K. B. Asthana, J. - (1.) IN the above three Special Appeals and six writ petitions which have been consolidated for hearing, the common controversy involved concerns the validity of orders of the Additional Price Fixation Authority and appellate orders of the Central Government determining the additional price for sugarcane purchased by the appellants and the petitioners from the sugarcane growers and the Co-operative Societies of the sugarcane growers. The Special Appeals are directed against the judgment and order passed by learned Single Judges substantially dismissing the writ petitions but striking down the direction for payment of interest. Since in the aforesaid writ petitions similar questions are involved they have also been directed to be heard and decided by the Division Bench.
(2.) THE learned Single Judge in his judgment in Mahabir Sugar Mills (Pvt.) Ltd. v. Union of India and another under appeal has given a detailed history of the developments for linking the price of sugarcane purchased by the Sugar Producers in Uttar Pradesh from the cane growers or from the Co-operative Societies of cane growers with the sale price of the sugar produced. The appellants and the petitioners in the writ petitions are all manufacturers of sugar in their respective Sugar Factories, situate in different areas of Uttar Pradesh. They have challenged the orders of payment of additional price of sugarcane purchased by them. In exercise of its power under Section 3 of the Essential Commodities Act, 1955, hereinafter called the '1955 Act', the Central Government issued an order styled as the Sugarcane (Control) Order, 1955, hereinafter referred to as the '1955 Order', which by its clause 3 fixed the minimum price of sugarcane to be paid by the producers of sugar and authorised the Central Government to fix different prices for different areas for different qualities or varieties of sugarcane. In 1958 a new clause 3-A was introduced in the 1955 Order providing that where a producer of sugar purchases any sugarcane from a grower of sugarcane or a growers' Co-operative Society the producer shall in addition to the minimum price fixed pay to the growers or the Society, as the case may be, an amount if found due in accordance with the provision of the Schedule. By the Schedule a formula was devised for determining by the authority appointed by the Central Government an additional amount payable as price. It appears that the producers of sugar were dissatisfied and various representations were made to the Central Government in this regard. Ultimately the Central Government decided to modify the 1955 Order, but finding that under Section 3 of the 1955 Act it had no power to promulgate an order with retrospective effect the Sugarcane Control (Additional Powers) Act, 1962, (hereinafter called the 1962 Act) was passed, which came into effect from 19-9-1962. Section 2 of the 1962 Act, which was the only operative provision, reads thus:- "2. Notwithstanding that no provision has been made in Section 3 of the Essential Commodities Act, 1955, for making an order under that section with retrospective effect, the Central Government may, if satisfied that public interest so requires, by order notified in the official Gazette, amend either prospectively or retrospectively the Sugarcane (Control) Order in respect of any matter for which provision has been made in clause 3-A and the Schedule of that order, and any such amendment may contain such supplemental, incidental and consequential provisions as the Central Government may deem necessary : Provided that no such order shall be made so as to have retrospective effect from a date earlier than the 1st day of November, 1958."
(3.) THE Central Government having been authorised to pass an order with retrospective effect, on 1-1- 1962 the Sugarcane (Control) Amendment Order 1962 was made substituting a new clause 3-A for the old clause 3-A in the 1955 Order. The new clause 3-A reads:- "3-A. Additional Price for Sugarcane purchased. (1) Where a producer of sugar or his agent purchases any sugarcane from a grower of sugarcane or a grower's Co-operative Society during each of the four successive years beginning on the 1st day of November, 1958, the producer shall, in addition to the minimum price of sugarcane fixed under sub- clause (1) of clause 3, pay to the grower or the co-operative society as the case may be an additional price if found due, in accordance with the provisions of the Schedule hereto annexed." ;