M.R.SHAH,J. - (1.) Having noted that there is a clear conflict between the two decisions of this Court, one in the case of Ch. Tika Ramji & Others, Etc. vs. The State of Uttar Pradesh & Others [AIR 1956 SC 676 = 1956 SCR 393 = 1956 SCJ 625] and another subsequent decision in the case of U.P. Cooperative Cane Unions Federations vs. West U.P. Sugar Mills Association and Others [(2004)5 SCC 430], a three Judge Bench of this Court has referred the matter to a larger Bench proposing the following questions of law to be considered by the larger Bench, preferably of a Bench consisting of seven Judges of this Court: (1) Whether by virtue of Article 246 read with Schedule VII List III Entry 33 of the Constitution the field is occupied by the Central legislation and hence the Central Government has the exclusive power to fix the price of sugarcane? (2) Whether Section 16 or any other provision of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 confers any power upon the State Government to fix the price at which sugarcane can be bought or sold? (3) If the answer to this question is in the affirmative, then whether Section 16 or the said provision of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 is repugnant to Section 3(2)(c) of the Essential Commodities Act, 1955 and Clause 3 of the Sugarcane (Control) Order, 1966 [hereinafter referred to as "1966 Order"]? And if so, the provisions of the Central enactments will prevail over the provisions of the State enactment and the State enactment to that extent would be void under Article 254 of the Constitution of India. (4) Whether the SAP fixed by the State Government in exercise of powers under Section 16 of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 is arbitrary, without any application of mind or rational basis and is therefore, invalid and illegal? (5) Does the State Advised Price (for short "SAP") constitute a statutory fixation of price? If so, is it within the legislative competence of the State? (6) Whether the power to fix the price of sugarcane is without any guidelines and suffers from conferment of arbitrary and uncanalised power which is violative of Articles 14 and 19(1)(g) of the Constitution of India?
(2.) The core issue is whether the State of U.P. has the authority to fix the State Advised Price (SAP) [hereinafter referred to as "SAP"], which is required to be paid over and above the minimum price fixed by the Central Government?
(3.) At the outset it is required to be noted that in Tika Ramji case (supra), a Bench of five Judges of this Court held as under: (i) That, section 16 of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 [hereinafter referred to as "1953 U.P. Act"] does not include the power to fix a price; (ii) That, the price of cane fixed by the U.P. Government only mean the price fixed by the appropriate Government which would be the Central Government, under Clause 3 of the Sugarcane (Control) Order, 1955 [hereinafter referred to as "1955 Order"]; (iii) That, even the provisions in behalf of the agreement contained in Clauses 3 and 4 of the U.P. Sugarcane (Regulation of Supply and Purchase) Order, 1954 [hereinafter referred to as "1954 U.P. Order"] provided that the price was to be the minimum price to be notified by the Government subject to such deduction, if any, as may be notified by the Government from time to time, meaning thereby the Central Government, the State Government not having made any provision in that behalf at any time whatsoever; (iv) That, there is no power to fix a price for sugarcane under the U.P. Sugarcane Act or Rules and the Orders made thereunder; It is to be noted that in Tika Ramji case (supra), this Court did not comment on whether a power which the State Government exercised under Section 16 of the 1953 U.P. Act would be repugnant to the Central legislation, since this Court found no such power exercised by the State Government.;