UNION OF INDIA Vs. SHADI LAL ENTERPRISES LTD

JUDGEMENT

(1.) This appeal by the Union of India is directed against a judgment dated 4.12.2000 passed by learned Single Judge of this Court in W.P.(C) No.5274 of 2000 filed by the Respondents 1 to 8. While disposing of the writ petition, the learned Single Judge has directed the Respondent sugar producers to pay interest on the excess realisation over the levy price of sugar for the season 1982-83 from 20.2.1996 and not from the actual date of such realisation. This appeal by the Union of India is limited to the extent that the interest should have, in terms of the Levy Sugar Price Equalisation Fund Act ('LSPEF Act') 1984, been directed to be paid from the date of actual realisation of the excess amounts.

(2.) The facts leading to the filing of this appeal are that for the sugar season 1982-83 the Central Government issued a notification on 27.1.1983 fixing the levy price of sugar at Rs. 277.41 per quintal in accordance with the provisions of Section 3(3)(C) of the Essential Commodities Act, 1955 ('EC Act'). This levy price was challenged by Respondent No.1 Sir Shadi Lal Enterprises Ltd. by W.P.(C) No. 1840 of 1983 before the High Court of Judicature at Allahabad. Similar writ petitions were filed by Respondents 3, 5 and 7. As an interim relief these Respondents sought permission to sell levy sugar stock of the 1982- 83 season at the price of Rs. 365.28 per quintal.

(3.) By an interim Order dated 25.3.1983 the Allahabad High Court permitted the said Respondents to sell sugar to the Central Government at Rs. 298.81 per quintal, i.e. at a price higher than the levy price as interim arrangement subject to the condition that "the petitioners shall furnish Bank guarantee in advance in respect of the difference of the price as fixed by the order dated 27.1.1983 and the price fixed by this Court." The further conditions were that: