PATNA HIGH COURT
V.Ramaswami and Kanhaiya Singh JJ.
Sasamusa Sugar Works (Private) Ltd.
Versus
Cane Commissioner
Miscellaneous Judicial Case No. 656 of 1958 ;
Decided On : DECEMBER 01, 1958
SUGARCANE (CONTROL) ORDER, 1955 - CONSTITUTIONALITY - DELEGATION OF POWERS - RESERVATION OF AREA TO SUGAR FACTORIES - BIHAR SUGAR FACTORIES CONTROL ACT, 1937 - BIHAR SUGAR FACTORIES CONTROL RULES, 1938 - VALIDITY - ARTICLE 14 AND ARTICLE 19(1)(G) OF THE CONSTITUTION - INTERPRETATION.
Fact of the Case:
The petitioner, a private limited company carrying on the business of manufacturing sugar, challenged the validity of the Sugarcane (Control) Order, 1955, issued by the Central Government under the Essential Commodities Act, 1955, and the order of the Cane Commissioner directing cane-growers to sell cane to the petitioner only through Cane-growers Co-operative Societies. The petitioner contended that the Sugarcane (Control) Order was unconstitutional as it infringed the fundamental rights guaranteed under Article 14 and Article 19(1)(g) of the Constitution.
Finding of the Court:
The court held that the Sugarcane (Control) Order, 1955, was not unconstitutional and that the delegation of powers to the Cane Commissioner was valid. The court further held that the reservation of the area to the petitioner was made in accordance with the provisions of the Bihar Sugar Factories Control Act, 1937, and the Bihar Sugar Factories Control Rules, 1938, and that the petitioner was given adequate opportunity of being heard.
Issues: 1. Whether the Sugarcane (Control) Order, 1955, was unconstitutional? 2. Whether the delegation of powers to the Cane Commissioner was valid? 3. Whether the reservation of the area to the petitioner was made in accordance with the provisions of the Bihar Sugar Factories Control Act, 1937, and the Bihar Sugar Factories Control Rules, 1938?
Ratio Decidendi: 1. The Sugarcane (Control) Order, 1955, was not unconstitutional as it did not infringe the fundamental rights guaranteed under Article 14 and Article 19(1)(g) of the Constitution. 2. The delegation of powers to the Cane Commissioner was valid as the Bihar Sugar Factories Control Act, 1937, and the Bihar Sugar Factories Control Rules, 1938, prescribed the limits within which the Cane Commissioner was to function in making the reservation. 3. The reservation of the area to the petitioner was made in accordance with the provisions of the Bihar Sugar Factories Control Act, 1937, and the Bihar Sugar Factories Control Rules, 1938, and the petitioner was given adequate opportunity of being heard.
Final Decision: The petition was dismissed with costs.
Kanhaiya Singh, J.
1. This petitioner under Article 226 of the Constitution impugns the validity of the Sugarcane (Control) Order, 1955. The Petitioner is a private limited company carrying on the business of manufacturing sugar under the name and style of Sasamusa Sugar Works (Private) Limited, the sugar factory being located at Sasamusa in the district of Saran. The opposite party are (1) the Cane Commissioner, Bihar, (2) Sasamusa Cane Development and Cane Marketing Union, and (3) Jalalpur Case Development and Cane Marketing Union.
On 12-9-1958, the petitioner obtained a rule from the High Court calling upon the opposite party to show cause why the order of the Cane Commissioner dated 31-7-1958 (Annexure F) issued under the Sugarcane (Control) Order, 1955, by which the Cane Commissioner (Opposite party 1) directed the cane-growers in the villages mentioned in the list annexed thereto to sell cane to the petitioner only through Cane-growers Co-operative Society or Societies operating in these villages during the season 1958-59 should not be set aside as illegal and void. The Sugarcane (Control) Order, 1955, under which the Cane Commissioner purported to act was issued by the Central Government in exercise of the powers conferred on it by Sec.3 of the Essential Commodities Act, 1955 (X of 1955). Clause 4 of that Order runs as follows: "The Central Government may by order in the official Gazette- (a) prohibit or restrict or otherwise regulate the export of sugarcane from any area for supply to different factories;
(b) direct that no gur (jaggery) or sugar shall be manufactured from sugarcane except under and in accordance with the conditions specified in a licence issued in this behalf." Clause 5 provides as follows: "Every producer, his agent or factory to whom any order or direction is issued under any powers conferred by or under this order shall comply with such order or direction."
Clause 6 provides for delegation of powers and is in the following terms: "The Central Government may, by notification in the official Gazette, direct that all or any powers conferred upon it by this order shall, subject to such restrictions, exceptions and conditions, if any, as may be specified in the direction, be exercisable also by (a) any officer or authority of the Central Government,
(b) a State Government or any officer or authority of a State Government."
In exercise of the powers conferred by Clause 6 aforesaid the Central Government delegated its power under Sub-clause (a) of Clause 4, above stated, to the Cane Commissioner, Bihar. By virtue of this delegated power the Cane Commissioner issued the impugned order dated 31-7-1958.
2. Mr. B.C. Ghose representing the petitioner has challenged the Sugarcane (Control) Order, 1955 as unconstitutional, inasmuch as it infringes the fundamental rights guaranteed under Article 14 and Article 19(1)(g). His contention is that the Central Government has conferred upon the Cane Commissioner very wide powers without laying down any principles for exercise thereof and without providing for check by way of appeal or otherwise, and that the delegation or this absolute and arbitrary power uncontrolled by any rules of guidance with the possibility of discrimination in its use is ultra vires and unconstitutional. He further argued that it abridges its right to carry on its trade freely and without restraint, and thereby infringes Article 19(1)(g).
3. On the other hand, the learned Advocate-General representing the opposite party pointed out that the wider question raised by Mr. Ghose did not arise on the facts of this case, and the question of the vires of the Sugarcane (Control) Order, 1955, issued by the Central Government was purely academic, and has no relevance in this case. His submission is that the powers for the assignment of particular sugarcane growing areas to particular sugar factories are vested in the State Government and the Cane Commissioner (opposite party 1) both under the Bihar
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