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2004 Supreme(All) 1972

HIGH COURT OF ALLAHABAD
R. K. Agrawal and Prakash Krishna, JJ.
Dhampur Sugar Mills Ltd. through its Vice President Shri J.S. Sharma
Versus
State of Uttar Pradesh
Civil Misc. Writ Petition 1369 of 2004
Decided On : 29 October 2004
Civil Misc. Writ Petition 1369 Of 2004

Advocates Appeared:
A.K.GUPTA, N.C.Gupta, S.M.A.Kazmi, S.P.KESARWANI,

The court emphasized the limitations of challenging government orders under the U.P. Sheera Niyantran Adhiniyam, 1964 and highlighted the inability to enforce Directive Principles of State policy in a court of law.

Headnote:

MOLASSES - Challenge to Government Orders - U.P. Sheera Niyantran Adhiniyam, 1964 - Section 3, 8, 9

Fact of the Case:

The petitioner, M/s Dhampur Sugar Mills Ltd., challenged government orders related to the reservation of molasses for distilleries manufacturing country liquor. The petitioner claimed that it had its own distillery and was facing a shortage of molasses, seeking relief from the court.

Finding of the Court:

The court rejected the petitioner's claims, upholding the validity of the U.P. Sheera Niyantran Adhiniyam, 1964 and the government orders. It dismissed the writ petition, stating that the petitioner failed to provide evidence to support its claims.

Issues: Validity of government orders related to molasses reservation, availability of alternative remedy, and compliance with constitutional principles.

Ratio Decidendi: The court held that the absence of an advisory committee did not invalidate the Controller of Molasses' power to make allotment orders. It also rejected the petitioner's argument regarding public policy and constitutional violations, emphasizing that the Directive Principle of the State policy cannot be enforced in a court of law.

Final Decision: The writ petition was dismissed, and the parties were directed to bear their own costs.

R. K. AGRAWAL, J.

( 1 ) BY means of the present writ petition filed under Article 226 of the Constitution of India, the petitioner, M/s Dhampur Sugar Mills Ltd. , through its Vice President, Sri J. S. Sharma, seeks the following reliefs:

" (a) issue a writ, order or direction in the nature of certiorari calling for the records and quashing the impugned G. Os. dated 9. 6. 2004 and 10. 6. 2004 and orders dated 15. 6. 2004 and 26. 6. 2004 passed by the Respondents No. 2 and 3 respectively i. e. (Annexure Nos. 14, 15 and 16 to this writ petition, respectively ). (b) issue a writ, order or direction in the nature of certiorari quashing the orders dated 26. 7. 2004, 3. 8. 2004, 27. 8. 2004, 2. 9. 2004 issued by the respondent No. 3 and show cause notice dated 4. 9. 2004 issued to the petitioner sugar mills by the Respondent No. 3 i. e. (Annexure Nos. 18, 21 and 26 to this writ petition respectively ). (c) issue a writ, order or direction in the nature of Mandamus staying the operation of the impugned show cause notice dated 4. 9. 2004 and the respondents may be restrained from taking any punitive/coercive action against all factories/units of the petitioner company and the respondents may further be restrained from initiating the action Under Section 11 and 12 of the u. P. Sheera Niyantran Adhiniyam, 1964. (d) issue a writ, order or direction in the nature of Mandamus directing the State Government not to allot the Molasses from the petitioner Sugar Mills for the purpose of manufacturing the country liquor to the other factories. (e) issue a writ, order or direction in the nature of which this Honble Court may deem fit and proper in the circumstances of the case. And (f) Award the costs to the writ petition. "

( 2 ) BRIEFLY stated, the facts giving rise to the present petition are as follows:-The petitioner, M/s Dhampur Sugar Mills Ltd. , is a public limited company incorporated under the provisions of the Companies Act, 1956 and has its registered office at Dhampur (Bijnor ). It manufactures sugar by vacuum pan process in its sugar factories situate at Dhampur in the district of Bijnor, Asmouli in the district of Moradabad, Mansurpur in the district of muzaffarnagar and Roza Gaon in the district of Barabanki. According to the petitioner, munsurpur unit is its subsidiary. It has been granted licence to manufacture ethyl alcohol for use in chemicals by the Central Government and it is claimed by the petitioner that it has also been given the licence to manufacture and sell power alcohol. The State Government had recently in september, 2004 granted permission to the petitioner to manufacture rectified spirit. It has its own distillery at Dhampur. According to the petitioner, during the process of manufacture of sugar, molasses comes out as a bye- product. The molasses produced by it is not sufficient to meet the requirement of its distillery and, therefore, it had to import molasses from Nepal and alcohol from other countries. The capacity of its distillery is 1. 4 lacs litre per day to 2 lacs litres per day. The petitioners requirement of molasses for its distillery is about 21 lacs quintal per annum. The State Government, vide letter dated 9. 6. 2004, after due consideration and in public interest decided to make amendment in its molasses policy relating to year 2003-04. Clause (3)of the policy, as contained in the letter dated 29. 6. 2004, addressed by the State Government to the Excise Commissioner, U. P. , Allahabad is relevant for the purpose of the present writ petition, which provides that from the balance stock of molasses of each sugar mills 20% shall be reserved for the distillery manufacturing country liquor. The sugar mills having their own distillery shall not be covered by this reservation to the extent that after consumption of molasses in their captive distillery 20% reservation shall be applicable on the balance stock. The aforesaid clause was amended vide letter dated 15. 6. 2004 and it was provided that the stock of



























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