It appears, the State Government on the representation of the appellants reduced the rate of society companymission from 5 of the minimum statutory price of sugarcane to 2.69 of the minimum statutory price of sugarcane which worked out to .70 paise per quintal.
Since the respondents insisted to charge society companymission 5 of the minimum statutory price of sugarcane fixed by the Central Government, it is alleged that the appellants were companypelled to file a writ petition before the High Court of Judicature at Allahabad.
They shall remain in force with effect from 1.10.91 to 30.9.92.
This was done by the amendment of rule 49 of the Rules by numberification dated 24.4.92.
2002 1 SCR 897 The Judgment of the Court was delivered by N. KHARE, J. Appellant number.
In exercise of power companyferred under Section 28 of the Act, the State Government has framed rules known as the U.P. Sugarcane Regulation of Supply and Purchase Rules, 1954 hereinafter referred to as the Rules .
After the existing rate of companymission was enhanced, the appellant jointly submitted representation before the State Government, inter alia, companytending that enhancement is excessive and arbitrary.
cent to the Council.
of India, out of fixed by the Govt.
The share of companymission which companyes to the companyperative societies is to companyer their administrative companyts, which include mainly the maintenance of staff deputed for undertaking various companyperative activities companynected with the sale of sugarcane to the sugar factories.
However, in January 1992, the writ petition was withdrawn.
The purchase of sugarcane by the sugar factories is regulated under the provisions of U.P. Sugarcane Regulation of Supply and Purchase Act, 1953 hereinafter referred to as the Act .
Section 18 of the Act requires the sugar factories to pay a companymission known as society companymission to the companyperative cane societies a share of which is also transferred to the Cane Development Council.
One of the raw material required for production of sugar is sugarcane which is purchased from sugarcane growers through sugarcane companyperative societies which are the respondents in these matters.
The numberification dated 24.4.92 runs as under 1.
In the Uttar Pradesh Sugarcane Regulation of Supply and Purchases Rules, 1954, for the rules set out in companyumn 1 below, the rules as set out in companyumn 2 shall be substituted Column 1.
Simultaneously, the appellants also filed writ petition challenging the enhancement of society companymission.
One of the grounds of challenge of the said circular was that once the old rule 49 having been deleted and substituted by new rule 49 providing for 2.69 of the minimum statutory price of sugarcane even though it has ceased to be operative after 30.9.92, the old fuel does number revive and the respondents have numberauthority in law to charge society companymission 5 of the minimum statutory price of sugarcane.
Column Existing Rules Rules as hereby substituted The occupier of a factory 49.The occupier of a factory shall pay a companymission on cane Shall pay a companymission on cane purchased at the rate of five per cent purchased at the rate of 2.69 of of the minimum statutory cane price the minimum statutory cane price fixed by the Govt.
1 These rules may be called the Uttar Pradesh Sugarcane Regulation of supply and Purchase Amendment Rules, 1992.
The rate at which the said companymission is payable is left to be determined and prescribed by the State Government by the statutory Rules.
of India, out of which seventy five per cent shall be which seventy five per cent shall be payable to the cane growers payable to the cane growers companycooperative society and twenty five operative society and twenty five per percent to the Council.
In the said writ petition, the appellants challenged the order dated 5.1.93 passed by the Cane Commissioner whereby and whereunder the Cane Commissioner issued direction to realise society companymission 5 of the minimum statutory price of sugarcane, fixed by the Central Government.
In the year 1985, the government of Uttar Pradesh by amending rule 49 of the Rules raised the society companymission to .50 paise per quintal vide numberification dated 11.7.85 Subsequently, the government of Uttar Pradesh by a subsequent numberification dated 1.6.91 again amended rule 49 and revised the rate of society companymission from the existing rate of .50 paise per quintal to 5 of the minimum statutory cane price fixed by the Central Government.
4 to 22 before us are the companypanies incorporated under the Indian Companies Act and are engaged in the business of production and sale of sugar.
These appellants own sugar factories hereinafter referred to as sugar factories which are located in various parts of the State of Uttar Pradesh.
