ORDER

Whether the State of Bihar can levy penalty for loss or wastage of molasses, and if so, under law and to what extent and further whether such loss can be directed to be recovered from the respondents, are the questions involved in this batch of appeals which arise out of the judgment and order dated 15.05.1996 passed by a Division Bench of the Patna High Court allowing the writ petitions filed by the respondents herein.

2. Molasses is a bye-product of sugar and is mainly used as a raw material for manufacture of spirit, including alcohol for human consumption.

3. The sale of molasses in the State of Bihar is regulated by an Act, known as the Bihar Molasses (Control) Act, 1947 (the 1947 Act).

4. The respondents herein are the companies registered under the Indian Companies Act and are engaged in the business of manufacture of spirit in the State of Bihar for which they hold licence under the Bihar Excise Act, 1915 (the 1915 Act).

5. The respondents had been granted different licences under the provisions of the Bihar and Orissa Excise Act, the details whereof are as under :

Sl. Name of the distilleries Licence granted in Writ applications