The court ruled that administrative actions infringing rights must follow principles of natural justice, requiring a hearing before imposing restrictions under the Sugarcane (Control) Order.

JUDGMENT :

S.SUNIL DUTT YADAV, J.

BRIEF FACTS:-

The present Writ Appeal is filed calling in question the correctness of the order dated 07.02.2025 passed in W.P.No.107316/2024 c/w W.P.No.100295/2025. The appellant No.1 - M/s. Askins Biofuels Private Limited ['hereinafter referred to as 'M/s. Askins'] was petitioner No.1 in W.P.No.100295/2025 and respondent No.5 in W.P.No.107316/2024, while appellant No.2 M/s. Shri Brahmanandasagar Jaggery Industries [hereinafter referred to as 'M/s. Brahmanandasagar'] was petitioner No.2 in W.P.No.100295/2025.

2. W.P.No.100295/2025 was filed calling in question the correctness of the Government Order dated 04.01.2025 issued by the Government of Karnataka, Department of Commerce and Industries, whereby, the Government had imposed a prohibition on the production of lower grade sugar through 'Vacuum Pan Method' and further imposed restriction on production of any other product from sugarcane syrup. The same order further clarified that the production of jaggery from sugarcane syrup by 'M/s. Brahmanandasagar' would however not amount to violation of Sugarcane (Control) Order, 1966.

3. The further relief that was sought in the said writ petition was issuance of a direction or declaration holding that the petitioners were free to procure sugarcane to the extent of 5% from the cane allotted area of any Sugar Factory in terms of the practice followed by the State of Karnataka in earmarking 95% of the reserved area to a Sugar Factory.

4. W.P.No.107316/2024 was filed by M/s. Alagawadi Bireshwar Sugars Pvt. Ltd., [hereinafter referred to as 'M/s. Alagawadi'] wherein a direction was sought to the State Government, Commissioner for Cane Development and Directorate of Sugar, and the Deputy Commissioner to implement the order dated 30.05.2023 whereby, the Commissioner for Cane Development and Directorate of Sugar had passed an order restraining 'M/s. Brahmanandasagar' from operating the Power Crusher and crushing of sugarcane at Alagawadi Village and further restraining 'M/s. Brahmanandasagar' from procuring and purchasing sugarcane for crushing in the reserved area.

5. Further direction was sought to the Deputy Commissioner, Belagavi to ensure implementation of the order, while W.P.No.100295/2025 stood dismissed and W.P.No. 107316/2024 was allowed.

6. The relevant facts are that on 20.06.2011, 'M/s.Brahmanandasagar' had obtained an 'Industrial Entrepreneurs Memorandum' (IEM) to establish a Unit for manufacture of jaggery and on 22.11.2021, the IEM was amended to include sugarcane syrup/juice, while, on 05.12.2019, 'M/s. Askins' was granted IEM to establish a standalone distillery at Harugeri Road, Alagawadi Village, Raibagh Taluk, Belagavi District.

7. 'M/s. Alagawadi' had filed W.P.No.100915/2022 against 'M/s. Askins' and ' M/s. Brahmanandasagar' seeking for stopping of the Units. The said Writ Petition came to be disposed of on 15.03.2022, directing the Authorities to consider the representations of all the parties and to pass orders.

8. The Commissioner for Cane Development and Director of Sugar, vide order dated 30.04.2022 had restrained 'M/s.Askins' from procuring sugarcane fuels from 'M/s. Brahmanandasagar'. The said order came to be challenged in W.P.No.101807/2022, which order was set aside on 30.04.2022 and