constitution of the Board, since cardamom auctions have to be carried on in terms of the Rules. I am therefore of the opinion that the contention that the Secretary is incompetent to grant any licences in the absence of the Board cannot be accepted. However, it is made clear that all the orders of the Secretary issued in terms of Rule 14B of the Rules would be liable for ratification by the Board or the WP(C).26740/18 7 committee as the case may be as and when the same is available. In the above view of the matter, I am of the opinion that the prayers sought for in the writ petition cannot be granted. The writ petition fails and the same is accordingly dismissed.
Sd/-
ANU SIVARAMAN JUDGE vgs WP(C).26740/18 8 APPENDIX PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE CARDAMOM (LICENSING AND MARKETING) RULES, 1987.
EXHIBIT P2 TRUE COPY OF CARDAMOM (LICENSING AND MARKETING) AMENDMENT RULES, 204.
EXHIBIT P3 TRUE COPY OF THE CARDAMOM (LICENSING AND MARKETING) AMENDMENT RULES, 2018.
EXHIBIT P4 TRUE COPY OF THE SPICES BOARD (AMENDMENT) RULES, 2018.
EXHIBIT P5 TRUE COPY OF THE REPRESENTATION DATED 20.6.2018 SUBMITTED BY THE PETITIONERS BEFORE THE 3RD RESPONDENT.
EXHIBIT P6 TRUE COPY OF THE E-MAIL DATED 18.06.2018 AS PRODUCED BY THE 7TH RESPONDENT IN WPC NO.
23925/2018.
EXHIBIT P7 TRUE COPY OF THE PRINTOUT TAKEN FROM THE WEBSITE OF THE SPICES BOARD WHICH DETAILS THE AUCTIONEERS WHO CONDUCTED AUCTIONS FROM FEBRUARY, 2018.