- (1.) We have heard Sri P.K. Bhalla, along with Sri Diptiman Singh, learned counsels for the petitioner and Sri Vishnu Pratap, learned Standing Counsel for the State.
(2.) The petitioner is a Company incorporated under the Companies Act, 1956 and has three sugar mills operating under the name and style of Mawana Sugar Works, Mawana in District Meerut, Nanglamal Sugar Complex, Nanglamal in District Meerut and Titawi Sugar Complex, Titawi in District Muzaffarnagar. The petitioner also has a distillery in Nanglamal Sugar Complex, Distillery Division Nanglamal, District Meerut which is engaged in the production of industrial alcohol. All the aforesaid three sugar mills of the petitioner are engaged in the business of manufacture of crystal sugar through vaccum pan process. Molasses is produced as a by product.
(3.) The storage, sale, supply and distribution of molasses is governed by the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 (hereinafter referred to as 'the Act'). Section 8 of the Act empowers the authorities to issue necessary directions relating to sale and supply of molasses. In exercise of the said power, various orders have been issued from time to time with regard to reservation and distribution of molasses produced by the sugar factories to various distilleries producing country liquor. In this regard, the State Government issued a policy in the year 2007 by which 20% of the production of molasses was reserved for manufacturers of country made liquor. The said policy was challenged by a sugar factory, namely, Dhampur Sugar Mills Ltd. which matter went up to the Supreme Court. The Supreme Court decided the matter, which is reported in 2007(8) SCC 338, Dhampur Sugar Mills Ltd. v. State of U.P. and Others.;