SASAMUSA SUGAR WORKS LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner, a company incorporated under the Indian Companies Act, is engaged in the manufacture and sale of sugar. It has its sugar factory at Sasamusa in the district of Gopalganj. In this writ petition the petitioner seeks to challenge the letters dated January 1 and January 6, 2005 (Annexures 2 and 1 respectively) issued by the Cane Officer, Motihari. By the impugned letters the petitioner was directed to immediately close down the sale centre (for purchase of sugar canes) set up by it in village Barharwa Khurd. According to the impugned letters the sale centre in village Barharwa Khurd was set up by the petitioner illegally and in violation of the statutory provisions. The petitioner was, therefore, warned and threatened that in case it did not close down the centre it would be shut down by use of force and action would be taken against the petitioner under Section 52 of the Bihar Sugar Cane (Regulation of Supply and Purchase) Act, 1981.

(2.) The material facts giving rise to the controversy are simple and few and can be stated thus. By an order dated 29/30.9.2004 issued by the Cane Commissioner under Section 31 of the Act 23 villages of East Champaran District were reserved in favour of the petitioner company. The reservation of those 23 villages was made for the petitioner company in addition to the 'traditional villages' that are reserved to it every year. Another sugar company namely M/s. Eastern Sugar and Industries Limited filed a writ petition being CWJC No. 13608 of 2004 challenging the order of the Cane Commissioner under which the 23 villages of East Champaran were reserved for the petitioner. In that case an ex parte interim order was passed on 23.11.2004 staying the reservation of the 23 villages in question in the petitioner's favour. The writ petition was finally dismissed (with costs) by order dated 20.12.2004 (Annexure 3) and the interim order of stay was consequently vacated.

(3.) As the crushing season this year was very brief and the crushing was not likely to go beyond first week of March 2005, the petitioner took immediate steps for setting-up a sale centre for purchase of sugar cane from those villages and in that regard it approached the Collector, East Champaran, Motihari for necessary permission. The Collector, East Champaran issued office order dated December 24, 2004 which was communicated to the petitioner under Memo No. 413; a photo-stat copy of this order is at Annexure 4. By this office order a number of sugar mills were given permission to set-up their respective sale centres at different places. The name of the petitioner company figures at Sl. Nos. 10 and 11 and it was accorded permission to set-up sale centres at Harpur and Barharwa Khurd. The office order in so far as the petitioner is concerned was worded as follows : <FRM>JUDGEMENT_997_BLJR2_2005Html1.htm</FRM> The office order stipulated that the permission was given in anticipation of approval by the Cane Commissioner, Bihar, Patna.