The court upheld the automatic derecognition of an Industrial Entrepreneur Memorandum under the Sugarcane (Control) Order, 1966 due to failure to commence operations, reinforcing compliance as critical for entitlement to regulatory approvals.

ORDER :

E.S.INDIRESH, J.

In W.P.No.2274 of 2023, the petitioner-Company is assailing the order dated 21.09.2022 (Annexure-A) passed by the respondent No.3, order dated 23.03.2022 (Annexure-AA) passed by the respondent No.2, communication dated 21.02.2024, issued by the respondent No.2, inter-alia sought for direction to the respondent No.3, to issue Distance Certificate to the petitioner-Company by considering the representation dated 02.01.2019 (Annexure-B).

2. In W.P.No.16674 of 2023, the petitioner-Company is assailing the Distance Certificate dated 09.08.2021 (Annexure-A) issued by the respondent No.4 in favour of respondent No.5, order dated 25.10.2021 passed by the respondent No.4, in favour of respondent No.5 (Annexure-B), order dated 30.06.2021 (Annexure-C) passed by the respondent No.1, IEM (hereinafter referred to as 'IEM') dated 10.12.2021 (Annexure-D) issued by the respondent No.1 in favour of the respondent No.5, order dated 23.03.2022 (Annexure-E) passed by the respondent No.3 inter-alia sought for direction to the respondent No.5, to obtain fresh Distance Certificate as per Annexure-F and further sought for direction to the respondent No.4 not to issue Distance Certificate to any other person as per Annexure-F.

3. Since the question of law involved in these writ petitions are common with regard to the issuance of Distance Certificate in favour of the rival sugar factory- M/s. Nadahalli Ethanol and Allied Industries Ltd., the petitions were clubbed, heard together and disposed of by this common order, by consent of the learned counsel appearing for the parties.

4. For the sake of convenience, the rank of the parties are referred to as per their status and ranking in W.P.No.2274 of 2023.

Facts of the case:

5. In W.P.No.2274 of 2023, the petitioner-Company, was incorporated for the purpose of establishment of Sugar Factory and for carrying out other allied activities. The petitioner-Company had proposed to establish a Sugar Factory at Kodaganur Village, Basavana Bagewadi Taluk, Vijayapura District. In this regard, the petitioner-Company has made an application to the State Government, seeking issuance of Distance Certificate as required under the provisions of Sugarcane (Control) Order, 1966 (hereinafter referred to as 'SCO, 1966'). In furtherance of the same, the closest Sugar Factory from the proposed area of establishment by the petitioner, situate at the distance of 16.7 kms (Annexure-D) and as such, the petitioner- Company was issued with IEM dated 13.08.2010 (Annexure-F in W.P.No. 16674 of 2023).

6. The petitioner-Company in compliance with the statutory requirement had issued a Bank Guarantee for sum of Rs.1 Crore, in favour of respondent No.2 and same was extended periodically. It is further stated that, the respondent No.2, by order dated 20.12.2018, (Annexure-J), derecognised the IEM issued in favour of petitioner and the Bank Guarantee was forfeited. Being aggrieved by the same, the petitioner-Company has preferred W.P.No.440 of 2019 before this Court and this Court vide order dated 14.08.2019, (Annexure-L), allowed the writ petition by quashing the order dated 20.12.2018 (Annexure-J) passed by the respondent No.2 (Government of India) and directed the respondents therein to re-consider the case of the petitioner-Company as per the notification dated 24.08.2016. It is contended by the petitioner-Company that, no date has been fixed by the respondents to hear the application/representation, as per Annexure-M to M4. In the meanwhile, the respondent No.4 (M/s. Nadahalli Ethanol and Allied Industries Ltd.,), had applied for issuance of Distance Certific