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TMI Blog1987 (9) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... gling forest and also to provide State monopoly in such forest produce. Under Section 1(3) }3 of the Act the State is empowered from time to time to issue a notification specifying the area or areas the forest produce in relation to which and the date from which the Act shall come into force. Purporting to act under this provision a notification dated December 9. 1982 was issued by the State Government directing that the Act shall come into force at once in the whole of the State of Orissa in relation to sal seeds. Thereafter, the Government refused to accept royalty from the petitioners in respect of certain forest divisions on the ground that the notification had the effect of rescinding the existing contracts between the Government and the petitioners. The petitioners thereupon moved the orissa High Court with Writ Petitions for declaration that the said notification was void and did not have the effect of rescinding their contracts in relation to sal seeds. The orissa High Court dismissed the Writ Petitions. The matter was brought before this Court in Civil Appeal Nos. 6230-31 of 1983. This Court allowed the appeals by judgment dated May 5, 1987. which has been since reporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leading to the enactment and the policy and design of the Act, we think that clauses (a) and (b) must be construed in such a way as to reflect each other. We have no doubt that the contracts relating to specified forest produce which stand rescinded are contracts in relation to forest produce grown in private holdings only. If the very object of the Act is to create a monopoly in forest produce in the Government so as enable the Government, among other things, to enter into contracts, there was no point in rescinding contracts already validly entered into by the Government. Again S. 5(1) does not bar any future contracts by the Government in respect of forest produce; if so, what is the justification for construing S. 5(1) in such a way as to put an end to contracts already entered into by the Government. Viewing S. 5(1)(a) and 5(1)(b) together and in the light of the preamble and the Statement of objects and Reasons and against the decor of the remaining provisions of the Act, we have no doubt that S. 5(1) like the rest of the provisions applied to forest produce grown in private holdings and not to forest produce grown in Government landS. Then the conclusion was expressed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing sub-section shall be substituted namely:- (4) The State Government or its authorised officer or agent shall be entitled to take delivery of any specified forest produce collected by any person from land owned by the State Government or Government Forests on payment of only such collection charges as may be determined by the State Government from time to time. Provided that it shall be open to the State Government or the authorised officer or agent to refuse to take delivery of any such forest produce which is not fit for consumption or use as rawmaterial for manufacture or for trade: Provided further that in the case of any dispute, the Divisional Forest officer or such other officer who may be specifically empowered in this behalf, as specified in sub section (2), shall hear and dispose of the same in the manner provided in this Act and the Rules made thereunder. 5.Notwithstanding any judgment, decree or order of any Court to the contrary, the Notification dated the 9th December, 1982, issued by the State Government under sub-section (3) of section 1 of the principal Act in respect of sal seeds shall be deemed to have been issued in respect of sal seeds whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industrial Policy of the State Government. We do not think that the purpose of the Act or the ordinance was to provide State monopoloy only to prevent smuggling. Even in the previous decision of this Court, it was observed that the object of the Act was to prevent smuggling and to provide for State monopoly in the specified forest produce. The Preamble of the Act which is a key to the enactment is also clear on the object. It reads: An Act to provide for control and regulation of trade in certain forest produce by creation of State monopoly in such trade Secondly, the validity of the statutory notification cannot be judged merely on the basis of statement of objects and reasons accompanying the Bill. Nor it could be tested by the Government policy taken from time to time. The executive policy of the Government, or the Statement of objects and reasons of the Act or ordinance cannot control the actual words used in the legislation. In the Central Bank of India v. Their Workmen, [ 1960] 1 SCR 200. S. K., Das. J. said: The statement of objects and reasons is not admissible, however, for construing the section; far less can it control the actual words used. In State of We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own benefits. They must work on behalf of the State. That is what has been stated in Akadasi Padhan v. State of orissa, (Supra). It seems to us that when the State carries on any trade, business or industry it must inevitably carry it on either departmentally or through its officers appointed in that be half. In the very nature of things, the States as such, cannot function without the help of its servants or employees and that inevitably introduce the concept. Of agency in a narrow and limited sense. If the State cannot act without the aid and assistance of its employees or servants, it would be difficult to exclude the concept of agency altogether. Just as the State can appoint a public officer to carry on the trade or its business so can it appoint an agent to carry on the trade on its behalf. Normally and ordinarily, the trade should be carried on departmentally or with the assistance of public servants appointed in that behalf. But there may be some trade or business in which it would be inexpendient to undertake the work of trade or business department or with the assistance of State servants. In such cases, it would be open to the State to employ the services of agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary for the Government to issue a fresh notification under Section 1(3) of the Act. Mr. Nariman contended that the notification issued on December 9, 1982 was held to be applicable only to sal seeds grown in the private holdings, and in the absence of amendment to section 1(3), the validation of such a notification would not be effective to nullify the contracts which the petitioners are having. It was also urged that the notification was still born and could not have been validated. We are unable to accept this contention also. The definition of forest produce under Section 2(c) has been enlarged to include among others, sal seeds, grown or found on Government lands or in Government forests. Clause (a) of Sub-section (1) of Section 5 has been substituted covering all contracts for the purchase, sale, gathering or collection or specified forest produce grown or found. in the area specified in the notification issued under Section 1(3) of the Act. Both these provisions shall be deemed to have come into force with effect from September S, 1981 the date on which the Act had come into F; force. The notification dated December 9, 1982 issued under Section 1(3) of the Act reads: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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