M.Katju, A.K.Yog, JJ. - (1.) Heard Sri Shanti Bhushan and Sri Tarun Agarwal, learned counsel for the petitioners and Sri Bharat Ji Agarwal and Piyush Agarwal, learned counsel for the respondent Nos. 3 and 4 and the learned standing counsel for the respondent Nos. 1 and 2.
(2.) This writ petition has been filed against the impugned order of the Controller of Molasses dated 25.8.1999 (Annexure-7 to the writ petition). By that order, the petitioner's application under the proviso to Section 8 (1a) of the U. P. Sheera Niyantran Adhiniyam has been rejected.
(3.) The petitioners are sugar factories which also have their own distilleries, Under the U. P. Sheera Niyantran Adhiniyam. 1964 and the orders passed thereunder, it has been provided that 40% of the molasses produced by the sugar factories are reserved for Chemical Industries. 40% could be sold in the open market, and 20% will be reserved for country liquor producers. Section 8 reads as follows : "8. Sale and Supply of molasses.--(1) The Controller may with the prior approval of the State Government by order require the occupier of any sugar factory to sell or supply in the prescribed manner such quantity of molasses to such person, as may be specified in the order, and the occupier shall, notwithstanding any contract, comply with the order. (1-a) Notwithstanding anything contained in sub-section (1) the occupier of a sugar factory shall sell or supply forty per cent of the molasses produced in each quarter of a molasses year in the sugar factory to such chemical industries which are actual users of molasses and are granted licensee under the United Provinces Excise Act, 1910 : Provided that such quantum of molasses as is not required by the said chemical industries may be sold or supplied by the occupier of the sugar factory to any other unit which is actual users of molasses with the prior approval of the Controller. (2) The order under subsection (1) : (a) shall require supply to be made only to a person who requires it for his distillery or for any purpose of industrial development (aa) may require the person referred to in clause (a) to utilize the molasses supplied to him under an order made under this section for the purpose specified in the application made by him under sub-section (1) of Section 7A and to observe all such restrictions and conditions, as may be prescribed ; (b) may be the entire quantity of molasses in stock or to be produced during the year or for any portion : but the pro-portion of molasses to be supplied from each sugar factory to its estimated total pro-duce of molasses, during the year shall be the same through-cut the State save where, in the opinion of the Controller, a variation is necessitated by any of the following factors : (i) the requirement of distilleries within the area in which molasses may be transported from the sugar factory at a reasonable cost: (ii) the requirement for other purposes of industrial development within such area ; and (iii) the availability of transport facilities in the area. (3) The Controller may make such modifications in the order under sub-section (1) as may be necessary to correct any error or omission or to meet a subsequent change in any of the factors mentioned in clause (b) of subsection (2). (4) The occupier of a sugar factory shall be liable to pay to the State Government, in manner prescribed, administrative charges at such rate, not exceeding fifteen rupees per quintal as the State Government may from time to time notify, on the molasses sold or supplied by him. (5) The occupier shall be entitled to recover from the person to whom the molasses is sold or supplied an amount equivalent to the amount of such administrative charges, in addition to the price of molasses.";