Case Note & Summary
The dispute arose between the State of U.P. and Synthetics and Chemicals Ltd. regarding the licensing and supply of molasses for the manufacture of industrial alcohol. The High Court had previously ruled that the Central Government had exclusive authority to grant licenses for industrial alcohol, and the respondent company did not need a PD-2 license from the Excise Commissioner. The State of U.P. filed a special leave petition challenging this ruling, arguing that the respondent company should first manufacture rectified spirit, which could be converted into potable alcohol. The Supreme Court dismissed the special leave petition, affirming the High Court's decision and recognizing the State's power to regulate against the misuse of industrial alcohol. The Court clarified that the High Court's direction regarding the supply of molasses should not be interpreted as requiring the government to act contrary to existing laws. The final order emphasized that the supply of molasses must be made in accordance with legal provisions, and the State's right to ensure that industrial alcohol is not diverted for human consumption was upheld. The Court dismissed the petition while reiterating the principles established in previous judgments.
Headnote
A) Constitutional Law - Licensing Authority - Exclusive power of Central Government - Constitution of India, 1950, Article 136 - The Central Government holds exclusive power to grant licenses for manufacturing industrial alcohol, and the respondent company was not required to obtain a PD-2 license from the Excise Commissioner. The High Court's direction to not interfere with the respondent's manufacturing was upheld, affirming the State's right to regulate against misuse of industrial alcohol (Paras 292-293). B) Administrative Law - Supply of Molasses - Compliance with law - Constitution of India, 1950, Article 136 - The High Court's direction regarding the supply of molasses must be understood as not contravening the Molasses Control Order or any other applicable law. The supply of molasses to the respondent must comply with legal provisions (Paras 294A-B).
Issue of Consideration
Whether the High Court's direction regarding the supply of molasses and licensing for industrial alcohol was justified.
Final Decision
The Supreme Court dismissed the special leave petition, affirming the High Court's ruling that the Central Government has exclusive licensing authority for industrial alcohol and that the supply of molasses must comply with legal provisions.
Law Points
- Licensing authority
- Industrial alcohol
- Potable alcohol
- State power
- Molasses supply
