KRISHNA SAHEBRAOJI PATIL DOGANOKAR Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) BEING aggrieved by the decision of the commissioner of Sugar (Respondent no. 3) in passing an order dated 6th october, 2003, under S. 88 of the Maharashtra Cooperative Societies Act, 1960 (the Act, for short) directing a fresh inquiry on the basis of the report submitted under Section 83 of the said Act and the order dated 29th december, 2003, passed by the Honourable Chief Minister holding the portfol: o of Cabinet Minister for Co-operation as an Appellate Authority, in an appeal under Section 152 of Act, this petition under Articles 226 and 227 of the Constitution of India has been filed. The petitioners are the 21 members of the Board of Directors of Respondent no. 5 Karkhana i. e. Gangapur Sahakari Sakhar Karkhana Ltd. The brief factual matrix, relevant for the present purpose could be stated as under :

(2.) ON or about 3rd of April, 2001, the Chief Chemist of the respondent no. 5 Karkhana submitted a proposal before the Board of Directors for export of 50,000 bags of sugar and sought permission. On the same day the Board resolved (Resolution No. 28) to proceed with export of the sugar and released an advertisement to the same effect as to invite tenders. On 11th April, 2001, an advertisement was released in one of the local newspapers (daily Sakala-Aurangabad) inviting tenders for the export of 50,000 bags of sugar and the tenders were to be received by the factory on or before 15th of April, 2001. M/s. Laxmi Rath Sales Agency at ahmedabad allegedly submitted tender on 13th April, 2001 and in the meeting of the Board of Directors held on 16th April, 2001 his tender was accepted vide resolution No. 4 and it was decided to charge the rate of rs. 10,800/- PMT for the export of sugar. JULY, 26, 2004

(3.) IN the meanwhile, the exporter had obtained an export permit on 10. 4. 2001 issued by the Regional Joint Director General of Foreign Trade, ahmedabad. On 25. 4. 2001, the Director of Sugar, Krishi Bhavan, New Delhi, issued an order directing the respondent no. 5 Karkhana to deliver and despatch 5000 metric tones of sugar to the exporter i. e. M/s. Laxmi Rath sales Agency, Ahmedabad. An agreement was entered between the Karkhana and the exporter on 30. 4. 2001. The Karkhana agreed to sell to the exporter 5000 mt of Indian white crystal sugar of the crop season 2000-2001 in 100 kg jute bags at the price of Rs. 10,800/- per metric tone at ex-factory. The total quantity under the agreement was to be lifted by the exporter from 19. 5. 2001 to 24. 7. 2001. However, he lifted only 30, 930 quintals of sugar and remitted an amount of Rs. 3,46,68,000/- by the demand draft and cash of Rs. 1,89,450/ -. It appears that the exporter had remitted an amount of Rs. 25,78,344/- over and above the price of the sugar stock lifted by him and calculated at rs. 3,27,56,400/ -. This excess amount was perhaps towards the deposit against the payment of excise duty at the rate of Rs. 85/- per bag of one quintal (100 kgs.)The sugar was not exported and the authorities concerned got the information that the entire sugar stock was sold in the domestic market.