AMARAVATHI SERVICE CO OPERATIVE SOCIETY Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are either growers of sugarcane or Co-operative Societies of sugarcane growers. During the seasons 1960-61 & 1961-62, they had supplied sugarcane to India Sugar and Refineries Ltd., Hospet (hereinafter referred to as the Factory) which is one of the respondents in all these petitions. In these petitions, under Art. 226 of the Constitution, they have assailed the order of the Government of India made under sub-clause (3) of C1.5 of the Sugarcane (Control) Order, 1966, exempting the Factory from payment of additional price for sugarcane purchased by it during these two years. For one of those years, the exemption is complete and for another year, partial.

(2.) Before considering the contentions of the petitioners, it is convenient to lock at the relevant legislation. Parliament enacted the Essential Commodities Act, 1955 (hereinafter referred to as the Act), to provide in the interest of the general public, for the control of production, supply and distribution of, and trade and commerce in, certain commodities. Clause (a) of S.2 of the Act defines 'Essential Commodities' to mean any of the classes of commodities set out in sub-els, (i) to (xi) of that clause. Foodstuffs are among the commodities included in that definition Cl. (b) of S.2 defines 'food crops' as inclusive of sugarcane.

(3.) In exercise of the powers conferred by Sec.3 of the Act, the Central Government promulgated on 27-8-1955 the Sugar (Control) Order, 1955, and the Sugarcane (Control) Order, 1955. The former empowered the Central Government to fix the price or the maximum price at which any sugar may be sold or delivered. It was competent for the Government to fix different prices for different areas or different factories, or different types or grades of sugar. Such price or maximum price had to be fixed having regard to the estimated cost of production of sugar.