- (1.) These petitions under Article 32 of the Constitution have been brought by or on behalf of the various factories, Co-operative Societies and Mills which carry on the business of manufacturing and selling sugar (hereinafter called compendiously the "sugar producers") challenging the validity and legality of the Levy Sugar Supply Control Order 1972 made under Section 3 of the Essential Commodities Act, 1955, hereinafter called the 'Act' fixing the price of levy sugar in the different zones in the country and praying for various reliefs. Writ Petitions Nos. 279 to 283, 293, 300, 303 and 306 of 1972 are by the sugar producers in Andhra Pradesh zone; Writ Petitions Nos. 297 and 304 of 1972 by the Sugar producers in North Bihar zone and Writ Petitions Nos. 296 and 298 of 1972 by those in the Punjab zone.
(2.) The principal questions that arise for our determination are the following : (1) What is the true scope and ambit of Section 3 (3C) of the Act (2) (a) Whether the system of fixing price for each zone (the entire country having been divided into 15 zones), is justifiable and is based on correct principles (b) Whether the State-wise constitution of the zones is proper and justified (c) Does the zonal system lead to discrimination and as such is violative of Article 14 of the Constitution (3) Is price fixation based on proper principles and have the prices been determined by following the correct methods and in accordance with Section 3 (3C) of the Act (4) What is the correct position about depreciation and rehabilitation allowance and the extent to which these have been taken into consideration in price fixation (5) Have the escalations in various items by which price determination is made been properly allowed (6) Whether the items in respect of payment of additional bonus as provided by the payment of Bonus Amendment Ordinance 1972 and gratuity are taken into account
(3.) The history of control over sugar production, its distribution and the method followed in the fixation of the fair or levy price of sugar has been set out in the connected case (Civil Appeals Nos. 1357 to 1369 of 1972, D/- 6-11-1972) = (reported in AIR 1973 SC 537) ) judgment in which also has been delivered today and the same ground need not be traversed again.;