Yatindra Singh, J. - (1.) THE question-whether the State Government has power to fix State advised price of sugarcane (S.A.P.)-has been answered in affirmative by the Supreme Court in U. P. Cooperative Cane Union Federation v. West U. P. Sugar Mill Association, 2004 (5) SCC 430, (the S.A.P. case). THE questions involved in these writ petitions are offshoot to the decision in the S.A.P. case and relate to the validity of the G.O. dated 30th June, 2004 (the impugned G.O.) providing S.A.P. for the crushing season 2003-04. THE facts :
(2.) AT present, following Acts/ Rules/ Order are relevant for purchase, sale and fixing price of sugarcane. I. The U. P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (the 1953 Act). II. The U. P. Sugarcane (Regulation of Supply and Purchase) Rules, 1954 (the 1954 Rules). III. The U. P. Sugarcane Supply and Purchase Order, 1954 (the 1954 Order). IV. The Essential Commodities Act, 1955 (the E.C. Act). V. The Sugarcane Control Order, 1966 (Central) (the 1966 Order). The legislative history prior to aforesaid enactments has been narrated in Tika Ram v. State of U. P., AIR 1956 SC 676 (the Tika Ram case). It explains that initially Central Legislature enacted Sugar Cane Act, 1934. It was repealed by the U. P. Sugar Factories Control Act, 1938. These Acts had conferred power on the State Government to issue minimum price to be paid to the cane growers. However Indian Legislature enacted Essential Supplies (Temporary Powers) Act, 1946 ; it remained in force till E.C. Act was enacted. Section 3 (2) (i) of this Act gave power to the Central Government to fix price of sugarcane. Subsequently Sugar and Gur Control Order, 1950, was framed and it also gave power to Central Government to fix price of sugarcane. The Central Government had been fixing minimum price for sugarcane (S.M.P.) under these provisions till the E.C. Act was enacted when the Central Government started fixing S.M.P. under it. After enactment of the EC Act, Sugar and sugarcane were declared essential commodities under this Act. Initially the Central Government had framed Sugarcane Control Order, 1955 (the 1955 order). It was replaced by the 1966 order. At present Clauses 3 and 5A of the 1966 order provide for determination of S.M.P. and additional price for sugarcane (AdP) respectively.
(3.) THE State Government started fixing S.A.P. under the 1953 Act since 1973. It is to be paid by the sugar mills to the sugarcane growers and is always higher than S.M.P. THE sugar mills started paying S.A.P. to the sugarcane growers. The State Government issued S.A.P. for the crushing season, 1996-97 on 15.11.1996. Sugar mills associations as well as sugar mills filed Writ Petition No. 36889 of 1996 praying for quashing this G.O. on the ground that: The State Government has no power to issue S.A.P. They are liable to pay only S.M.P. and AdP determined under the 1966 order.;