2006 Supreme(All) 324
[2006(2) ADJ 371 (All)(DB)]
ALLAHABAD HIGH COURT
(Division Bench)
BEFORE : SUSHIL HARKAULI AND VIKRAM NATH, JJ.
M/s. KISAN SAHSKARI CHINI MILLS LTD. ....Petitioner
Versus
UNION OF INDIA AND OTHERS .....Respondents
(Civil Misc. Writ Petition No. 31199 of 2005, decided on 1st February, 2006)
Counsel :
Arun Kumar Gupta for the Petitioner; Navin Sinha for the Respondent.
Headnote:Industries (Development and Regulation) Act, 1951—Section 29-B(1)—Setting-up of a Sugar factory at a distance of less than 15 Kms. from existing sugar factory, as distance of 15 Kms. was being a Government notification—Petitioner filing writ petition, for restraining setting up of another Sugar factory, which was proposed to be constructed at a distance of 13.5 kms. from factory of petitioner—Government of India itself has taken a distance in favour of that factory, to be set-up at a distance of 14.2 kms., from an existing sugarcane factory—Alleged violation of that norm, reduces area of petitioner-factory by only half Km., in only one direction—Policy of that 15 Kms. was basically intended to ensure adequate sugarcane procurement by each factory—When Government of India has itself interpreted its own Guidelines—No reason to adopt a different approach in exercise of discretionary jurisdiction under Article 226 of Constitution by Court—Therefore, no interference—Hence, petition liable to be dismissed. [Paras 16 to 20]
By the Court.—Affidavits have been exchanged. We have heard the learned counsel for the parties. The writ petition is being finally disposed of at the stage of admission.
2. This writ petition was filed on 15th April, 2005 for restraining the respondent No. 5 i.e. M/s. Dwarikesh Sugar Industries Ltd. from setting up a sugar factory at the particular site namely plot (Gata) No. 2 in village Bahadarpur, Tehsil Dhampur, District Bijnore, in the State of Uttar Pradesh on the ground that the said site where the factory was proposed to be constructed was at a distance of 13.5 kilometers from the factory of the petitioner. The petitioner’s sugar factory is located on land falling in three villages namely, Rajpur, Pooranpur and Nadehi in district Udham Singh Nagar of Uttaranchal State. No interim order was granted in this matter.
3. The basic ground taken in the writ petition is that the minimum distance between two sugar factories should be 15 kilometers as prescribed by the Press Note No. 12 dated 31st August, 1998 issued by the Department of Industrial Policy and Promotion, Ministry of Industry, Government of India. A copy of the Press Note is annexed as Annexure-6 to this writ petition. This distance between the two factories is disputed and as per documents filed by the respondent No. 5 issued by the same Authority namely Survey of India, and as per counter affidavit of the State the distance is more than 15 Km.
4. Before we take up this issue, we will dispose of another aspect of the case.
5. In the writ petition the petitioner has also prayed for quashing of the Notification of Department of Industrial Policy and Promotion, Ministry of Industry, Government of India, dated 11th September, 1998, annexed as Annexure-7 to this writ petition. That notification has been issued in exercise of the power under Section 29-B (1) of the Industries (Development and Regulation) Act, 1951 (65 of 1991), (hereinafter referred to as IDR Act for short). By that notification the Central Government deleted item No. 4 relating to “sugar” and the entries thereunder from the Schedule II of the Notification of the same Department No. S.O. 477 (E) dated 25th July, 1991.
6. A little clarification is required here. In Schedule II of the IDR Act, “sugar” is one of the industries mentioned at item 25. As such, sugar industry becomes capable of regulation under the powers conferred by the IDR Act. In exercise of powers of that Act, the Central Government had issued the Notification No. S.O. 477(E) dated 25th July, 1991 mentioning a list of industries for which licensing was made compulsory by that notification. In the Schedule II of that Notification (as distinguished from Schedule II of IDR Act) “sugar” was mentioned at item No. 4. Further under the heading “sugar” at item 4, ‘cane-sugar’, ‘’refined and other sugars’ including ‘centrifugal sugar’ are sub-heads. Thus it was because of the Notification dated 25th July, 1991 that for sugar industry licensing became compulsory meaning that no sugar factory could be established without a licence. The item 4 of Schedule II of the Notification dated 25th July, 1991 was amended by the Notification dated 11th September, 1998 and “sugar” as well as all its sub-heads were deleted. Thus the requirement of compulsory licensing of the industries relating to sugar and the aforesaid related items ceased, meaning thereby that licence under the IDR Act ceased to be necessary for setting up an industry relating to the said item of sugar and the said related items.
7. This de-licensing was challenged in a writ petition filed by M/s. Monnet Sugars Limited being Writ Petition No. 36685 of 2004. That writ petition was allowed by a Division Bench of this Court vide judgment dated 24th August, 2005 and the Notification of de-licensing was quashed thereby the pre 11th September 1998 position was restored; and obtaining of licence for establishing sugar industries became necessary again. Against the said decision of this Court, a