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Malaprabha Coop. Sugar Factory Limited v. Union Of India And Anotherand Indian Sugar Mills Association And Another

Malaprabha Coop. Sugar Factory Limited
v.
Union Of India And Anotherand Indian Sugar Mills Association And Another

(Supreme Court Of India)

Contempt Petition No. 400-01 Of 1998 In Ias No. 5-6 In Civil Appeals No. 122-23 Of 1981 | 16-11-2000


These are applications in which it is stated that the decision of this Court in Shri Malaprabha Coop. Sugar Factory Ltd. v. Union of India ( 1993 SC 1512) followed by the direction reported in Shri Malaprabha Coop. Sugar Factory Ltd. v. Union of India (1997 SC 3328) has not been complied with.

The question involved is with regard to the determination of levy price of sugar in respect of the years 1974-75 to 1979-80. Earlier this Court in Shri Malaprabha had given a direction that the levy price be refixed keeping in mind the provisions of Section 3(3-C) of the Essential Commodities Act. The review application filed by the Government was dismissed and similar was the fate which was met by a clarification application, also filed by the Government.

When notifications were issued fixing the revised price, the petitioners herein filed a fresh application contending, inter alia, that the provisions of clause 5-A of the Sugarcane Control Order have not been taken into consideration while determining the levy price. The contention was that under the said clause 5-A additional price for sugarcane had to be paid to the grower and this is an outgoing which should be added and taken into consideration while determining the price.

This Court for the reasons contained in the said decisions directed a fresh notification to be issued after taking into consideration the payment required to be made to the sugarcane-grower under clause 5-A of the Sugarcane Control Order. The notifications have now been issued as a result of which in respect of levy price for the year 1974-75 and for the subsequent years revised levy price has been fixed at a figure higher than what was determined earlier.

In the present applications, it is contended that the petitioners were entitled to an increase in the levy price to the full extent of the amount paid under clause 5-A. For example, for West U.P., the levy price fixed on 22-2-1995 was Rs. 163.780 and the revised levy price fixed by the Government, and impugned in these applications, is Rs 172.430. According to the data furnished, the payment made under clause 5-A comes to Rs. 22.050. The contention of the petitioners is that this amount of Rs. 22.050 should have been added to the aforesaid amount of Rs. 163.780 and the final price which should have been fixed was Rs. 185.830.

We have heard the learned counsel for the parties. The explanation given by the respondents is that prior to 1974 the entire excess realisation of the sale price of sugar at the end of the sugar year used to be taken by the Government. As a result of the Bhargava Committees Report, clause 5-A was incorporated in the Sugarcane Control Order, the result of which was that instead of 100 per cent of the excess amount being taken by the Government, 50 per cent of the excess went to the cane-grower and 50 per cent was allowed to be retained by the sugar manufacturer. In this way the sugar manufacturer benefited by retaining at least 50 per cent of the excess realisation whereas prior to 1974 the entire excess realisation used to go to the Government.

This Court in the aforesaid two decisions has said that the retention of 50 per cent is a factor which can be taken into consideration in determining element (d) in Section 3(3-C) of the Essential Commodities Act. The working statement given before us shows that this has been done, not to the extent as desired by the petitioners, but the result of this is that the levy price fixed at Rs 163.780 in respect of West U.P. has gone up to Rs. 172.430. In our opinion, the said fixation is in accordance with law and the directions given by this Court have been complied with. Neither a case for contempt has been made out nor is there any justification, in our opinion, for giving any direction to the Government to refix the levy price under Section 3(3-C) of the Essential Commodities Act.

The contempt petitions are, accordingly, dismissed. No costs.

Advocates List

For the Appearing Parties ----

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE MR. JUSTICE B. N. KIRPAL

HON'BLE MR. JUSTICE DORAISWAMY RAJU

HON'BLE MR. JUSTICE N. SANTOSH HEGDE

Eq Citation

JT 2001 (3) SC 29

(2002) 9 SCC 716

LQ/SC/2000/1729

HeadNote

Essential Commodities Act, 1955 — S. 3(3-C) — Levy price — Determination of — Determination of, in accordance with law — Excess realisation of sale price of sugar at the end of the sugar year — Retention of 50% of, by sugar manufacturer — Held, is a factor which can be taken into consideration in determining element (d) in S. 3(3-C) — Contempt petition dismissed — Essential Commodities Act, 1955, S. 3(3-C)(d) — Sugarcane Control Order, 1966, Cl. 5-A (Paras 10 and 11)