MADHU SUDAN SHARMA Vs. STATE OF BIHAR

JUDGEMENT

(1.) the petitioner is the Executive President of New Swadeshi Sugar Mills Limited. By means of this writ application, under Articles 226 and 227 of the. Constitution of India, a prayer has beenmadeon his behalf to quash the entire proceeding arising out of Certificate Case No.4/92-93 pending in the Court of District Certificate Officer, West Champaran at Bettiah as also the notice issued under Section 7 of the Bihar & Orissa Public Demand Recovery Act (in short 'the Act') and the order passed under Section 9 of the Act dated 14-6-1995, contained in Annexure 6 whereby and whereunder while rejecting objection, the District Certificate Officer directed the petitioner to deposit the certificate dues.

(2.) Undisputedly, purchase or distribution of sugarcane for use of sugar factories and Khandsari sugar manufacturing units in the State of Bihar are being regulated as per different provisions of Bihar Sugarcane (Regulation of Supply & Purchase) Act, 1981 (hereinafter to be referred to as the 'Sugarcane Act').Section 65 of the Sugarcane Act empowers the State Government to frame rules to give effect to the purpose of the said Act.Section 32 provides that the Cane Commissioner may, by order notified in the official gazette fix specified quantity and price of Sugarcane to the supplied to different sugar factories.Sub-section (2) of Section 32 requires every sugarcane grower, co-operative society or occupier of the factory to supply or purchase, as the case may be, the quantity or proportion of sugarcane fixed under sub-section (1). To carry out the aforesaid requirement a cane grower or a co-operative society at one hand and the occupier of factory on the other are required to enter into agreement or agreements, as the case may be.

(3.) Section 43 of the Sugarcane Act prescribes mode for payment of price of sugarcane by the occupier of a factor to a sugarcane grower or co-operative society, as the case may be. As per subsection (2) (i) of Section 43, as soon as cane is supplied to a factory, the occupier of such factory shall be liable to pay the price of sugarcane so supplied.Clause (ii) of sub-section (2) is an enabling provision to charge interest at the rate specified under Section 51 from the occupier, in case he makes default in payment. Relevant provisions may be usefully reproduced hereunder: