Harishchandra Vs. State of Madhya
Pradesh [1964] INSC 200 (24 September 1964)
24/09/1964 AYYANGAR, N.
RAJAGOPALA AYYANGAR, N. RAJAGOPALA SARKAR, A.K.
BACHAWAT, R.S.
CITATION: 1965 AIR 932 1965 SCR (1) 323
ACT:
Essential Supplies (Temporary Powers) Amendment
Act, 1950 (Act 52 of 1950) Proviso to S. 17(4)-Central legislation extended to
Part B State-Notification under corresponding State law not expressly
repealed-whether survivesSubordinate legislation whether can survive repeal of
parent law-Association of persons whether 'person' for purpose of
prosecution-Liability of President of Association.
HEADNOTE:
The Indian Scrap Order, 1943, passed under
the Defence of India Rules, was after the expiration of the said Rules,
preserved by the Essential Supplies Act, 1946. By (Central) Act 52 of 1950, the
said Act was extended, inter alia to the Part B State of Madhya Bharat. That
State already had its corresponding law on the subject, namely, the Madhya
Bharat Essential Supplies Act, 1948, under which the Madhya Bharat Scrap Order,
1949 had been issued. While extending the Central legislation to the Part B
States, Act 52 of 1950 also laid down, in s. 17(4) that the "corresponding
law" in the State would stand repealed, with a proviso that the orders,
directions etc., issued under the repealed law would continue. The appellant
who was President of the Scrap Dealers Association, Indore, was prosecuted
under the allegation that the Association had sold scrap iron at rates higher
than those fixed under the Indian Scrap Order. The defence taken was that the
prices at which the sales had been effected were those fixed by -a notification
dated 26th August, 1949 under the Madhya Bharat Scrap Order which continued in
force. The appellant was acquitted by the trial Court but was convicted by the
High Court and appealed to the Supreme Court by special leave.
The contentions of the appellant were : (1)
The Madhya Bharat Scrap Order had not been expressly repealed by the Indian
Scrap Order and therefore it continued by force of the proviso to s. 17(4) of
the Act 52 of 1950, and, in any case, the notification dated 26th August, 1949,
continued in force as an independent piece of subordinate legislation.
(2) The appellant as President of the Scrap
Dealers Association which was an unincorporated body could not be held liable
for a sale in excess of the authorised maximum price effected by a Munim or
Munims of the Association.
HELD : (i) The Central notification by which
the Indian Scrap Order was extended to Madhya Bharat, no doubt, did not
expressly provide for the repeal of the Madhya Bharat Scrap Order, but the
provisions of the two Orders were not identical and they could not, therefore,
operate simultaneously. It was therefore obvious that on the extension to
Madhya Bharat of the Indian Scrap Order, the Madhya Bharat Scrap Order was
repealed and replaced by the Indian law. [331D].
(ii) The notification in question could not
survive even if it was treated as an independent piece of subordinate
legislation under the State law. According to Craies, if the statute under
which by-laws are made is repealed, those bye-laws are impliedly repealed and
cease to have any validity unless the repealing statute contains some provision
preserving the validity of the by-laws, notwithstanding the repeal. As the
parent 324 order under which the notification dated August 26, 1949, was made
had been repealed without a saving, the effect was that the said notification
also stood repealed. (333D; 333GH; 334H].
(iii) The definition of 'person' in the
General Clauses Act includes within that term an unincorporated body of
persons. In the present case it was the Association that was given the facility
of obtaining scrap at more favourable prices than dealers, and it was that body
which was subjected to control in the shape of having to sell what it had
purchased from controlled sources at specified prices.
The argument could not be accepted that the
Association as such could not be penalised for selling at unauthorised rates.
The appellant as President of the Association was liable to be convicted by
virtue of s. 8 of the Essential Supplies (Temporary Powers) Act, 1946 which
made the abetment of contravention of any order under the Act, also an offence.
[335C-D,E-F].
Watson v. Winch. [1916] 1 K.B. 688 and Craies
on Statute Law. 6th Edn. 332, referred to.
CRIMINAL APPELLATE JURISDICTION: Criminal
Appeals Nos.
211 to 217 of 1962.
Appeals by special leave from the judgment
and order dated May, 5, 1962, of the Madhya Pradesh High Court (Indore Bench)
at Indore, in Criminal Appeals Nos. 216, 222 and 227 to 231 of 1961.
C. B. Agarwala and Rameshwar Nath, for the
appellant.
B. Sen and I. N. Shroff, for the respondent.
The Judgment of the Court was delivered by
Ayyangar J. These seven appeals are connected as they relate to the same
appellant and the point involved in each is identical. They are before us by
virtue of special leave granted by this Court and are directed against the
common judgment of the Indore Bench of the High Court of Madhya Pradesh
convicting the appellant of a contravention of the Indian Iron & Steel
(Scrap Control) Order, 1943.
The accused, the appellant before us, was the
President of the Scrap Dealers Association at Indore and he was prosecuted
before the learned Additional City Magistrate, Indore City in seven sets of
criminal cases filed by the State of Madhya Pradesh alleging contravention of
S. 8(4) of the Iron & Steel (Scrap Control) Order, 1943 by selling or
causing to be sold scrap iron to different customers on different dates at a
rate higher than was authorised by notification dated September 30, 1952 issued
by the Steel Controller under the said order. He was acquitted by the
Additional City Magistrate but on appeals preferred by the State Government,
the learned Judges set aside the acquittal and convicted him of the offences
and sentenced him to pay a fine of 325 Rs. 100 in each case with imprisonment
in default of payment of fine. It is the correctness of this judgment of the
High Court that is canvassed before us by the appellant in these appeals.
To appreciate the points raised by the
appellant it is necessary to narrate briefly the history of the legislation on
the topic of control over the price at which scrap was permitted to be sold by
dealers. The Defence of India Act, 1939 enabled the Central Government to frame
rules, among others, "for maintaining supplies and services essential to
the life of the community (vides. 2)." In pursuance thereof Rule 81 (2) of
the Defence of India Rules empowered the Central Government "so far as
appears to them to be necessary or expedient for . . . . . . maintaining
supplies and services essential to the life of the community" to provide
by order, inter alia, (a) for controlling the pi-ices or rates at which
articles or things of any description whatever may be sold......... and for
relaxing any such prices or rates". By virtue of this power, the Central
Government promulgated the Iron & Steel (Scrap Control) Order, 1943
(hereinafter referred to as the Indian Scrap Order) on February 25. 1943. This
Order to whose provisions we shall have to make some reference later would
normally have lapsed on the expiry of six months after the revocation of the
proclamation of emergency because of the provisions of s. 102(3) (a) of the Government
of India Act, 1935. In order to avoid this result, the Emergency Provisions
Continuance Ordinance, 1946 was promulgated on September 25, 1946 which
continued several orders in relation to the control of production, distribution
etc. of essential commodities, and Indian Scrap Order among them, and this
ordinance was replaced by a permanent legislationthe Essential Supplies
(Temporary Powers) Act, 1946 (Act 24 of 1946) which also contained a provision
for the continuance of the Control Orders in force [vide s. 17(2)].
Section 8(4) of the Indian Scrap Order
prohibited the sale of scrap in excess of the prices fixed therefore by the
Controller. It is not disputed that the sales in regard to which the appellant
has been prosecuted were in excess of the maximum there specified.
Several defences were raised but of these
those which now survive are only two: (1) The legal effect of the parallel
provisions on the same subject viz., control over the sale price of scrap which
were in force in the Part B State of Madhya Bharat which comprised Indore, and
(2) Whether the appellant as the President of the Scrap Dealers Association
which was an unincorporated body could be held liable for, a sale in excess of
the sup./64--8 326 authorised maximum price effected by a Munim or Munims of
the Association.
We shall now proceed to narrate in brief
outline the history of the parallel provisions relative to control over the
sale price of Scrap in the Part B State of Madhya Bharat. These provisions
undoubtedly continued in force in the State till September 12, 1950 when the
Indian Scrap Control Order, 1943 was in terms made applicable in that State and
the principal point raised by Mr. Agarwala was whether a certain notification
which had been issued under the State law and was in force on that date
continued in force even thereafter. The State legislation on this topic started
on October 9, 1948 with the promulgation of the Madhya Bharat Essential
Supplies (Temporary Powers) Ordinance, 1948, which was a reproduction of the Indian
Essential Supplies (Temporary Powers) Ordinance, 1946. When this Ordinance was
replaced in India by the Essential Supplies (Temporary Powers) Act, 1946, the
same process was repeated in Madhya Bharat by the enactment of the Essential
Supplies (Temporary Powers) Act (Samvat 2005) (Madhya Bharat Act III of 1948).
Among the "essential, commodities"
dealt with by the State enactment were iron and steel [vide S. 2(3)(7)].
Section 4 of the Act read:
"4. Powers to control production,
supply, distribution etc., of essential commodities.
(1) The Government so far as it appears to it
to be necessary or expedient for maintaining or increasing supplies of any
essential commodities, or for securing their equitable distribution and
availability at fair prices may by an Order notified in the Official Gazette
provide for regulating or prohibiting the production, supply, distribution and
movement thereof, and trade and commerce therein.
(2) Without prejudice to the generality of
the powers conferred by sub-section (1), an order made thereunder may provide
(c) For controlling the prices at which any essential commodity may be bought
or sold;
to quote only the material words. In exercise
of the powers thus conferred the Director of Civil Supplies, Madhya Bharat, to
whom the powers in that behalf were delegated by the State Government,
promulgated on June 4, 1949 the Madhya Bharat Iron, Steel and Scrap
(Production, Procurement and Distribution) 327 Control Order, 1949. Clause 5 of
this Order empowered the Director of Civil Supplies, Madhya Bharat to specify
from time to time the maximum prices-wholesale and retail-at which "iron
and steel, scrap or specified articles made thereof" may be sold (a) by a
producer, (b) by a controlled stockholder, (c) by a registered stockholder (d)
by a controlled dealer and (e) by a scrap merchant. The several categories of
persons whose sales were thus regulated were defined in the Order. Acting under
this provision, the Director Civil Supplies issued a notification on the same
date-June 4, 1949-which read:
"In exercise of the powers conferred on
the Director under clause 5(1) of the Madhya Bharat Iron, Steel and Scrap
(Production, Procurement and Distribution) Control Order, 1949, I hereby
specify that the Price Schedules as may be in force for the time being under
...... Iron and Steel Scrap Control Order in the Indian Union in respect of
sales by producers, controlled and Registered Stockholders and Scrap Merchants
shall apply mutatis mutandis to sales by the aforesaid persons in Madhya Bharat;
provided however, that the Registered Stockholders shall sell to Controlled
Dealers at II column rates of the Government of India Price Schedule for the
time being in force, that Iron and Steel which they receive at column I rate
from the producers and at column III rate, that Iron and Steel which they
receive from the Controlled Stockholders at column II rates : provided also
that controlled Dealers in Madhya Bharat shall sell to consumers at a profit
margin of not exceeding Rs. 30 per ton;
subject however, in all cases to such local
extra charges as may be fixed by me or the officers authorised by me in this
behalf." It is only necessary to add that there were similar Orders passed
under the Indian Scrap Order, 1943 in which also the classification of dealers
etc., proceeded on the same lines.
The form of the notification by the Steel
Controller to the Government of India, referred to in this notification was on
the following lines :
There was a schedule to the notification
fixing the maximum prices and it was divided into five columns. First was the
number of the item, the second was the description or classification of the
material and the next three which were headed columns I, II and III dealt with
specified maximum basic prices per ton for sale at Calcutta, Bombay and Madras.
There were adjustments 328 indicated for arriving at the prices chargeable at
other centres. Column I specified the prices for sales by Controlled Sources
other than those mentioned in column 11.
The second column was headed "specified
prices fixed for sales by scrap merchants who have been declared controlled
sources" and the ,last or third column specified the maximum for sales by
all persons other than those mentioned in columns I and 11. Different maxima were
fixed for sale by persons falling under the three columns, the first column
price being the lowest, the second t little higher and the last which included
sales by retail dealers to the consuming public being the highest. It is common
ground that the Scrap Dealers Association, Indore of which the appellant was
the President had been declared "a Controlled Source"' so that the
maximum prices at which members of the Association which was an unincorporated
body could sell, were those specified in column II of the schedule. It is not
necessary to set out the prices at which the actual sales which wore stated to
be in violation-of the law, took place, but it is sufficient to state that
admittedly the servants of the Association sold scrap iron at prices higher
than those fixed in column II and at prices fixed for column III.
The first submission of Mr. Agarwala learned
Counsel for the appellant was that the sale by the Association at the column
]II price was authorised and legal because of a notification issued by the Government
of Madhya Bharat dated August 26, 1949. The principal point argued before us in
respect of this notification is as to whether this notification was alive and
in force on the date of the sales in 1956 which were the subject of the several
prosecutions and whether it has survived subsequent Indian legislation extended
to the State to which we shall advert presently. But before proceeding to do
so, it would be convenient to consider the nature of that notification.
The Scrap Dealers Association of Madhya
Bharat appear to have made a representation to the State Government that though
the dealers in Scrap as constituent units of the Association were treated as a
Controlled Source and secured advantages thereby and were bound to sell at
prices fixed in column II, still the Association should 'be accorded special
privilege and be permitted to sell at prices fixed for the residuary class of
dealers in column III. This representation was considered by an Advisory
Committee appointed by the State Government and a direction was given that
"a change be made to the extent that at present for the goods which is
sold to consumers by the Scrap Association 329 at the regional headquarters
they will be allowed to charge column III rates on the goods instead of column II
rates." It is stated that the Association has been selling at these rates
ever since. There is no doubt that if this direction stood, and we need only
add that the validity of this direction was not challenged by the respondent as
beyond the powers of the State Government, the appellant could not have been
guilty of the offence with which he was charged.
But the question is whether this direction or
this modification of the prices fixed under s. 5(1) of the Madhya Bharat Scrap
Control Order by incorporating the notification by the Steel Controller of the
Government of India in its text, subsisted in 1956 when the sales which are
stated as being in contravention of the Indian Scrap Order, took place.
We have already seen that the notification
dated June 4, 1949 which we have extracted earlier, was issued under the Madhya
Bharat Iron and Steel etc., Control Order, 1949 promulgated under the Madhya
Bharat Essential Supplies (Temporary Powers) Act, 1948. The Madhya Bharat Act,
however, stood repealed by virtue of the provisions of the Essential Supplies
(Temporary Powers) Amendment Act, 1950 (Act 52 of 1950) under which the
Essential Supplies (Temporary Powers) Act, 1946 was extended to the Part B
States as and from such dates as might be specified by the Central Government.
-By a notification issued by the Central Government the Essential Supplies Act,
1946 was made applicable to the Part B State of Madhya Bharat from August 17,
1950. The effect of this extension was provided for by s. 10 of Act 52 of 1950
which enacted :
"1O. Amendment of section 17, Act XXIV
of 1946. After sub-section (3) of section 17 of the said Act, the following
sub-section shall be inserted, namely (4) If immediately before the day on
which this Act comes into force in a Part B State, there is in force in that
State any law which corresponds to this Act, such corresponding law shall on
that day stand repealed in so far as it relates to any of the essential
commodities governed by this Act:
Provided that any Order made and in force immediately
before that day in the said State shall continue in force and be deemed to be
an Order made under this Act, and all appointments made, licences or permits
granted, and directions issued, under any such Order and in force immediately
before that day shall likewise continue in 330 force and be deemed to be made,
granted or issued in pursuance of this Act." If the main part of sub-s.
(4) stood alone without the proviso, the effect would have been not merely a
repeal of the Madhya Bharat Essential Supplies (Temporary Powers) Act, 1948
which was "a corresponding law" which was in force in that State, but
with that repeal, all the subordinate legislation enacted there under including
the Control Orders as well as the Orders of the Director fixing prices would
also have stood repealed. By virtue of the proviso, however, notwithstanding
the repeal of the parent enactment, the Orders made under it were continued and
were to be deemed to have been made under the Indian Act.
Mr. Agarwala laid considerable stress on the
proviso and urged that by reason of its language it continued in force not
merely the Madhya Bharat Scrap Order of June 4, 1949 and the price fixation by
the Director under s. 5 ( I) of that Order on the same date, but also the
variation in the prices to be charged by the Association effected by the
Government Order dated August 26, 1949 which enabled that body, notwithstanding
its being a dealer specified in column II to sell at prices fixed for persons
falling under column M. We need not pause to consider whether the direction or
the notification dated August 26, 1949 is "a direction issued under any
such order" within the proviso to s. 17(4) but shall proceed on the basis
that it is, accepting the construction suggested by learned Counsel. But the
replacement of the Madhya Bharat law on this topic by the law in force in India
did not stop with that effected by Act 52 of 1950. By a notification of the
Government of India dated September 12, 1950, the Indian Scrap Order, 1943 was
extended to Madhya Bharat. It is really the legal effect of this extension that
calls for scrutiny in these appeals.
The notification by which the Indian Scrap
Order was extended to Madhya Bharat, no doubt, did not expressly provide for
the repeal of the "Madhya Bharat Scrap Iron & Steel etc., Order,
1949", but if the two Control Orders cannot operate simultaneously, it
would be obvious that the Indian Scrap Order would have repealed and replaced
the State law. In the first place, even if the provisions contained in the two
sets of Orders were in identical terms, it might be proper to hold that the
Indian Scrap Order replaced the State law in order to give some meaning and
effect to the extension of the Indian Scrap Order to Madhya Bharat. But that is
not the position here. There are 331 marked differences between the provisions
of the two Orders such that it would not be possible for the two to stand
together. For instance, Rule 3 of the Indian Scrap Order prohibits producers
from acquiring or agreeing to acquire scrap except and in accordance with a
written order of the Controller etc. There is no rule corresponding to this in
the Madhya Bharat Scrap Order. In line with this, in Rule 6 of the Madhya
Bharat Order which corresponds to Rule 8(4) of the Indian Scrap Order, there is
no prohibition against acquisition for a higher price than the maximum fixed,
such as is to be found in Indian Order. Again, Rule 7 of the Madhya Bharat
Order relating to the restrictions on the movement of scrap has no
corresponding provisions in the Indian Scrap Order. Illustrations of this type
of variation may be multiplied, but this is unnecessary as it was conceded that
the provisions contained in the two orders were not identical. What we desire
to emphasise is that the two orders, though achieving substantially the same
object, are not identical in their provisions. If that is so, it is obvious
that on the extension to Madhya Bharat of the Indian Scrap Order, the Madhya
Bharat Scrap Order would stand repealed and be replaced by the Indian law.
Mr. Agarwala, however, submitted that this
would not follow because according to him the Madhya Bharat Scrap Order had
some sort of higher efficacy or stood on a footing superior to the Indian Scrap
Order by reason of its having been continued by the proviso to s. 17(4) to Act
24 of 1946, the argument being that the notification etc., should be deemed to
be one under the Essential Supplies (Temporary Powers) Act itself. This
argument, even if sound, does not really help the appellant, for the Indian Scrap
Order itself was preserved by a saving of the same type and couched in exactly
the, same language in the Essential Supplies (Temporary Powers) Ordinance, 1946
and the Act of the same name of 1946 [vide s. 17(2) & (3) of Act 24 of
1946].
Besides, just as an order made or
notification issued. under the Essential Supplies (Temporary Powers) Act, 1946
could be amended, modified or cancelled, even if the Madhya Bharat Scrap
Control Order and the notifications issued thereunder are deemed to have been
passed under the Act of 1946 which is what learned Counsel contends, they could
surely be modified. amended or replaced by other subordinate legislation
originating from the same parent Act. The Indian Scrap Order, 1943 was one
such, because it is deemed to have been made under that 332 Act. When the
Indian Scrap Order was extended to Madhya Bharat, the result was that it
effectively replaced the Madhya Bharat Order on the same topic.
Even granting that the Madhya Bharat Scrap
Order of June 4, 1949 was repealed on the extension to that territory of the
Indian Scrap Order, Mr. Agarwala urged that the direction contained in the
notification of the State Government dated August 26, 1949 was a special law
which stood unaffected by the extension of the Indian Scrap Order to Madhya
Bharat.
That when the Indian Scrap Order was extended
it carried with it the notifications issued by the Controller from time to time
and that after the extension of the Scrap Order to Madhya Bharat, all sales of
scrap would have to be effected only in conformity with the prices fixed by the
'notifications issued under the Scrap Order was not contested. Nor was it
disputed that on the terms of the notifications issued fixing the prices at
which several classes of dealers might affect sales tinder the Indian Scrap
Order, the Association of which the appellant was the President would have
fallen under column 11 and would have been bound to sell scrap only at the
prices fixed in that column. But it was submitted that the fact that even
before the extension of the Indian Scrap Order to Madhya Bharat in September,
1950 tinder the very provisions of the notification dated June 4, 1949 itself
the maximum prices fixed in Madhya Bharat were only those prescribed by the
Controller in India and that the deviation in regard to these prices permitted
to the Association was thus in effect a local modification of the Indian Order
and that consequently the direction issued by the State Government on August
26, 1949 and which was continued even after the repeal of the Madhya Bharat
Temporary Powers Act, 1948 by reason of the proviso to s. 17 (4) of the Act 24
of 1946 was not affected by the extension of the Indian Scrap Order to Madhya
Bharat. We find ourselves unable to accept this argument. The concession allowed
to the Association by the notification dated August 26, 1949 could be looked at
from one of two alternative positions. The direction could be viewed as in
effect a modification of the prices fixed under S. 5 (1) of the Madhya Bharat
Order by the Director so that in law it should be deemed to have been
incorporated in that price fixation and became, as it were, the price fixed by
the Controller. The effect of this would be that in Madhya Bharat before the
extension of the Indian Scrap Order, the maximum prices chargeable by the
specified type of dealer falling under 333 column It would be those applicable
to dealers in column III. If this were the true position, the result would be
that when the Indian Scrap Order was made applicable to Madhya Bharat without a
saving or special provision as regards sales by the Association, it would
supersede that law and the special classification effected by the Madhya Bharat
law would cease to be in force. In this respect the fact that the prices fixed
in Madhya Bharat for sales by dealers etc., specified in the three column
corresponded to those fixed by the Controller in India, would be wholly
irrelevant, for the authority by which the fixation was effected would be
traceable to Madhya Bharat and not the Indian law.
The other alternative would be that the
notification dated August 26, 1949 was an independent piece of subordinate lawmaking
under the Essential Commodities Act and the Madhya Bharat Scrap Order, and it
was this aspect that was stressed by Mr. Agarwala. Even if that be so, the
appellant would derive no advantage from this, because there has been t repeal
not merely of the Madhya Bharat Essential Supplies Act no doubt with a saving
but of the Madhya Bharat Scrap Order without a saving and on the repeal of the Scrap
Order under which the Subordinate rule or regulation was effected the latter
would also stand repealed. As explained by Lord Reading C.J. in Watson v.
Winch(1):
"It has been long established that, when
an Act of Parliament is repealed, it must be considered (except as to
transactions passed and closed) as if it had never existed.......... It would
follow that any bye-law made under a repealed statute ceases to have any
validity unless the repealing Act contains some provision preserving the
validity of the bye-law notwithstanding the repeal." Admittedly there is
no saving clause either in the notification of the Central Government by which
the Indian Scrap Order was extended to Madhya Bharat nor, of course, in the
Scrap Order itself. As the parent order under which the notification was made
his been repealed without a saving the effect must be that the notification
dated August 26, 1949 must, if it were held to be an independent subordinate
legislation, be held also to have been repealed. Mr. Agarwala next referred us
to s. 24 of the General Clauses Act No. X of 1897 and urged that the notifica(1)
[1916] 1 K.B. 688, 690.
334 tion would be a bye-law that would have
continued notwithstanding the repeal of the Madhya Bharat Scrap Order.
Section 24 of the General Clauses Act runs
thus:
"24. Where any Central Act or
Regulation, is after the commencement of this Act, repealed and re-enacted with
or without modification, then, unless it is otherwise expressly provided, any
appointment, notification, order, scheme, rule form or bye-law, made or issued
under the repealed Act or Regulation, shall, so far as it is not inconsistent
with the provisions re-enacted, continue in force and be deemed to have been
made or issued under the provisions so re-enacted, unless and until it is
superseded by any appointment, notification, order scheme, rule form or bylaw,
made or issued under the provisions so re-enacted and when any Central Act or
Regulation, which, by a notification under S.
5 or 5A of the Scheduled Districts Act, 1874,
or any like law, has been extended to any local area, has, by a subsequent
notification, been withdrawn from and reextended to such area or any part
thereof, the provisions of such Act or Regulation shall be deemed to have been
repealed and re-enacted in such area or part within the meaning of this
section." We consider that this submission is entirely without force.
Mr. Agarwala fairly conceded that the
language of s. 24 would not cover a repeal of the Madhya Bharat Scrap Order by
the introduction into the Madhya Bharat territory of the Indian Scrap Order.
1943, but he suggested that even though the section was in terms inapplicable,
he could invoke the principle underlying it. But this argument, however,
proceeds on assuming that S. 24 was declaratory of the common rule of
interpretation and that even in the absence of s. 24 the same principle of law
would apply. The position apart from a statutory provision such as is found in
S. 24 of the General Clauses Act, is thus summarised in Craies on Statute Lent,
6th Edn. 334:
"If the statute under which bye-laws are
made is repealed, those bye-laws are impliedly repealed and cease to have any
validity unless the repealing statute contains sonic provision preserving the
validity of the bye-law notwithstanding the repeal. This follows from the rule
....
when an Act of Parliament is repealed it must
335 be considered (except to transactions passed and closed) as if it had never
existed." This submission has, therefore, no merit and must be rejected.
The second of the points urged by Mr.
Agarwala was that the Scrap Dealers Association was an unincorporated body
consisting wholly of retail dealers and that as each of them individually was a
dealer who could himself have sold at the column M rate, the Association could
not be penalised for selling at that rate. As an unincorporated body, he
submitted, it was merely the aggregate of its members and so would have the
rights of its constituent units. There is no force in this point either. Apart
from the definition of "person" in the General Clauses Act as
including an unincorporated body of persons, what we are concerned with is not
sales by individual dealers who composed the Association, but sales by and
through the Association. It was the Association that was given the facility of
obtaining scrap at more favourable prices than dealers and it was that body
which was subjected to control in the shape of having to sell what it had
purchased from controlled sources at the prices specified in column II.
Lastly, it was faintly urged by Mr. Agarwala
that the appellant was merely the President of the Association and could not be
held liable for the sales effected by its employees.
There was no dispute that the sales were by
the Association and at prices fixed by that body. It was also admitted that
these prices were in excess of the prices specified for sales fixed for the
Association. under s. 8 of the Essential Supplies (Temporary Powers) Act, 1946,
"Any person who abets the contravention of any order.... shall be deemed
to have contravened that order." In the circumstances, we do not see bow
this affords any defence to the appellant.
The result is that these appeals fail and are
dismissed.
Appeals dismissed.
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