LINGO SULPHITE CORPORATION OF INDIA LIMITED UNITED COMMERCIAL SYNDICATE ALLAHA BAD Vs. U P STATE SUGAR CORPORATION LTD

JUDGEMENT

(1.) Writ petition No. 391 of 1980 under Art. 32 of the Constitution and civil appeal No. 651 of 1980 by special leave raise common question of law and, therefore, we propose to dispose them of by a common judgment.

(2.) The circumstances leading to the writ petition and the appeal lie in a narrow compass. The appellant, United Commercial Syndicate, is the purchasing agent of M/s. Lingo Sulphite Corporation, the petitioner in writ petition No. 391 of 1980 and M/s. Audubon Trading and Export Corporation of Allahabad and Calcutta, who are the manufacturers of lingo sulphite in India.

(3.) Molasses is the basic raw material for the manufacture of lingo-sulphite which is an essential raw material for all basic refractories, steel plants, cement factories, carbon-back plants and many other important industries. Molasses is also used for distillation. Over the years molasses has become a valuable commodity on account of its multi-use. The preservation, distribution and prices of the molasses were, therefore, controlled by a legislation, the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 (U. P. Act No. 24 of 1964), hereinafter referred to as the Act.