SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1975 Supreme(SC) 351

SUPREME COURT OF INDIA
V.R. KRISHNA IYER AND S. MURTAZA FAZL ALI, JJ.
The Newabganj Sugar Mills Co. Ltd. and others, Appellants
 
Versus
 
The Union of India and others, Respondents.
Civil Appeals Nos. 1186 to 1201 of 1975
 
Decided on 16-9-1975.
Advocates appeared
Mr. G. S. Pathak, Sr. Advocate, (In C.A.No. 1186 of 1975), (M/s. S. Sarup and Shri Narain, Advocates of M/s. J. B. Dadachanji & Co., with him), (In C. As. Nos. 1186, 1194-1195 and 1196-1197 of 1975 and 1200 of 1975), for Appellants; Mr. S. V. Gupte, Sr. Advocate, (M/s. R. N. Bhalgotra and S. S. Khanduja, Advocates, with him), (In C. A. No. 1187 of 1975), for Appellants; Mr. S. S. Khanduja, Advocate, (In Civil Appeals Nos. 1188-1192 of 1975), for Appellants; Mr. V. J. Fransis, Advocate of M/s. Ramamurthy & Co., Advocates, (In C. A. No. 1193 of 1975), for Appellants; Mr. Yogeshwar Prasad and Miss Rani Arora, Advocates, (In Civil Appeals Nos. 1198 and 1199 of 1975), for Appellants; M/s. N. N. Goswamy and Arvind Minocha, Advocates, (In C. A. No. 1201 of 1975), for Appellant; Mr. L. N. Sinha, Sol. Gen. of India and Mr. G. L. Sanghi, Sr. Advocate, (In C. A. No. 1186 of 1975), (Mr. R. N. Sachthey, Advocate in all the appeals with them), for Respondents Nos. 1-3), (In C.A. No. 1186), Respondents Nos. 1 and 2 (In C. A. 1187/75), Respondent No.1 (In C.A. 1188-1192/75), for Respdts., (In C.A. 1193/75) and for Respondents, (In C.As. Nos. 1194-1195/75), for Respdts. Nos. 1 and 2, (In C. A. Nos.1196-1197/75), for Respondents. (In C.As. Nos. 1198-1199/75), for Respondent (in C. A. No. 1200/75) and for Respdts. Nos. 1 and 2, (In C. As. No. 1201 of 1975); Mr. O. P. Rana, (In all other appeals), for Respondent No.3.

Advocates:
Arvind Minocha, G.L.SANGHI, G.S.PATHAK, J.B.DADACHAN, L.N.Sinha, N.N.GOSWAMY, O.P.RANA, R.M.BHALGATRA, R.N.SACH, RAMAMURTHI, RANI ARORA, S.S.Khanduja, S.SWAROOP, S.V.Gupta, Shri Narain, V.J.Francis, YOGESHAR PRASAD

Headnote:

Constitution of India,1950 - Sought and got leave to appeal - Suitable scheme for percolation of the excess prices - Delivery of legal services - Demands poverty - Fatal ground appellants - all sugar millers who had over-priced this essential consumer article and had failed in their challenge of the controlled price - Had no moral nor legal claim to keep the huge sums which High Court had rightly directed them to disgorge - When price of levy sugar was pegged down by the State factory owners rushed to Court impeaching the validity of the control and secured a stay of operation of the order - Unfortunately, with judicial sanction. Crores of rupees were admittedly funnelled into the millers tills - Court upheld the control of price and the unhappy obligation to restore the unjust enrichment arose - High Court, whose process kept the control price in cold storage – Held, High Court s stay order - Exceptional case of claim were to be made by any buyer, it should be done by motion before the High Court – Registrar orders of the High Court, will directly or by making over to the State Government, receive and dispose of claims from the ultimate consumer for excess price paid on proper proof - State Government is to undertake this task, a proper, easy and cheap machinery for distribution to the real, last buyers will be produced before the High Court and orders obtained. The process should not be too expensive or too fomalised - will be open to the wholesaler to prove by vouchers the retailers and the latter in turn may prove who the ultimate buyers are. - High Court may devise modifications of this scheme or direct the State Government to act on any scheme subject to the moneys reaching the real small buyers from the retailers – Court hope vigilant legislature will activise itself on behalf of the little man and the law and make quick-moving, easily accessibly and free-of-cost consumer protection measures. Slogans are not law and the rule of law in a welfare-oriented constitutional order demands poverty law none too soon, with emphasis on the delivery of legal services with distances shortened and road hazards removed. It is not for the Court to spell out more, but it is for the State to awaken to an overlooked, but not infrequent, legal phenomenon – Ordered Accordingly

JUDGMENT

KRISHNA IYER, J.:—We should have made short shrift of this batch of appeals on the brief but fatal ground that the appellants - all sugar millers who had over-priced this essential consumer article and had failed in their challenge of the controlled price - had no moral nor legal claim to keep the huge sums which the High Court had rightly directed them to disgorge. When the price of levy sugar was pegged down by the State, these factory owners rushed to the Court impeaching the validity of the control and secured a stay of operation of the order. Under cover of the Court s stay order which was granted, on bank guarantee for the excess price being furnished to the Court, the appellants sold sugar at free market rates - a euphemism for black-market racket - unfortunately, with judicial sanction. Crores of rupees were admittedly funnelled into the millers tills. But, eventually, the High Court upheld the control of price and the unhappy obligation to restore the unjust enrichment arose. The High Court, whose process kept the control price in cold storage, had to do justice by the community of consumers who were the unwitting victims of this judiciary declared holiday from control which was quickly converted into a fleece-as you please seller situation. And so the Court made the following direction:

"We, therefore, direct that the Registrar will take immediate steps to encash the security and recover the amount so over-charged by the petitioners and pay the same to the State Government which will keep it in a separate account. The petitioners will furnish to the State Government, within a period of six weeks of this order, a list of all such persons to whom they sold the levy sugar of 1971-72 season, together with their addresses, quantity of such sugar sold to and the amount of excess price charged from each of them. The State Government will then refund to the persons concerned the excess amount realised from each of them, if necessary, after verifying the claim for refund of such amount made by such persons."

2. The reluctant millers have sought and got leave to appeal against this just direction and in the course of arguments have made some suggestions about the disposal of the 1154 moneys. The inarticulate assumption was, presumably, that crores of rupees could remain with them until a suitable scheme for percolation of the excess prices to the ultimate small buyer could be fashioned. Indeed, at some stage, a hesitant proposal was made that since the sugar industry has allegedly had lean years, these considerable sums picked from the pockets of a considerable number of consumers had better be allowed to be retained by the millers: Another diffident hint was made that these several crores of rupees be used for stabilising the sugar-cane growers economic position. The easy-to-see-through design behind these developmental ideas was to have use of this large windfall till some distant project was evolved.

3. Indubitably, the appellants are in unrighteous enjoyment of colossal sums which belong to small consumers. Not a moment more can the millers keep what the Court has ordered the Registrar to collect by enforcing the bank guarantees. Indeed, they have had dubious business use of these vast sums for a few years - nearly a year, even after the High Court s final judgment. Once we disenchanted them, as arguments proceeded, that the conscience of the Court would unconditionally compel the money to be called in forthwith their interest in making fertile pro bono publico suggestions as to how best to organise the disbursement of the small sums to the actual buyers flagged and, later in the day, Shri Dadachanji, Advocate-on-record in these cases, even moved that if leave had not been formally granted, the special leave petitions be allowed to be withdrawn and if leave had been already granted, Court-fee exemption for these many appeals may be directed. This shows up the public concern of these sugar manufacturers. Anywa



























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top