- (1.) These two appeals arise from the judgment of the division bench of the Patna High court, made on 13/11/1984 in Order No. 11 and review order arising thereunder in CWJC No. 2370 of 1984.
(2.) The admitted position is that the appellant factory had a "reserved area" under Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 (37 of 1982 (for short "the Supply Act") and had the sugarcane supplied by the growers. The central government, exercising the power under clause 3 of the Sugarcane (Control) Order, 1966 (for short "the Order") determined the minimum price for sugarcane at Rs. 13.92 per quintal. The State government announced on 31/3/1983 the price of sugarcane at Rs. 20. 50. 00 per quintal. The cane growers supplied the sugarcane to the appellant, but the appellant admittedly had paid the minimum price determined under the Order but the difference between the price fixed under the Order and the price announced by the State government was not paid. As a consequence, the Collector gave a certificate of dues for realisation under the Revenue Recovery Act. Calling those proceedings in question, the writ petition came to be filed. The contention raised in the High court as well as in this court is that the central government having determined' the price of the sugarcane at Rs. 13.92 per quintal, the State government was devoid of power to fix the price at Rs. 20. 50. 00 per quintal and, therefore, thecollector has no power to issue the certificate of arrears; since what is due is the price fixed under the Order which has already been paid and, therefore there is nothing due in accordance with law.
(3.) Shri Y. V. Gin, learned counsel for the appellant, has contended that Section 42 of the Supply Act prescribes only the power for fixation of the price in respect of the units, namely, Khandsari unit or any unit manufacturing sugar under open pan process. Under the proviso, the government have no power to fix higher price of sugarcane supplied to a sugar factory than that fixed for the Khandsari units. The fixation of the price at Rs. 20. 50. 00 per quintal is without any authority of law or jurisdiction. For issuance of a certificate what is required to be done is that the amount should be in accordance with law but not in accordance with any order passed by the State government. The dues in accordance with the price fixed under clause 3 of the Order having been paid, the appellant is not due of any sugarcane price payable to the cane growers and, therefore, the view taken by the High court is not correct in law. Even if there are dues, the same could be recovered in a suit by the growers. We Find no force in the contentions.;