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Issues:
Validity of Government Orders under Control Order for coal transfer without a license. Interpretation of the definition of "dealer" under the Control Order. Analysis: Issue 1: Validity of Government Orders under Control Order for coal transfer without a license: The respondent, a chemical manufacturing company, disposed of surplus or rejected coal and coal dust without obtaining a license under the Uttar Pradesh Coal Control Order, 1977. The High Court held the Government Orders requiring a license for coal transfer to be invalid. The State of Uttar Pradesh challenged this decision. The High Court based its decision on the respondent not being classified as a "dealer" under the Control Order and falling under the exemption of clause 3(B) of the Control Order. The High Court rejected the State's argument that clause 3(A) necessitated a license for the respondent. The Supreme Court upheld the High Court's decision, emphasizing that the respondent was not engaged in the business of sale or storage for sale of coal, a key requirement to be classified as a "dealer" under the Control Order. The Court referred to a previous case to establish that continuity of transactions is essential to constitute a business, which was lacking in the respondent's case. The Court dismissed the appeal on the grounds that the respondent did not meet the criteria to be considered a "dealer" and did not delve into the second reason provided by the High Court. Issue 2: Interpretation of the definition of "dealer" under the Control Order: The Control Order defines a "dealer" as a person engaged in the business of import, purchase, or storage for sale and sale of coal. The High Court determined that the respondent did not qualify as a "dealer" as it did not conduct the business of sale or storage for sale of coal. The Court rejected the State's argument that the respondent's activities fell under the definition of a "dealer" due to the inclusion of the phrase "in conjunction with" in the definition. The Court clarified that the phrase did not negate the requirement of conducting a business to be considered a "dealer." The Court's decision was also supported by the concluding part of the definition of "dealer." As the respondent did not meet the criteria of engaging in the business of coal sale or storage for sale, the Court upheld the High Court's decision and dismissed the appeal. In conclusion, the Supreme Court upheld the High Court's decision, ruling that the respondent did not require a license for transferring surplus or rejected coal and coal dust under the Control Order as it did not qualify as a "dealer" engaged in the business of coal sale or storage for sale. The Court's interpretation of the definition of "dealer" under the Control Order played a crucial role in determining the outcome of the case.
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