Judgement

BHAGWATI, J. - These petitions under Art. 32 of the Constitution impugn the validity of the U. P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (U. P. Act 24 of 1953 of 1953) hereinafter called the impugned Act and the notifications dated 27-9-1954 and 9-11-1955 issued by the U.P. Government thereunder.

2. The petitioners are sugarcane growers in the several villages of the Districts of Meerut, Kheri, Gorakhpur and Deoria in the State of U. P. numbering 4724 in the aggregate. Associated with them are the President, the Vice-Presidents and the Secretary of an association which is styled "the Ganna Utpadak Sangh" which is a rival body to the Co-operative Development Unions established and recognised under the impugned Act.

The notification dated 27-9-1954, issued in exercise of the powers conferred by sub-s. (1) (a) read with sub-s. (2) (b) of S. 16 of the impugned Act ordered that where not less than 3/4 of the cane growers of the area of operation of a Cane Growers Co-operative Society members of the Society, the occupier, of the factory for which the area is assigned shall not purchase or enter into agreement to purchase cane grown by a cane grower except through such Cane Growers Co-operative Society.

The notification dated 9-11-1955 was issued in exercise of the powers conferred by S. 15 of the impugned Act and reserved or assigned to the sugar factories mentioned in col. 2 of the Schedule annexed thereto the cane purchasing centers (with the authorities attached to them) specified against them in col. 3 for the purpose of supply of sugarcane during the crushing season 1955-56 subject to the conditions and explanations given therein. The former relates to the agency of supply of sugarcane to the factories and the latter relates to the creation of zones for particular factories.

All the petitions except Nos. 10 of 1956 and 37 of 1956 impugn the former notification but the grounds of attack against both are common. The impugned Act is challenged as ultra vires the power of the State Legislature, the subject-matter of the Act being within the exclusive field of Parliament and also as being repugnant to Act 65 of 1951 and Act 10 of 1955 passed by Parliament, and S. 15 and S. 16 (1) (a) and (2) (b) and the notifications issued fundamental rights guaranteed under Art. 14, Art. 19 (1) (c) (f) and (g) and Art. 31 besides being in violation of Art. 301 of the Constitution. All these petitions involve common questions of law and may be disposed of by one judgment.

3. A short history of the legislation enacted by the Centre as well as the Province of U. P. in regard to sugar and sugarcane will be helpful for the determination of the questions arising in these petitions. On 8-4-1932, the Central Legislature passed the Sugar Industry (Protection) Act, 1932 (Act 13 of 1932) to provide for the fostering and development of Sugar Industry in India in pursuance of the policy of discriminating protection of industries with due regard to the well being of the community.

As a result of the protection thus granted to the sugar industry, the number of sugar factories which was 31 prior thereto registered a rapid rise any by 1938 they were 139 in number. There was also a large expansion in the cultivation of sugarcane and millions of cultivators in the Province of U. P. took to growing sugarcane.

In order to protect their interest and for the purchase of assuring to them a fair price for their produce, the Central Legislature enacted on 1-5-1934 the Sugarcane Act, 1934 (Act 15 of 1934) to regulate the price at which sugarcane intended to be used in the manufacture of sugar might be purchased by or for factories. Sugarcane was grown in various Provinces and the declaration of controlled areas and the fixing of minimum price for the purchase of sugarcane intended for use in any factory in any controlled area was of necessity left to the Provincial Governments and the Provincial Governments were also empowered to make rules for the purpos