VISHNU SUGAR MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The two writ petitions raise common questions of law and as such, with consent of parties, have been taken up together for adjudication and disposal. The main contesting respondents, the Union of India has appeared and filed counter-affidavits on both the cases. Heard Shri Y. V. Giri, learned Senior Counsel in support of the writ petitions and Shri Sudhir Singh, learned counsel for the Central Government.

(2.) That the issue raised in the present writ applications are, inter alia, for issuance of an appropriate direction to the respondents to immediately lift and/or get lifted the levy sugar as per allocation on payment of levy sugar price thereof. In the alternative, it is prayed that in case of failure to lift the same within the period of allocation, as made by the Central Government through the Directorate of Sugar, Government of India, New Delhi, to hold that the petitioner was free to sell them as free sugar treating the allotment lapsed in terms of direction of Government of India in the Directorate of Sugar, New Delhi dated 16th March, 2001 (Annexure-13 to CWJC No. 6974 of 2006) which is Annexure-12 in CWJC No. 7960 of 2006. It is further submitted that the carry forward rule, as enunciated in the directions of Government in Directorate of Sugar dated 18-6-2002 (Annexure-D to the counter-affidavit in CWJC No. 6964 of 2006) is unreasonable and arbitrary and, as such, ultra vires the Constitution. Once levy allotment/ allocation lapses and the producer is free to sell it as free sale sugar, the liability to deliver sugar at a same quantity at a future date should stand extinguished.

(3.) The Parliament enacted Essential Commodities Act, 1955 to be an Act to provide, in the interest of general public, the control of production, supply and distribution of, and trade and commerce in certain commodities. One of the commodities, which is an essential commodity for the purposes of said Act, is sugar. Section 8 of the said Act confers powers on the Central Government to control production, supply, distribution etc. of essential commodities. Section 3(l)(f), inter alia, provides that without prejudice to the generality of the powers conferred by sub-section (1) of Section 3, an order made thereunder, may provide for requiring any person holding in stock or engaged in production or in business of buying or selling any essential commodities to sell, hold or specified quantity held in stock or produce or received by him to the Central Government or a State Government or an officer or agent of such Government or to a Corporation wholly controlled by such Government or to such other persons or class of persons and in such circumstances as may be specified in the said order. Section 3(3-C) inter alia, provides that where a producer is required by an order made with reference to Section 3(2)(f) to sell any kind of sugar, he shall be paid an amount which shall be calculated with reference to such price of sugar as the Central Government may, by order, determine having regard to the principles enunciated in that section which includes the minimum price of sugarcane, cost of manufacturing sugar, taxes and duties payable thereon and securing of reasonable returned on the capital employed in the business of manufacturing sugar.