MAHARASHTRA SUGAR MILLS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition brought under Article 226 of the Constitution of India the legality of the order dated September 9. 1986, has been challenged and the same is sought to be quashed by which the petitioner has been denied the incentive introduced by Incentive Scheme dated November 15, 1980 read with circular dated December 30, 1980.

(2.) The manufacture of sugar is an industry regulated under the Industries (Development and Regulation) Act, 1951./ Section 10 of the said Act provides for registration of all such industries and Section 11(1) provides for granting licence for new industries and Section 11A prohibits the manufacture by a registered and licensed undertaking of any new article. So, in this way there is a complete control over the sugar industry by the Government. Section 298 of the said Act entitles the Central Government to obviate the necessity of complying with the provisions of Sections 10, 11A and 13 the said Act.

(3.) In order to see that the production of sugar is increased in the country, the Central Government have been issuing time to time certain notifications under Section 29B of the said Act and then Central Government have been issuing explanatory press notes in that connection. Such press notes were issued on May 25, 1970 and May 9, 1978. A notification was also issued on February 16, 1973 exempting the sugar industry from the operation of the provisions of Sections 10, 11, 11A and 13 of the said Act. A notification was also issued on April 25, 1978. The effect of the first notification was that sugar industry could expand its production by installing machines and plants to the tune of Rs. one crore. This limit was enhanced to Rs. three crores by the second notification. On May 9, 1978, the Central Government issued a press note elucidating the provisions of the said notification and it was clarified that in regard to undertaking which would not require any industrial licence under the new policy, a simple procedure of registration with the technical authorities would be followed. The industry was required to furnish a return in the form 'G' appended to the Rules framed under the said Act and such a form was to be furnished every six months mentioned in the progress made in respect of the expansion of the industry.