Decided: 05.02.1962
Bench: Justice B. P. Sinha (CJI), K. Subbarao, N. Rajagopala Ayyangar, J.R. Mudholkar, T.L.
FACTS
The appellant was designated as the Manager of the Oriental Gas company, which was the owner of an industrial operation involved in the production and sale of fuel gas in Calcutta, through an agreement between the appellant's company and the Oriental Gas company.
The Oriental Gas Company Act of 1960 was enacted by the West Bengal Legislature, and Section 4 of this act stipulated that the said industrial operation would be transferred to the State Government for a period of five years for its management and control.
On October 3, 1960, the State Government issued a notification announcing its intention to
assume management and control of the aforementioned industrial operation.
The appellant subsequently filed a writ petition challenging the constitutionality of the aforementioned Act and requested the issuance of appropriate writs to prevent the State Government from implementing it, as well as the annulment of the notifications issued.
The High Court dismissed the petition and concluded that the State Legislature possessed the legal authority to enact the disputed Act, and its constitutional validity was not in question.
Subsequently, the appellant appealed this decision to the Supreme Court of India.
ISSUE
Whether the state legislature is competent to enact the Oriental Gas Company Act, 1960?
JUDGMENT
The Supreme Court held that the Legislature of a State has the exclusive authority to enact laws related to the gas industry under entry 25 of List II, and entry 24 does not encompass the gas industry.
The Court further explained that the term "industry" in entry 52 of List I has the same meaning as in entry 24 of List II. Consequently, entry 52 of List I also does not cover the gas industry. As a result, the Court agreed with the High Court's decision that the impugned Act was within the legislative competence of the West Bengal State Legislature and was valid.
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