JUDGMENT

The Judgment of the Court was delivered by

CHINNAPPA REDDY, J. - The fifteen appellants are owners of khandasari units in the State of Haryana. There are seventy-two khandasari units in Haryana, out of which fifty-four are located within areas reserved for sugar mills under the Sugarcane Control Order. The units of the appellants are among these fifty-four. All the appellants units were previously licensed under the Haryana Khandasari Sugar Manufactures Licensing Order. When they applied for renewal of their licenses, their applications were rejected by the Cane Commissioner on the ground that there was acute shortage of cane in the assigned area of the sugar mills. Sub-clause (3)(c) of Clause 3 of the Haryana Khandasari Manufacturers Licensing Order was quoted in support of the orders. These orders were questioned by the appellants before the High Court of Punjab and Haryana under Article 226 of the Constitution. A learned Single Judge of the High Court allowed the writ petitions and directed the renewal of the licenses of the appellants. On an appeal preferred by the State of Haryana and the Cane Commissioner under the Letters Patent, a Division Bench of the High Court r