KISAN SAHKARI CHINI MILLS LTD Vs. VARDAN LINKERS

JUDGEMENT

(1.) THESE appeals by special leave filed by kisan Sahkari Chini Mills Limited, Sitarganj, gadarpur and Nadehi [civil Appeal No. 5543/ 2004], State of Uttaranchal [civil Appeal No. 5544/2004], and Doiwala Sugar Company limited and Kichha Sugar Company Limited [civil Appeal No. 5545/2004] are directed against the final judgment and order dated 28-7-2004 passed by the Division Bench of the high Court of Uttaranchal in Writ Petition No. 318/2004 filed by Vardan Linkers, a proprietary concern of B. B. Singh, first respondent in these appeals. By the impugned judgment, the High Court allowed the said writ petition and quashed the order dated 24. 4. 2004 of the secretary, Cane Development and Sugar industries, whereby the order dated 26. 03. 2004 of the Assistant Cane commissioner, Udham Singh Nagar, granting permission to the first respondent to lift 85,000 quintals of molasses from the five sugar mills at a price of Rs. 127/- per quintal was cancelled. Factual Background :

(2.) IT is stated that there are six State controlled sugar mills in the State of Uttaranchal, which produce molasses as a bye- product. Of them, two mills - Doiwala Sugar Company Limited and Kichha Sugar Mills Limited - are government Companies. The other four are in the co-operative sector, namely, Kisan sahkari Chini Mills Limited at Nadehi, gadarpur, Sitarganj and Bhajpur. Sale of molasses produced by these six sugar mills was controlled through the Molasses Sales committee constituted by the State government vide order dated 25. 3. 2003, with the following nine Members: (i) Commissioner, Kumaon Mandal, Nainital - Chairman (ii) District Magistrate, Udham Singh Nagar - Member (iii) Six General Managers of the four cooperative Sugar Mills and two Sugar Companies - Members (iv) Assistant Cane Commissioner, Udham singh Nagar - Secretary the said order made it clear that molasses of the six sugar mills shall be sold only through the said Committee. The State Government policy at the relevant time required molasses produced by these sugar factories to be disposed in the following manner: 70% to distilleries and chemical factories in the State; 10% to manufacturers of country liquor within the State; and 20% to bona fide consumers (distilleries and chemical industries ). No allottee who got allotment as a bona fide consumer could transfer the allotment to anyone else.

(3.) THE three members of the Committee, who were present (along with the Chief Accountant of Sitarganj Mills), submitted a Note dated 03. 03. 2004 to the Chairman of the Molasses sales Committee, reporting that during negotiations, the first respondent had offered to purchase the entire stock of molasses of the five sugar mills at Gadarpur, Nadehi, sitarganj, Kichha and Doiwala at a price of rs. 127/- per quintal, though he had submitted the tender only for purchase of molasses of nadehi sugar mill. It was also reported that the first respondent had assured payment of earnest money in respect of each of the four other mills, within seven days if his offer was accepted. The report also stated that the price of Rs. 127/- per quintal offered by the first respondent was higher than the offer of the other tenderers - IGL (Rs. 117i-) and Rampur distillery (Rs. 126/- ). The Chairman was requested to make his recommendations for accepting the offer of first respondent. The chairman of Molasses Sales Committee made an endorsement 'seen' on the said note on 3. 3. 2004. The District Magistrate, Udham singh Nagar, made a note thereon to the effect, "necessary orders may be issued today itself. Firm may deposit earnest money". The first respondent deposited Rs. 4,00,000/- by bank drafts under cover of letter dated 10. 03. 2004, towards earnest money for purchase of molasses of the sugar mills at gadarpur, Sitarganj, Kichha and Doiwala.