Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2010 Supreme(Pat) 1973

IN THE HIGH COURT OF PATNA
S.K. Katriar and Birendra Pd. Verma, JJ.
The State of Bihar through the Secretary, Sugarcane Development Department, Government of Bihar, Patna & Ors. (in all) – Respondents/Appellants
Vs.
M/s Vishnu Sugar Mills Limited, Harakhua, P.O.-Vishnu Sugar Mills, District Gopalganj through its General Manager, P.R.S.-Panicker & Anr. (in 882)
M/s Sasamusa Sugar Works Ltd. having its office and factory at Sasamusa, P.S.-Kuchaikot, District-Gopalganj, through KA Farooqui, Manager of the Factory & Ors. (in 873, 874, 875) – Appellant/Respondents
LPA Nos. 882 and 873-875 of 2005
Decided on : 27.8.2010

Advocates appeared:
For the Appellants: Mr. Purnendu Singh (in all).
For the Respondents: M/s Y.V. Giri, Vikas Ratan Bharti, Mrigender Singh (in all).

The main legal point established in the judgment is the quasi-judicial nature of the Cane Commissioner's powers, the importance of following the statutory provisions, passing reasoned orders, and the need for reasons to be recorded in support of the orders.

Headnote:
Cane Commissioner - Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 - Section 31, Rule 25 - The judgment discusses the directions issued by the learned single Judge to the Cane Commissioner, Bihar, regarding the reservation of cane-growing areas for sugar factories. The court emphasized the importance of following the statutory calendar, passing speaking orders of reservation, and making reservations for specific periods. The judgment also highlighted the quasi-judicial nature of the Cane Commissioner's powers and the need for reasons to be recorded in support of the orders.
Fact of the Case:

The writ petitioners, sugar factories, challenged the reservation of villages in favor of another sugar factory by the Cane Commissioner. They alleged that the statutory calendar was not followed, and reservations were made without proper consideration and reasons. The learned single Judge noted the grievances and issued directions to enforce the statutory provisions of law.
Finding of the Court:

The court found that the Cane Commissioner had been acting without following the laws governing the issue and in an arbitrary manner. It emphasized the importance of following the statutory calendar and passing reasoned orders. The court also highlighted the quasi-judicial nature of the Cane Commissioner's powers and the need for reasons to be recorded in support of the orders.
Issues: The issues involved the proper reservation of cane-growing areas for sugar factories under the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981, and the failure of the Cane Commissioner to follow the statutory provisions and pass reasoned orders.
Ratio Decidendi: The court held that the Cane Commissioner's powers are quasi-judicial in nature and must be exercised in accordance with the law. It emphasized the need for following the statutory calendar, passing speaking orders of reservation, and making reservations for specific periods. The court also highlighted the importance of reasons being recorded in support of the orders.
Final Decision: The appeals were dismissed, and the order of the learned single Judge was upheld. The court found the appeals to be frivolous and there was no order as to costs.

Judgment

S.K. Katriar, J.

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. 815 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 and 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 behalf of Sasamusa S

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