VARDAN LINKERS Vs. STATE OF UTTARANCHAL

JUDGEMENT

(1.) BY means of this writ petition moved under Article 226 of the Constitution of India, the petitioners have prayed for a mandamus to command the respondents No. 1 to 8 to continue the supply of molasses upto limit of 85,000 quintals to the petitioners as per the contract entered with them. A further direction has been sought to quash the order dated 24.4.2004 (Annexure 9) passed by the respondents No.1 & 2 canceling the contract.

(2.) BRIEF facts of the case as per the writ petition are that there are five sugar mills in the State of Uttaranchal, which produce molasses as bye -product, a raw material used by chemical factories and distilleries. The sale and distribution of molasses is governed by U.P. Molasses Control Act (U.P. Shira Niyantran Adhiniyam), 1964 (applicable in Uttaranchal). The petitioners are the authorised representatives of two scheduled distillers of Punjab (respondents NO.9 & 10). Under the policy of Government of Uttaranchal, out of total quantity of molasses produced by the sugar factories, 20% can be exported to the other States, 10% of the total produce has been earmarked for the distilleries manufacturing country liquor in Uttaranchal and remaining 70% are supplied to other distilleries and chemical factories situated in the State of Uttaranchal. A copy of the said policy issued from the office of Excise Commissioner is annexure 3 to the writ petition. An advertisement was published in various newspapers including Daily Hindi newspaper Amar Ujala (copy Annexure 4 & 4A) on 23.2.2004 and tenders were invited from bonafide bidders for sale and export of molasses. In response to the said advertisement, petitioners purchased a tender form and submitted sealed tender to Assistant Cane Commissioner. Other persons also submitted their offers to the said authority. The tenders were opened in an open meeting in which bidders were asked to increase the bids on which negotiations took place and petitioners' bid being highest at the rate of Rs. 127/ - per quintal was accepted. In pursuance to the said contract, the Secretary of Molasses Committee issued a letter dated 26.3.2004 (Annexure 5) authorising the petitioners to lift 85,000 quintals of molasses from the sugar factories at the rate of Rs. 127/ - per quintal for supply to the firms M/s Patiala Distillers and Manufacturers (from sugar mills of Nadhei, Gadarpur and Doiwala) and for Chandigarh Distillers and Bottlers (from sugar factories of Sitarganj and Kiccha). Thereafter, in compliance of the said letter, the petitioners deposited the necessary amount of Rs. 1 lac per sugar factory as the molasses were to be lifted by 31st May, 2004. The petitioners started lifting of molasses, but after it lifted 7,465.90 quintals out of the total 85,000 quintals of molasses and made necessary payments on 9.4.2004 and 10.4.2004, the road tankers of the petitioners were stopped at the factory gates and were not allowed to take further molasses. Aggrieved by the act of the respondent NO.1 to 8, this writ petition was moved complaining violation of Article 19(1)(g) of the Constitution of India for mandamus to command the respondents to continue the supply of molasses.

(3.) ON the above writ petition, this Court passed an interim order dated 19.4.2004, whereby the petitioners were permitted to lift further molasses of 20,000 quintals and the Government of Uttaranchal was directed to take decision in the matter. However, the said order was set aside by the Hon'ble Apex Court vide order dated 5th May, 2004 passed in Civil Appeal No. 2984 -86 of 2004, which reads as under: "Permission to file SLPs is granted. Leave granted. Heard learned counsel for the parties. By consent of the parties, the impugned orders are set aside. The Respondents are permitted to amend their writ petition to challenge the Order dated 24th April, 2004. Reply, if any, including to this amendment to be filed within two weeks from today. The High Court is requested to dispose of the writ petition within a period of four weeks thereafter. The Appeals stand disposed of accordingly. There will be no order as to costs."