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2010 Supreme(Pat) 1980
PATNA HIGH COURT
Sudhir Kumar Katriar and Birendra Prasad Verma JJ.
State Of Bihar
Versus
M/s.Vishnu Sugar Mills Limited : M/s.Sasamusa Sugar Works Ltd
IA No. 882 of 2005 874 of 2005 873 of 2005 875 of 2005
Decided On : AUGUST 27, 2010
Headnote:Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981-Section 31-Reservation of traditional villages in favour of sugar factories-Even though the crushing season may be over, the court would in appropriate cases be entitled to deal with the matter and expound the law in larger public interest if the issues are likely to recur in the following years. (Para 7)
Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981-Section 31 r/w Bihar Sugarcane (Regulation of Supply and Purchase) Rules, 1978-Rule 78-Reservation of areas to factories and procedure for purchasing cane grown in such areas-crushing year commences on the 1st of July in any year and ends on the 30th of June in the year next following-Sugarcane is actually crushed in a sugar factory from November to March with some variations-It is therefore, imperative that the time table indicated in Rule 25 must be followed, otherwise it will not be possible for the cane growers to supply sugarcane, and equally would not be possible for the factory to purchase the sugarcane-direction of Honble Single Judge that Cane Commissioner must follow the statutory calender strictly and must ask for and receive the reservation proposals as provided under the statutory calender held justified. (Para 8)
Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981-Section 31-Declaration of reserved area-The Cane Commissioner must post a speaking order of reservation taking into account the proposals of the respective sugar factories, his reasons for accepting or not accepting or partly accepting the proposals of any of the sugar factories and finally his direction regarding reservation of villages in favour of different sugar factories-He is, therefore, all the more obliged to hear the parties, taken into account all the relevant circumstances, must exclude all the irrelevant circumstances, and assign reasons in support of his order so that correctness of the same can be adjudged by the superior court. (Para 9)
Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981-Section 31 r/w Rule 25 of the 1978 Rules-Period of reservation-The Honble Single Judge passing the orders that the traditional areas be allotted for five years, and non-traditional areas for a period of three years, so as to ensure certainty in the state of affairs and also reducing the burden on the sugar factories, the cane growers, the zonal courts, as well as the Cane Commissioner-The order held most appropriate. (Para 13)
Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981-Section 31-Publication of reservation of area-Allotment of cane growing areas have to be published in the official gazette-It is only after publication of the gazette notification in terms of Section 31 of the Act that the concerned parties come to know of their rights and liabilities which cane grower has to supply to which sugar factory, or which sugar factory has to purchase sugarcane from which vii/age-Any attempt towards refusal to follow it is impermissible. (Paras 15, 16 & 17)
AIR 1991 SC 1099 (para 11); 2002 (1) PLJR 264; AIR 1987 SC 2386; AIR 1970 SC 1896; AIR 1976 SC 1785; AIR 1979 SC 429; 2004 (8) SCC 524 (paragraphs 26 to 29); 342 4S 98, 96 Led 113; 72 Sct 154; 1991 Supp (1) SCC 600 at page 767; (1997) 1 SCC 444 at Page 446-Referred to.
SUDHIR KUMAR KATRIAR, J.
1. The State of Bihar has preferred these four appeals under clause 10 of the Letters Patent of the High Court of Judicature at Patna, and are aggrieved by a common judgment dated 28.2.2005, passed by a learned single Judge of this Court, whereby the following writ petitions have been disposed of with certain directions to the Cane Commissioner, Bihar, Patna :-
(i) CWJC No.15586 of 2004, giving rise to LPA No.882 of 2005
(ii) CWJC No.174 of 2005, giving rise to LPA No.874 of 2005
(iii)CWJC No.16311 of 2004, giving rise to LPA No.873 of 2005; and
(iv) CWJC No.343 of 2005, giving rise to LPA No.875 of 2005
1.1 The learned single Judge has issued the following directions:-
"On hearing counsel for the parties and the State Counsel and the Cane Commissioner, the Court deems it fit and proper to issue the following directions to be strictly adhered to in future for making reservations under Section 31 of the Act : (1) The Cane Commissioner must follow the statutory calendar strictly and must ask for and receive the reservation proposals as provided under the statutory calendar.
(2) After holding meeting (s) and after hearing the parties on their respective proposals and after consulting the Zonal Development Council, the Cane Commissioner must pass a speaking order of reservation taking into account the proposals of the respective sugar factories, his reasons for accepting or not accepting or partly accepting the proposals of any of the sugar factories sand finally his direction regarding reservation of villages in favour of different sugar factories.
(3) Reservation of traditional villages in favour of different sugar factories must be made at least for five years. In case during the period of five years, any of the sugar factories is closed down, it will be open to the Cane Commissioner to pass a supplementary order for one crushing season of for the remaining period of the reservation dealing with reallocation of the traditional villages of the closed sugar factory(ies) to other sugar factories after observing the requirements of notice and hearing as provided under Section 31 of the Act.
(4) The reservation of villages other than the traditional villages shall be for a period of not less than three years. The provision for making a supplementary order in case the sugar factory closes down shall apply also in the case of these villages.
(5) The order must be sent to Gulzarbagh Printing Press will in advance so that it is duly published at least a fortnight before the start of the crushing operations."
2. The facts are substantially common and may be briefly indicated. The four writ petitioners are Companies incorporated under the Companies Act and are, inter alia, engaged in the manufacture and sale of sugar. Vishnu Sugar Mills preferred CWJC No. 15586 of 2004, challenging the communication dated 30.9.2004, enclosing thereto a copy of the order of the Cane Commissioner of 28.9.2004, whereby 23 villages (a list of which is appended to the order), of East Champaran district, were reserved in favour of Sasamusa Sugar Works Limited (for the crushing season 2004-05).
2.1. According to the petitioner, for the purpose of reservation of villages in terms of Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act 1981 (hereinafter referred to as the Act), a meeting was convened by the Cane Commissioner on 24.9.2004, in which the representatives of the concerned sugar mills took part and in which the proposals submitted by the different sugar mills for reservation of villages in their favour were considered. It was alleged by the petitioner that neither in the proposal made by Sasamusa Sugar, nor in course of the meeting held on 24.9.2004, there was any suggestion to reserve 23 villages in question in favour of Sasamusa Sugar. It was further the case of the petitioner that after the meeting was over, a supplementary proposal (for which there is no provision in the Act) was submitted on be
