The main legal point established in the judgment is that the price fixation for levy sugar must adhere to the provisions of Section 3 (3C) of the Essential Commodities Act, and the burden of proof lies with the petitioners to establish any alleged arbitrariness in the price determination.

May it be the fact that these nearly forty three years old four pending case records contain unhygienic dust and many mutilated papers but fact remains that these cases are pending in the list of Calcutta High Court awaiting court’s verdict.

2. With the active assistance of the learned advocates for the parties these four cases have been taken up together recovering the sum and substance of the subject matter involved in these four cases which were filed on the same date 26.08.1974 and moved on 27.08.1974 first before this High Court. Initially the CR 5047 (W) of 1974 was filed by The New Swadeshi Sugar Mills Ltd. and another but during pendency of the case names of present petitioners have been recorded in place of earlier petitioners by way of amendment. Similarly, in CR 5047 (W) of 1974, the names of present petitioners have been recorded in place of original petitioners New India Sugar Mills Ltd. and another by amendment.

3. It is pertinent to mention that all these four writ applications involve same issue of price determination of levy sugar for the year 1973-1974 according to the principles laid down in Section 3 (3C) of the Essential Commodities Act, 1955. Firstly, all the writ applications were heard together and composite orders were passed. Subsequently, the cases were being run separately. When it came to my notice these four cases have again been tagged under orders dated 30.06.2015 and 23.07.2015. ultimately these four matters have been heard together and now taken up for disposal by this single judgment.

4. Four different companies being manufacturers of sugar in North Bihar Sugar Zone of the country have challenged the price fixation of levy sugar for the year 1973-74. According to them, the Union of India has erroneously and arbitrarily fixed the price of levy sugar finally at the rate of Rs.169.80 P. per quintal without following the provisions of Section 3 (3C) of the Essential Commodities Act, 1955. As per their estimation the price of levy sugar for that year ought to have been Rs.291.42 p. Per quintal in CR 5045 (W) of 1974, Rs.290,96 p. per quintal in Cr 5046 (W) of 1974, Rs.273.34 per quintal in CR 5047 (W) of 1974 and Rs.341.14 p. per quintal in Cr 5048 (W) of 1974 in terms of said Section 3 (3C) of the Act. They have prayed for declaration that the price determination order in respect of levy sugar for the year 1973-74 is void and for issuing writ of mandamus directing the respondent Union of India to fix the price for that year at the rate as claimed in the writ application per quintal. They have also prayed for writ of prohibition commanding the respondents from not giving effect to the impugned price fixation order. Consequential orders of injunction against the respondents have also been prayed for.

5. On 27.08.1974 an interim order of injunction was passed in terms of prayers (g) and (h) of the writ applications directing the respondents no. 1 to 4 to pay the difference between the price fixed as per price control order for the year 1973-74 and the price estimated by petitioners for that year against delivery of levy sugar by the petitioners to the respondents with a further direction upon the respondents no. 5 to 7 restraining them from realising any Central Excise duty in respect of levy sugar for 1973-74 save and except on the basis of price specified in the Sugar (Price Determination for 1973-74 Production) Order, 1973. In that order petitioners of these four writ applications were directed to furnish bank guarantees in terms of that order as condition of granting interim injunction in their favour. Subsequent to that, on 10th October, 1974 by modification of the interim order dated 27th August, 1974 the petitioners were directed to furnish bank guarantee along with certificate of despatch of sugar with affidavit of Principal Officer of the petitioner companies. By an order dated 10th December, 1974 the earlier orders dated 27.08. 1974 and 10.10.1974 were varied to the following extent