9911796707
TMI Blog1970 (2) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... llage Kelandur at a distance of about 11/2 miles from the site of the appellant's mill. A notification under the Land Acquisition Act 1894 was issued in March 1966 for compulsory acquisition of the land and buildings on the site of the appellants' rice mill for use in the Sharavathi Hydro-Electric Project. In October 1967 an award acquiring the land and buildings was made. The award expressly recited that the appellants were entitled to remove the machinery of the rice Mill. The appellants in the meanwhile applied to the Special Officer for Rehabilitation of the State of Mysore to allot them a suitable new site in which their rice mill may be located. The Special Tehsildar for Rehabilitation sanctioned that the rice mill building may be shifted to a site in Survey No. 233 of Mudugoppa granted to the appellants by the State of Mysore. By order dated January 20, 1969, the Director of Food Civil Supplies passed an order sanctioing the change in the location of the appellants' rice mill from its original site to the new site as per the provisions contained in section 8(3)(c) of the Rice Milling Industry (Regulation) Act, 1958 , and rejected the objection raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 it is provided that any person or authority may make an application to the Central Government for the grant of permit for the establishment of a new rice mill,, and any owner of a defunct rice mill may, make a like application for the grant of a permit for re- commencing rice-milling operation in such mill. By sub-s. (3) if, on receipt of any such application for the grant of'-a permit, the Central Government is of opinion that it is necessary so to do for ensuring adequate supply of rice, it may, subject to the provisions of sub-s. (4) and sub-s. (5) grant the permit specifying therein the period within which the mill is to be established. Subsection (4) provides - Before granting any permit under sub-section (3), the Central Government shall cause a full and complete investigation to be made in the prescribed manner in respect of the application -and shall have due regard to- (a) the number of rice mills operating in the locality; (b) the availability of paddy in the locality; (c) the availability of power 'and water supply for the. rice mill in respect of which a permit is applied for; (d) whether the rice mill in respect of which a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act that the location of the rice mill of the appellants may be shifted. The High Court declared the order invalid on the ground that the previous sanction had not been obtained. The Court observed that where an officer granting a licence or passing an administrative order exceeds his powers and makes an order in violation of the provision which ,clothes him with that power, his order is liable to be struck down , and since S. 8 (3) (c) contemplated grant of permission for change of location before the plant and the machinery were actually shifted to a new site, the Director of Food Civil Supplies had no power to grant permission after the machinery and plant had been shifted. The rice mills for the purpose of the Act were divided into three classes : defunct rice-mills, existing rice-mills and new rice-mills. Defunct rice mills are those which had ceased functioning for a period exceeding one year prior to the commencement of the Act; existing rice mills 'are 'those which carry on rice milling operations -at the commencement of tile Act or had carried on rice milling 8 51 operations within one year prior to the commencement of the Act; and new rice-mills are those w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person cannot claim independently of such restriction that another person shall not carry on business or trade so as to affect his trade or business adversely. The appellants complied with the statutory requirements for carrying on rice milling operations in the building on the new site. Even assuming that no previous permission was obtained, the respondents would have no locus standi for challenging the grant of the permission, because no right vested in the respondents was infringed. But Mr. Gokhale for the respondents contended that in granting the permission under s. 8 (3 ) (c) the authority was bound to take into account matters which -govern the issue of a permit under s. 5 (4) of the Act. Counsel submitted that sub-s. (3) (c) of s. 8 was enacted with a view to ensure adequate mining facilities and to prevent unfair competition and on that account it is provided that when the location of an, existing rice mill has to be shifted, the authority had to take into consideration the number of rice mills operating in the locality; the availability of power and water supply for the rice mill in respect of which a permit is applied for; whether the functioning of the rice mill in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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