High Court of KeralaDivision BenchDisposed of; price fixation quashed; price disp...

Kerala Hotel and Restaurant Association, Pathanamthitta District Committee, and others v. State of Kerala and others

Case / Petition Number:WP(C).No. 28902 of 2013 (K)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P.N.RAVINDRAN
  • ANIL K.NARENDRAN
Judgment Date
2015-05-20
Court Decision / Holding
The Writ Petitions are disposed of. The price lists published by the District Collector (Ext.P20 for 2013-14 and Ext.P29/16 for 2014-15) are quashed, as there was no enabling provision to fix prices of food stuffs in hotels/restaurants under the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977 or the Kerala Essential Articles Control Act, 1986. The Court clarifies that the display of prices is permissible (and should be displayed conspicuously) but price fixation cannot be enforced through the District Administration absent legislative authorization. Enforcement officers should ensure compliance and demand price displays in multiple languages (English, Hindi, Kannada, Telugu). The judgment, however, leaves intact the possibility that the District Collector or Travancore Devaswom Board may fix prices for temporary Sabarimala arrangements with the necessary permissions. The petitions are disposed of with directions to continue price display requirements and to pursue legislative action for any future price control.”,
Final Disposition
Disposed of; price fixation quashed; price display requirement maintained; temporary price-fixing for pilgrim accommodations, if permitted by Travancore Devaswom Board, may continue under lawful permissions; legislative backing required for general price control.

Parties to the Case

Appellants / Petitioners

  • Karthigesu K., Proprietor, Hotel Aryaas (Veg) XVII/663, Shop Nos.18 & 19, Adoor Tower, Adoor, Pathanamthitta
  • S. Ramalingam, Proprietor, Hotel Anandabhavan (Veg), Pathanamthitta
  • R. Rajalakshmi, Proprietrix, Hotel Aryas, Panthalum/Pathanamthitta
  • J. Ramakumar, Proprietor, Aryas Hotel, Panthalum, Pathanamthitta
  • K.K. Navas, Proprietor, Hotel Thanima, Pathanamthitta District
  • M.K. Muragan, Proprietor, Hotel Arya Bhavan, Kozhencherry
  • Thomas Scaria, Proprietor, Prince Family Restaurant, Chettrimukku, Kozhencherry
  • K.G. Rajashekhara Kurup, Proprietor, Kurup’s Hotel, Kozhencherry
  • Santhosh Mathew, Proprietor, Hotel New Johns, Mallappilly
  • Rajesh G. Nair, Proprietor, Vijaya Hotel, Mallappilly
  • KERALA HOTEL AND RESTAURANT ASSOCIATION, Pathanamthitta District Committee, represented by its Vice President Mr. Karthikeshu

Respondents

  • State of Kerala represented by its Secretary, Food Civil Supplies Department, Government of Kerala
  • The District Collector, Pathanamthitta
  • The Superintendent of Police, Pathanamthitta
  • The District Supply Officer, Pathanamthitta
  • The Taluk Supply Officer, Taluk Supply Office, Adoor, Pathanamthitta District
  • The Taluk Supply Officer, Office of the Taluk Supply Officer, Pathanamthitta, Pathanamthitta District

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.C.S.Ajith Prakash
  • • Sri.Paul C Thomas

Counsels for Respondents

  • • Sri.C.S.Manilal

Case Synopsis & Summary

This batch of writ petitions challenges the District Collector, Pathanamthitta’s price fixation for foodstuffs in hotels/restaurants during the Sabarimala pilgrimage seasons of 2013-14 and 2014-15. The petitioners, a body of hoteliers and restaurant operators across Pathanamthitta district (vegetarian and non-vegetarian), contend that Ext.P20/Ext.P12/Ext.P13/Ext.P16 price lists are illegal, ultra vires, and issued without statutory authority, and that they violate the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977 as well as their right to carry on business. They also argue that they routinely display prices as per the 1977 Order, and any price control should come only through enabling legislation; the display obligation remains distinct from price fixing. The State/District authorities justify price fixation on consumer protection during pilgrim crowds, citing Annexure I orders and earlier judgments (notably Kerala Hotel and Restaurant Association v. State of Kerala, 2005 (4) KLT 497 and Kerala Hotel and Restaurant Association v. Thrissur District Consumer Disputes Redressal Forum, 2012 (3) KLT 277) that advocate regulation of prices. The court concludes there is no enabling provision to fix prices, and the Kerala Food Stuffs Order only requires price display. Accordingly, Ext.P20/Ext.P12/Ext.P13 price lists are set aside, with directions to ensure display in multiple languages and to allow enforcement officers to collect information. The decision also clarifies that temporary price fixing for Sabarimala arrangements under Travancore Devaswom Board permissions can continue, but not as fixed price regimes. The petitions are disposed of accordingly, with a Division Bench presiding over a broader bench. The judgment emphasizes the need for legislative action to regulate pricing, while preserving limited, temporary measures for pilgrims already permitted by the Travancore Devaswom Board.

Provisions of Law Cited

Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977Kerala Essential Articles Control Act, 1986Section 3 of the Kerala Essential Articles Control Act, 1986Clause 3 of the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977Section 5 of the Kerala Essential Articles Control Act, 1986Section 6 of the Kerala Essential Articles Control Act, 1986Essential Commodities Act, 1955

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that there is no enabling provision in law to empower the District Administration to fix the price of foodstuffs in hotels and restaurants. They rely on the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977 (which only mandates display of prices) and the Kerala Essential Articles Control Act, 1986 to argue that any price control requires a statutory framework. The 1977 Order and Ext.P20 price list are not authorized by statute; the price display duty regulates transparency but not pricing. The petitions highlight that the District Collector cannot override the freely set prices agreed by hoteliers; they emphasize that massive pilgrim influx necessitates reasonable pricing but must be guided by law rather than administrative fiat. They cite the 2005 and 2012 Kerala cases as precedents that supported non-interference without enabling legislation and that consumer protection requires legislative action. The petitions seek quashing Ext.P20 (and related) price lists and declare the display obligation as the sole remedy, while preserving the right to display existing price lists.

Contentions of Respondents

The State/District authorities argue that price fixation during Sabarimala pilgrims is necessary to prevent exploitation and ensure availability of food at fair prices. They rely on Annexure I orders (Annexure I, Annexures II–V minutes) and earlier judgments indicating that price regulation can be warranted in the public interest. They contend that the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977 has been misused, and that the order’s authority, when paired with the Kerala Essential Articles Control Act, enables the government to regulate pricing in specific circumstances for pilgrims. They cite the need to balance demand-supply dynamics with public welfare and cite statutory enforcement powers (Clauses 4–6 of the 1977 Order) to gather information, inspect, and ensure compliance. The respondents maintain that the District Collector’s actions in Ext.P12/Ext.P13/Ext.P20 were in the interest of pilgrims and public welfare; a robust regulatory framework exists or is implied by earlier orders, though a permanent price-control regime requires legislative authorization.”},

Cited Precedents (7)

Case NameCitationTreatmentExplanation
Kerala Hotel and Restaurant Association v. State of Kerala(2005) 4 KLT 497PositiveCited as a precedent supporting that there is no enabling provision for commanding price restrictions in the absence of legislative authorization; used to emphasize the need for statutory backing for price control.
Kerala Hotel and Restaurant Association v. Thrissur District Consumer Disputes Redressal Forum(2012) 3 KLT 277PositiveCited to support the view that there should be a law to protect consumers from unreasonable pricing and to regulate prices through appropriate legislation.
O.P.No.15567 of 1992—Mentioned OnlyAnnexure I order quoted to show prior directions for reasonable charges; not treated as enabling price control authority.
O.P.No.15667 of 1992—Mentioned OnlyReferenced as part of Annexure II orders; used to illustrate prior judicial directions but not as a direct ruling on price fixation.
W.P.(C).No.36374/10—Mentioned OnlyInterim orders cited for context on prior price-related petitions; not treated as controlling authority.
W.P.(C).No.28704/12—Mentioned OnlyInterim order cited in context of related petitions; treated as background rather than binding on the present decision.
W.P.(C).No.28056/12—Mentioned OnlyInterim order cited; mention of related proceedings without altering the current ruling.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** ## **THE HONOURABLE MR.JUSTICE P.N.RAVINDRAN & THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** ## **WEDNESDAY, THE 20TH DAY OF MAY 2015/30TH VAISAKHA, 1937** ## **WP(C).No. 28902 of 2013 (K)** **---------------------------------------------** **PETITIONER(S) :** **-------------------------** **1. KARTHIGESU.K., PROPRIETOR, HOTEL ARYAAS (VEG) XVII/663, SHOP NO.18 & 19, ADOOR TOWER, ADOOR, PATHANAMTHITTA.** **2. S.RAMALINGAM, PROPRIETOR, HOTEL ANANDABHAVAN (VEG), PMC IX/1081/2, PATHANAMTHITTA.** **3. R.RAJALAKSHMI, PROPRIETRIX, HOTEL ARYAAS, CENTRAL JUNCTION PANTHALAM P.O., PUNALUR, PATHANAMTHITTA.** **4. J.RAMAKUMAR, PROPRIETOR, ARYAS HOTEL, M.C.ROAD, PANTHALAM, PATHANAMTHITTA.** **5. K.K.NAVAS, PROPRIETOR, HOTEL THANIMA, G.H.S.ROAD, PATHANAMTHITTA, PATHANAMTHITTA DISTRICT.** **6. M.K.MURAGAN, PROPRIETOR, HOTEL ARYA BHAVAN, II/1036, DCDE, KOZHENCHERRY GRAMA PANCHAYAT, KOZHENCHERRY, PATHANAMTHITTA.** **7. THOMAS SCARIA, PROPRIETOR, PRINCE FAMILY RESTAURANT, MARAMAN P.O., CHETTIMUKKU, KOZHANCHERRY.** **8. K.G.RAJASHEKHARA KURUP, PROPRIETOR, KURUP'S HOTEL, II/675, KOZHENCHERRY, KOZHENCHERRY.** **9. SANTHOSH MATHEW, PROPRIETOR, HOTEL NEW JOHNS, V/13, MALLAPPILLY GRAMA PANCHAYAT, MALLAPPILLY, PATHANAMTHITTA.** **10. RAJESH G.NAIR, PROPRIETOR, VIJAYA HOTEL, II/29, MALLAPPILLY GRAMA PANCHAYAT, MALLAPPILLY.** **..2/-** **..2..** ## **WP(C).No. 28902 of 2013 (K)** **-----------------------------------------** **11. KERALA HOTEL AND RESTAURANT ASSOCIATION, PATHANAMTHITTA DISTRICT COMMITTEE, PATHANAMTHITTA, REPRESENTED BY ITS VICE PRESIDENT MR. KARTHIKESHU.** **BY ADVS.SRI.C.S.AJITH PRAKASH SRI.PAUL C THOMAS** **RESPONDENT(S) :** - **----------------------------** **1. STATE OF KERALA, REPRESENTED BY ITS SECRETARY, FOOD CIVIL SUPPLIES DEPARTMENT, GOVERNMENT OF KERALA.** **2. THE DISTRICT COLLECTOR, PATHANAMTHITTA, CIVIL STATION, PATHANAMTHITTA, PATHANAMTHITTA DISTRICT-689 645.** **3. THE SUPERINTENDENT OF POLICE, PATHANAMTHITTA, CIVIL STATION, PATHANAMTHITTA-689 645.** **4. THE DISTRICT SUPPLY OFFICER, PATHANAMTHITTA, CIVIL STATION, PATHANAMTHITTA-689 645.** **5. THE TALUK SUPPLY OFFICER, TALUK SUPPLY OFFICE, ADOOR, PATHANAMTHITTA DISTRICT- 691 523.** **6. THE TALUK SUPPLY OFFICER, OFFICE OF THE TALUK SUPPLY OFFICER, PATHANAMTHITTA, PATHANAMTHITTA DISTRICT-689 645.** **BY SPL.GOVERNMENT PLEADER SRI.C.S.MANILAL** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05-03-2015, ALONG WITH W.P.(C).NO.30763 OF 2013 AND CONNECTED CASES, THE COURT ON 20-05-2015 DELIVERED THE FOLLOWING:** Msd. ## **WP(C).No. 28902 of 2013 (K)** ## **-----------------------------------------** ## **APPENDIX** ## **PETITIONER(S)' EXHIBITS & ANNEXURES** **--------------------------------------------------------------** - **EXHIBIT P1: A TRUE COPY OF THE LICENSE DOCUMENT ISSUED BY THE FOOD SAFETY AND STANDARD AUTHORITY OF INDIA, DATED 18-05-2012 TO THE 1ST PETITIONER.** - **EXHIBIT P2: A TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 25-06-2012 ISSUED TO THE 2ND PETITIONER.** - **EXHIBIT P3: A TRUE COPY OF THE TRADE LICENSE ISSUED BY THE PATHANAMTHITTA MUNICIPALITY FOR THE YEAR 2013-2014 TO THE 2ND PETITIONER DATED 31-07-2013.** - **EXHIBIT P4: A TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 06-12-2012 ISSUED TO THE 3RD PETITIONER.** - **EXHIBIT P5: A TRUE COPY OF THE TRADE LICENSE ISSUED BY THE PANTHALAM GRAMA PANCHAYATH FOR THE YEAR 2013-2014 TO THE 3RD PETITIONER DATED 25-05-2013.** - **EXHIBIT P6: A TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 06-12-2012 ISSUED TO THE 4TH PETITIONER.** - **EXHIBIT P7: A TRUE COPY OF THE TRADE LICENSE ISSUED BY THE PANTHALAM GRAMA PANCHAYATH FOR THE YEAR 2013-2014 TO THE 4TH PETITIONER DATED 25-05-2013.** **EXHIBIT P8: A TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 10-07-2012 ISSUED TO THE 5TH PETITIONER.** - **EXHIBIT P9: A TRUE COPY OF THE RECEIPT SHOWING THE ACCEPTANCE OF FEE FOR TRADE LICENSE ISSUED BY THE PATHANAMTHITTA MUNICIPALITY FOR THE YEAR 2013-2014 TO THE 5TH PETITIONER.** - **EXHIBIT P10: TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 18-02-2013 ISSUED TO THE 6TH PETITIONER.** - **EXHIBIT P11: TRUE COPY OF THE TRADE LICENSE ISSUED BY THE SECRETARY KOZHENCHERRY GRAMA PANCHAYATH FOR THE YEAR 2013-2014 TO THE 6TH PETITIONER DATED 02-05-2013.** - **EXHIBIT P12: TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 20-02-2013 ISSUED TO THE 7TH PETITIONER.** ## **WP(C).No. 28902 of 2013 (K)** **-----------------------------------------** **EXHIBIT P13: TRUE COPY OF THE TRADE LICENSE ISSUED BY THE THOTTAPUZHA GRAMA PANCHAYATH FOR THE YEAR 2013-2014 TO THE 7TH PETITIONER DATED 06-08-2012.** **EXHIBIT P14: TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 18-02-2013 ISSUED TO THE 7TH PETITIONER.** **EXHIBIT P15: TRUE COPY OF THE TRADE LICENSE ISSUED BY THE KOZHENCHERRY GRAMA PANCHAYATH FOR THE YEAR 2013-2014 TO THE 8TH PETITIONER DATED 04-06-2013.** **EXHIBIT P16: TRUE COPY OF THE FOOD SAFETY LICENSE DATED 08-10-2013 ISSUED TO THE 9TH PETITIONER DATED 08-10-2012.** **EXHIBIT P17: TRUE COPY OF THE TRADE LICENSE ISSUED BY THE MALLAPPILLY GRAMA PANCHAYATH FOR THE YEAR 2013-2014 TO THE 9TH PETITIONER DATED 10-05-2013.** **EXHIBIT P18: TRUE COPY OF THE FOOD SAFETY LICENSE UNDER THE FOOD SAFETY STANDARD AUTHORITY OF INDIA DATED 02-02-2013 ISSUED TO THE 10TH PETITIONER. EXHIBIT P19: TRUE COPY OF THE RECEIPT SHOWING THE REMITTANCE OF LICENSE FEE ISSUED BY THE MALLAPPILLY GRAMA PANCHAYATH FOR THE YEAR 2013-2014 TO THE 10TH PETITIONER DATED 10-06-2013.** **EXHIBIT P20: TRUE COPY OF THE PRICE LIST PUBLISHED BY THE DISTRICT COLLECTOR, PATHANAMTHITTA DATED 13-11-2013.** **EXHIBIT P21: TRUE COPY OF THE PURCHASE BILL DATED 20/10/2012 OF BOILED RICE ISSUED TO THE 1ST PETITIONER. EXHIBIT P22: TRUE COPY OF THE PURCHASE BILL DATED 01-09-2013 OF BOILED RICE ISSUED TO THE 1ST PETITIONER.** - **EXHIBIT P23: TRUE COPY OF THE BILL DATED 27-08-2013, ISSUED TO THE 1ST PETITIONER INDICATING THE PRICE OF PONNI RICE ETC.** - **EXHIBIT P24: TRUE COPY OF THE BILL DATED 28-09-2013 ISSUED TO THE 1ST PETITIONER BY ARADHANA TRADERS.** **EXHIBIT P25: TRUE COPY OF THE PRICE LIST PUBLISHED BY THE 2ND RESPONDENT DURING THE YEAR 2010-2011 IN PATHANAMTHITTA.** - **EXHIBIT P26: TRUE COPY OF THE INTERIM ORDER OF THIS HON'BLE COURT DATED 06-12-2010 IN W.P.(C).NO.36374/10.** - **EXHIBIT P27: TRUE COPY OF THE JUDGMENT DATED 23-02-2011 IN W.P.(C).NO.36374/10.** ## **WP(C).No. 28902 of 2013 (K)** ## **------------------------------------------** ## **EXHIBIT P28: TRUE COPY OF THE NEWS ITEM APPEARED IN DESABHIMANI DAILY DATED 09-12-2012.** **EXHIBIT P29: A TRUE COPY OF THE PRICE FIXATION LIST PUBLISHED BY THE 2ND RESPONDENT DATED 08-11-2012.** **EXHIBIT P30: TRUE COPY OF THE INTERIM ORDER DATED 1-12-2012 IN W.P.(C).NO.28704/12.** **EXHIBIT P31: TRUE COPY OF THE INTERIM ORDER DATED 29-11-2012 IN W.P.(C).NO.28056/12.** **EXHIBIT P32: TRUE COPY OF THE ORDER DATED 04-02-2013 IN W.P.(C).NO.28704/12** **EXHIBIT P33: TRUE COPY OF THE MINUTES OF THE 11TH PETITIONER ASSOCIATION DATED 15-11-2013.** - **EXHIBIT P34: TRUE COPY OF THE NEWS ITEM DATED 14-11-2013 IN MANGALAM DAILY.** - **EXHIBIT P35: TRUE COPY OF THE CHALLAN DATED 29-11-2012 ISSUED TO THE 1ST PETITIONER.** **EXHIBIT P36: TRUE COPY OF THE EXISTING PRICE LIST IN THE 1ST PETITIONER'S HOTEL.** - **EXHIBIT P37: TRUE COPY OF THE RECEIPT NO.894856 DATED 13.12.2013 ISSUED TO THE 3RD PETITIONER.** **ANNEXURE P1: A TRUE COPY OF THE PRICE FIXATION APPEARED IN MATHRUBHUMI DAILY DATED 27.10.2013.** **ANNEXURE P2: A TRUE COPY OF THE NEWS ITEM APPEARED IN MANORAMA DAILY DATED 03.12.2013.** **ANNEXURE P3: A TRUE COPY OF THE PRICE LIST IN THE RESTAURANT OWNED BY THE 3RD PETITIONER.** **ANNEXURE P4: A TRUE COPY OF THE PRICE LIST IN THE A/C RESTAURANT OF THE 4TH PETITIONER. ANNEXURE P5: A TRUE COPY OF THE PRICE LIST EXHIBITED IN THE HOTEL OF THE 6TH PETITIONER.** **ANNEXURE P6: A TRUE COPY OF THE PRICE OF FOOD ITEM EXHIBITED IN THE HOTEL OF THE 2ND PETITIONER. ANNEXURE P7: A TRUE COPY OF THE NEWS ITEM APPEARED IN MALAYALA MANORAMA DAILY.** ## **WP(C).No. 28902 of 2013 (K)** **-----------------------------------------** ## **RESPONDENT(S)' ANNEXURES & EXHIBITS** **-----------------------------------------------------------------** **ANNEXURE I: TRUE COPY OF ORDER OF THIS COURT IN ORIGINAL PETITION NO.15667/1992. ANNEXURE II: TRUE COPY OF MINUTES OF THE MEETING HELD ON 10.10.2013. ANNEXURE III: TRUE COPY OF MINUTES OF THE MEETING HELD ON 01.11.2013. ANNEXURE IV: TRUE COPY OF PROCEEDINGS DATED 11.11.2013. ANNEXURE V: TRUE COPY OF PROCEEDINGS DATED 13.11.2013. EXHIBIT R4(A): TRUE COPY OF THE MINUTES OF THE DISTRICT COLLECTOR'S MEETING. EXHIBIT R4(B): TRUE COPY OF THE STATISTICS FROM 15.11.2013 TO 14.12.2013. //TRUE COPY// P.S.TO JUDGE** Msd. **“CR”** ## **P.N.RAVINDRAN & ANIL K.NARENDRAN, JJ. ----------------------------------------------W.P.(C)Nos.28902 & 30763 of 2013 & 31120 and 31819 of 2014** **--------------------------------------------------Dated this the 20[th] day of May, 2015** ## **JUDGMENT** W.P.(C).No.28902 of 2013 is filed by the Kerala Hotel and Restaurant Association, Pathanamthitta District Committee, along with persons who are engaged in the business of running hotels and restaurants at Pathanamthitta, Adoor and Panthalam in Pathanamthitta District, seeking a writ of certiorari to quash Ext.P20 price list dated 13.11.2013, published by the District Collector, Pathanamthitta, fixing the price of various food stuffs in the hotels and restaurants in that district, during the Sabarimala pilgrimage season (2013-14). They have also sought a declaration that, the steps taken by the District Administration to fix the price of food stuffs in their hotels and restaurants, as evidenced by Ext.P20 price list, and the compulsion to display the said price list by replacing the existing price list exhibited in their hotels and restaurants is illegal, ultra vires, without jurisdiction and is in total disobedience of the W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -2- dictum laid down by this Court in the decisions reported in **Kerala Hotel and Restaurant Association v. State of Kerala (2005 (4) KLT 497)** and **Kerala Hotel and Restaurant Association v. Thrissur District Consumer Disputes Redressal Forum (2012 (3) KLT 277)** . 2. W.P.(C)No.30763 of 2013 is filed by persons who are engaged in the business of running non-vegetarian hotels and restaurants in Thiruvalla Town in Pathanamthitta District, seeking a writ of certiorari to quash Ext.P12 proceedings dated 11.11.2013 of the District Collector, Pathanamthitta, fixing the price of food stuffs in the hotels and restaurants in that district during the Sabarimala pilgrimage season (2013-14) and Ext.P13 price list (same as Ext.P20 in W.P.(C).No.28902 of 2013) published by the District Collector, Pathanamthitta. They have also sought a declaration that the steps taken by the District Administration to fix the price of food stuffs in the non-vegetarian hotels run by the petitioners, as evidenced by Ext.P13 price list and the compulsion to display the said price list by replacing the existing price list is illegal, ultra vires, without jurisdiction and is in total disobedience of the dictum laid down by W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -3- this Court in the decisions referred to above. 3. W.P.(C)No.31120 of 2014 is filed by the Kerala Hotel and Restaurant Association, Pathanamthitta District Committee, along with persons who are engaged in the business of running hotels and restaurants in Pathanamthitta District, seeking similar reliefs in respect of Ext.P29 price list dated 13.11.2014, issued by the District Collector, Pathanamthitta, fixing the price of various food stuffs in the hotels and restaurants in that district, during the Sabarimala pilgrimage season (2014-15). 4. W.P.(C)No.31819 of 2014 is filed by persons who are engaged in running hotels and restaurants at Adoor, Maramon, Kozhencherry, Mallappally, etc. in Pathanamthitta District, seeking similar reliefs in respect of Ext.P16 price list published by the District Collector, Pathanamthitta dated 13.11.2014 (same as Ext.P29 in W.P.(C)No.31120 of 2014), fixing the price of various foods stuff in the hotels and restaurants in that district, during the Sabarimala pilgrimage season (2014-15). 5. Since the issue raised in all these writ petitions is one and the same, they are disposed of by a common judgment, treating W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -4- W.P.(C).No.28902 of 2013 as the main case. 6. The petitioners in these writ petitions are engaged in the business of running hotels and restaurants (both vegetarian and non-vegetarian) at various places in Pathanamthitta District. In W.P. (C).Nos.28902 of 2013 and 31120 of 2014, the Kerala Hotel and Restaurant Association, Pathanamthitta District Committee, is one among the petitioners. According to the petitioners, they are running their hotels/restaurants after obtaining sales tax registration, necessary licenses/permissions/consent from the local authorities and other statutory bodies and also license under the Food Safety and Standards Act, 2006. In their hotels/restaurants, the petitioners are providing food stuffs like meals, idly, dosa, etc., along with other refreshments like tea, coffee, juices, etc., and the price of each food stuff is exhibited in their hotels/restaurants, as provided under the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977. According to the petitioners, the price of the food stuffs is periodically reviewed by the hoteliers in consultation with the Kerala Hotel and Restaurant Association and one such review and price enhancement was effected in December, 2012. W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -5- 7. According to the petitioners, millions of devotees visiting Sabarimala pass through Pathanamthitta District and there will be heavy requirement of food stuffs in their hotels/restaurants during every pilgrimage season. Every year, the District Administration used to convene meetings with all concerned in order to make arrangements for the devotees visiting Sabarimala. Such a meeting was convened on 28.9.2013, by the District Collector, Pathanamthitta, in which the representative of the Kerala Hotel and Restaurant Association was also invited. In that meeting, the District Collector made a demand to reduce the price of food stuffs in the hotels and restaurants in Pathanamthitta District, during Sabarimala pilgrimage season (2013-14). Though the representative of the Association expressed its inability to do so, the District Collector unilaterally fixed the price of various food stuffs in the hotels and restaurants in Pathanamthitta District during Sabarimala pilgrimage season (2013-14) and published Ext.P20 price list. The very same price list, which is produced as Ext.P13, is under challenge in W.P. (C).No.30763 of 2013. The price list issued for Sabarimala pilgrimage season (2014-15) is under challenge in W.P.(C). W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -6- Nos.31120 of 2014 and 31891 of 2014. 8. The sole issue that arises for consideration in these writ petitions is whether the District Administration has the authority to fix the price of food stuffs in the hotels and restaurants in that district and compel them to display such a price list, replacing the price list exhibited in such hotels and restaurants in terms of the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977. 9. The learned Senior Government Pleader would justify the price fixation made by the District Administration, during Sabarimala pilgrimage seasons 2013-14 and 2014-15, by contending that, such price fixation was made in order to ensure that food stuffs at a moderate and reasonable price are made available to the pilgrims during Sabarimala pilgrimage seasons. Relying on Annexure I order passed by a Division Bench of this Court dated 10.12.1993 in O.P.No.15667 of 1992, the learned Senior Government Pleader would contend that, the highhanded exploitation made by the hoteliers was noticed by this Court even during previous pilgrimage seasons, whereupon, peremptory directions were issued to the W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -7- District Administration to ensure that, the price charged for food stuffs in the hotels is reasonable and the pilgrims are not exploited. Relying on Annexures II and III minutes of the meetings held on 10.10.2013 and 1.11.2013 respectively, the learned Senior Government Pleader would contend that, the representative of the first petitioner in W.P.(C).Nos.28902 of 2013 and 31120 of 2014 had attended the aforesaid meetings convened by the District Administration in order to make arrangements for the devotees visiting Sabarimala during the pilgrimage season (2013-14). It was thereafter, the price list of food stuffs for the pilgrim season (2013- 14) was fixed by Annexure IV proceedings of the District Collector dated 11.11.2014. Later, the Vyapari Vyavasayi Ekopana Samithi of Nilakkal, Pampa and Sannidhanam, made a complaint regarding fixation of price of certain food stuffs like masala dosa, peas masala and kizhangu curry and after considering their grievance, a revised price list of food stuffs was published by Annexure V proceedings of the District Collector dated 13.11.2013. 10. In **Kerala Hotel and Restaurant Association** v. **State of Kerala (2005 (4) KLT 497)** , a learned single Judge of this W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -8- Court held that in the absence of an enabling provision for imposing restrictions in the matter of price of food articles sold by an eating house, it may not be possible for the District Administration to suggest a control in such areas, unless the State applies its mind and brings in a legislation, which authorises restriction, thereby fettering the freedom of an entrepreneur. Paragraphs 4, 5, 6 and 7 of the said judgment read thus; “ **4.** The Government Pleader had attempted to sustain the order on the strength of the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977. It required the caterers to publish the price of food articles sold by them. Such orders were issued under the authority of Essential Commodities Act. Ext. P3 was valid and one made in the right step. **5.** In spite of the above submissions, I find it difficult to accept the stand that any of these are enabling provisions for imposing restriction in the matter of price of food articles sold by an eating house. It may be in public interest to restrict the price, but such powers, if at all, are circumscribed by the requirement to recognise the fundamental rights of a person to carry on an industry or business to his liking. The District Authorities might be getting complaints about the prices levied by the establishments, but only in authorised matters, it may be possible for them to exert themselves. The issue is far too complex for them to issue edicts. There is no case that the W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -9- licences issued to the petitioners by the Local Authority contain a stipulation that they would be subjected to such restrictions. The orders referred to also do not authorise the Administration to impose upper limit in the price. What is contemplated there is only publication of price. The respondents have also no case that there is any supply of rationed articles at concessional prices to the hotel owners and they are reaping profits forfeiting the trust or violating any undertakings given by them. **6.** Price of a food item may depend on various factors. To cite a few, the investment that is there for starting up or running the same will be one. The expenditure that is incurred for running an establishment vary from place to place and locality. The quality of food stuff also will necessarily require the caterer to fix a price, if he is keen to make a profit. Above all, there is no compulsion of whatever nature for a person to go and take food from any public eating house, which is not to his taste. A person can avoid a hotel which charges higher prices, if price alone is his concern. **7.** In the matter of services, unless there is law in operation (e.g. bus fare, taxi fare etc.), it may be difficult for the Administration to prescribe prices, be it personal service or professional service. Imagine the situation where the District Administration is of opinion that fee charged by a hospital or a chartered accountant or even a lawyer is excessive. The theory of demand and supply is a time tested concept. It may not be possible for them to suggest a control in such areas, unless the State applies its mind and bring in legislation, which authorises restriction, thereby fettering the freedom of an entrepreneur. W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -10- Therefore, the hotelier will have the absolute discretion as of now at least to prescribe the price of his ghee roast, parotta or pulavu, if the business is not situated in restricted places or areas.” 11. The view expressed in the aforesaid judgment was reiterated by another learned single Judge of this Court in **Kerala Hotel and Restaurant Association v. Thrissur District Consumer Disputes Redressal Forum (2012 (3) KLT 277)** and this Court opined that, in the present day context it is only desirable that there should be some law which would save the common man from unreasonable and arbitrary pricing of food articles by hotels and restaurants in the State by establishing a machinery for regulating prices of food articles to ensure that the consumers are not unjustly fleeced. Paragraph 11 of the said judgment reads thus; “ **11.** This Court is of opinion that, in the present day context it is only desirable that there should be some law which would save the common man from unreasonable and arbitrary pricing of food articles by hotels and restaurants in the State by establishing a machinery for regulating prices of food articles to ensure that the consumers are unjustly fleeced. Of course that can only be by enacting appropriate legislation by the legislature if such legislation is permissible under the Constitution. Those are all matters which should gain the W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -11- attention of the Government and the legislature. In this connection I may also note that the preparation of food in many hotels and restaurants are in unclean and unhygienic surroundings. Whenever officers of the Public Health Department or Local Authority seizes food which are unfit for consumption the media who report those incidents zealously guards the names of the hotels and restaurants from where the seizure is made denying the public the right to know the culprits. The officers also do not publish the names of the culprits to enable the public to avoid such establishments. The media thus abdicates their duty to the public. With a pious hope that the powers that be would take into account the above opinions of this Court in that regard and take appropriate action in accordance with law to at least minimise the miseries of the common man who depend on hotels and restaurants for his necessities for food, I dispose of this writ petition as above.” 12. The respondents have no case that, any licences issued to the petitioners by the local authorities/statutory bodies for running their hotels/restaurants contain a stipulation authorising the District Administration to impose any restrictions on the price of food stuffs sold by such hotels/restaurants. The respondents have also no case that, there is any supply of rationed articles at concessional rates to the petitioners and that the petitioners are reaping profits forfeiting the trust or violating any undertaking given by them. What is W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -12- contemplated under the provisions of the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977, is only the display of the price of food stuffs and the provisions contained therein do not in any manner authorise the District Administration either to fix the price of food stuffs sold in hotels/restaurants or to impose any upper limit in the price of such food stuffs. In the absence of an enabling provision for imposing such restrictions, it is impressible for the District Administration to issue orders fixing the price of food stuffs in the hotels/restaurants in that district, during Sabarimala pilgrim seasons, unless the State applies its mind and brings in a legislation, which authorises restriction, thereby fettering the freedom of an entrepreneur. As noticed by the learned single Judge of this Court in **Kerala Hotel and Restaurant Association v. Thrissur District Consumer Disputes Redressal Forum (2012 (3) KLT 277)** it is only desirable that, there should be some law which would save the common man from unreasonable and arbitrary pricing of food stuffs by hotels and restaurants in the State, by establishing a machinery for regulating the prices of food stuffs, to ensure that the consumers are not unjustly fleeced. W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -13- 13. Relying on Annexure I order passed by a Division Bench of this Court on 10.12.1992 in O.P.No.15567 of 1992, the learned Senior Government Pleader would contend that, during previous pilgrim seasons, this Court had issued peremptory directions to the District Administration to see that the charges levied in the hotels are reasonably fair, without any exploitation of the pilgrims. But a reading of paragraph 6 of Annexure I order would show that, the direction contained therein was taking note of the report filed by the Special Commissioner appointed by this Court, who had pointed out that exorbitant charges are being collected in some hotels at Pampa and that necessary direction should be given to the authorities concerned to see that the pilgrims are not exploited. Therefore, this Court by Annexure I order directed the Commissioner of Civil Supplies, in consultation with the District Collector, Pathanamthitta, to see that the charges levied in the hotels are reasonable. This Court further directed the State to make immediate arrangements through the Commissioner of Civil Supplies and his subordinates to see that the hotels and other eating places cater to the innumerable worshiping public in a reasonable way and supply unadulterated food W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -14- and that the charges are the minimum. The Commissioner of Civil Supplies was also directed to keep in touch with the Special Commissioner appointed by this Court to satisfy him about the arrangements made and the directions in that behalf. Therefore, the directions in Annexure I order referred to above are intended for those hotels temporarily put up during each pilgrimage season at Sabarimala, Pampa, etc., on the strength of the permission/licence granted by the Travancore Devaswom Board. Hence we find absolutely no merit in the contention raised by the learned Senior Government Pleader that, Annexure I order of this Court would entitle the District Administration to fix the price of food stuffs in the hotels and restaurants in Pathanamthitta District during the Sabarimala pilgrimage seasons. 14. Relying on the provisions of the Kerala Essential Articles Control Act, 1986, the learned Senior Government Pleader would contend that, the District Administration has the power to control, during Sabarimala pilgrimage season, the price of food stuffs in the hotels and restaurants in Pathanamthitta District, in order to ensure their availability at a fair price to the pilgrims. The Kerala Essential W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -15- Articles Control Act, 1986 empowers the State Government to declare any article, not being an essential commodity within the meaning of the Essential Commodities Act, 1955, to be an essential article and to control by a notified order, the production, supply and distribution of, and trade and commerce in any such essential article. Section 3 of the Act empowers the Government to control the production, supply, distribution, etc. of essential articles. Going by sub-section (1) of section 3, if the Government are of the opinion that it is necessary or expedient so to do for maintaining or increasing the supplies of an essential article, or for securing their equitable distribution and availability at fair prices, they may by notified order provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. As per sub-section (2) of section 3, without prejudice to the generality of the powers conferred by sub-section (1), an order made thereunder may make provision in respect of matters enumerated in clauses (a) to (k) of sub-section (2). Under clause (b) of sub-section (2), the Government have the power for controlling the price at which any essential article may be brought or sold. Section 5 of the W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -16- Act mandates the notified orders to be laid before the Legislative Assembly and going by section 6 of the Act, any order made under section 3 shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act, or in any instrument having effect by virtue of any enactment other than this Act. The respondents have no case that, the food stuffs referred to in Ext.P20 price list in W.P.(C)No.28902 of 2013 are 'essential articles' notified by the State in exercise of its powers under section 3 of the said Act. Therefore, the contention raised by the learned Senior Government Pleader relying on the provisions of the aforesaid Act can only be repelled. 16. Clause 3 of the the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977, casts a statutory duty on the owner or other person in charge of a catering establishment to display at a conspicuous part of the catering establishment, the price of every item of food stuff in that establishment. Sub-clause (i) of clause 2 of the Order defines 'catering establishment' to mean a hotel, restaurant, eating house, cafe, tea shop, coffee stall, club, boarding house, canteen or railway refreshment room, where food W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -17- stuffs are served supplied or consumed on payment of price and includes any other place of like nature open to the public. Sub-clause (v) of clause 2 of the Order defines 'food stuff' to mean, any article of food or combination of articles of food kept for sale or service or supply at a catering establishment and includes liquid refreshments and beverages. 16. Clause 3 of the Order only requires catering establishments like hotels, restaurants, etc. to display at a conspicuous part of their establishment, the price of every item of food stuff in that establishment. Therefore, the provisions under the Kerala Food Stuffs (Display of Prices by Catering Establishments) Order, 1977 would also not entitle the District Administration to fix the price of food stuffs in hotels, restaurants, etc. in Pathanamthitta district during the Sabarimala pilgrimage season. 17. Going by clause 4 of the Order, the owner or any other person in charge of a catering establishment shall, when required by the Commissioner or the District Collector by general or special order, furnish truthfully and to the best of his knowledge and belief such particulars or information as may be required relating to the W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -18- food stuffs kept for sale, service, supply or consumption in that establishment. Clause 5 of the Order mandates that, the owner or any other person in charge of a catering establishment shall give all facilities at all reasonable times to any Enforcement Officer for inspection of the food stuff kept for sale, service or supply at that catering establishment or at any other place used for preparation of food stuffs for the purpose of that catering establishment. Clause 6 of the Order deals with the power of entry, search, seizure , etc. by an Enforcement Officer and going by sub-clause (1) an Enforcement Officer may, with a view to securing compliance with the Order or to satisfy himself that the provisions of the Order have not been contravened, require the owner/occupier or any other person in charge of the catering establishment to make any statement or furnish any information or produce any books, accounts or other documents showing the transactions relating to food stuffs and every person so required shall comply with such requisition. 18. Therefore, in exercise of the powers conferred under Clauses 4 to 6 of the Order, the Enforcement Officers exercising the powers under the Order can collect necessary information relating to W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -19- the food stuffs kept for sale, consumption, etc. and conduct necessary inspection, search, seizure, etc. with a view to securing compliance with the provisions of the Order and to ensure that there is no contravention of any of the provisions of the Order. The Enforcement Officers can also ensure that no catering establishments like hotels, restaurants, etc. hike the prices of food stuffs displayed in terms of Clause 3 of the Order, during the Sabarimala pilgrimage season. Taking into account the fact that a large number of pilgrims from North India and the neighbouring States of Tamil Nadu, Karnataka and Andhra Pradesh visit Sabarimala during every pilgrimage season, the District Administration/Enforcement Officers shall also insist on the display of a price list of food stuffs in English, Hindi, Kannada and Telugu. In the result, the price list published by the District Collector, Pathanamthitta fixing the price of various food stuffs in the hotels and restaurants in Pathanamthitta district during the Sabarimala pilgrimage season (2013-14) and (2014-15), which are under challenge in these writ petitions, are set aside. But, it is made clear that this judgment will not stand in the way of the District Collector W.P.(C)Nos.28902 & 30763/13 & 31120 & 31819/14 -20- or the Travancore Devaswom Board from fixing the price of food stuffs in the hotels and restaurants in Sabarimala, Pampa, etc. which are temporarily put up during each pilgrimage season on the strength of the permission/licence granted by the Travancore Devaswom Board. The Writ Petitions are disposed of as above. ## Sd/- **P.N.RAVINDRAN** , **JUDGE** ## Sd/- **ANIL K.NARENDRAN, JUDGE** ## dsn The word “Tamil” is inserted in between the words “Hindi” and “Kannada” occurring in the last sentence in paragraph 18 of the judgment dated 20.5.2015 in W.P.(C)No.28902/2013 and connected cases, vide order dated 24.6.2015 in W.P.(C)No.28902/2013 and connected cases. Sd/Registrar (Judicial)