IMPORTANT POINT
Once the old rule has been deleted or repealed and substituted by a new rule, the old rule will not revive when the substituted rule ceased to be operative without intention to keep alive the old rule.

Headnote:(i) U.P. Sugarcane (Regulation on Supply & Purchase) Rules, 1954-Rule 49-Old and new substituted rule-Old rule deleted or repealed-Substituted by the new rule-Whether the old rule will revive when the substituted rule ceased to operate? (No) (unless there is intention to revive old rule).
       Held : The State government by substituting new rule 49 never intended to keep alive the old rule. The totality of the circumstances shows that the old rule was deleted and came to be substituted by new rule 49 and, therefore, we are of the view that after new rule 49 ceased to be operative, the old rule 49 did not revive. (Para 15)
       (ii) U.P. Sugarcane (Regulation on Supply & Purchase) Rules, 1954-Rule 49-Old and new substituted rule-Whether old rule would revive when the substituted rule ceased to operate by applying Section 6-C of U.P. General Clauses Act as done by High Court in this case? (No).
       Held : Since Section 6-C of the U.P. General Clauses Act has not been applied to the statutory rule framed by the government of Uttar Pradesh, the substituted rule after it became inoperative, old rule 49 would not revive. For the aforesaid reasons, we are of the view that these matters deserve to be allowed. (Paras 18 & 19)

JUDGMENT

V.N. Khare, J.-Appellant Nos. 4 to 22 before us are the companies incorporated under the Indian Companies Act and are engaged in the business of production and sale of sugar. These appellants own sugar factories (hereinafter referred to as sugar factories ) which are located in various parts of the State of Uttar Pradesh. One of the raw materials required for production of sugar is sugarcane which is purchased from sugarcane growers through sugarcane cooperative societies - which are the respondents in these matters. The purchase of sugarcane by the sugar factories is regulated under the provisions of U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (hereinafter referred to as the Act). In exercise of power conferred under Section 28 of the Act, the State Government has framed rules known as the U.P. Sugarcane (Regulation of Supply and Purchase) Rules, 1954 (hereinafter referred to as the Rules). Section 18 of the Act requires the sugar factories to pay a commission known as society commission to the cooperative cane societies a share of which is also transferred to the Cane Development Council. The rate at which the said commission is payable is left to be determined and prescribed by the State Government by the statutory Rules, The share of commission which comes to the cooperative societies is to cover their administrative costs, which include mainly the maintenance of staff deputed for undertaking various cooperatives activities connected with the sale of sugarcane to the sugar factories.

2. In the year 1985, the government of Uttar Pradesh by amending rule 49 of the Rules raised the society commission to .50 paise per quintal vide notification dated 11.7.85. Subsequently, the government of Uttar Pradesh by a subsequent notification dated 1.6.91 again amended rule 49 and revised the rate of society commission from the existing rate of .50 paise per quintal to 5% of the minimum statutory cane price fixed by the Central Government. After the existing rate of commission was enhanced, the appellants jointly submitted representation before the State Government, inter alia, contending that enhancement is excessive and arbitrary. Simultaneously, the appellants also filed writ petition challenging the enhancement of society commission. However, in January 1992, the writ petition was withdrawn.

3. It appears, the State Government on the representation of the appellants reduced the rate of society commission from 5% of the minimum statutory price of sugarcane to 2.69% of the minimum statutory price of sugarcane which worked out to .70 paise per quintal. This was done by the amendment of rule 49 of the Rules by notification dated 24.4.92. The notification dated 24.4.92 runs as under:

"1. (1) These rules may be called the Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) (Amendment) Rules, 1992.

(2) They shall remain in force with effect from 1.10.91 to 30.9.92.

2. In the Uttar Pradesh Sugarcane (Regulation of Supply and Purchases) Rules, 1954, for the rules set out in column 1 below, the rules as set out in column 2 shall be substituted:-

Column 1. Column 2.

Existing Rules Rules as hereby substituted

49. The occupier of a factory shall pay a commission on cane purchased at the rate of five percent of the minimum statutory cane price fixed by the Govt. of India, out of which seventy five per cent shall be payable to the cane growers co-operative society and twenty five percent to the Council.

49. The occupier of a factory shall pay a commission on cane purchased at the rate of 2.69% of the minimum statutory cane price fixed by the Govt. of India, out of which seventy five per cent shall be payable to the cane growers co-operative society and twenty five per cent to the Council.

Amount thus calculated at the rate of 2.69% per quintal will be calculated to the nearest round figure to facilitate maintaining proper accounts."

(Emphasis is mine)

4. The affect of the afores

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2002 Supreme(SC) 193

IMPORTANT POINTOnce the old rule has been deleted or repealed and substituted by a new rule, the old rule will not revive when the substituted rule ceased to be operative without intention to keep alive the old rule.

Cases Referred (2)

IMPORTANT POINT
Once the old rule has been deleted or repealed and substituted by a new rule, the old rule will not revive when the substituted rule ceased to be operative without intention to keep alive the old rule.