- (1.) These writ petitions since raise common question of facts and law, therefore they are heard together with the consent of learned counsel appearing on behalf of the parties. These petitions are now decided by this judgement.
(2.) The petitioners in the present writ petitions are Public Limited Companies within the meaning of the Companies Act, 1956 manufacture of sugar by vacuum pan process. The petitioners are governed by the provisions of U.P. Sugarcane (Regulation of Supply & Purchase) Act, 1953 (hereinafter be referred to as "1953 Act") and are also governed by legislation of the Parliament known as Industries Development & Regulation Act, 1951 (hereinafter shall be referred to as "IDR Act") for manufacturing of sugar from the sugarcane. The Central Government issued Sugarcane Control Order, 1966 in exercise of power under Section 3 of the Essential Commodities Act (hereinafter referred to as "The Control Order"), which inter alia provides for fixation of the minimum price for Sugar Cane supplied to factories like petitioners and price payable by factories to the farmers, known as Statutory Minimum Price (SMP). This SMP is fixed by the Central Government every year before commencement of the crushing season having regard to : (a) the cost of production of sugarcane, (b) the return to the grower from alternative crops and the general trend of prices of agricultural commodities, (c) the availability of sugar to the consumer at a fair price, (d) the price at which sugar produced from sugarcane is sold by producers of sugar, and (e) the recovery of sugar from sugarcane.
(3.) Clause 5-A of the Control Order provides for fixation of additional price as per formulae set out in second schedule. Guided by the statutory parameters, every year the Commission on Agricultural Costs and Prices (CACP) undertakes a detailed study of data on cost of cultivation on all India basis and submits its report to the Central Government which after considering all factors announces SMP for the year.;