LawDistill
Supreme Court of India

SARASWATI INDUSTRIAL SYNDICATE LTD. ETC vs UNION OF INDIA on 30 August, 1974

Cites 1 provisionsCites 1 judgmentsCited by 17
Official PDFBench Pingle Jaganmohan Reddy, Mirza Hameedullah Beg, Alwar Naicker Alagiriswami
PETITIONER:
SARASWATI INDUSTRIAL SYNDICATE LTD. ETC.
Vs.
RESPONDENT:
UNION OF INDIA
DATE OF JUDGMENT30/08/1974
BENCH:
BEG, M. HAMEEDULLAH
BENCH:
BEG, M. HAMEEDULLAH
REDDY, P. JAGANMOHAN
ALAGIRISWAMI, A.
CITATION:
1975 AIR 460 1975 SCR (1) 956
1974 SCC (2) 630
CITATOR INFO :
R 1978 SC 215 (23)
RF 1978 SC1296 (35,50,60)
RF 1981 SC 873 (30,72)
RF 1987 SC1802 (9)
R 1988 SC1737 (86)
APL 1990 SC 334 (103)
R 1990 SC1277 (29,40)
RF 1990 SC1851 (25)
ACT:
Sugar (Control) Order, 1966, Clause 7--Central Govt. fixing
the price "having regard to the estimated cost of production
of sugar on the basis of the relevant schedule"--Fixation of
price twice within one season--Govt. if obliged to make
adjustments for losses due to any previous erroneous
fixations.
Essential Commodities Act, 1955, Section 15--Fixation of the
price of sugar in good faith--Suit for damages if could be
initiated.

CIVIL APPELLATE JURISDICTION : Civil Appeals Nos. 1928/67, 1274-76, 1293, 1356-57/68. Appeals from the Judgment and orders dated the 10th October 1967 and 5th February 1968 of the Delhi High Court in Civil Writ Nos. 1218, 1295-97, 1320, 1344 and 1318 of 1967 respectively. B.Sen. Bishambar Lal, H. K. Puri, P. V. Kapur and S. C. Patel for the appellant in C. A. 1928/67. H. K. Puri for the appellants in C. As. 1274-76 and 1293/68. S. T. Desai and D. N. Mukherjee for the appellant in C. A. No. 1356/68. D. N. Mukherjee; for the appellant in C. A. 1357/68. Girish Chandra and S. P. Nayar- for the respondents, except C. A. 1928 and 1275/68. G.L. Sanghi, Girish Chandra and S. P. Nayar for the respondents in C. A. 1928 and 1275 of 1968. The Judgment of the Court was delivered by BEG, J. The appellants are manufacturers of sugar, who have come before us after certification of their cases as fit for appeal to this Court tinder Article 133(1)(c) of the Constitution. They challenged the notification dated 28-61967 issued by the Central Government under clause 7 of the Sugar (Control) Order, 1966, fixing ex-factory prices for sugar factories specified in the notification. It appears that, in the Writ Petitions filed in the High Court for quashing the impugned notification and appropriate orders in the nature of mandamus, the validity of section 3 of the Essential Supplies Act 10 of 1955, as well :as of the Sugar (Control) Order, 1966, issued under it were questioned. But, before us, the appellants have confined their arguments to contentions based on the correctness of the method adopted in fixing prices of sugar manufactured in various States, and the alleged failure of the Central Government to take into account the fact that there was an initial fixation of prices of sugar by a notification dated 1-2-1967 followed by a final fixation on 28-6-1967. According to the appellants, appropriate adjustments or allowances should have been made in the final fixation by a notification of 28-6-1967. We are, therefore, ]lot concerned now with any question relating to the validity of clause 7 of the Sugar (Control Order) under which the notifications were issued.

The relevant clause 7 reads as follows:

"7. Power to fix sugar prices:-

(1) The Central Govt. may from time to time

by notification in the Official Gazette, fix

the price or the maximum price at which any

sugar may be sold or delivered and different

prices may be fixed for different areas or

different factories or different types or

grades of sugar.

(2) Such price or maximum price shall be

fixed having regard to the estimated cost of

production of sugar determined on the basis of

the relevant schedule of cost given in the

Report of the Sugar Enquiry Commission

(October 1965), subject to the adjustment of

such rise in cost subsequent to the Report

aforesaid as, in the opinion of the Central

Government, cannot be absorbed by the

provision for contingencies in the relevant

schedule to that Report.

(3) Where the price or the maximum price has

been so fixed, no person shall sell or

purchase or agree to sell or purchase any

sugar at a price in excess of that fixed under

sub-clause

(1) :

Provided that the price at which sugar may be

sold for delivery otherwise than ex-factory

shall not exceed the price or the maximum

price, as the case may be, fixed under sub-

clause (1) for sale ex-factory plus such

charges in respect of transport to any town or

any specified area and other incidental

charges as may be fixed by the concerned State

Government or by any officer authorised in

this behalf by the Central Government or that

State Government

in accordance with the instructions issued by

the Central Government in this behalf from

time to time." Clause 7(2), set out above, requires the Govt. to fix the price "having regard to the estimated cost of production of sugar on the "basis of the relevant schedule". The expression "having regard to" only obliges the Govt. to consider as relevant date material to which it must have regard (See Ryots of Garabandho and other Villages v. Zemindar of Parlakimedi & Anr. (1). The appellants concede that this is the effect of language of cl. 7(2). It is evident that the price fixed is an estimated maximum price chargeable because the manufacturer cannot charge more. Furthermore, it should be noted that the only "adjustment" provided for is before a fixation of the estimated price "having regard" to the basis provided by the relevant schedule, but there is no obligation whatsoever cast upon the Government to make any "adjustment" to compensate for losses due to any previous erroneous fixations. Indeed, such attempted adjustments may seem to be unfair to subsequent consumers who ought not, it could be argued, be made to pay for the past benefits possibly enjoyed by others. The Sugar Commission had recommended that the country should be divided into five zones for the purposes of fixation of price of sugar in each zone. Its opinion was, that dividing the country into a large number of zones would make the price fixation of sugar "degenerate" into "cost plus basis". The reason given by the Commission against division of the country into larger number of zones was that this would encourage inefficient factories to remain inefficient instead of inducing them to effect economies by rationalization and modernisation so as to become efficient. The grievance of the appellant Saraswati Industrial Syndicate was that the Government had really divided the country into 22 zones and that it had, while doing so, taken into consideration the conversion charges on the basis of five zones putting Haryana in the same zone as Madhya Pradesh. It claimed that its efficiency as a manufacturer using modern methods was greater than that of factories in Madhya Pradesh although the wages it had to pay were higher than those paid by the Madhya Pradesh Manufacturers. It was difficult for the High Court, as it is for us, to determine these questions of fact on the meager material or bare assertions, not subjected to cross-examination, which are available in writ proceedings decided primarily on affidavits. Nevertheless, assuming that these assertions rest on a factually correct basis, we think that a modern manufacturer of sugar, with more efficient methods of production, would gain by a fixation of price which was profitable even for less efficient manufacturers. Even if we assume that the wages of laborers were somewhat higher in Haryana than those in Madhya Pradesh, without sufficient material to be able to arrive at a definite conclusion on this matter, we think that the disadvantage to the Syndicate would be offset by the advantage it enjoys as a producer with a more modern and (1)70 I. A. 129. efficient manufacturing technique. It is a well known fact that rationalisation of industry, by the use of modern methods, reduces the amount of labour needed in more mechanised modes of manufacture. Therefore we do not think that these assertions could prove any inequitable treatment meted’ out to the Haryana manufacturers of sugar in any case no breach of a mandatory duty, which could justify the issue of a writ of mandamus, was established. We have also examined the grievance of the appellants that the price of sugar for the season 1966-67 was not determined in accordance with the relevant data. As already indicated above, the cost schedules given by the Commission were only guide-lines to indicate the relevant data in fixing the price. They were not like clear mandatory Statutory provisions which could be enforced without much difficulty. The Commission’s report gives two sets of schedules which contain different heads filled in for determining cost of manufacture. One of these sets gives heads of cost of manufacture for future calculations based "on 10% recovery excluding basic cost of cane" (page 110) and with the "number of working days on the basis of 22 crushing hours". Here, the heads of costs are ’(1) cost excluding basic cost of cane but including extra cost on cane (2) packing (3) grade differential (4) selling expenses (5) "dearness allowance escalation for 10 points". Another set of schedules of fair price fixation for the year 1963-64, for which the basic cost of cane was presumably known, after giving "average capacity", "average crushing days", and "average recovery per cent", contains the following heads (p. 117) "(1) raw materials-basic cost of cane (2) conversion charges including- extra cost of cane (3) packing charges (4) adjustment for extras due to grade differential (5) selling expenses (6) excise duty (7) return (8) fair ex-factory price" Here, manufacturing "costs" are, presumably, covered by "conversion charges". A perusal of the figures under the first set of tables shows that, as the number of working days is increased, the cost is, quite, naturally, reduced. The 10 % recovery basis merely indicates the amount of sugar obtained from the total quantity of sugarcane. But, from both sets of schedules, we find that there is considerable freedom given to the Government in choosing what could properly determine the "fair price" to be fixed. Items to be taken into account are broadly stated. They are not tied down to the particulars which, according to the learned counsel for the appellant, ought to have been taken into account. The criteria are elastic enough to either include or exclude some of the items put forward on behalf of the applicants as necessary to be taken into account. Some of the items which, according to the appellants, should be treated as items of cost may not even properly find a place there. For example it was suggested that excise duty was wrongly left out as an item of cost. There is nothing in the first set of schedules to indicate that excise duty must be taken into account in determining, the cost of production. In the second set of schedules excise duty is mentioned apart from manufacturing and other items of cost. Excise duty is really, imposed on goods when they have come into existence in the manufactured form. It could more properly be taken into consideration in determining nit profits than in calculating cost of manufacture. One of the contentions on behalf of the petitioners was that prices should not have been determined on the basis of 22 zones but should have been determined either on an All India scale or for five zones as recommended by the Sugar Enquiry Commission. costs of production, for purposes of price fixation, can only be determined on the basis of averages from data collected from each particular region- and conditions which affect factories in general in that region. It may. be that, on particular items, the Government may have reasons to regard data collected in one region to be unreliable. Other data collected in another region may be considered good enough for a more general use of it. The results of price fixation are actually given separately in an annexed table for each factory in each State and are not uniform. We cannot read into clause 7 (2) an obligation to fix the price either on an All India basis or five region basis. It is enough if the basis adopted is not shown to be so patently unreasonable as to be in excess of the power to fix price. This power is confined to fixation for the purposes mentioned in Essential Commodities Act, 1955. In any case, the appellants’ objections could form the subject matter of representations which could have been made to the Government by each of the parties affected. If their case had substance, they ought to have made a demand for a more just fixation on what they considered to be more appropriate and reasonable basis before going to court. They had not done so. The petitioners did not challenge the price fixation on the ground that a quasi-judicial procedure had to be adopted before prices are fixed even if such price fixation affects, as it must each factory. Price fixation is more in the nature of a legislative measure even trough it may be based upon objective criteria found in a report or other material. 15-L192SupCI/75 it could; not, therefore, give rise to a complaint that a rule of natural justice has not been followed in fixing the price. Nevertheless, the criterion-adopted must be reasonable. Reasonableness, for purposes of judging whether there was an "excess of power" or an "arbitrary" exercise of it, is really the demonstration of a reasonable nexus between the matters which are taken into account in exercising a power and the purposes of exercise of that power. This was made clear by this Court in the two cases cited on behalf of the appellants (1) Shree Meenakshi Mills Ltd v. Unions of India (1); (2) The Panipat Cooperative Sugar Mills V. the Union of India (2). Shree Meenakshi Mills’ case (supra) related to price fixation under the provisions of Cotton Textile (Control) Order, 1948. There, this Court observed. inter alia, that the case of Premier Automobiles Ltd. v. Union of India (3) "does not consider that concept of fair prices varies with circumstances in which and the purposes for which the price control is sought to be imposed," and, it indicated that the decision in that case was based on a "special agreement" involved there. The purposes of the Essential Commodities Act were thus explained (at p. 490)

"The question of fair price to the consumer

with reference to the dominant object and

purpose of the legislation claiming equitable

distribution and availability at fair price is

completely lost sight of if profit and the

producer’s return are kept in the forefront.

The maintenance or increase of supplies of the

commodity or the equitable distribution and

availability at fair prices are the

fundamental purposes of the Act. If the

prices of yarn or cloth are fixed in such a

way to enable the manufacturer or producer to

recover his cost of production and secure a

reasonable margin of profit, no aspect of

infringement of a fundamental right can be

said to arise."

It was then said (at p. 490) :

"In determining the reasonableness of a

restriction imposed by law in the field of

industry, trade or commerce, it has to be

remembered that the mere fact that some of

those who are engaged in these are alleging

loss after the imposition of law will not

render the law unreasonable. By its very

nature, industry or trade or commerce goes

through periods of prosperity and adversity on

account of economic and sometimes social and

political factors. In a largely free economy

when controls have to be introduced to ensure

availability of consumer goods like food-

stuff, cloth and the like at a fair price it

is an impracticable proposition to require the

Government to go through the exercise like

that of a Commission to fix the prices."

(1) [1974] 1 S.C.R. p. 468.

(2) [1973] 2 S.C.R. 860.

(3) [1972] 2 S.C.R. 526.

’Even these Commissions cannot always make a

correct estimate of a price which is fair to

all because there are intricacies of the trade

of all profit making enterprises, which a

Commission may not be able to probe."

The Panipat Co-operative Sugar Mills’ case

(supra) the price of fixation of sugar under

the Sugar (Price Determination) Order, 1971,

on principles laid down by Tariff Commission

and other expert bodies were considered by

this Court. In that context it said (at page

875)

"A unit-wise fixation of price as suggested by

counsel, and payment on the basis of a price

so worked out would mean perpetuating

inefficiency and mismanagement, and depriving

the partial control policy of the incentives

for economy and efficiency inherent in it. We

are, therefore, satisfied both on the language

of the sub-section, the background in which it

was enacted and the mischief the legislature

sought to remedy through its working that the

true construction is that a fair price has to

be determined In respect of the entire

produce, ensuring to the industry a reasonable

return on the capital employed in the business

of manufacturing sugar. But this does not

mean that Government can fix any arbitrary

price, or a price fixed on extraneous

considerations or such that it does not secure

a reasonable return on the capital employed

in the industry." In both the cases mentioned above the question was assumed to be one involving a determination of "fair price". In arriving at such an assessment, a reasonable margin of profits, judged by average standards of efficiency, could be provided for. In the cases before us, the appellants have not asserted that they incurred losses or did not make reasonable profits. In other words, they themselves ignore what appears to be an important aspect in all such price fixation so that one is left wondering whether their real complaint is not that they could not "profiteer". We are not satisfied that the Government, in fixing the price of sugar in 1967, to which the Writ Petitions in the appeals before us are confined, took into consideration any extraneous matters or that it acted arbitrarily or unreasonably in doing so. in the Saraswati Industrial Syndicate’s case, which is accepted by both sides as the basic or the most comprehensive case from the point of view of relevant material on record, the counter-affidavit filed by Shri K. L. Pasricha, Joint Secretary, Ministry of Food, gives the matters taken into account for the impugned price fixation as follows :

"With reference to paragraphs 14 and 15 of the

Writ Petition, I say that the correct facts

are as follows :-

(a) The fixation of ex-factory price of

sugar is necessarily to be done initially

about the time when the crushing season starts

or when the deliveries from new season’s

production commence. This fixation has

necessarily to be made on the

basis’ of estimates of the relevant data

available at that time.Circumstances may

require the revision to the exfactory price

during the: seasons and, the final re-

fixation, of. price generally takes place

after the crushing season is over. Ever since

the present control started in April 1963, the

practice to above has been followed. From the

very nature of things of fixation or re-

fixation of ex-factory price cannot be done on

any other basis.

(b) For the reasons stated above, the Sugar

(Control) Orders of 1963 and 1966 empower the

Central Government to fix ex-factory price

from time to time.

(c) It is incorrect to state, as has been

done in paragraphs 14 and 15 of the Writ

Petition, that clause 7(2) of the Sugar

(Control) Order, 1966 makes provision for any

adjustment in respect of deliveries of sugar

made prior to the date of any notification

issued thereunder. All that the said sub-

clause provides is fixation of a price having

regard to the estimated cost of production.

(d) From the very nature of things it is

obvious that even the cost schedules,

recommended by the Sugar Enquiry Commission

are not based on the actual cost of production

in any individual factory, but are based on

the average of only a few sample factories

taken into account by the Sugar Enquiry

Commission, which necessarily results in the

price not being based on actual cost of

production in any individual factory.

(e) It is also incorrect to state as has

been done by the petitioner that the price

which is so fixed under the Sugar (Control)

Orders if fixed on the basis of the previous

year’s results. As a matter of fact, the

price, which is so fixed,isanestimate on the

basis of data not only of the previous year’s

results, but also on the basis of the working

of more than one year in the past and also

crop forecasts and various other factors

relating to the commencing year in respect of

which the price has to be fixed. The

statement by the petitioner that the price is

fixed by the Central Government on the basis

of the previous year’s working is on the face

of it incorrect as in such an event there

would be no necessity of making any estimate

for the purpose of price fixation.and all that

would be needed would be to continue the

prevailing price. The ex-factory price for the sugar factories in Punjab including Haryana was fixed at Rs. 137-35 per quintal by a Notification dated the 24th March, 1966. By Notification dated the 20th October, the ex-factory price of such factories was revised to Rs. 134-55 per quintal. Thus, in point of fact the petitioner was benefited to the extent of Rs. 2-80 per quintal on all deliveries made from the production of the year 1965-66 up to the 19th October, 1966, because no adjustment was made or could

be made under the provisions of the relevant

Sugar (Control) Order regarding such benefit

which accured to the petetioner as aforesaid We turn now to the questions whether there was a "provisional" fixation of :price by the notification of 1-21967 or whether the socalled "final’ fixation for the season- 1966-67 by the notification of 28 6-1967 was illegal for that reason. We find that clause 7 of the Control Order set out above does not contemplate only a "Provisional" or preliminary, fixation of maximum price to be followed by a "final" fixation for the whole season, such as,, according to the appellants, is supposed to have happened here. Clause 7(1) gives the Central Government power to fix the maximum sugar prices by notification in the official Gazette "from time to time" it was, therefore, contended on behalf of the Union of India that both the notifications complied with the requirements of the Control Order, because there is neither a provision for a provisional fixation, to be followed by a final fixation for a season, nor is any period of time between one fixation and another specified. In reply to this contention, Mr. Desai, learned counsel for the appellants in Civil Appeal No. 1356 of 1958, referred us to the statement in the counter-affidavit, set out above, and the Sugar Enquiry Commission report (at page 116) :

"In actual practice, however, the duration and

recovery may vary from year to year in he same

zone. The ex-factory selling price in each

zone will have to be determined annually with

reference to the actual duration and recovery.

The basic cost of cane and the margin of

profit will have to be added to arrive at the

ex-factory price. It may be reiterated that

in applying the schedules, packing charges,

grade, differentials and selling expenses

should be kept constant per quints of sugar

irrespective of recovery percentage while

other items of cost should be adjusted in

inverse proportion to the recovery percentage. Although the passage set out above primarily refers to other matters which are to be taken into account in determining the ex-factory selling price of white sugar, yet, it is relied upon by Mr. Desai inasmuch as the terms "year to year in the same zone" and "determined annually" occur here. These passages- only indicate a practice. Furthermore, they show that the Commission meant to lay down only guide-lines in determining relevant criteria for maximum price fixation. What is most important to note, however, is the reference to the margin of profit which the schedules do not mention. It is evident that the schedules are not all embracing. We also find (at p. 116) in this Report :

"Table X.5 gives the fair ex-factory price per

quintal of white sugar (Grade D-29) for each

Zone on the basis of actual recovery and

duration pertaining to 1963-64 crushing

season." This shows that the concept of a "fair-price", implied in a reasonable fixation, and not some mechanical formula, ignoring profits or losses altogether, was contemplated by the- Commission. The point which is common to all the appeals relates to the difference in price-fixed on 1-2-1967 and the price fixed on 28-6-1967. In the case of the appellant in Civil Appeal No. 1928 of 1967, prices fixed were 137-75 and 142.25 respectively. In the case of the appellant in Civil Appeal No. 1356 of 1968 the price fixed.on 28-6-1967 was 187.10. The argument was that, as the price fixed on 28-6-67 is the one which was revised at the end of the crushing season after taking into account the actual length of the season and recovery achieved, that represents the correct price for the whole season.’, It was argued that in respect of the deliveries made between 1-2-1967 and 28-6-1967 at the rate of fixed on’ 1-2-1967, the appellants have suffered considerable losses. It Wag submitted that the Government had to make some provision for compensating them for these losses. The appellants relied on the following statement issued on behalf of the Government which has not been controverted :

"1. According to the current practice, the ex-

factory prices of sugar are fixed at the

beginning of each year on the basis of

expected recovery of sugar from cane and the

length of crushing season. These prices’ are

revised at the end of the crushing season.-

taking into account the actual length of the

season and the recovery achieved in the

different regions.

2.:Accordingly, the Government of India

have reviewed the ex-factory prices of sugar

for the current year in the light of actual

recovery and duration obtained by sugar

factories in Uttar Pradesh, Bihar, Punjab,

Haryana, West Bengal, Rajasthan and Madhya

Pradesh. The revised prices are as follows : Price Region Ex-factory price

per

quintal in rupees Eastern Uttar Pradesh 139 -07 Part A of West U.P. 160 -32 Part 13 of West U.P. 147 - 37 Part C of West U.P. 140 - 83 Part D of West U.P. 136.61 North Bihar 139.88 South Bihar 187.88 Punjab 152.58 Haryana 142 -25 West Bengal 138.61 Rajasthan 159 -52 Madhya Pradesh 171.91

3. The revised prices have been notified

today and come into effect immediately.

4. The prices for factories in other areas

will be announced in due course". We find that, in the previous year, the price actually fixed subsequently was lower than the price fixed originally so that various sugar producers, including, we presume, all the appellants, got the benefit of such higher prices fixed earlier. We mention this only to indicate that the price-fixation for the whole season 1966-67 did not appear to be either arbitrary, capricious, or unfair.: As the High Court pointed out, it cannot, be contended that the estimate of manufacturing costs land the resulting fixation of price made in the beginning of February, 1967, Was wholly unrelated to the actual conditions which came to light after the working results of the crushing season as a whole were known at the end of the season. The practice of fixing the pieces once during the initial months of available and the other at the end of the season has been invariably followed. From the very nature ex factory price could not take Place, on any other basis. It could not e kept waiting until the whole season came to an end leaving the price fixed for the previous season, which was the only other alternative, to govern sales. The practice adopted was certainly fairer. All the cases before us relate to the season 1966 to 1967 which was over long ago. No provision has been brought to our notice to indicate how the Government would be responsible to manufacturers for an erroneous fixation of price at which sugar may be sold during a particular season by manufacturers to dealers who can sell it to the consumers. Learned counsel suggested that, the. appellants could sue those to whom sugar was supplied at lower rates than should have been fixed. We find it very difficult to understand how the manufacturers could claim any thing, even by means of suits, from dealers with whom there were no agreements providing that any variation in price to be fixed by the Government will enable the manufacturers to recover the balance in case the fixation was too low. indeed, if the fixation of price is found to be too high for any reason, such as the failure to consider the amount of profits made by the manufacturers in a particular season, the manufacturers may have become liable to pay something back to the dealers had there been any provision in contacts between manufacturers and dealers for recovery of balances due to either side on subsequent fixations. It is enough to mention here that no such provision in any agreement has been brought to our notice. No dealers whose rights may be affected are before us to enable us to pronounce on their alleged liabilities. In the Saraswati Industrial Syndicate’s case, there was an understanding given in the High Court by the Union of India that the Union will pay the syndicate the balance, on a redetermination of price, if the price fixed by the Government was found to be too low. We have no doubt that undertaking exhausted itself with proceedings in the High Court when the writ petition in appeal before us now failed. We also find, in accordance with the well established practice of providing protection for action taken by the Govt. and its officers for actions of the nature sought to be quashed by the appellants, Section 15 of the Essential Commodities Act, 1955, lays down :

"15(1) No suit, prosecution or other legal

proceeding shall lie against any person for

anything which is in good faith done or

intended to be done. in: pursuance of any

other made under’ Section 3.

(2) No suit or other legal proceeding shall

lie against the Govt. for any damage caused or

likely to be caused by anything which is in

good faith done or intended to be done in

pursuance of any order made under section 3". This means that no suits or other legal proceedings, apart from those specified in the Constitution can be brought against the Govt. or its. officers for any action taken by the Govt. in fixing the price of sugar in good faith. There is no allegation made by the appellants that the action of the Govt. in fixing the price twice within a season was lacking in good faith. Hence, no proceeding could have been brought in a Civil Court to claim damages against the Govt. even if its bona-fide action was vitiated,by some illegality, of the kind set up by the appellants. The result is that, even if we could have given a mere declaration that the price fixation for the season 1966-67 in good faith was vitiated by some illegality, such a delcaration would have been useless to the appellants. It is well established practice that Courts do not issue writs or make declarations which are futile. We have already indicated above that it has not been shown to us how the fixation of maximum price by the Government for the season 1966 to 1967 was erroneous or unreasonable even though it was done twice witnin one season. There is no prohibition against such fixation of price twice within a season. ]Each operated only from the date of fixation until it was fixed again. It had no retrospective effect. There could, therefore, be no claim for any readjustment against anyone simply because the price fixed in a subsequent period was higher or lower than the price fixed in the beginning of the same season. The essential requirements for invoking the writ issuing jurisdiction. of the High Court here that the fixation had to be shown to be ultra vires. This was not done by the petitioners-appellants. Hence, their writ petitions were rightly rejected by the High Courts. As the appeals fail on merits we need not discuss the technical difficulty which an application for a writ of certiorari would encounter when no quasi-judicial proceedings was before the High Court. The powers of the high Court under Article 226 are not strictly confined to the limits to which proceedings for prerogative writs are subject in English practice. Nevertheless the well recognised rule that no writ or order in the nature of a Mandamus would issue when there is no failure to perform a mandatory duty applies in this country as well. Evert in cases of alleged breaches of mandatory duties the salutary general rule which is subject to certain exceptions applied by us as it is in England when writ of Mandamus is asked for could be stated as we find it set out in Halsbury’s Taws of England (3rd edition vol. 13 p. 106):

"As a general rule the order will not be

granted unless the party complained of has

known what it was he was required to do so

that he had the means of considering whether

or not he should comply and it must be shown

by evidence that there was a distinct demand

of that which the party seeking the

mandamus desires to enforce and that that

demand was met by a refusal." in the cases before us there was no such, demand refusal. Thus no ground whatsoever is shown here for the issue of any writ order or direction under Article 226 of the Constitution. These appeals must be and are hereby dismissed but in the circumstances of the case we make no order as to costs.

Appeals dismissed. V. M. K.