Godawat Pan Masala v. Union of India

Smokeless tobacco manufacturers and other associated entities challenged several state orders banning the manufacture, sale, storage and distribution of pan masala and gutkha for varying times.  In its decision, the Supreme Court found that only the central government can ban food either by parliamentary action or by rules promulgated under the Prevention of Food Adulteration Act, 1954 (Food Act).  The Court found that that the states do not possess the power to ban – even if the states invoke provisions of the Food Act.  The Supreme Court also maintained that it could not agree with petitioners’ contention that pan masala and gutkha are not food.  The Court quashed the state orders.

Godowat Pan Masala and Ors. v. Union of India and Ors., Appeal No. 4674 of 2004 , Supreme Court (2004).

  • India
  • Aug 2, 2004
  • Supreme Court
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Parties

Plaintiff Godawat Pan Masala and Ors.

Defendant Union of India and Ors.

Legislation Cited

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Type of Litigation

Tobacco Control Topics

None

Substantive Issues

Type of Tobacco Product

"We are, however, unable to accept the contention of the learned counsel for the state of Maharashtra that, because the notification is generally intended, it is necessarily a legislative act and therefore there was no question of complying with principles of natural justice. If that were so, then every executive act could masquerade as a legislative act and escape the procedural mechanism of fair play and natural justice. In State of Tamil Nadu v. K. Sabanayagam and Anr. (vide para 17), this Court after referring to the aforesaid observations of Chinnappa Reddy, J. in Cynamide (supra), observed that even when exercising a legislative function, the delegate may in a given case be required to consider the view point which may be likely to be affected by the exercise of power. This Court pointed out that conditional legislation can be broadly classified into three categories: (1) when the legislature has completed its task of enacting a statute, the entire superstructure of the legislation is ready but its future applicability to a given area is left to the subjective satisfaction of the delegate (as in Tulsipur Sugar Co. case ); (2) where the delegate has to decide whether and under what circumstances a legislation which has already come into force is to be partially withdrawn from operation in a given area or in given cases so as not to be applicable to a given class of persons who are otherwise admittedly governed by the Act; (3) where the exercise of conditional legislation would depend upon satisfaction of the delegate on objective facts placed by one class of persons seeking benefit of such an exercise with a view to deprive the rival class of persons who otherwise might have already got statutory benefits under the Act and who are likely to lose the existing benefit because of exercise of such a power by the delegate. This Court emphasised that in the third type of cases the satisfaction of the delegate must necessarily be based on objective considerations and, irrespective of whether the exercise of such power is judicial or quasi-judicial function, still it has to be treated to be one which requires objective consideration of relevant factual data pressed into service by one side, which could be rebutted by the other side, who would be adversely affected if such exercise of power is undertaken by the delegate. In our view, even if the impugned notification falls into the last of the above category of cases, whatever the material the Food (Health) Authority had, before taking a decision on articles in question, ought to have been presented to the appellants who are likely to be affected by the ban order. The principle of natural justice requires that they should have been given an opportunity of meeting such facts. This has not been done in the present case. For this reason also, the notification is bad in law."