IMPORTANT POINT
Requiring transported to take permission for transporting molasses was a method of control and did not impose unreasonable restriction.

JUDGMENT

S.N. Variava, J.-This Appeal is against the Judgment of the Allahabad High Court dated 18th February, 1998. The Appellants Writ Petition challenging Orders dated 10th December, 1997, 11th December, 1997 and 19th December, 1997 has been dismissed.

2. These Orders have been issued under the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 (hereinafter referred to as the Act) and the rules framed thereunder. Section 2(a) of the Act defines "Controller" as the Controller of Molasses. Section 2(d) defines "Molasses" as the heavy, dark coloured viscous liquid produced in the final stage of manufacture of sugar by vaccum pan, from sugarcane or gur, when the liquid as such or in any form or admixture contains sugar. Section 2(h) defines "Sugar Factory" or "Factory" as any premises wherein twenty or more workers are working and in which a manufacturing process connected with production of sugar by means of vacuum pan is being carried on or is ordinarily carried on with the aid of power. Section 22 of the Act gives to the State Government power to make rules. The State Government has framed the U.P. Sheera Niyantran Niyamavali, 1974 (hereinafter referred to as the Rules). Rule 22 provides that molasses produced in sugar factory shall be sold or supplied only to distilleries or other persons bonafidely requiring it for purposes of industrial development. Rule 24 reads as follows:

"24. Restriction on transportation of molasses.- No person shall, transport or cause to be transported outside Uttar Pradesh any molasses unless permission in writing obtained from the Controller."

3. In pursuance of this Rule, the Controller issued Orders dated 10th December, 1997, 11th December, 1997 and 19th December, 1997, which prohibited transport of "any molasses" without permission. The Appellants who are manufacturer of Khandsari molasses felt aggrieved by these Order and challenged the same on the ground that such a restriction imposes an unreasonable restriction on their right to carry on business as guaranteed under Article 19(1)(g) of the Constitution of India and on the ground that Rule 24 cannot go beyond the Act and cannot apply to molasses which is not produced by vacuum panning.

4. It is submitted that the Act only applies to vacuum pan molasses. It is submitted that this is clear from the definition of the term "Molasses" in Section 2(d). It is submitted that even the definition of the term "Sugar Factory" or "Factory" makes it clear that the Act only applies to those sugar factories or factories which manufacture sugar by the process of vacuum panning. It is submitted that the rules which can be framed under Section 22 cannot exceed the provisions of the Act. It is submitted that Rule 24 in so far as it seeks to place restrictions on purchase, transport or possession of molasses can only apply to molasses prepared by the process of vacuum panning and not Khandsari molasses. It is submitted that the term "any molasses" in Rule 24 must necessarily mean any molasses prepared by the process of vacuum panning. It is submitted that therefore the three Orders which prevent transport of molasses without permission can apply only to molasses prepared by vacuum panning. It is submitted that if the Orders seek to restrict transport of any molasses then they are restrictive of the right of freedom of trade as guaranteed under Article 19(1)(g) of the Constitution of India and beyond the scope of the rule making power under Section 22.

5. On the other hand Mr. Dwivedi points out that in U.P. 90% of the molasses is produced by vacuum pan process. He submitted that the purpose of the Act was to control supply and sale of vacuum pan molasses so that it is available for industries in the State. He submitted that Sections 7 and 8 permits regulation of removal, sale and supply of molasses. He submitted that in the guise of exporting Khandsari molasses, vacuum pan molasses was being smuggled out of the State. He pointed out that it is impossible to differentiat