LAXMI SUGAR MILLS CO LTD Vs. STATE

JUDGEMENT

(1.) EVERY year after the start of the crushing season, there is a spate of litigation inter se between the sugar factories, which are engaged in the business of manufacture of sugar by Vacuum Pan Process. The core issue, which is involved in this bunch of writ petitions, is the allocation of cane areas/sugar centres. Every year there is a general demand from all the sugar factories that the allocation of cane and cane areas by the Cane Commissioner is inadequate and that the sugar factories require more cane for their crushing operations, failing which, the unit becomes unviable.

(2.) THE U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (hereinafter referred to as the 'Act') regulates the supply and purchase of sugarcane required for the use of sugar factories and Gur, Rab or Khandsari Sugar Manufacturing Units. Section 2(a) of the Act defines “assigned area” as an area assigned to a factory under Section 15 of the Act. Section 2(n) of the Act defines “reserved area” as an area reserved for a sugar factory under an order for reservation of sugarcane areas made under Rule 125-B of the Defence of India Rules, 1962, and when no such order is in force, the area specified in an order made under Section 15 of the Act. Section 12 of the Act provides estimates of requirements for sugarcane. For facility, the said provision is quoted hereunder:

(3.) THE appellate authority, after considering the objections of all the sugar factories and after hearing the matter and after considering the factors enumerated under Rule-22 of the Rules, passed an appellate order dated 15.2.2011 disposing of the appeals by modifying the reservation order. By the appellate order, 3 reserved centres of RBNS Sugar Mills were given back to RBNS Sugar Mills and at the same time, certain other centres were assigned. 8 centres of Uttam Sugar Mills were taken away, 4 centres were reserved again in favour of Laxmi Sugar Mills and 4 were reserved in favour of RBNS Sugar Mills, but 9 centres of Laxmi Sugar Mills and RBNS Sugar Mills were given to Uttam Sugar Mills by way of assignment. The appellate authority, as a result of this jugglery, has held, while enumerating it in the chart, that equitable distribution of sugarcane has been made inter se between all the sugar factories. The appellate authority while passing the impugned order considered two factors, namely, that as far as possible a reserved centre, which has been reserved in favour of a sugar factory, should not be disturbed and that simultaneous assignment should not be made by the Cane Commissioner. The second factor taken is, that the centres so reserved or assigned should be made in such a fashion that it should be compact and contiguous to a particular sugar factory. The appellate authority considered the objection of Laxmi Sugar Mills with regard to the crushing capacity of each sugar factory but did not base its order on that ground.