wldoc 16-2-14 2_
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Westlaw India Delivery Summary
Request made by : IP USER 1
Request made on: Sunday, 14 February, 2016 at 02:21 IST
C!ent I": !nrmnun#1
Content Ty$e: !n#%ases#a&!n#e'!s#a&!n#u(#%ases#a&!n#u(#
!)&!n#u(#*ournas#a&!n#u(%a&!n#u(#eu#a&!n#
%a#a&!n#*rn#a&!n#%a#$ressnotes
T!te : Fert!!ser +sso%!at!on o) Ind!a Un!on o)Ind!a and ot-ers
"e!ery see%t!on: Current "o%ument
.umber o) do%uments de!ered: 1
2016 T-omson Reuters Sout- +s!a Pr!ate !m!ted
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"e-! !'- Court
6 anuary 2013
Fertiliser Association of India
v
Union of India and others
Case No : 5 P5 C7 4898/201 ; C5 a(-ru
Citation : 2013 Inda? "E 0@
Summary : +'r!%uture ; +'r!5 Produ%ts # Com$et!t!on # Com$an!es +%t, 191, s526 #
Im$ort o) )ert!!Aers # .ot!)!%at!on # Redu%t!on o) maB!mum reta! $r!%e #
Pet!t!oner/asso%!at!on o) )ert!!Aer ?as en'a'ed !n %arry!n' bus!ness o)
manu)a%tures/!m$orters o) )ert!!Aer # Res$ondent/UI !ssued not!)!%at!on stat!n' t-at %s
3 ; 6 o) o))!%e
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a%%ount o) a%t!on o) res$ondents !n !ns!st!n' on reasonabe a(-ru, 5
15 T-e $et!t!oner !s an asso%!at!on o) )ert!!Aer manu)a%turers/!m$orters and -as )!ed
t-e $resent $et!t!on !m$u'n!n':
151 Causes 3 ; 6 o) t-e ))!%e
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%ontrary to t-e undery!n' rat!onae o) $ro!d!n' nutr!ent based subs!dy5
45 e %ontended t-at t-e !m$u'ned not!)!%at!ons -ae resuted !n t-e )ert!!Aer
manu)a%turers/!m$orters %eas!n' to -ae any %ontro oer t-e $r!%e o) )ert!!Aers and
s!n%e t-e manu)a%turers/!m$orters do not -ae any %ontro oer t-e %ost o) )ert!!Aer,
t-e !m$u'ned not!)!%at!ons -ae d!sabed t-e )ert!!Aer manu)a%turers/!m$orters )rom
re%oer!n' any aderse )u%tuat!ons !n t-e!r %osts5
35 e )urt-er subm!tted t-at t-e re)eren%e +C Em$oyees Un!on Re'd57 5 Un!on o) Ind!a ; rs5:
+IR 2002 SC 30 2001 Inda? SC 20665
105 It ?as subm!tted on be-a) o) t-e res$ondent t-at retros$e%t!e re!s!on o) t-e
subs!dy s%-eme !s $erm!ss!be5 Re!an%e ?as $a%ed on "un%an Industr!es td5 5
Un!on o) Ind!a: 20067 SCC 129 2006 Inda? SC 445
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+nays!s, reason!n' and %on%us!on
115 +t t-e outset !t !s reeant to note t-at t-e 'oernment -as not not!)!ed t-e
determ!ned on demand#su$$y bas!s5
135 T-e ob*e%t o) t-e !ntrodu%t!on o) t-e .>S S%-eme ?as to ensure t-e aa!ab!!tyo) !nnoat!e )ert!!Aer $rodu%ts !n t-e mar(et at reasonabe $r!%es5 In t-!s %onteBt,
t-e bud'et s$ee%- de!ered by t-e t-en F!nan%e
and !ts eBtra%t !s re$rodu%ed beo?:#
"In the context of the nation's food security, the declining response of agricultural
productivity to increased fertilizer usage in the country is a matter of concern !o
ensure alanced application of fertilizers, the #overnment intends to move to$ards a
nutrient ased susidy regime instead of the current product pricing regime It $ill
lead to availaility of innovative fertilizer products in the mar%et at reasonale
prices !his unshac%ling of the fertilizer manufacturing sector is expected to attract
fresh investments in this sector In due course it is also intended to move to asystem of direct transfer of susidy to the farmers"
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165 Under t-e .>S S%-eme )or t-e year 2010#11 and 2011#12, t-e )ert!!Aer
%om$an!es ?ere ao?ed to )!B t-e Comm!ttee and a$$roa o) Cab!net Comm!ttee on E%onom!% +))a!rs # de%!ded t-at
t-e $r!%es o) t-e )ert!!Aers ou'-t to be redu%ed to reasonabe ees5 T-!s ?as to
ma!nta!n t-e baan%e bet?een t-e
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ba%(dro$ o) t-e a)oresa!d )a%ts and $o!%y )rame?or(5 T-e %ontroersy t-at needs to
be addressed !s ?-et-er t-e res$ondents are $re%uded )rom !ns!st!n' t-at )ert!!Aers
be sod at !nd!%at!e $r!%es !n order to aa! t-e nutr!ent based subs!dy5 +nd, ?-et-er
t-e re)eren%e
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20 .PS: 18#46#0#4 1300
& In case the -.P of P fertilizers are not reduced as indicted in para 5 and the
companies are found to e indulging in undue profiteering, the I-6 $ill revie$ and
recommend suitale measures for action y /01 !he action may include, recovery
of susidy to the extent of unreasonaleness on that particular grade of fertilizer,removal of any grade7grades of fertilizers of a particular company or the fertilizer
company itself from the 89: :cheme and also reduction in the 89: rates"
T-e $et!t!oner aso !m$u'ns Causes !!7 ; !!!7 o) y t-e !m$u'ned < dated 265065201, t-e res$ondent s$e%!)!ed t-at t-e
re)eren%e
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2@5 Inso)ar as t-e )!rst )a%et !s %on%erned, t-at !s, ?-et-er t-e res$ondents are
$re%uded )rom )!B!n' S S%-eme, I am unabe to
a%%e$t t-e %ontent!on t-at )!B!n' or !nd!%at!n' t-e S re'!me and !s t-us, arb!trary or unreasonabe5 T-e t-eme o) t-e .>S S%-eme !s
to $ro!de a )!Bed subs!dy based on t-e nutr!ents5 T-e 'oernment )et t-at t-e
ear!er $o!%y o) $ro!d!n' subs!dy to )! t-e 'a$ bet?een %ost and S S%-eme ?as ado$ted ?-!%- $ro!ded )or a )!Bed subs!dy5 T-e
$arad!'m s-!)t !n t-e ne? $o!%y .>S S%-eme7 ?as to ao!d ar!abe subs!d!es,
?-!%- ?ere %a%uated to %om$ensate t-e d!))eren%e bet?een t-e %ost and t-e S S%-eme $ro!des )or a )!Bed subs!dy t-us %om$e!n' )ert!!Aer
manu)a%turers/!m$orters to redu%e t-e!r %osts and !n%rease e))!%!en%!es5 +t-ou'- t-e
manu)a%turers ?ere )ree to )!B t-e S S%-eme or
t-at $re%uded t-e res$ondents )rom eBam!n!n' t-e
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)!Bed subs!dy !5e5 under t-e .>S S%-eme75
05 T-e se%ond )a%et o) t-e %-aen'e reates to t-e ae'ed unreasonabeness o) t-e
re)eren%e a*a* !ndustan td5 5 S!r S-ad! a Enter$r!ses td5:
20117 1 SCC 640 2010 Inda? SC 102@ -ed t-at t-e Doernment ?oud ta(e
d!erse )a%tors )or )ormuat!n' t-e $o!%y !n t-e oera ar'er !nterest o) t-e e%onomy
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decide them $ithout even the aid of experts"
65 In "un%an Industr!es td5 2006 Inda? SC 44 su$ra7, t-e Su$reme Court stated
t-e aboe $r!n%!$e, !n t-e %onteBt o) t-e retent!on $r!%e o) )ert!!Aers )!Bed by
Fert!!Aer Inter#%oord!nat!on Comm!ttee, as under:
"35 !urning to the (rticle *4 argument, $e emphatically reiterate the no$+accepted position that (rticle *4 does not reuire this 6ourt to examine the intricacies of an
economic scheme or pricing policy for its merits or its correctness, for that is in the
domain of the executive or the legislative ranches of the #overnment C:ee eg
9(D60 ?mployees' >nion nion of India, nion of India, : 55F
3& Ae are roadly in concurrence $ith the reasoning of the Gigh 6ourt that in
matters of administrative discretion it is not open to the courts to interfere in minute
details, except on grounds of mala fides or extreme aritrariness Interference
should e only $ithin very narro$ limits, such as, $here there is a clear violation of
a statute or a 6onstitutional provision, or extreme aritrariness in the Aednesury
(ssociated Provincial Picture Gouses Dtd v Aednesury 6orpn,
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m!n!mum o) Rs5 1300 P
been a%%e$ted by t-e ot-er $arty and t-e ot-er $arty -as a%ted to !ts $re*ud!%e
rey!n' on su%- re$resentat!on5 It !s, t-us, essent!a t-at t-e $arty %a!m!n' su%-re!e) $ead t-e ne%essary )a%ts )or re%ourse to t-!s $r!n%!$e5 T-e $art!es ?-o are
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stated to -ae a%ted to t-e!r $re*ud!%e manu)a%turers/!m$orters7 are not be)ore t-!s
Court5 T-e $et!t!oner !s a %om$any !n%or$orated under Se%t!on 26 o) t-e Com$an!es
+%t, 191 ?!t- t-e ob*e%t to $romote and $rote%t t-e )ert!!Aer !ndustry !n Ind!a and
to $romote t-e %ommon bus!ness !nterest o) !ts member %om$an!es5 In my !e?, !t
?oud not be $oss!be to %ons!der t-!s as$e%t o) t-e %-aen'e, ?!t-out a $art!%uar
manu)a%turer/!m$orter $ead!n' t-e reeant )a%ts and substant!at!n' !ts %a!m5
45 T-e $et!t!on and $end!n' a$$!%at!on are, a%%ord!n'y, d!sm!ssed5 .o order as to
%osts5
Pet!t!on d!sm!ssed
2013 T-omson Reuters Sout- +s!a Pr!ate !m!ted
T-!s database %onta!ns ed!tor!a en-an%ements t-at are not a $art o) t-e or!'!na mater!a5 T-e database may aso -ae m!sta(es or om!ss!ons5 Users are requested to er!)y t-e
%ontents ?!t- t-e reeant or!'!na teBts7 su%- as, t-e %ert!)! ed %o$y o) t-e *ud'ment, Doernment DaAettes, et%5 T-omson Reuters bears no !ab!!ty ?-atsoeer )or t-e adequa%y,
a%%ura%y, sat!s)a%tory qua!ty or su!tab!!ty o) t-e %ontent5
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