C.S.P. Singh, J. - (1.) THE Petitioner owns a diesel power crusher and it is averred that he has been using this power crusher for manufacture of gur from sugarcane cultivated from his fields. The area in which the Petitioner has his holding lies in an area reserved for the Upper India Chini Mills Khatauli. It has, however, been stated that the supplies to the factory from the reserved area are not affected by the Petitioner's working his power crusher. On the 5th October 1971, a letter was received by the Petitioner from the Assistant Sugarcane Commissioner, Saharanpur asking him to apply for a licence for crushing his sugar -cane in coming season. It also stated that the Petitioner had already a licence for crushing his sugar -cane for the year 1970 -71. Subsequently by letter dated 23 -12 -1971 sent by the Up Ganna and the Up Chini Ayogh, who was also the Licensing Authority, the Petitioner was informed that on account of the fact that the village of the Petitioner was situated within a radius of ten miles of the reserved area of the Upper India Chini Mills, Khatauli, it would not be in public interest to grant a licence inasmuch as it would have an adverse effect on the fulfillment of the supply target of cane fixed for the Mill. The order refusing licence was purported to have been passed Under Section 3(4) of the U.P. Khandsari Sugar Manufacturing Licensing Order of 1967. The Petitioner, however, seems to have continued crushing of sugar -cane and on the 9th February, 1972, the Khandsari Inspector visited the place where the crusher of the Petitioner was fixed and sealed the power crusher and the engine belonging to the Petitioner. In the report submitted by the Khandsari Inspector in respect of the seizure, it was stated that he has been informed that the crusher had been working since November 1971 and that at the time the Inspector inspected the crusher, he found one cart load of sugarcane, which was said to have been brought for the purposes of being crushed so as to manufacture gur. It was further mentioned that the Petitioner did not have a licence as required by Section 4(1) of the U.P. Sugarcane Purchase Act, 1961 and as such the crusher had been sealed in exercise of powers Under Section 7(1) of the Act.
(2.) LEARNED Counsel for the Petitioner has contended that inasmuch as the Petitioner already had a licence under 1967 Order, renewal of the licence could not be refused without affording an opportunity of hearing to the Petitioner as provided for under second proviso to Section 3(4) of the Act. It has also been contended that no licence whatsoever was necessary for the manufacture of gur and as such the Respondents had no authority under the law to seal the power crusher of the Petitioner or to prevent him in any manner from working the same. So for as the first contention is concerned, it is doubtful as to whether the Petitioner ever held a licence under 1967 Order. In para. 12 of the counter -affidavit, it has been stated that the letter Annexure "I" to the petition was sent by mistake and in fact the Petitioner did not have any licence at all. The Petitioner has not filed the licence which he asserts had been granted to him earlier. Neither is there any allegation that at the time when he sought for renewal, he sent the licence to the licensing authority. It is thus doubtful as to whether the Petitioner held a licence previously. That being so it cannot be said that the Petitioner was entitled to any hearing before rejection of his application. This contention must, therefore, fail.
(3.) THE second contention, however, succeeds. Insistence on the Petitioner having a licence for the manufacture of gur is based on the provisions of Section 4 of the UP Sugarcane (Purchase Tax Act), 1961. That section so far as is relevant may be quoted: No unit other than a unit, which has obtained a licence under the U.P. Khandsari Sugar Manufacturing Licensing Order, 1960, shall, without obtaining a Licence from the Sugar Commissioner, carry on or undertake any process connected with the manufacture or production of gur or rab:;