KUMBHI CHINI MILL Vs. STATE OF U P
LAWS(ALL)-2011-1-89
HIGH COURT OF ALLAHABAD (AT: LUCKNOW)
Decided on January 03,2011

KUMBHI CHINI MILL Appellant
VERSUS
STATE OF UTTAR PRADESH Respondents

JUDGEMENT

Narayan Shukla, J. - (1.) HEARD Mr.R.N.Trivedi, learned Senior Advocate assisted by Mr.Akhilesh Kalra, learned counsel for the petitioner, Mr.Raghvendra Kumar Singh, learned Senior Advocate assisted by Mr. Anurag Kumar Singh, learned counsel for the opposite parties, Dr. R.K. Srivastava and Mr. A.K. Pandey, learned counsels for the opposite party No. 4 as well as Mr. K.S. Pawar, learned counsel for the opposite party No. 5.
(2.) THE dispute between the sugar mills demanding more and more sugarcane for allotment in their favour is perennial in nature. THE allotment of sugarcane and reservation as well as assignment of sugarcane area is regulated under the U.P. Sugar Cane (Regulation of Supply and Purchase) Act, 1953 (hereinafter referred to as the Act) read with U.P. Sugarcane (Regulation of Supply and Purchase) Rules, 1954 (hereinafter referred to as the Rules) as also the Sugarcane (Control) Order, 1966. For the purpose of Reservation and assignment of sugarcane area, the Cane Commissioner is empowered under Section 12 of the Act to publish estimated quantity of requirement of the sugarcane for the particular sugar Factory at the time of initiation of allotment of sugarcane, which can be modified during the crushing season also as per requirement of the sugar factories under Section 12 of the Act as well as Order 6 (a) and (b) of the Sugarcane (Control) Order, 1966, thus the basis of reservation and assignment of the sugarcane area, is the estimated requirement of the sugar factories, as has been held by this Court in the case of Govind Nagar Sugar Limited v. State of U.P. and others, 2001 (2) JCLR 354 (AII)(LB). The aforesaid exercise of the Cane Commissioner done under Section 12 of the Act is subject to revision of the State Government as is provided under Rule 23-A of the Rules, 1954. In the present case the dispute relates to two sugar purchase centers; one is Marsanda-I, reserved for the opposite party No. 4; second is Marsanda-ll, assigned for the petitioner. The Cane Commissioner derives power of reservation as well as assignment under Section 15 of the Act, 1953, which is extracted below: "15. Declaration of reserved area and assigned area- (1) Without prejudice to any order made under clause (d) of sub-section (2) of Section 16 the Cane Commissioner may, after consulting the Factory and Cane-growers Cooperative Society in the manner to be prescribed: (a) reserve any area (hereinafter called the reserved area); and (b) assign any area (hereinafter called an assigned area), for the purposes of the supply of cane to a factory in accordance with the provisions of Section 16 during [one or more crushing seasons as may be specified] and may likewise at any time cancel such order or alter the boundaries of an area so reserved or assigned. (2) Where any area has been declared as reserved area for a factory, the occupier of such factory shall, if so directed by the Cane Commissioner, purchase all the cane grown in that area, which is offered for sale to the factory. (3) Where any area has been declared as assigned area for a factory, the occupier of such factory shall purchase such quantity of cane grown in that area and offered for sale to the factory as may be determined by the Cane Commissioner. (4) An appeal shall lie to the State Government against the order of the Cane Commissioner passed under sub-section (1)." The aforesaid power of the Cane Commissioner is regulated by Rule 22 of the Rules, 1954, which is also extracted here-in-below: "22. In reserving an area for or assigning an area to a factory or determining the quantity of cane to be purchased from an area by a factory, under Section 15, the Cane Commissioner may take into consideration- (a) the distance of the area from the factory. (b) facilities for transport of cane from the area, (c) the quantity of cane supplied from the area to the factory in previous year, (d) previous reservation and assignment orders, (e) the quantity of cane to be crushed in factory, (f) the arrangements made by the factory in previous years for payment of cess, cane price and commission, (g) the views of the Cane-growers' Co-operative Society of the area. (h) efforts made by the factory in developing the reserved or assigned area."
(3.) CLAUSE 6 (a) and (b) of the Sugarcane (Control) Order, 1966, which is relevant for consideration in the matter of reservation is also reproduced here-in- below : "6. Power to regular distribution and movement of sugarcane-(1) The Central Government may, by order notified in the official Gazette- (a) reserve any area where sugarcane is grown (hereinafter in this clause referred to as 'reserved area) for a factory having regard to the crushing capacity of the factory, the availability of sugarcane in the reserved area and the need for production of sugar, with a view to enabling the factory to purchase the quantity of sugarcane required by it; (b) determine the quantity of sugarcane which a factory will require for crushing during any year." Each and every guided factor as is envisaged under Rule 22 of the Rules is equally important in the matter of reservation and assignment of area as well as determination of quantity of cane to be purchased from the area by the sugar factory. However, the Cane Commissioner has to strike the balance between the sugar mills, for which he can give weightage to one factor ever other keeping in view the prevailing circumstances in the interest of the sugar factory as well as sugarcane growers, but it does not mean that he is permitted to overlook the other factor, rather it can be said that he has to look into the matter of one Sugar Mill in comparison to other Sugar Mill considering all the guided factors and apply the same in the prevailing circumstances.;


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