BIHAR SUGAR MILLS ASSOCIATION Vs. STATE OF BIHAR

JUDGEMENT

(1.) IN this writ application, prayer of the petitioner is for quashing the order dated 29th of november, 1996 (Annexure-1) issued by the respondent Cane Commissioner by which he for the crushing season 1996-97 has fixed the price of sugarcane at Rs. 71 and Rs. 75/ per quintal for its two different varieties to be purchased by the Sugar Factory.

(2.) PETITIONER No. 1 Bihar Sugar Mills association is an Association of the Sugar factories in the State of Bihar and its object is to safeguard the interest of its members. Petitioner Nos. 2 to 11 are the members of petitioner No. 1, and companies owning sugar factories in the State of Bihar, producing sugar through vacuum pan process.

(3.) IT is not in dispute that the State government, in past, used to announce State advised cane price to be paid to the sugar producers. According to the petitioners in order to avoid any conflict with the State government, it used to pay the State advised cane price to the sugar cane growers according to the petitioners, for the crushing season 1996-97, the State advised cane, price was exorbitantly higher and it was beyond their capacity to pay the price fixed by the impugned order of the Cane Commissioner. Accordingly, they filed the present writ application questioning the price fixation.