- (1.) The petitioner is a sugar mill in the State challenging the U.P. Sugar Undertakings (Acquisition) (Amendment) Act, 2009 as ultra-vires and other prayers prohibiting the respondents from proceedings against the property of the petitioner, which was not covered under the order dated 10.4.1972 and consequently adopted under the acquisition proceedings dated 28.10.1984 to the benefit of the respondent No. 6. The State Government has no jurisdiction to sell the Saharanpur unit of U.P. State Sugar Corporation as came to be vested in the corporation. Call for the records and quash the decision of the State inclusive of proceedings for sell and other consequential effects.
(2.) At the threshold the State has raised preliminary point by saying that the writ petition is not maintainable in view of the fact that U.P. Sugar Undertakings (Acquisition)(Amendment) Act, 2009, has already declared as intra-vires by a Division Bench of this Court Chini Mill Karamchari Sangh v. State of U.P. and others, 2010 3 ADJ 721.
(3.) We have gone through the operative part of the order of the Division Bench which is as follows: In the result both the writ petitions are partly allowed. Section 3-C and Section 3-D to the extent it provides "closure of the scheduled undertakings or sugar mills of the Corporation itself is struck down as lacking legislative competence. All consequential actions to the above extent shall automatically fall on the ground. The other provisions of the Amendment Act, 2009 and the actions taken therein are held to be intra-vires. From the plain reading of the order it appears that last part of the Section 3-D was declared as ultra-vires. However entire insertions by an Amendment being Sections 3-A, 3-B, 3-C, 3-D and 3-E in U.P. Act No. 23 of 1971 are quoted hereunder 3-A. Notwithstanding anything to the contrary contained in any other provision of this Act, the State Government may, if it considers necessary or expedient in public interest, divest, sell off, transfer or otherwise part with all or any of its shares in the Corporation at any time. 3-B. Notwithstanding anything to the contrary contained in any other provision of this Act, the Corporation or any of its subsidiaries may, in public interest, sell or transfer any of its assets and/or liabilities or part thereof which have vested in the Corporation in accordance with the provisions of this Act, or in any other manner. 3-C. Notwithstanding anything to the contrary contained in any other law for the time being in force it shall be lawful for the State Government, if it is satisfied that in the public interest it is necessary to do so, to change the land use or to issue directions for change of land use in relation to the land belonging to the scheduled undertakings of the Corporation or in relation to land belonging to any sugar mill acquired or established by the Corporation or its subsidiaries at any time. 3-D The Government Order No. 1215S.C./18-2-07-56/07 T.C. dated June 4, 2007 and all subsequent Government Orders, notifications or policy statements issued and actions taken in relation to disinvestment, privatization, sale, transfer in any form or closure of the scheduled undertakings or sugar mills of the Corporation and its subsidiaries or in relation to the Corporation itself shall stand validated. 3-E Power to remove difficulties.- If any difficulty arises in giving effect to the provisions of this Act, the State Government, may by notified order make provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removing such difficulty. Provided that no order under this Section shall be made after expiration of a period of two years from the commencement of the Uttar Pradesh Sugar Undertakings (Acquisition) (Amendment) Act, 2009.;