Case: State Of M.P. &amp; Ors Vs. M/S. Chhotabhai Jethabhai Patel &amp; Co. &amp;

agents in different units for sale and the State was bound to purchase every single lot of tendu leaves unless the same could be said to be unfit for the manufacture of bids. 9. Prima facie trade in tendu leaves as was held by this Court in Vrajlal Manilal v. State of Madh Pra, (1970) 1 SCR 400 at p. 408 = (AIR 1970 SC 129 ) would consist of dealing in those leaves i.e. their purchase and sale but "transport of the leaves once purcesed or sold would not prima facie be an organic or integral part or dealing in those leaves." It was further held in that case:"...a permit system which regulates the movement of leaves purchased by a manufacturer of bidis from the unit where they are prchased to his ware-house, then to the branches and to the sattedars cannot up to that stage be regarded as unreasonable in the light of the object of the Act, the economic condition prevailing in the State and the mischief which it seeks to cure. At the same time to expect the manufacturer to get permits issued to his sattedars for distribution by them to the innumerable mazdoors of comparatively small quantities of these leaves would not only be unreasonable but frustrating." In that case there was no question of import of any tendu leaves from outside the State or the issue of any permits in that regard. What was objected to was the insistence upon transport permits for the leaves to be distributed by the manufacturers to his innumerable sattedars and mazdoors under Section 5 of the Act. It was held that though the section "is couched in apparently wide language, the very object of the Act, as disclosed by its long title, contains inherent limitations against an absolute or as strictly regulated a ban as it would at frist reading of the section appear." Though the Court there up-held the provisions relating to the creation of the monopoly in the public interest in the matter of sale and purchase of tendu leaves, it was not disposed to uphold the restrictions on movement to the extent it was sought to be enforced by the State in that case. 10. In coming to the above conclusion the Court relied on the dictum in Akadasi Padhan v. State of Orissa (1963) Supp 2 SCR 691 = (AIR 1963 SC 1047 ):"A law relating to State monoploy cannot, in the context, include all the provisions contained in the said law whether they have direct relation with the creation of the monopoly or not ----- the said expression should be construed to mean the law relating to the monopoly in this absolutely essential features. If a law is passed creating a State monopoly, the Court should enquire what are the provisions of the said law which are basically and essentially necessary for creating the State monopoly. It is only those essential and basic provisions which are protected by the later part of Article 19 (6) If there are other provisions made by the Act which are subsidiary, incidental or helpful to the operation of the monopoly, they do not fall under the said part and their validity must be judged under the first part of Article 19 (6) In other words, the effect of the amendment made in Article 19 (6) is to protect the law relating to the creation of monopoly and that means that it is only the provisions of the law which are integrally and essentially connected with the creation of the monopoly that are protected. The rest of the provisions which may be incidental do not fall under the latter part of Article 19 (6) and would inevitably have to satisfy the test of the first part of Article 19 (6)." 11. It is settled law that where two construction of a legislative provision are possible one consistent with the constitutionality of the measure impugned and the other offending the same, the Court will lean towards the first if it be compatible with the object and purpose of the impugned Act, the mischief which it sought to prevent ascertaining from relevant factors its true scope and meaning. 12. It was in the light of this principle that the High Court observed :"If Section 5 of the Act or any of its provisions were to be construed as prohibiting the import of tendu leaves into the State or restricted within the State of imported leaves, then the provision would clearly be invalid as violative of Article 301 and 304 of the Constitution." 13. Without expressing our views on the subject we hold that the entire provisions of the Act and the rules are consistent with and aim at the State monoploy in the trade of tendu leaves in case of leaves grown or produced in the State and the legislature never intended that the monopoly should be operative even to the extent of banning import of tendu leaves from outside or stalling the tendu leaves once they found their way into the State from outside. The transport of tendu leaves purchased outside but consigned to places within the State to be used for the manufacture of bidis is not integrally connected with the State monopoly as envisaged in the Act. It stands to reason that manufacturers of bidis in the State of Madhya Pradesh would not think of importing tendu leaves from distant places like Bihar and Maharashtra if they could help it and it must be the exigencies of the situation which drives a manufacturer of bidis to such course of action. In any event, the Act ought not to be construed so as to ban import of tendu, leaves from outside the State or restrict their movement once they were within the State unless clear language was used in that behalf. If and when such express embargo is imposed, a question may arise as to whether it offends the different provisions of Part XIII of the Constitution. 14.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]8. We find ourselves unable to accept the contentions put forward by counsel on behalf of the State. All the relevant provisions of the Act and the Rules referred to above show that the legislature intended that everybody growing leaves within the State should offer the same to it or its agents in different units for sale and the State was bound to purchase every single lot of tendu leaves unless the same could be said to be unfit for the manufacture of bids.Prima facie trade in tendu leaves as was held by this Court in Vrajlal Manilal v. State of Madh Pra, (1970) 1 SCR 400     at p. 408 = (AIR 1970 SC 129  ) would consist of dealing in those leaves i.e. their purchase and sale but "transport of the leaves once purcesed or sold would not prima facie be an organic or integral part or dealing in those leaves." It was further held in that case:"...a permit system which regulates the movement of leaves purchased by a manufacturer of bidis from the unit where they are prchased to his ware-house, then to the branches and to the sattedars cannot up to that stage be regarded as unreasonable in the light of the object of the Act, the economic condition prevailing in the State and the mischief which it seeks to cure. At the same time to expect the manufacturer to get permits issued to his sattedars for distribution by them to the innumerable mazdoors of comparatively small quantities of these leaves would not only be unreasonable but frustrating."In that case there was no question of import of any tendu leaves from outside the State or the issue of any permits in that regard. What was objected to was the insistence upon transport permits for the leaves to be distributed by the manufacturers to his innumerable sattedars and mazdoors under Section 5 of the Act. It was held that though the section "is couched in apparently wide language, the very object of the Act, as disclosed by its long title, contains inherent limitations against an absolute or as strictly regulated a ban as it would at frist reading of the section appear." Though the Court there up-held the provisions relating to the creation of the monopoly in the public interest in the matter of sale and purchase of tendu leaves, it was not disposed to uphold the restrictions on movement to the extent it was sought to be enforced by the State in that caseWithout expressing our views on the subject we hold that the entire provisions of the Act and the rules are consistent with and aim at the State monoploy in the trade of tendu leaves in case of leaves grown or produced in the State and the legislature never intended that the monopoly should be operative even to the extent of banning import of tendu leaves from outside or stalling the tendu leaves once they found their way into the State from outside. The transport of tendu leaves purchased outside but consigned to places within the State to be used for the manufacture of bidis is not integrally connected with the State monopoly as envisaged in the Act. It stands to reason that manufacturers of bidis in the State of Madhya Pradesh would not think of importing tendu leaves from distant places like Bihar and Maharashtra if they could help it and it must be the exigencies of the situation which drives a manufacturer of bidis to such course of action. In any event, the Act ought not to be construed so as to ban import of tendu, leaves from outside the State or restrict their movement once they were within the State unless clear language was used in that behalf. If and when such express embargo is imposed, a question may arise as to whether it offends the different provisions of Part XIII of the Constitution