RAMGARH CHINI MILLS SITAPUR KAMLAPUR SUGAR FACTORIES LTD Vs. STATE OF U P
LAWS(ALL)-2005-2-86
HIGH COURT OF ALLAHABAD
Decided on February 25,2005

RAMGARH CHINI MILLS SITAPUR : KAMLAPUR SUGAR FACTORIES LTD Appellant
VERSUS
STATE OF UTTAR PRADESH Respondents

JUDGEMENT

- (1.) O. P. Srivastava, J. Since identical questions have arisen for consideration in both the cases, they are being disposed of finally by this common judgment.
(2.) RAMGARH Chini Mills (in short RAMGARH Mills) was established in the year 1993 while Kamlapur Sugar Factories Ltd. (in short Kamlapur Factory) came into being in 1999. Both of them are engaged in manufacture of sugar from sugarcane. After establishment of Kamlapur Factory, certain areas/centers reserved/assigned for supply of sugarcane to RAMGARH Mills were reserved/assigned for Kamlapur Factory. Since the beginning of Kamlapur Factory, there have been series of litigations between the two factories in regard to sugarcane areas/centers. This time also there is dispute in regard to the reservation/assignment of certain centers between the two factories. To regulate the supply of sugarcane to the sugar factories, the U. P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (in short Act) is in force. There are rules also known as U. P. Sugarcane (Regulation of Supply and Purchase) Rules, 1954 framed under the Act. As per scheme of the Act, the crushing season is normally to be taken as from 1st October of the year till 15th July next year. There is provision for reserving and assigning of the cane growing area for supply of sugarcane to the factories. The purpose of the Act appears to ensure the proper supply of the sugarcane to the factories in the best interest of the factories, sugarcane growers and other connected persons/agencies. The Act recognizes such Co-operative Society of area also, one of whose object is to sell cane grown by its members. They are known as Cane-growers' Co-operative Society. The Cane Commissioner, appointed under Section 9 of the Act, has to declare under Section 15 (1) of the Act reserved and assigned area/center for every sugar factory for the crushing season after consulting the factory and the Cane-grower' Co- operative Society of the area. The exhaustive guidelines have been laid down under Rule 22 of the Rules to be followed for reserving/assigning the areas. The Act also provides for appointment of Inspectors to perform the duties and exercise the power conferred or imposed on him under the Act/rules. The Rules framed under the Act provide as to who may act as Inspectors to exercise the power or duties described under Rule 20. There is provision of appeal also under sub-section (4) of Section 15 against the order of the Cane Commissioner in regard to the reservation and assignment of the centers. The provision of survey of the area is also provided under Section 14 of the Act.
(3.) THE Cane Commissioner by order dated 11-11-2004 reserved/assigned various centers mentioned in the order for the two factories. Both the factories felt aggrieved against the order of Cane Commissioner in respect of certain centers. THErefore, both of them preferred appeals under Section 15 (4) of the Act before the State Government. THE grievance of the Ramgarh Mills is in respect of centers Sidhauli, Katili- I, Katili-II, Katili-III, Udrauli-I, Udrauli-II, Richhahi-I, Richhahi-II and Kusaila reserved/assigned for Kamlapur Factory. Similarly Kamlapur Factory ventilated its grievance in respect of Gauria-I, Gauria-II, Behut Berum, Harpalpur, Wazir Nagar-I and Wazir Nagar- II reserved/assigned by the Cane Commissioner for Ramgarh Mills. After the notices to the other party as also the concerned Cane Growers' Co-operative Society and upon consideration of the response, the learned appellate authority disposed of the appeals by orders dated 30-12-2004 passed separately in the two appeals. The appeal of Ramgarh Mills was allowed in respect of all the areas except Sidhauli. Similarly, the appeal of Kamlapur Factory was also allowed in respect of all the areas except Behut Berum. Centers, in regard to which the appeals were allowed, were reserved/assigned to the other factory and the orders of the Cane Commissioner were modified to that extent.;


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