Haryana Wax Manufacturers ... vs Union Of India And Ors.
1997 Latest Caselaw 207 Del

JUDGMENT

C.M. Nayar, J.

(1) The present petition is directed against the respondents to allocate and supply Paraffin Wax Type-111 to the State of Haryana equitably on the basis of the demand of the State on regular basis for onward distribution to the manufacturers who reside and work for gain in the State of Haryana. Petitioner No. I, it is contended, is an Association of Wax Manufacturers of the State of Haryana of which petitioner No. 2 is a member. The said petitioner has its factory in District Bhiwani, Haryana and require Paraffin Wax Type-111 which is prepared by the oil refineries in India and is distributed by Indian Oil Corporation Ltd., respondent No. 2 under the directions of the Central Government.

(2) The petitioners have further contended that respondent No. 1 is not following the transparent regular allocation of this raw material to all the States where it is so required and allocates this raw material on inequitable basis.

(3) I have heard learned Counsel for the parties. The matter can be disposed of finally at this stage. The Union of India, respondent No. 1 has filed additional affidavit wherein the following pleas are taken :

(A)The distribution of Paraffin Wax has been made on the directions dated 24th January, 1985 issued under Para 11 of Government of India's Gazette dated 4th February, 1972. This order has been subsequently replaced by Paraffin Wax (Supply, Distribution and Price Fixation) Order, 1997 issued on 9th January, 1997. Therefore, the allocation now is to be determined on the basis of 1997 Order.

(B)The Government of India also issued an Executive Order dated 3rd January, 1997 wherein it is stated that Paraffin Wax Type-111 can be released under the Administrative Pricing Mechanism only within allocation. Under Para (d) the allocation shall stand frozen at the current level and for this purpose the existing small scale/tiny match box manufacturing units registered on or before 30th June, 1986 have to be considered.

(4) The reading of the 1997 notification will clearly indicate that no Controlled Paraffin Wax shall be sold except under the allotment order issued by the Competent Authority. Reference may be made to the definition of Competent Authority in Clause 3(a) which reads as follows : "3.(A)'"Competent Authority" means any person or authority authorised by the State Government by notification in the Official Gazette to exercise the power and to perform the functions of the Competent Authority under this order, for such areas as may be specified in the notification;"

Similarly Clause 6 will read as follows : "6.Controlled Paraffin Wax not to be sold except under an allotment order issued by the Competent Authority.-(1 ) No dealer shall sell or cause to be sold Controlled Paraffin Wax to any person except in pursuance of an allotment order issued to such person by the Competent Authority of the area in which the dealer has his place of business nor shall the dealer sell or cause to be sold Controlled Paraffin Wax in excess of the quantity specified by the Competent Authority in the allotment order. (2) While issuing or refusing to issue an allotment order under Sub-clause (1), the Competent Authority shall have due regard to- (a) the availability of the Paraffin Wax and the demand for the same; (b) the purpose for which the Paraffin Wax is required; (e) the requirements of the persons who are actual users of the Paraffin Wax; (d) the need for ensuring supplies to priority sectors such as defense purposes. Government requirements and export; (e) the necessity to ensure availability of candles during important festival period or at other times depending upon local conditions; (f) the past conduct of the person in the utilisation of the Paraffin Wax allotted to him."

The reading of the above provisions will mean that the Competent Authority which in this case will be Director of Industries or any other person nominated as such by the State Government who shall perform the functions of the Competent Authority under this Order for such areas as specified. Therefore, the Competent Authority shall determine the allocation of Paraffin Wax to the State of Haryana on the basis of the requirement of any dealer in terms of the guidelines as stated in Clause 6(2).

(5) The allocation to the petitioners or to the State of Haryana at this stage cannot be made as there has been no determination as a consequence of the Order passed on 9th January, 1997. I would, therefore, direct respondent No. 3 or the Competent Authority as designated by the State of Haryana to determine the requirement of that State within four weeks in terms of the statutory notification dated 9th January, 1997 and indicate to the Union of India such requirement. Respondent No. 1 thereafter shall consider the matter and allocate Paraffin Wax Type-111 on the basis of the recommendation by the Competent Authority and determination in this regard. It is needless to say that the Government of India will make an equitable distribution after taking into account the recommendations received from the State of Haryana or other States. The present petition is disposed of in the above terms as no further orders are necessary.