Arun Tandon - (1.) THE leading issue to be decided in the present writ petition is as to whether the Cane Commissioner of Uttar Pradesh in exercise of powers under Section 15 of the U. P. Sugar Cane (Regulations of Supply and Purchase) Act, 1953 (hereinafter referred to as 'the Act') can reserve a sugar cane area within the territorial limits of Uttar Pradesh in favour of a sugar factory situate in the State of Uttaranchal.
(2.) THE facts relevant for the decision of the present writ petition are as follows. Petitioner, M/s. Triveni Engineering Industries Limited, Unit Deoband, district Saharanpur (Uttar Pradesh) is a sugar factory situate within the territorial limits of the State of Uttar Pradesh (hereinafter referred to as the petitioner-factory). THE said sugar factory is engaged in manufacturing of sugar through vacuum process. Respondent No. 3, Laxmi Sugar Mills, Iqbalpur, Roorkee, district Haridwar (Uttaranchal State) (hereinafter referred to as the respondent sugar factory) is also a sugar factory situate in the State of Uttaranchal, engaged in manufacturing sugar through vacuum process. THE dispute in the present writ petition revolves around 10 sugar cane purchase centers situate in Deoband, district Saharanpur in the State of Uttar Pradesh, namely (i) Majhol-I (ii) Chounda Heri-I (iii) Mayapur Kapoori (iv) Kapoori (v) Bhatol (vi) Jatol (vii) Beerpur (viii) Nannera and (ix) Faloda (hereinafter referred to as Cane Purchase Centers). Before creation of the State of Uttaranchal under the U. P. State Reorganisation Act, 2000 the aforesaid sugar cane purchase centers were normally reserved areas of respondent-sugar factory situate in the district of Haridwar which was part and parcel of the State of Uttar Pradesh. After the State of Uttaranchal was created as a separate State under the U. P. State Reorganization Act, 2000 the said respondent sugar factory situate in Haridwar, now within the territorial limits of State of Uttaranchal. The Cane Commissioner of Uttar Pradesh for the crushing season 2004-05 by means of order dated 8.10.2004 assigned the disputed sugar cane purchase centers in favour of the petitioner sugar factory. The names of the centers in dispute find mention between serial Nos. 44 to 56 of the reservation order, copy whereof has been enclosed as Annexure-2 to the writ petition. The respondent sugar factory feeling aggrieved by the said order of the Cane Commissioner of Uttar Pradesh dated 8.10.2004 preferred an appeal under Section 15 (4) of the Act before the State Government of Uttar Pradesh. The appeal was numbered as Appeal No. 6 (25)-2004. The Special Secretary, Government of Uttar Pradesh by means of the order impugned in the present writ petition dated 5.1.2005 has set aside the reservation/ assignment order dated 8.10.2004 in so far as it pertains to the disputed sugar cane purchase centers in favour of the petitioner sugar factory and the matter has been remanded for deciding the assignment/reservation of the sugar cane purchase centers afresh after consultation with the Cane Commissioner of the State of Uttaranchal with a direction to pass orders only with the consent of the Cane Commissioner of the State of Uttaranchal. It is this order of the State Government of Uttar Pradesh dated 5.1.2005 which has been challenged by means of the present writ petition.
(3.) I have heard Sri Sudhir Chandra, senior advocate, assisted by Bharati Sapru advocate on behalf of the petitioner, Additional Advocate General Sri Sudhir Agarwal on behalf of the State of Uttar Pradesh and C?ne Commissioner of Uttar Pradesh, Sri S. P. Gupta, senior advocate, assisted by Sri Yashwant Verma advocate on behalf of respondent No. 3 and Sri Amit Kumar Mehra advocate on behalf of the cane cooperative societies. On behalf of the petitioner it is contended that the U. P. State Sugar Cane (Regulations of Supply and Purchase) Act, 1953 has been promulgated by the State of Uttar Pradesh with reference to its legislative powers as referable to schedule 7, list 3, item 33 of the Constitution of India. The validity of the said Act has already been upheld in the case of Tika Ram C. H. Ramji v. Union of India and others, AIR 1956 SC 676. From Section 1 (2) of the Act it is apparently clear that it extends to the whole of Uttar Pradesh only. Even otherwise any Act passed by the State Legislature operates within the territorial limits of the State only. Prior to the issuance of the U. P. Reorganization Act, 2000 the territories of the State of Uttaranchal were part and parcel of the State of Uttar Pradesh. However, with the enforcement of the Reorganization Act and with the formation of the State of Uttaranchal the territories carved out ceased to be part and parcel of the State of Uttar Pradesh (reference Section 2 (1), 3 and 4 of the U. P. Reorganization Act, 2000. Under Section 86 of the Reorganization Act there was a transitory provision for the extension of the laws of the State of Uttar Pradesh to the territorial limits of the State of Uttaranchal so long as the State of Uttaranchal did not exercise powers under Section 87 of the Reorganization Act. In exercise of powers under Section 87 of the Reorganization Act the State of Uttaranchal adopted vide order dated 8.10.2002 the provisions of the U. P. Sugar Cane (Regulations of Supply and Purchase) Act, 1953 substituting the words 'Uttar Pradesh' by the word 'Uttaranchal' in the said Act.;