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HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
M/s. Rajshree Sugars & Chemicals Ltd, Coimbatore & Ors. - Appellants
Versus
Union of India, Represented by the Chief Director, Directorate of Sugar, New Delhi & Ors. - Respondents
WP Nos. 25901, 32664 of 2018, 705, 1051, 1056 & 4454 of 2019 & WMP Nos. 30103, 37872 of 2018, 31739, 5022, 1180, 777, 1178 & 32664 of 2019
Decided On : 22-01-2024
Mandamus - Sugar Industry - Essential Commodities Act, 1955, Sugar (Control) Order 2018 - [Article 226] - [Essential Commodities Act, 1955, Sugar (Control) Order 2018] - The court discussed the powers of the Central Government under the Essential Commodities Act, 1955 and the Sugar (Control) Order 2018 to control the production, supply, and distribution of sugar. It considered the reasonableness of imposing restrictions on the sale of sugar and the impact on the viability of the sugar industry. The court referred to the judgment in Saikrupa Sugar and Allied Industries Ltd. vs. The Government of India through Secretary and others to support its decision.
Fact of the Case:
The petitioners sought a Writ of Mandamus to forbear the respondents from imposing restrictions on the manufacture, sale, and supply of sugar to enable them to pay dues to sugarcane farmers and maintain business viability.
Finding of the Court:
The court found that the restrictions imposed by the Central Government were disproportionate and unreasonable, leading to financial loss for the sugar factories and impacting the viability of the industry. It held that the relief sought by the petitioners was beyond the scope of judicial review.
Issues: The issues involved the reasonableness of the restrictions imposed by the Central Government on the sale of sugar and the impact on the viability of the sugar industry.
Ratio Decidendi: The court relied on the judgment in Saikrupa Sugar and Allied Industries Ltd. vs. The Government of India through Secretary and others to support its decision that the restrictions imposed by the Central Government were within its powers under the Essential Commodities Act, 1955 and the Sugar (Control) Order 2018.
Final Decision: The court dismissed the writ petitions, stating that the relief sought by the petitioners was beyond the scope of judicial review and that the business difficulties raised by the petitioners could not be redressed by the court.
JUDGMENT
(Prayer: WP 25901 of 2018 is filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, forbearing the first respondent from imposing any restrictions or quotas by way of monthly release orders on the petitioner in the manufacture of sale and supply of white and refined sugar to the extent of enabling the petitioner to pay the dues of the farmers, who have supplied the sugarcane to the petitioner- Company and to maintain the business viability of the petitioner-Company.
WP 32664 of 2018 is filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, forbearing the respondent from imposing any restrictions or quotas by way of monthly release orders on the petitioner in the manufacture of sale and supply of white and refined sugar to the extent of enabling the petitioner to pay the dues of the farmers, who have supplied the sugarcane to the petitioner- Company and to maintain the business viability of the petitioner-Company.
WP 705 of 2019 is filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, forbearing the respondent from imposing any restrictions or quotas by way of monthly release orders on the petitioner in the manufacture of sale and supply of white and refined sugar to the extent of enabling the petitioner to pay the dues of the farmers, who have supplied the sugarcane to the petitioner- Company and to maintain the business viability of the petitioner-Company.
WP 1051 of 2019 is filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, forbearing the respondent from imposing any restrictions or quotas by way of monthly release orders on the petitioner in the manufacture of sale and supply of white and refined sugar to the extent of enabling the petitioner to pay the dues of the farmers, who have supplied the sugarcane to the petitioner- Company and to maintain the business viability of the petitioner-Company.
WP 1056 of 2019 is filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, forbearing the respondent from imposing any restrictions or quotas by way of monthly release orders on the petitioner in the manufacture of sale and supply of white and refined sugar to the extent of enabling the petitioner to pay the dues of the farmers, who have supplied the sugarcane to the petitioner- Company and to maintain the business viability of the petitioner-Company.
WP 4454 of 2019 is filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, forbearing the respondent from imposing any restrictions or quotas by way of monthly release orders on the petitioner in the manufacture of sale and supply of white and refined sugar to the extent of enabling the petitioner to pay the dues of the farmers, who have supplied the sugarcane to the petitioner- Company and to maintain the business viability of the petitioner-Company.)
Common Order:
1. The present writ petitions have been instituted for Mandamus to forbear the respondents from imposing any restrictions or quotas by way of monthly release orders on the petitioners in the manufacture of sale and supply of white and refined sugar to the extent of enabling the petitioners to pay the dues of the farmers who have supplied the sugarcane to the petitioner-Company and to maintain the business viability of the petitioner-Company.
2. The Government of India in exercise of its powers under the Essential Commodities Act, 1955 has control over the production, supply and distribution of trade and commerce in certain commodities, which all are provided by the Government from time to time and one of the commodities, which is included is sugar. The Sugar (Control) Order has been issued to control the Sugar Industries falling under the administrative control of the Central and the respective State Governments. The Central Government by Gazette No
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