KISAN SAHKARI CHINI MILLS LTD Vs. EXCISE COMMISSIONER AND CONTROLLER OF MOLASSES
LAWS(ALL)-1989-2-62
HIGH COURT OF ALLAHABAD
Decided on February 24,1989

KISAN SAHKARI CHINI MILLS LTD. TILHAR, SHAHJAHANPUR Appellant
VERSUS
EXCISE COMMISSIONER AND CONTROLLER OF MOLASSES, U. P., ALLAHABAD Respondents

JUDGEMENT

R. M. Sahai, J. - (1.) PERENNIAL problem of non-lifting of Molasses giving rise to spate of petitions, like earlier years has arisen even this year, and this is one of the petitions out of many seeking a direction from this Court to permit petitioner, a sugar factory registered under Cooperative Societies Act to sell it in open Market as its tanks are full and the allottees and nominees of Controller of Molasses have failed to fulfil their obligation and lift the Molasses within time. Law for the control of sugar, gradation and price of Molasses produced by sugar factories in the State and its regulation, supply and distribution is contained in U. P. Sheera Niyantran Adhiniyam, 1964, (Act XV of 1964) and rules framed thereunder. It provides in detail for submission of estimated production by occupier of factory well in advance that is, by 31st August. Similarly the distillery are required to submit their estimated requirement in advance within same period. And, thereafter consolidated list for sale and supply is required to be prepared by Controller and approved by Advisory Board. Provision for lifting, loading and facility for loading etc. has also been provided. If these provisions are followed probably no difficulty may arise and this Court may be spared time to devote to more serious problems which await attention. Success of any system particularly control depends on its faithful implementation. It is here that snag arises. The sugar factories, the allottees and the departmental check and supervision all fails to live up to standard that is expected under the Act and Rules. Otherwies no difficulty may arise.
(2.) FOR instance, from Annexure 2 it appears the consolidated list of allotment for the first quarter was issued by Controller of Molasses on 16th December, 1988. Since crushing season starts every year sometime in October or in November, the list for first quarter should normally be announced and circulated not latter than fifteen days prior to the date of commencement of the crushing season as approximate figures of production and requirement are known by 31st August. This is necessary to enable the allottee to make arrangement for lifting etc. and the last moment drop outs may also be known before hand. Further the order only fixes the time limit from 21st December, 1988 to 31st August, 1989 for lifting of Molasses. And every distillery is required to lift huge quantity of Molasses from various sugar factories within this time. With the result that allottees are unable to lift the allotted quantity in the time specified from each sugar factory may be because of lack of transport facility or even temporary non-requirements. FOR instance, in this very case when petitioner's representative approached the distillery it expressed its inability by letter dated 27th December, to lift the Molasses immediately because they were having adequate quota of Molasses from nearby sugar factories and all their tankers were engaged. The letter assured that as soon as their tankers were spared they shall be diverted to petitioner's factory to lift the Molasses. These are practical difficulties which are bound to take place every year and in nearly every allotment unless the Controller announces allotment for future year as indicated fifteen days before crushing season. Time for lifting then can be full quarter. Further the issue is complicated by asserting in the couner-affidavit about capacity of tanks their likely filling on volume of production and the space available. Theoritically at times the stand may be correct. But what is needed is practical approach. FOR which despite our anxiety we could not get effective assistance.. However, after hearing learned counsel for parties we issue following directions with objective that it may serve as model for every case and may be a guideline for future. ( ) Controller of Molasses should issue consolidated list of allotment for first quarter fifteen days before commencement of crushing season. (2) Time limit for lifting should be the entire quarter, making it incumbent on allottee or nominee to intimate the Controller within one month if it is not in a position to lift any Molasses. (3) Lifting up to third week before the end of quarter should be made available on or before expiry of two weeks form the end of quarter to enable the controller to know the exact position and issue allotment orders immediately one week before the end of quarter but in no case after one week from the end of quarter. (4) Failure of the allottee to comply with time schedule or the order of Controller should be made penal by debarring them for allotment etc. (5) Similarly sugar factories committing default in not complying with provisions of the rules etc. should be made aware of stringent action. If the allotments are done in the manner indicated above probably the problem may be curtailed, if not eliminated. Since this year the allotments have made in December, 1988 giving one and half month time only the problems has arisen not only in this petition but other petitions which are pending. For that we issue following directions : (i) If by the end of quarter at least 3/4th of Molasses are not lifted and all the tanks are full either because Molasses of earlier year are stored or the Molasses of the current year have filled 3/4 space then from the date of expiry of the quarter the Commissioner-cum-Controller of Molasses by fresh orders get the Molasses lifted within three weeks. (ii) In case of failure by Controller of Molasses to issue orders allotting Molasses so as to be lifted within three weeks form expiry of the quarter or failure of allottee to lift it the sugar factory shall be entitled to sell the surplus that is non lifted Molasses till then in open market under intimation to controller under supervision of local office. (iii) The Controller is directed to issue allotment orders for lifting of grade B Molasses of petitioner stored up form season 1986-87 to 1987-88 within one month form the date a copy of this order is produced. In case no allotment order is passed or the allottee or nominee does not lift thereafter within time specified then subject to one more opportunity in the manner indicated in clause (2) the Molasses of these tanks shall be disposed of as indicated. (iv) Molasses stored in steel tanks A shall be disposed of in the manner indicated in clause (2) of this order. (v) The petitioner shall extend all cooperation in lifting of the Molasses by observing the orders of Controller and provisions in the Act and Rules. Purpose of this detailed order is two fold, one as indicated earlier to serve as guide line for this quarter not only of this year but in years to come and second that Controller should himself permit sale in open market if the Molasses are not lifted despite the orders issued as indicated above. Otherwise if every sugar factory has to come and this Court has to make arrangement it shall frustrate the very purpose of it.
(3.) THE petition is decided accordingly.;


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