SHERVANI SUGAR SYNDICATE PRIVATE LTD Vs. UNION OFINDIA

JUDGEMENT

(1.) BY a notification date the 12th November, 1970, (hereinafter re ferred to as "the Notification") the Cen tral Government, in exercise of the powers conferred by Clause (3) of the Sugarcane (Control) Order, 1966, made under the Essential Commodities Act, 1955, fixed the minimum price payable by the owners of the vacuum pan pro cess sugar factories all over India for the sugarcane supplied to them during the year 1970-71. The various sugar facto ries to which the notification applied and minimum sugarcane price payable by them were set out in the Schedule to the notification. Under the Schedule the Neoli Sugar Factory, owned by the peti tioner, Messrs. Shervani Sugar Syndicate (Private) Limited, was required to pay Rs. 7-57 per quintal as the minimum price of sugarcane supplied to that fact ory. The principles on which the prices in the Schedule were fixed for the various factories by the Central Govern ment were set out in a Circular letter of the same date issued to all the sugar factories in India (hereinafter referred to as "the Circular Letter"). The Circular letter stated:-

(2.) CLAUSE 3 (1) of the Sugarcane (Control) Order, 1966, which is relevant for the purpose of this writ petition, reads:-

(3.) TO appreciate the questions arising for determination in this writ petition in the light of the arguments advanced at the Bar, it is necessary to narrate a few facts.