Karnataka High Court
INDIA SUGARS and REFINERIES LTD. - Appellant
Versus
UNION OF INDIA - Respondent
Decided On : 12-04-75
W.P. : 432 of 1974
Sugar Industry - Validity of Sugar (Price Determination for 1974-75 production) Order, 1974 and Sugar (Price Determination for 1974-75 Production) second Amendment Order, 1975 - Essential Commodities Act, 1955, S. 3(3c), Sugarcane (Control) Order, 1966, C1. 5a - The court quashed the 1975 Order in so far as it related to the Karnataka region and directed the Central Govt to re-determine the price of levy sugar and issue an appropriate notification within four weeks. The petitioners were to be paid for the quantity of levy sugar sold by them after 11-7-1975 at the rates to be determined by the Central Govt. The amount of additional price payable by the petitioners to the canegrowers was to be determined in accordance with the levy price to be fixed by the Central Government within a reasonable time after the issue of the notification.
Fact of the Case:
The petitioners, sugar manufacturers in Karnataka, challenged the validity of the Sugar (Price Determination for 1974-75 production) Order, 1974 and the Sugar (Price Determination for 1974-75 Production) second Amendment Order, 1975 issued by the Central Govt. The orders controlled the supply of sugar-cane to the sugar factories, the quantity of sugar to be supplied to the Central Govt, the price payable by the Central Govt for such sugar, and the distribution of sugar under the Essential Commodities Act, 1955.
Finding of the Court:
The court dismissed the petitions challenging the 1974 Order but allowed the petitions challenging the 1975 Order in so far as it related to the Karnataka region. The court quashed the 1975 Order and directed the Central Govt to re-determine the price of levy sugar and issue an appropriate notification within four weeks. The petitioners were to be paid for the quantity of levy sugar sold by them after 11-7-1975 at the rates to be determined by the Central Govt.
Issues: Validity of Sugar (Price Determination for 1974-75 production) Order, 1974 and Sugar (Price Determination for 1974-75 Production) second Amendment Order, 1975 under the Essential Commodities Act, 1955.
Ratio Decidendi: The court held that the Central Govt was not right in taking into consideration the actual extra price paid by the producer of sugar to the canegrower over and above the minimum cane price, which was extraneous to the provisions of S. 3(3c) of the Act. The court directed the Central Govt to re-determine the price of levy sugar and issue an appropriate notification within four weeks.
Final Decision: The court dismissed the petitions challenging the 1974 Order but allowed the petitions challenging the 1975 Order in so far as it related to the Karnataka region. The court quashed the 1975 Order and directed the Central Govt to re-determine the price of levy sugar and issue an appropriate notification within four weeks. The petitioners were to be paid for the quantity of levy sugar sold by them after 11-7-1975 at the rates to be determined by the Central Govt.
( 2 ) UNDER C1. 2 of the Levy Sugar Supply (Control) Order, 1972, made on 15-6-1972, the Central Govt may from time to time by order issue direction to any producer or recognised dealer to supply levy sugar of such type or grade and in such quantity, (a) to such pers
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