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1981 Supreme(AP) 126

Andhra Pradesh High Court
Judges : A.RAGHUVIR, K.MADHAVA REDDY
Sarvaraya Sugars Ltd. - Appellant
Versus
A.P. Civil Supplies Corporation Ltd. - Respondent
Decided On : 06-17-81

An interim order made by a different High Court in a different writ petition does not preclude the same Court or any other Court from disposing of another writ petition finally on its own merits.

Headnote:

SUGAR PRICE FIXATION - LEVY SUGAR SUPPLY (CONTROL) ORDER, 1979 - SUGAR PRICE FIXATION (PRODUCTION YEARS 1978-79 AND 1979-80) ORDERS - WRIT OF MANDAMUS - INTERIM ORDER OF MADRAS HIGH COURT - RES JUDICATA - WRIT AGAINST PRIVATE PERSONS - PUBLIC DUTY - WRIT PETITION MAINTAINABLE.

Fact of the Case:

Andhra Pradesh State Civil Supplies Corporation Ltd. filed writ petitions seeking a writ of mandamus against sugar producers in Andhra Pradesh to supply sugar at the rate fixed by the Union of India under the Sugar Price Fixation (Production Years 1978-79 and 1979-80) Orders. The producers resisted the writ, arguing that an interim order of the Madras High Court in a similar case, which allowed them to sell sugar at a higher price subject to furnishing a bank guarantee, barred the grant of a writ against them. They also contended that as private limited companies, no writ could be issued against them.

Finding of the Court:

The Andhra Pradesh High Court held that the interim order of the Madras High Court did not operate as res judicata and did not preclude it from considering the validity of the sugar price fixation orders. It further held that a writ could be issued against the sugar producers as they were discharging a public duty by supplying sugar to the public.

Issues: 1. Whether the interim order of the Madras High Court barred the grant of a writ of mandamus against the sugar producers? 2. Whether a writ could be issued against the sugar producers, who were private limited companies?

Ratio Decidendi: 1. An interim order made by a different High Court in a different writ petition does not preclude the same Court or any other Court from disposing of another writ petition finally on its own merits. 2. A writ can be issued against a private person also, provided he was discharging a public duty.

Final Decision: The writ appeals were dismissed with costs.

MADHAVA REDDY, J.

( 1 ) THESE appeals are by the contesting respondents in the two writ petitions W. P. Nos-1285 and 1743 of 1980, who are producers of sugar within the State of Andhra Pradesh. The Andhra Pradesh State Civil Supplies Corporation Ltd. , which is a Company registered under the Companies Act, sought a writ of mandamus in the above two writ petitions against the appellants herein for an appropriate direction to supply sugar at the rate fixed by the Union of India, first respondent therein, under the Sugar Price Fixation (Production Years 1978-79 and 1979-80) Orders dated 17-12-1979 issued under the provisions of Levy Sugar Supply (Control) Order, 1979. By that order the purchasers of sugar were directed to sell levy-free sugar to the State Government or its nominee at the price mentioned therein. Similar orders, issued for production years 1974-75 and 1975-76, were challenged by several producers of sugar in various High Courts and the petitioner and some others in the High Court of Andhra Pradesh. Those petitions having been dismissed by this Court, the matters were carried in appeal and the same are pending before the Supreme Court. The order fixing the price for the production year 1979-80 was challenged by way of a writ petition before the High Court of Madras by the producers of sugar who have registered offices at Madras or within the Tamil Nadu State. Interim orders were granted by the Madras High Court in their favour on condition that they furnished Bank-guarantee to refund the excess amount being realised by them over and above the price fixed under the Price Determination Order, challenged in those writ petitions. That order was passed on 6-3-1980. It may be noticed that A. P. State Civil Supplies Corporation, which is the petitioner in these writ petitions, out of which these writ appeals arise, was not eo nomine party to the writ petitions filed and pending in the Madras High Court. The case of the A. P. State Civil Supplies Corporation in these writ appeals is that in view of the fixation of the price under the above referred order and the directions of the Central Government under Levy-free Sugar Supply (Control) Order, the appellant-sugar factories are bound to supply sugar at the price fixed thereunder and accordingly sought a writ of mandamus. Granting of any such writ, direction or order is resisted by the sugar producers, primarily on the ground that in the writ petitions filed before the Madras High Court, the Central Government has suffered an interim order, which has become final under which they are entitled to sell sugar at a higher price subject only to the giving of Bank-guarantee. As such the Central Government itself is not entitled to compel the producers of sugar to sell at the price determined by it and consequently the A. P. State Civil Supplies Corporation which is only a nominee of the State Government, which is in turn, a nominee of the Central Government, cannot be granted a writ of mandamus. According to the learned counsel Sri Vijayaraghavan that would be in the teeth of the order of the Madras High Court. In that context he also stresses the fact that while the Andhra Pradesh High Court, Allahabad High Court and Gujarat High Court have upheld the price fixation under the Order made by the Central Government, the Madras High Court has taken a different view and quashed the said orders and hence having regard to the view already taken by the Madras High Court, in all probability, the writ petitions now pending before it would also be allowed. In any event the Centra Government having suffered the interim order, so long as tint order is not vacated, cannot direct supply of sugar at the price notified by it under the impugned order. Our learned brother Ramachandra Rao, J. , was of the view that the appellants herein having unsuccessfully challenged the price fixation and the Division Bench of this Court having upheld the notification fixing the price, the A. P. State Civil Suppl








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