A.N.Ray, C. J. - (1.) These appeals are by certificate from the judgment of the High Court of Mysore dated 4 May, 1970. The several respondent Co-operative Societies filed writ petitions in the High Court for quashing orders dated 11 September, 1968 passed by the Government of India. The impeached orders granted exemption, partially or wholly, to the appellant under Clause 5(3) of the Sugar Cane Control Order, 1966 (hereinafter referred to as the 1966 Control Order) from the payment of additional cane price fixed by the Price Fixation Authority under clause 5 (4) of the 1966 Control Order. The High Court quashed the orders challenged by the respondents.
(2.) The use and supply of sugar cane is controlled under the provisions of the Essential Commodities Act, 1955. The Government of India promulgated the Sugar Cane Control Order on 27 August, 1955. The 1955 Control Order empowered the Government, inter alia, to fix the minimum price payable by the manufacturer of sugar to the grower of sugar cane. The Government was competent to fix different prices depending on the areas and qualities of sugar cane or on the basis of recovery of sugar from sugar cane. In 1962 the Sugar Cane Control (Additional Powers) Act, 1962 came in existence. In pursuance of powers conferred by the 1962 Act the Central Government amended the 1955 Control Order by introducing Clause 3A providing for payment of additional price for sugarcane purchased by producers of sugar during each of the four successive years beginning from 1 November, 1958.
(3.) The 1955 Control Order was repealed and replaced by the Sugarcane Control Order, 1966 to which reference has already been made. The 1966 Control Order saved all orders made and actions taken under the repealed order. Under Clause 6 of the 1966 Control Order the Government was competent to denote an area where sugarcane is grown as a reserved area for a factory. The sugarcane grown in that area is required to be sold to the factory allotted. The Central Government determines the quantity of sugarcane to be supplied by the growers in the reserved area and the quantity of sugarcane which the factory requires for crushing during any year. The growers are required to enter into agreements with the factory to supply sugarcane of the quantity fixed under the provisions of the 1966 Control Order. Restrictions are placed on the growers from using sugarcane grown by them for other purposes. The Government thus controls all aspects of the use of sugarcane grown in the reserved area. It can prohibit or restrict or otherwise regulate export of sugarcane from any area except under and in accordance with a permit issued in that behalf.;