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Facts of the Case

A batch of writ petitions was filed before the Telangana High Court by several traders engaged in the lawful sale of tobacco products. The petitioners challenged Notification No. 501/FSS-I/2022 dated 07.01.2022, issued by the Commissioner of Food Safety, Telangana, which prohibited the sale of specified tobacco products.

The petitioners contended that they possessed valid licences, GST registrations, and other statutory permissions to conduct their businesses. They further argued that despite the Supreme Court having granted an interim stay on the impugned notification, local authorities and police officials continued interfering with their lawful business activities.

The petitioners therefore sought quashing of the notification and protection against interference with their trade.

Issues Involved

  1. Whether Notification No. 501/FSS-I/2022 dated 07.01.2022 could continue to be enforced despite the interim stay granted by the Supreme Court.
  2. Whether the continued interference by State authorities with the petitioners' lawful business activities was legally sustainable.
  3. Whether the High Court should independently adjudicate the validity of the notification when the matter was already pending before the Supreme Court.

Petitioners' Arguments

  • The notification was arbitrary, unconstitutional and beyond the powers conferred under the relevant statutes.
  • It violated Articles 14, 19 and 21 of the Constitution of India.
  • The petitioners were conducting lawful business under valid licences, GST registrations and statutory permissions.
  • The Supreme Court had already stayed the operation of the notification dated 07.01.2022.
  • Despite such stay, police and Food Safety authorities continued interfering with business operations, causing unnecessary harassment.
  • The authorities were bound to honour and implement the interim order passed by the Supreme Court.

Respondents' Arguments

  • The State defended the notification issued by the Food Safety Commissioner.
  • It was submitted that the notification had been issued in exercise of statutory powers under the applicable food safety laws.
  • Since the dispute concerning the notification was already pending before the Supreme Court, the matter was governed by the orders passed by the Apex Court.

Court Order / Findings

The Telangana High Court observed that an earlier notification had already been challenged before the Court in W.P. No. 5444 of 2021, which had been dismissed. The matter was thereafter carried to the Supreme Court by way of Special Leave Petition.

During the pendency of the proceedings before the Supreme Court, the fresh Notification No. 501/FSS-I/2022 dated 07.01.2022 was issued. The Supreme Court, by order dated 31.03.2022, stayed the operation of the said notification.

The High Court held that since the entire issue was already pending before the Supreme Court, it would not be appropriate for the High Court to render any independent adjudication. The orders of the Supreme Court are binding on all courts and authorities.

Accordingly, the Court directed that the respondents shall strictly comply with the interim stay granted by the Supreme Court in both letter and spirit.

The Court further observed that if any petitioner believed that the Supreme Court's stay order had been violated or breached by any authority, it would be open to such petitioner to take appropriate legal action in accordance with law.

The writ petitions were accordingly disposed of without costs.

Important Clarification

  • A High Court will ordinarily refrain from deciding an issue that is already pending before the Supreme Court.
  • Orders passed by the Supreme Court are binding upon every court and governmental authority.
  • Authorities cannot continue enforcing a notification whose operation has been stayed by the Supreme Court.
  • Any violation of a Supreme Court stay order may invite appropriate legal proceedings under law.

Sections 

  • Article 226 of the Constitution of India
  • Articles 14, 19 & 21 of the Constitution of India
  • Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA)
  • Food Safety and Standards Act, 2006
  • Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011
  • Notification No. 501/FSS-I/2022 dated 07.01.2022

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785390312_2275compressed.pdf

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