G.P.Mathur, J. - (1.) The association of Sugar Mills of West U. P. and nine sugar mills of the same zone have filed this writ petition assailing the order of Central Government dated April 6, 2000, by which the price of levy sugar for the year 1999-2000 has been fixed at Rs. 1.015.67 per quintal.
(2.) Sub-section (1) of Section 3 of the Essential Commodities Act (for short E.C. Act) provides that if the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity, or for securing their equitable distribution and availability at fair prices, it may by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. Under clause (f) of subsection (2) of Section 3, an order may be issued for requiring any person holding any stock or engaged in production, or in the business of buying or selling any essential commodity (a) to sell the whole or specified part of the commodity held in stock or produced or received by him or (b) in the case of any such commodity which is likely to be produced or received by him, to sell the whole or a specified part of such commodity when produced or received by him to the Central Government or a State Government or to an officer or agent of such Government or to a corporation owned or controlled by such Government or to such other person or class of persons and in such circumstances as may be specified in the order. Exercising power under clause (f) of sub-section (2) of Section 3 the Central Government issued Levy Sugar Supply (Control) Order. 1979, sub-clause (1) of clause 2 of the aforesaid Order reads as under : "2. Powers to Issue Directions to supply Levy Sugar.--(1) The Central Government may, from time to time by order issue directions to any producer or recognised dealer to supply, levy sugar of such type or grade or in such quantities, and from such place of manufacture or Storage : (a) to such persons or organisation, in such areas or markets ; or (b) to such State Governments, as may be specified in the Order and at a price not exceeding the price determined under sub-section (3C) of Section 3 of the Essential Commodities Act, 1955. Explanation.--"Levy Sugar" means the sugar requisitioned by the Central Government under clause (f) of subsection 12) of Section 3 of the Essential Commodities Act. 1955."
(3.) For the sugar year 1999-2000, the Central Government issued an order under which 30 per cent of the total production of each sugar factory was procured at controlled ex-factory levy sugar prices for distribution through public distribution system at a uniform retail issue price and the sugar mills were, allowed to sell the balance sugar production in the open market as free sale sugar. The Explanation to sub-clause (9) of clause 5A of Sugarcane (Contrail Order. 1966 lays down that "sugar year" means the year commencing on the 1st day of October and ending with 30th day of September in the year next following. Exercising powers under sub-section (3C) of Section 3 of B.C. Act, the Central Government issued an order known as Sugar (Price Determination for 1999-2000 Production) Amendment Order. 2000, which came into force with effect from April 6. 2000. Clause 5 of this Order provides that the price for sugar produced in 1999-2000 sugar season by all vacuum pan sugar factories specified in Scheduled III which is required to be supplied to any person, organisation or State Government under sub-clause (1) of clause 2 of the Levy Sugar Supply (Control) Order, 1979, shall be such as specified in Schedule I or II. Clause 2 of the Control Order provides that the price determination shall apply to the sugar delivered on or after the date of the commencement of the sugar season (1.10.1999), Schedule I gives the price of sugar for delivery into railway wagons and Schedule 11 gives price for delivery in buyers" carts, lorries or other means of transport at the factory gate/factory godown. Sub-clause (4) of clause 1 of this Order has a bearing on the controversy in hand and, therefore, it is being reproduced below : "(4) It is a provisional order. A supplementary notification shall be issued subsequently in accordance with the judgment dated 28.1.1997 of the Hon'ble Supreme Court in the case of Shri Malaprabha Co-operative Sugar Factory Ltd. v. Union of India and others. I.A. Nos. 56 of 1995.";