BANARSI DASS Vs. CANE COMMISSIONER UTTAR PRADESH

JUDGEMENT

(1.) THE following Judgments of the court wore delivered by ; (Majority judgment i Das, Kapur, Sarkar and Hidayatullah, JJ.):

(2.) THIS is an appeal on a certificate granted by the High court of Allahabad under Article 133 (1) (c) of the Constitution against its judgment and order dated 2/02/1956. By the judgment, under appeal, which was passed in a Letters Patent Appeal, the Divisional bench confirmed the order of a learned single judge dismissing the petition of the appellant under Art. 226 of the Constitution. Seth Banarsi Das, the appellant before us, was the petitioner in the High court and the two respondents before us, namely, the Cane Commissioner, U. P., Lucknow, and the Cane Marketing Society Ltd., Bijnor, were the opposite parties. The petition asked for a number of writs in the alternative, but its purport was to seek to prohibit the two respondents from continuing certain proceedings pending before the Cane Commissioner under rule 23 of the United Provinces Sugar Factories Control Rules, 1938. That rule provides for arbitration in disputes touching agreements entered into by sugar cane factories and cane growers for supply of sugar cane as laid down by the United Provinces Sugar Factories Control Act, 1938.

(3.) IN addition to the reserved area, s. 19 provided for declaration of assigned area. and purchase of sugar cane therein. The factory was authorised to take its supplies also from the assigned area. The important difference between the two areas was that the factory was bound to enter into agreements with cane growers or cane growers' cooperative societies in an area reserved for-the factory for the prescribed quantity of sugar cane but in an assigned area, the Factory could enter into an agreement for a specified quantity of sugar cane as the factory desired. IN other words, in a reserved area if sugar cane of the prescribed quality was offered by the cane grower or cane growers' society, the factory was bound to purchase that cane up to the prescribed quantity but in an assigned area the factory was at liberty to purchase cane, as it needed, subject to its entering into an agreement for the purpose.