CASE BRIEF: U.P. KATTHA FACTORIES ASSOCIATION Vs. THE STATE OF U.P. & ORS.

DATE OF JUDGEMENT: 02/01/1996
BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. G.B. PATTANAIK (J)
 FACTS:  pursuant to the policy dated September 12, 1983, industrial units based on various forests produce i.e.  Khair Wood was allowed to be set up in the State. An association of the industries. The Government gave relaxation on  February  25,  1984  giving  liberty  to  the Director of  Industries to  encourage small scale industries on the  ground  that  those  who  would  not  operate  their industries from  the forest  wood may  be considered for the licence and  that  they  would  purchase  ‘khair  wood  from outside the State. The respondent No.4 had given provisional registration of his proposed S.I. units for a period of one year on February 11, 1986. The Government thereafter introduced complete ban on registration from   December 11,   1986.   The   appellant Association had  applied for  cancellation or  relaxation of the  ban  imposed  including  the  4th  respondent  but  the Director refused  to the  same. Consequently, the appellant filed a writ petition in the high Court. It is contended rot the appellant that the Government having allowed other units to obtain Khair wood from the Government quota, denial of the same to S.S.I.  Units registered under   provisional registration would be discriminatory violate Art 14 of the Constitution.
JUDGEMENT:  It is seen that in view of non-availability of the forest produce in the State of U.P.  the Government  constituted  a  committee  and  the Secretary Forest  Department was  its Chair-person. They had gone into the question of availability and allotment of Khair wood in the State. They have imposed a cut-off date, i.e., December 11, 1986 and allotment would be made, subject to the availability of forest produce, to those industries established prior to the aforesaid date.  It is  true,  as stated in  the order passed by the Director, that S.I. units registered  after   September   12,   1983,   were   allowed registration by  proceedings dated  February 25, 1984 with a condition that they will not apply for U.P. forest wood, and they would get it from outside the State. Even in respect of such industries it was also further stated that though the Director of Industries granted provisional registration. It would only be until or before December 11, 1986. In other words, complete ban on registration of S.I.  Units was imposed on or after December 11, 1986 for allotment of the forest produced required for industries.