NEW SWADESHI SUGAR MILLSLTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) PETITIONER , a registered company under Indian Companies Act seeks quashing of the order dated 7.7.1999/9.7.1999/10.7.1999 passed by the Secretary, Sugarcane, Government of Bihar in Appeal Case No. 4 of 1999, which is Annexure -14 to the writ application. Petitioner also wants quashing of the order dated 10.2.1999 contained in Annexure -9, which is the order passed by the Cane Commissioner, respondent No. 3 to the writ application.

(2.) THE background to the present dispute is that the petitioner 'scompany is engaged in production of sugar from its sugar factory at Narkatiaganj, located in the district of West Champaran. Sugarcane is purchased by the company from the adjoining areas and the purchase of such cane is regulated by the law in this regard enacted by the Central as well as the State Government.

(3.) THE Cane Commissioner has power under Section 31 of the Act to declare an area to be the reserved area for a sugar mill and purchase of cane grown in the reserved area is governed by Section 32 of the Act. The mills have the duty to make purchase from such reserved areas, where sugarcane is grown. Under the provisions of the Act itself an agreement has to be entered between the growers as well as the factory in the prescribed form, which is Form -XIV. The law underwent a change in the year 1993, where Section 32A has been inserted by the legislators. By virtue of the amendment to the Act made in the year 1993 Section 32A was introduced, which is reproduced here for ready reference: 32 -A - Payment of Compensation - If cane remains un -disposed in reserved area, the order for payment of compensation to the cane growers concerned shall be made after due enquiry by the Cane Commissioner after giving an opportunity of being heard to both the parties concerned.