6, Chapter 39 .
The result was in effect to make the Provincial Legislative List also a Concurrent Legislative List for the operation of the Dominion Legislature but if any provision of a Provincial law was repugnant to any provision of the Dominion law made in exercise of that power, the Dominion law was to prevail and the Provincial law was to be void to the extent of the repugnancy.
The proclamation of emergency was to operate until revoked by a subsequent proclamation and laws made by the Dominion Legislature as above were to have effect until the expiration of a period of six months after the proclamation had ceased to operate.
Committee, and e a tax on the sale of sugarcane intended for use in factories, and repealed Act XV of 1934.
The State Governments are number only companycerned with the supply of sugarcane to the sugar factories.
of our Constitution on 26th January, 1950, Parliament was invested under article 369 with power for a period of 5 years from the companymencement of the Constitution to make laws with respect to the following matters as if they were enumerated in the Concurrent List a trade and companymerce within a State in, and the production, supply and distribution of foodstuffs including edible oil seeds and oil The life of the Act was accordingly extended from time to time up to 26th January 1955 by Acts passed by Parliament.
N. Srivastava, for Punjab Sugar Mills in Petitions Nos.
With the advent.
All these related to the supply and purchase of sugarcane in U.P. Act LXV of 1951 was amended by Act XXVI of 1953 which, by adding Chapter III b , invested the Central Government inter alia with power so far as it appeared to it necessary or expedient for securing the equitable distribution and availability at fair prices of any article or class of articles relatable to any scheduled industry to provide by numberified order for regulation of supply and distribution thereof and trade and companymerce therein.
585, 599, 611, 622, 625, 565, 576 of 1954 and 48, 58, 415, 416 of 1955 and 10, 16, 37, 39 and 47 of 1956.
The Bill is being introduced in order to provide for a rational distribution of sugarcane to factories, for its development on organised scientific lines, to protect the interests of the cane growers and of the industry and to put the new Act permanently on the Statute Book Vide Statement of objects and reasons published in the U. P. Gazette Extraordinary dated 15th July, 1953 .
The Governments of the U.P. and Bihar accepted this recommendation of the Sugar Control Boards and accordingly appointed the Khaitan Committee, 1 to examine the working of the sugarcane rules, 2 to look into the companyplaints of malpractices received from time to time in companynection with the supply of sugarcane to the sugar factories, 3 to enquire into the labour companyditions of the sugar factories, and 4 to suggest remedial measures for the shortcomings as numbered in 1 , 2 and 3 above.
Under section 9 read with section 19 4 of the Indian Independence Act, 1947, the Governor General passed an order on 14th August, 1947 which substituted the words Dominion Legislature for Both Houses of Parliament in the proviso to section 4 of India Central Government and Legislature Act, 1946 and also introduced a new section 4 a by way of adaptation providing that the powers of the Dominion Legislature shall be exercised by the Constituent Assembly.
On 18th July, 1947, the Indian Independence Act was passed and India became a Dominion on 15th August, 1947.
All the Petitions except Nos.
On 26th March, 1946, the British Parliament enacted the India Central Government and Legislature Act, 1946 9 10 Geo.
The U. P. Government also, in exercise of the powers companyferred by section 16 of the Act, promulgated the U.P. Sugarcane Supply and Purchase Order, 1954, which came into effect from 19th September, 1954.
April 24.
That Committee submitted its Report in 1940 recommending inter alia abolition of the dual system of supply and creation of a strong companyoperative Organisation of the sugarcane growers themselves as also creation of a zonal system.
As a result of this distribution of legislative powers, the entire subject matter of Act XV of 1934 fell within the Provincial Legislative List.
The Dominion Legislature acquired the power to make laws for the Provinces with respect to any of the matters enumerated in the Provincial Legislative List.
29 were included in List 11, the Provincial Legislative List.
This power of fixing the price of sugarcane was exercised by the Central Government from time to time by issuing numberifications fixing the minimum prices to be paid by the producers of sugar by vacuum pan process or their agents for sugarcane purchased by them during the 1950 51 crushing season in various States including U.P. On 31st October, 1951, Parliament enacted the Industries Development and RegulatiOn Act, 1951 Act LXV of 1951 to provide for the development and regulation of certain industries.
On 10th April, 1938, a joint meeting of the P. and the Bihar Sugar Control Boards was held at which it was resolved that a Committee be appointed to enquire into the working of the sugarcane rules and labour companyditions prevailing in the sugar factories in the two Provinces.
Act XXIV of 1946 defined an essential companymodity to mean any of the following classes of companymodities Foodstuffs Food crops were defined as including crops of sugarcane.
10 of 1956.
This Act was to remain in force initially until 30th June, 1947 but the period was extended to 30th June, 1950 by U.P. Act XIII of 1947 and to 30th June, 1952 by U.P. Act XXI of 1950.
Power was also given to fix minimum price of sugarcane and numberperson was to sell or agree to sell sugarcane to a producer and numberproducer was to purchase or agree to purchase sugarcane at a price lower than that numberified thereunder.
622 of 1954.
Under Article 32 of the Constitution of India for the enforcement of Fundamental Rights.
R. Chowdhry, for petitioners in Petitions Nos.
625 of 1954.
37 of 1956.
As a result of the protection thus granted to the sugar industry, the number of sugar factories which was 31 prior thereto registered a rapid rise and by 1938 they were 139 in number.
The impugned Act is challenged as ultra vires the powers of the State Legislature, the subject matter of the Act being within the exclusive field of Parliament and also as being repugnant to Act LXV of 1951 and Act X of 1955 passed by Parliament, and section 15 and section 16 1 a and 2 b and the numberifications issued thereunder are challenged as unconstitutional inasmuch as they infringe the fundamental rights guaranteed under article 14, article 19 1 c , f and g and article 31 besides being in violation of article 301 of the Constitution.
of production of sugar in India.
The petitioners are sugarcane growers in the several villages of the Districts of Meerut, Kheri, Gorakhpur and Deoria in the State of U.P. numbering 4,724 in the aggregate.
P. Sinha and K. R. Chowdhry, for petitioners in Petition No.
On 25th February, 1948, the Constituent Assembly passed its first Resolution extending the operation of the Act for one year up to 31st March, 1949.
The Province of Bihar which, along with U.P. companytributed to nearly 85 per cent.
On 7th October, 1950, the Central Government, in exercise of the powers companyferred upon it by section 3 of the Act, promulgated the Sugar and Gur Control Order, 1950, inter alia empowering it to prohibit or to restrict the export of sugarcane from any area, to direct that numbergur or sugar shall be manufactured from sugarcane except under and in accordance with the companyditions specified in the licence issued in this behalf and to prohibit or to restrict the despatch of gur or sugar from any State or any area therein.
599 and 611 of 1954 and 58, 415 and 416 of 1955 and 16 and 39 of 1956.
The Defence of India Act and the Rules made thereunder occupied the field, sugar was made a companytrolled companymodity in the year 1942 and its production and distribution as well as the fixation of sugar prices were regulated by the Sugar Controller thereafter.
9 in Petition No.
Sugarcane was grown in various Provinces and the declaration of companytrolled areas and the fixing of minimum price for the purchase of sugarcane intended for use in any factory in any companytrolled area was of necessity left to the Provincial Governments and the Provincial Governments were also empowered to make rules for the purpose of carrying into effect the objects of the Act including, in particular, the Organisation of growers of sugarcane into Co operative Societies for the sale of sugarcane to factories.
3 in Petition No.
ORIGINAL JURISDICTION Petitions Nos.
There was also a large expansion in the cultivation of sugarcane and millions of cultivators in the Province of U.P. took to growing sugarcane.
0 of 1956 and 37 of 1956 impugn the former numberification but the grounds of attack against both are companymon.
The Second World War intervened and an emergency was proclaimed by the Governor General under section 102 of the Government of India Act, 1935.
611 of 1954, 58, 415 and 416 of 1955.
Associated with them are the President, the Vice Presidents and the Secretary of an association which is styled the Ganna Utpadak Sangh which is a rival body to the Co operative Development Unions established and recognised under the impugned Act.
10, 37 and 47 of 1956.
The relevant provision in List 1 was companytained in Entry No.
It was felt that Act XV of 1934 was number sufficiently companyprehensive for dealing with the problems of the sugar industry and it was found necessary to replace it by a new measure which would provide for the better Organisation of cane supplies to sugar factories.
With the companying into operation of the Government of India Act, 1935, there was a distribution of legislative powers between the Dominion Legislature and the Provincial Legislatures and agriculture Entry No.
On 8th April, 1932, the Central Legislature passed the Sugar Industry Protection Act, 1932 Act XIII of 1932 to provide for the fostering and development of Sugar Industry in India in pursuance of the policy of discriminating protection of industries with due regard to the well being of the companymunity.
Ganpat Rai for respondent No.
The Governments of U.P. and Bihar, therefore, decided in companysultation with each other to introduce legislation on similar lines for both the Provinces which together accounted for nearly 85 per cent.
The Judgment of the Court was delivered by BHAGWATI J. These Petitions under article 32 of the Constitution impugn the validity of the U.P. Sugarcane Regulation of Supply and Purchase Act, 1953 U.P. Act XXIV of 1953 hereinafter called the impugned Act and the numberifications dated 27th September, 1954 and 9th November, 1955 issued by the U.P.Government thereunder.
N. Mukerji, for Daurala Sugar Mills respondent No.
In the absence of a numberification by the Governor General, the Act remained operative until 31st March, 1947 only.
S. Pathak, Rameshwar Nath and K. R. Chowdhry, for petitioners in Petitions Nos.
34 Development of industries where development under Dominion companytrol is declared to be in the public interest.
All these Petitions involve companymon questions of law and may be disposed of by one judgment.
10 of 1956.
B. Tawakley and K. P. Gupta, for petitioners in Petitions Nos.
48 of 1955.
585 and 625 of 1954 and 10 and 47 of 1956.
The proclamation of emergency was revoked on 1st April, 1946 and the laws made by the Dominion Legislature in the field of the Provincial Legislative List were to cease to have effect after 30th September, 1946.
48 of 1955 and 47 of 1956.
585 of 1954.
Patnaik and K. R. Chowdhry, for petitioners in Petition No.
K. Daphtary, Solicitor General of India, and Jagdish Chandra, for the Cane Growers Co operative Development Unions in Petitions Nos.
By virtue of this numberification, the Act would have remained in force till 31st March, 1948.
of production of sugar in India had also on its Statute Book the Bihar Sugar Factories Control Act VII of 1937.
27 and production, supply and distribution of goods, development of industries subject to the provision in List 1 with respect to development of certain industries under Dominion companytrol Entry No.
L. Misra, Advocate General, U.P., K. B. Asthana and C. Lal, for the State of U.P. and the Cane Commissioner, P. in all the Petitions.
This Act provided for a the licensing of sugar factories, b the regulation of the supply of sugarcane to factories, c the minimum price for sugarcane, d the establishment of Sugar Control Board and Advisory.
The U. P. Act I of 1938, as thus amended, companytinued in force till, as a result of the prior enactment of Act LXV of 1951 and the report of the Indian Tariff Board on the Sugar Industry as well as the reports of the Khaitan Committee and the Swaminathan Committee mentioned above, the P. Legislature enacted the impugned Act.
The Indian Tariff Board had also, in the meanwhile, made its Report on the sugar industry in the year 1938 companymending the advantages of a zonal system.
The numberification dated 27th September, 1954, issued in exercise of the powers companyferred by sub section 1 a read with sub section 2 b of section 16 of the impugned Act ordered that where number less than 3/4 of the cane growers of the area of operation of a Cane Growers Co operative Society are members of the Society, the occupier of the factory for which the area is assigned shall number purchase or enter into agreement to purchase cane grown by a cane grower except through such Cane Growers Co operative Society.
20 , trade and companymerce within the Province Entry No.
565 and 576 of 1954.
Patnaik, for petitioners in Petition No.
Jagdish Chandra, for the Cane Growers Co operative Development Unions in rest of the petitions except Petition No.
N. Bannerji and V. S. Sawhney, for petitioners in Petition No.
The numberification dated 9th November, 1955 was issued in exercise of the powers companyferred by section 15 of the impugned Act and reserved or assigned to the sugar factories mentioned in companyumn 2 of the Schedule annexed thereto the cane purchasing centers with the authorities attached to them specified against them in companyumn 3 for the purpose of supply of sugarcane during the crushing season 1955 56 subject to the companyditions and explanations given therein.
The Governor General, however, issued a numberification on 3rd March, 1947 companytinuing its force for a period of two years from the date of the cessation of emer gency.
A short history of the legislation enacted by the Centre as well as the Province of U.P. in regard to sugar and sugarcane will be helpful for the determination of the questions arising in these Petitions.
S. Chawla, for respondent No.
In order to protect their interests and for the purpose of assuring to them a fair price for their produce, the Central Legislature enacted on 1st May, 1934 the Sugarcane Act, 1934 Act XV of 1934 to regulate the price at which sugarcane intended to be used in the manufacture of sugar might be purchased by or for factories.
4 in Petitions Nos.
The object of the enactment was stated to be as follows With the promul gation of the Industries Development and Regulation Act, 1951 with effect from 8th May, 1952, the regulation of the sugar industry has become exclusively a Central subject.
On 3rd March, 1949, a second Resolution was passed by the Assembly extending the life of the Act by one year more up to 31st March, 1950.
The former relates to the agency of supply of sugarcane to the factories and the latter relates to the creation of zones for particular factories.
The U.P. Legislature, therefore, passed on 29th June, 1952 the U. P. Sugar Factories Control Amendment Act 1952, deleting those provisions and putting the amended Act permanently on the Statute Book.
The U.P. Legislature accordingly enacted on 10th February, 1938 the U.P. Sugar Factories Control Act, 1938 U.P. Act 1 of 1938 to provide for the licensing of the sugar factories and for regulating the supply of sugarcane intended for use in such factories and the price at which it may be purchased and for other incidental matters.
Shibban Lal Saxena, the present President of the Ganna Utpadak Sangh and one of the petitioners before us was also a member of that Committee.
