ANDHRA SUGARS LTD Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The Andhra Sugars Ltd., Tanuku is the petitioner herein The precise prayer in the writ petition is for the issue of a writ of mandamus declaring the action of the second respondent viz , the Director of Sugar and Cane Commissioner, in according permission to the third respondent to draw cane from the non-zone free village of Ammepalli, West Godavari District during the crushing season 1989-90 by proceedings Re. No. Cl/24231/89 dated 8-12-1989 as illegal and void after declaring sub-section (3) of Section 16 of the Andhra Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1961 read with consequential notification issued in G. O. Ms. No. 1451 dated 15-7-1968 as illegal and void and consequently to permit the petitioner to draw the cane from the non- zone free village of Ammepalli for the crushing season 1989-90 and to include the same village Ammepalli in the factory zone of the petitioner for all purposes.

(2.) It is in view of this prayer in the writ petition that an appreciation of the facts existing in the matter will have to be made. The crushing capacity of the petitioner-Company is 5,000 TCD and the minimum requirement of the cane is 6.50 lakh tonnes for each season. The crushing capacity of the third respondent Company was originally 3,800 TCD which has been now revised and enhanced by virtue of the order of the Government of India, Ministry of Industry, vide Telex Message dated 9-12-88/26-12-88, to 5,000 TCD. The controversy arising in this writ petition is confined to the question of availing the sugar cane crop in Ammepalli village. Both the petitioner-Company and the third respondent Company are making claims for the sugar cane crop in Ammepalli village.

(3.) It is on record that a meeting was held on 30-1-1987 at the residence of the Hon'ble Chief Minister, in which the Minister for Sugar Industry and representatives of both the Companies participated. A perusal of the minutes of the said meeting would reveal the fact that in pursuance of the understanding reached between the parties, Government Memo No. 191/M1/87 dated 2-4-1987 was issued. In the said Memo, it is stated at follows :