UNION OF INDIA Vs. SHERVANI SUGAR SYNDICATE

JUDGEMENT

(1.) THIS appeal is direct ed against an order of a learned Single ludge of this Court issuing a direction to the Cen tral Government to re-fix the price of the sugarcane supplied to the petitioner's factory during the 1970-71 crushing season in the light of the observations made in the im pugned judgment. It was also directed that if on reification of the price the petitioner was entitled to a refund of any portion of the amount deposited in pursuance of the interim order of this Court, it shall be re funded to the petitioner on a certificate of the Cane Commissioner, but in case the petitioner was required to pay further sum, that would be payable to the sellers of the sugarcane according to the refined piece of the quantity supplied by them.

(2.) THE problem of fixation of price for sugarcane supplied to the sugar factories by the sugarcane growers and the price of sugar sold by the sugar factories was tried to be solved by the Government by adopting various methods from year to year. For the year 1970-71 by a notification dated 12th November 1970 (hereinafter referred to as the Notification) the Central 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 sugar fac tories all over India for the sugarcane sup plied to them during the aforesaid period. The minimum sugarcane price payable by the various sugar factories were set out in the Schedule to the Notification. Under the Sche dule the Neoli Sugar Factory, owned by the petitioner Messrs. Shervani Sugar Syndicate (Private) Limited, was required to pay Rs. 7.57 per quintal. The principles on which the prices in the Schedule were fixed for the various factories were set out in a Circular letter of the same date, issued to all the sugar factories in India, as follows:-

(3.) THE Essential Commodities Act, 1V55 empowers the Central Government to control production, supply, distribution etc., of essential commodities. Under Section 3-C of the Act the Central Government is em powered to fix the price of sugar. Clause (3) of the 'Sugarcane (Control) Order, 1966, au thorises the Central Government to fix the price of sugarcane and runs as follows:-