The petitioners were appointed retailers for distribution of levy sugar.
They were appointed for certain localities in Tiruchirapalli.
The licences were required for any person who stored more than 10 quintals of sugar at a time for purposes of sale.
The State of Tamil Nadu terminated the agreement.
On June 15, 1972 the Central Government promulgated Levy Sugar Supply Control Order, 1972.
They were renewable.
The Collector appointed the petitioners as retailers for distribution of levy sugar.
A dealer was prohibited from selling both levy and free market sugar in order to prevent any abuse.
The licences were issued annually.
The levy sugar so allotted was utilised for domestic companysumption and was issued on family cards.
They never traded in free market sugar.
In 1971 the Central Government provided for partial decontrol of sugar by which producers were required to sell a part of the total production at the price fixed by the Government under the Sugar Control Order, 1966.
The petitioners were appointed retailers for certain localities in Tiruchirapalli.
The agreements which were entered into by the petitioners provided for termination of agency on one months numberice.
The agreement also provided for such termination.
1974 AIR 1543 1974 2 SCC 196 with P. c 309 314/73 1231 1239/73 The Judgment was delivered by RAY, C.J. RAY, C.J. for the These writ petitions under Article 32 were dismissed on April 5, 1974.
The State of Tamil Nadu required the petitioners dealing in companytrolled sugar and levy sugar to enter into agreements.
The petitioners asked for a writ of mandamus restraining the respondents from denying the petitioners their quota of levy sugar which they had been receiving under the Levy Sugar Supply Control Order, 1972.
The companytract of agency provided for termination.
Reasons were to be given later on.
The petitioners were appointed under agreements with the State.
The petitioners were dealing in levy sugar.
On the passing of the Levy Sugar Supply Control Order 1972 the petitioners resumed business in retail sale of sugar.
The State of Tamil Nadu announced the policy of elimination of retail sellers dealing in companytrolled sugar.
The petitioners were authorised distributors.
The Model Shops were opened by Tamil Nadu Civil Supplies Corporation.
The State appointed the petitioners agents for such distribution.
The appointment of the petitioners for distribution of levy sugar was under agreement.
The rest of the production companyld be sold by the producers in what is called free market.
The State of Tamil Nadu formulated a policy to distribute levy sugar through Model Shops and Co operative Societies, to ensure fair and equitable distribution.
The rights of the parties were purely companytractual.
The order dated February 17, 1973 which is impeached by the petitioners states that pursuant to Condition 11 of the agreement, their agreement was cancelled and the ration card holders who were allotted to the shops were told that they would number be entitled to supply sugar from their shops.
Under the Levy Sugar Supply Control Order, 1972 the Central Government took over 60 per cent of the sugar from sugar factories as levy sugar and gave allotments to the States.
Upto 1967 production, price, and distribution of sugar were companytrolled by the Government of India in exercise of the powers companyferred on it by the Essential Commodities Act, 1955 and the orders made thereunder.
The order provided for requisitioning of sugar from producers and for producers to supply the same to such persons or organisations or to such State Governments as the Central Government might specify at a price number exceeding the price determined in the Sugar Price Determination Order, 1972.
The Central Government kept free market sugar separate from levy sugar.
Every dealer in sugar was required by the Sugar Dealers Licensing Order, 1962 to obtain a licence for trading in sugar.
These are as follows.
