Factories Association Vs. The State of U.P.
& Ors  INSC 4 (2
K.G.B. Pattanaik (J)
1996 AIR 1586 1996 SCC (2) 23 JT 1996 (1) 77 1996 SCALE (1)153
O R D
granted. Heard counsel on both sides.
are that pursuant to the policy dated September 12, 1983, industrial units based on various
forest produce i.e. Khair Wood were allowed to be set up in the State. an
association of the industries. The Government gave relaxation on February 25, 1984 giving liberty to the Director of
Industries to encourage small scale industries on the ground that those who
would not operate their industries from the forest wood may be considered for
the licence and that they would purchase `khair wood from outside the State.
The respondent No.4 had given provisional registration of his proposed S.I.
units for a period of one year on February 11, 1986.
Government thereafter introduced complete ben on registration from December 11, 1986. The appellant Association had
applied for cancellation or relaxation of the ban imposed including the 4th
respondent but the Director refused to the same. Consequently, the appellant
filed a writ petition in the high Court. The Division Bench of the High Court
of Allahabad in order dated May 3, 1991 in Writ Petition holding that the
matter doing one of policy taken by the Government at the highest that the
matter being one of policy taken by the Government at the highest level, the
Court was not inclined to examine the correctness of the policy. Accordingly it
declined to pass any direction as sought for.
contended rot the appellant that the Government having allowed other units to
obtain Khair wood from the Government quota, denial of the same to S.S.I. units
registered under provisional registration would be discriminatory violative of
Art 14 of the Constitution.
given our anxious consideration to the conventional of the counsel and the
argument of Shri Mehta learned counsel for the 4th respondent, we are of the
view that it is not a fit case for our interference. If is seen, as stated in
the counter filed in this Court, that the Government had constituted a
committee to which the Secretary Forest was the Chair-person. It had met on December 13, 1990 and had decided that small scale
units registered prior to December 11, 1986
were entitled to be considered for allotment and any unit registered thereafter
would be allowed to operate only subject to their obtaining required wood from
outside the State. It is seen that in view of non-availability of the forest
produce in the State of U.P. the Government constituted a
committee and the Secretary Forest Department was its Chair-person. They had
gone into the question of availability and allotment of Khair wood in the
State. They have imposed a cut off date, i.e., December 11, 1986 and allotment would be made, subject to the availability of
forest produce, to those industries established prior to the aforesaid date. It
is true, as stated in the order passed by the Director, that S.I. units
registered after September 12, 1983, were allowed registration by proceedings
dated February 25, 1984 with a condition that they will not apply for U.P.
forest wood, and they would get it from outside the State. Even in respect of
such industries it was also further stated that though the Director of
Industries granted provisional registration. It would only be until or before December 11, 1986. In other words, complete ban on
registration of S.I. units was imposed on or after December 11, 1986 for allotment of the forest produced required for
these circumstances, it being a policy decision we do not think that it would
be a case for our interference. The High Court has rightly declined to exercise
appeal is accordingly dismissed. No costs.
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