HARINAGAR SUGAR MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD learned Counsel for the parties.

(2.) ESSENTIAL Commodities Act is not a deterrent for production or manufacture of essential commodities. The same however, is a deterrent in the matter of choosing the buyer of essential commodities. Producers or manufacturers of essential commodities have no market. They are bound to sell essential commodities to the buyer to be nominated by the Central Government. Inasmuch as, producers or manufacturers of essential commodities have no market, there is no known method of fixing the price of essential commodities. The Act, therefore, requires the Central Government to determine the price of essential commodities. The legislature while making the Act has laid down the principles upon which price of essential commodities is required to be fixed.

(3.) IN the instant case, the appellant is a manufacturer of sugar, an essential commodity. A part of the sugar manufactured by the appellant can be sold by the appellant in the open market and accordingly, in relation to that part of sugar manufactured by it, the appellant can choose its buyer and can fix the price of sugar to be sold to such chosen buyer, which price is normally fixed on the basis of the price prevalent in the market depending upon supply and demand. The remaining part of sugar manufactured by the appellant cannot be sold by the appellant to any one, except to the nominee of the Central Government and at a price to be determined by the Central Government. Such sugar is known as 'levy sugar'.