COASTAL PAPERS LTD Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) This Writ Petition is filed by one of the rival traders challenging the Letter of Intent No. LI-120 (1994) dated 7-3-1994 issued by the first respondent in favour of 8th respondent to install a Sugar Unit at Veeraghattam in Srikakulam District of Andhra Pradesh, and requesting to direct respondents 6 and 7 not to allot any zone or area of operation of cane development potential to the 8th respondent, in Srikakulam District and to cancel any allotment of zone of operation, if already made to him.

(2.) A few facts which are necessary to dispose of this Writ petition are as follows:Srikakulam district, according to the petitioner, is one of the backward districts in Andhra Pradesh. As existing sugar units in the district not sufficient and adequate to cater to the needs, he submitted an application on 9-7-1990 requesting the Union of India, Ministry of Industry to grant him a Letter of Intent to install a Sugar unit with an installed capacity of 2,500 TCD at Sankili ,Regidi Amadalavalasa Mandal near Palakonda, Srikakulam District. In his application he mentioned that seeking Sugar Licence is part of the proposed integrated industrial complex. The petitioner is a reputed paper manufacturer at M.R. Palem near Kadiam, East Godavari District in Andhra Pradesh and has employed many technocrats and engineers who acquired good knowledge and experience in the paper industry. Since the Srikakulam is a backward district, he thought of starting an integrated complex comprising of Sugar, paper and industrial alcohol units utilising bagasse as raw material for paper making and molasses for industrial alcohol. He is possessed of men and material in sufficient quantity. He is also in touch with foreign countries to supply good machinery to expand the industry. Along with him other four persons, including the 8th respondent, on different dates, submitted their applications seeking grant of licence to install a Sugar factory in Srikakulam district. The particulars of others who submitted their applications for similar licence are extracted hereunder: <FRM>JUDGEMENT_381_ALT1_1995Html1.htm</FRM> At the time of submitting their applications, already there was a Sugar unit in Co-operative sector existing, known as the Amadalavalasa Co-operative Sugar Factory.

(3.) The grant of Letter of Intent and Licence are governed by the provisions of Industries (Development and Regulation) Act, 1951 (hereinafter called 'the Act of 1951'), A.P. Sugarcane (Regulation of Supply and Purchase) Act, 1961 (hereinafter called 'the Act of 1961'). Registration and Licencing of Undertaking Rules, 1952 (hereinafter called 'the Rules') and Sugarcane Control Order, 1966 (hereinafter called 'the control order'), including guidelines issued by the Ministry of Industries, Government of India.