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Bennett Coleman and Co and Ors Vs Union of India Us720038COM10568
Bennett Coleman and Co and Ors Vs Union of India Us720038COM10568
Equivalent Citation: AIR1973SC 106, (1978)1C ompLJ152(SC ), (1978)1C ompLJ152(SC ), (1972)2SC C 788, [1973]2SC R757
(iii) Test of direct effect - test of 'pith and substance' and 'objects of
JUDGMENT
A.N. Ray, J.
1. These petitions challenge the Import Policy for Newsprint for the year April 1972 to
March 1973. The Newsprint Policy is impeached as an infringement of fundamental
rights to freedom of speech and expression in Article 19(1)(a) and right to equality in
Article 14 of the Constitution. Some provisions of the Newsprint Control Order 1962 are
challenged as violative of Article 19(1)(a) and Article 14 of the Constitution.
2. The import of newsprint is dealt with by Import Control Order, 1955 (referred to as
the 1955 Import Order). The 1955 Import Order is made in exercise of powers
conferred by Sections 3 and 4A of the Imports and Exports Control Act, 1947 (referred
to as the 1947 Act). Section 3 of the 1947 Act, speaks of powers of the Central
Government to prohibit, restrict or otherwise control imports and exports. Section 4A of
the 1947 Act contemplates issue or renewal of licences under the 1947 Act for imports
and exports. Item 44 in Part V of Schedule I of the 1955 Import Order relates to
newsprint. Newsprint is described as white printing paper (including water lined
newsprint which contained mechanical wood pulp amounting to not less than 70% of
the fibre content). The import of newsprint is restricted under the 1955 Import Order.
This restriction of newsprint import is also challenged because it infringes Article 19(1)
(a). It is said that the restriction of import is not a reasonable restriction within the
ambit of Article 19(2).
3. The Newsprint Control Order 1962 (referred to as the 1962 Newsprint Order) is made
in exercise of powers conferred by Section 3 of the Essential Commodities Act 1955
(referred to as the 1955 Act). Section 3 of the 1955 Act enacts that if the Central
Government is of opinion that it is necessary or expedient so to do for maintaining or
increasing supply of essential commodities or for securing their equitable distribution
and availability at fair prices, it may, by order, provide for regulating or prohibiting
production, supply and distribution and trade and commerce therein. Section 2 of the
1955 Act defines "essential commodity". Paper including newsprint, paper board and
straw board is defined in Section 2(a)(vii) of the 1955 Act to be an essential
commodity.
4. The 1962 Newsprint Order in Clause 3 mentions restrictions on acquisition, sale and
consumption of newsprint. Sub-clause 3 of Clause 3 of the 1962 Newsprint Order states
that no consumer of newsprint shall, in any licensing period, consume or use newsprint
in excess of the quantity authorised by the Controller from time to time. Sub-clause 3A
of Clause 3 of the 1962 Newsprint Order states that no consumer of newsprint, other
than a publisher of text books or books of general interest, shall use any kind of paper
other than newsprint except with the permission, in writing, of the Controller. Sub-
clause 5 of Clause 3 of the 1962 Newsprint Order states that in issuing an authorisation
under this clause, the Controller shall have regard to the principles laid down in the
Import Control Policy with respect of newsprint announced by the Central Government
from time to time. Sub-clauses 3 and 3A of Clause 3 of the 1962 Newsprint Order are
challenged in these petitions on the ground that these clauses affect the volume of