J.K.Tandon, J. - (1.) The three petitioners are separately employed in the business, as cottage-industry, of manufacture of Khandsari sugar in the district of Bijnor. They have, as part of that industry, installed power-crushers also for extracting juice from sugar-cane. The crushing capacity exceeds in each case the figure of 250 maunds per day. They are in this business for the last many years. It does not appear that they themselves are growers also of sugar-cane but they purchase it from sugar-cane growers of the surrounding area.
(2.) The Central Government has by virtue of its power under Section 3 of the Essential Commodities Act 1955, Act X of 1955, promulgated the Sugar (Control) Order, 1955. In this order, which hereinafter will be referred to as 'the Central Order', sugar is defined thus: "Sugar means:- (i) any form of sugar containing more than 90 per cent of sucrose including Khandsari sugar, sugarcandy and Bura sugar; (ii) any sugar of crystalline structure; and (iii) sugar in process in vaccum pan sugar factory or raw sugar produced therein." By Clause 3 of the Order the Central Government assumed powers to regulate production and movement of sugar. The relevant portion of the clause reads that: "The Central Government may by order published in the Official Gazette (a) direct that no sugar shall be manufactured from sugar-cane except under and in accordance with the conditions specified in a licence issued in this behalf; (b) ..... Another Clause 10 of the same Order authorises the Central Government by notification in the Official Gazette to direct that all or any powers conferred upon it by the Order shall subject to such restrictions, exceptions, and conditions, if any, as may be specified in the direction, be exercisable also by a State Government or any officer or authority of a State Government. By reason of the power vested in the Central Government by Clause 10 above that Government published the following notification in the Official Gazette on 22-1-1959: "G.S.R.132--ESS--Com/Sugar-- In exercise of the powers conferred by Clause 10 of the Sugar (Control) Order, 1955, the Central Government hereby directs that the powers conferred upon it by sub-clause (a) of Clause 3 of the said Order shall be exercisable also by the Government of Uttar Pradesh and the Sugar Commissioner, Uttar Pradesh, in respect of manufacture of sugar fay the open pan process (including Bels) within the State of Uttar Pradesh."
(3.) After a very short interval, the State Government, in view of the above delegation effected in its favour promulgated the U. P. Khandsari Sugar Manufacturers Licensing Order, 1959, hereinafter in this judgment referred to as 'the State Order'. This was made applicable to the districts of Uttar Pradesh described in Schedule I thereof. Bijnor, where the petitioners are engaged in this business, is in-eluded in the list given in Schedule I. Sub-ci. (a) of Clause 2 of this Order defines sugar in these terms: " 'Sugar' means every form of sugar containing more than 90 per cent sucrose content including Khandsari sugar made from rab or gur prepared by the open pan process." The expression 'Khandsari sugar' also is separately defined in it as meaning sugar made from rab or gur prepared by the open pan process. The Order also defines the expression 'power crusher' as meaning a cane-crusher operated by power and the expression 'Bel' as meaning rab manufacturing unit capable of handling juice from 250 mds. of cane per day or to which seven or more bullock-driven crushers supply juice. By Clause 3 of the Order a prohibition is enacted to the effect that no person shall, without obtaining a proper licence: (a) instal a power-crusher or a bel, (b) use a power-crusher or a bel in the process of manufacturing rab or khandsari. By the proviso, part of this clause, an exception is made in the case of units employed in the manufacture of Khandsari sugar prior to the enforcement of the Order who were permitted to obtain the licence within a fortnight of its issue. Clause 4 imposed a licence fee at the rates given in Sch, II. These rates are in the case of: Power-crushers with a crushing capacity of 250 mds. per day .... .Rs. 300/- Power-crushers with a crushing capacity of 250 to 500 mds. per day ....... Rs. 450/- Power-crushers with a crushing capacity of 501 mds. and above per day . ....Rs. 600/;