CENTRAL DAIRY FARM Vs. GLINDIA LIMITED

JUDGEMENT

(1.) These appeals are directed against a common judgment dated 10-2-1992 of the Division Bench of the High Court of Allahabad whereby Notification No. 4345/XII-DU-VI-13/88, dated 12th January, 1989 issued by the Government of Uttar Pradesh in exercise of powers under S. 15 of the Uttar Pradesh Milk Act, 1976 (hereinafter referred to as Milk Act for short) fixing price for supply of cream and paneer, is held to be not enforceable against respondent No. 1-M/s. Glindia Ld. (formerly known as Glaxo Laboratories India Ltd.).

(2.) The High Court further held that the price of cream and paneer payable to respondent No. 1 for supply by it to the appellant-Dairy has to be in accordance with the terms and conditions mutually agreed between the parties at the agreed rate of Rs. 40.40 per kg. fat to be calculated in accordance with Two Axis Formula evolved in a joint meeting of the representatives of the appellant as purchaser and respondent No. 1 as the supplier of the cream.

(3.) By the impugned Notification, contrary to the terms and conditions agreed between the purchaser and the supplier, rates were fixed below the agreed rate and regardless of the agreed formula for calculation of the prices depending on the fat content in the cream and paneer.