NEW SWADESHI DISTILLERY Vs. STATE OF BIHAR

JUDGEMENT

(1.) CWJC No. 727 of 1995 is directed against the following orders passed by Respondent No. 3 in purported exercise of powers conferred on him under the Bihar Molasses (Control) Act, 1947 (hereinafter referred to as 'the Act'), and the Bihar Molasses (Control) Rules, 1955 (hereinafter referred to as 'the Rules'), framed in exercise of the powers to frame rules under Section 13 of the Act:

(2.) A brief statement of facts essential for the disposal of this writ petition may be indicated. The Petitioner is a public limited company registered under the , with its registered office at Calcutta. The company, inter alia, owns and operates two integrated plants at Narkatiaganj in the district of West Champaran, one of which manufactures sugar and the other one manufactures and distils industrial/rectified spirit. Molasses is the raw material for production of industrial/rectified spirit. Molasses is allotted to such distillation plants under specific orders of the Molasses Controller, and it receives molasses from various sources including its own sugar plant situate in the same precincts under authorization of the Molasses Controller. Though not of much relevance in the present context, it may be stated for the sake of clarity that the Petitioner for its distillation unit is not free to draw molasses from its own sugar plant and has to be allotted by specific orders of the Molasses Controller. The dispute arising out of the three impugned orders are with respect to the same period, i.e. 1993-94.

(3.) While assailing the validity of the impugned action, Learned Counsel for the Petitioner submits that the issues are concluded by judgments of this Court and that of the Supreme Court. He submits that the Act read with the Rules do apply to the transactions of the Petitioner, but there is no provision for penal duty in the Act and/or the Rules. He relies on the following reported judgments: