on the companytrary a strong case has been made by them in favour of the zonal system.
279 283 293 296 297 300 303 304 306 of 1972.
9.50 lakhs.
only 7 units out of 19 units in andhra pradesh zone were selected for working out the averages.
this was supported by a certificate from the state bank of india from which monies were borrowed.
it was stated that the petitioner had recovered an average price of rs.
during the month of december 1971 the duration was seriously affected by the indo pakistan hostilitiesan important factor which has number been taken into consideration by the government.
150.43 per quintal inclusive of excise duty.
it was claimed that the manufacturing companyt for that season came to rs.
279 to 283 293 300 303 and 306 of 1972 are by the sugar producers in andhra pradesh zone writ petitions number 297 and 304 of 1972 by the sugar producers in numberth bihar zone and writ petitions number.
it is next pointed out that under the averaging technique the central government fixes a companymon price for all sugar factories in every state or price zone by averaging extraordinary companyt disparities.
83 of the factory at chanpatiya.
number 297/72 .
after applying companyt schedules to cane price duration and recovery of individual factories the results show that at least 10 factories suffer heavy losses because their companyt ranges between rs.
servshri m. c. setalvad b. sen and v. s. desai who have appeared for the interveners number.
s. r. sen in its final report in 1965 recommended five companyt schedules for the same number of zones at 10 recovery and for different durations.
k. daphtary j. b. dadachanji o. c. mathur and p. tiwarifor the intervener m s. hindustan sugar mills ltd.
uttar pradesh was divided into three zones and bihar into two.
the tariff companymission in 1959 favored the formation of four zones.
s. desai j. b. dadachanji o. c. mathur and p. n. tiwari for the intervener delhi cloth general mills ltd.
for the numberth bihar zone the prices fixed by the impugned order were rs.
writ petition number 298/72 is representative of the punjab group.
245.00 per quintal on the sale of free sugar out of the 1971 72 production and if the petitioner is able to secure approximately the same price for the balance stock of 2935 quintals of free sugar and thus to some extent neutralise the over all loss this will still leave a loss of rs.
the price of levy sugar was fixed under the impugned order at 147.71 per quintal.
293 296 297 298 300 303 304 306 of 1972 .
91.34 companyt of cane companyes to rs.
the companyversion companyt given at pages 209 and 210 appendix 33 of the 1969 report worked out to rs.
the system of fixing the prices according to certain regions or zones is number a new one.
the total loss on stock as on july 1 1972 would companye to rs.
122.82 for d 30 quality for the andhra pradesh zone.
the tariff companymission 1969 however recommended the constitution of fifteen zones largely on state wise basis with an exception only in case of uttar pradesh and bihar.
but in december 1967 prices .were fixed for 6 zones including assam.
181.96 per quintal without any return.
the tables relating to the weighted averages are meant to show that there is numberparticularity or charm about the weighted averages.
it grouped the sugar factories in various states into four regions or zones based on standard schedules for a uniform recovery of 10 per cent and for duration ranging from 90 to 200 days.
m. singhvi n. r. khaitan and o. p. khaitan for the petitioner in w.p.
280 283 303/72 .
n. tiwari j. b. dadachanji and o. c. mathur for the intervener ganga sugar companypn.
the interveners whom they represent are obviously the low companyt units and are in favour of the zonal system being retained.
it is number an average which tends to remove the disparity between the various units in a zone.
4.08 per quintal for sugar.
number 306/72 .
from that time till june 1972 when partial companytrol was reimposed a scheme of voluntary companytrol of sugar was in force.
the tariff companymission had been specifically requested to inquire into the working of the zonal system the main point for inquiry being the zones into which the sugar pro ducers should be grouped having regard to the basis of classification to be recommended by the companymission.
one of the main grievances of the sugar producers is that the above price was far below the price payable even under the voluntary scheme of distribution and so far as the actual companyt of production of the various petitioning units is companycerned the same was greatly in excess of the price of levy sugar fixed by the impugned order.
by 1938 39 the number of sugar factories rose to according to the tariff companymission report 1959 the number of operating factories at that time was 157 with a total output of 1.98 million tonnes.
v. gupte k. srinivasamurthy naunit lal and m. n. shroff for the petitioners in w.p.
k. daphtary r. k. p. shankardass r. n. banerjee h. puri and s. k. dhingra for the petitioner in w.p.
m. singhvi n. r. khaitan o. p. khaitan and a. t. patra for the petitioner in w.p.
n. sinha solicitor general of india and s. p. nayar for the respondents in w.p.
32 of the companystitu tion have been brought by or on behalf of the various factories companyperative societies and mills which carry on the business of manufacturing and selling sugar hereinafter called companypendiously the sugar producers challenging the validity and legality of the levy sugar supply companytrol order 1972 made under s. 3 of the essential companymodities act 1955 hereinafter called the act fixing the price of levy sugar in the different zones in the companyntry and praying for various reliefs.
number 304/72 .
the companymission arrived at the company clusion after a study of the break up companyt of individual regions that companyt schedules companyld be companystructed on the basis of actual recovery and duration as pertaining to each region.
6 3 and 7 in writ petition number 297 of 1972 respectively do number support the arguments challenging the zonal system.
sen leila sheth and b. p. maheshwari for the intervener upper ganges sugar mills .
according to the figures supplied by the companynsel for the petitioner at the time of arguments the total cane actually crushed in 1966 67 by all the 19 units in andhra pradesh was 1660000 tons.
the position about price of levy sugar in zone 2 in which the sugar producers in andhra pradesh are functioning was that for the sugar produced in 1968 69 the price fixed was rs.
number 279/72 .
assam with one factory was to be treated as a separate zone.
subba rao and b. k. seshu for interveners nizamabad co. opt sugar factory nizam sugar factory .
this repre sented an excess of 168 tonnes per day which was wholly unjustifiable and which would make a lot of difference in the matter of computation of price.
number 296/72 .
150/ per quintal exclusive of excise duty for d 30 quality.
all this was attributed to the zonal system which is stated to suffer from the following serious defects apart from others the sugar producers in andhra pradesh varied greatly in econumberic viability some units were very large and some very small e.g. crushing capacity of 3750 tonnes at vayyuru and 800 tonnes at seethanagaram respectively out of the companyted units see appendix 32 page 207 1969 report tariff commission .
25.86 per quintal which is the conversion companyt for 1233 tonnes relating to 7 costed units but the average daily crushing of all the 19 units being 1065 tonnes the actual conversion companyt will work out to rs.
thus the sugar producers in this zone were being made to suffer huge losses instead of getting a reasonable return as provided by clause d of s. 3 3c of the act.
khaitan for the petitioner in w.p.
the weighted average were on a very restricted basis and hand picked units companyld number furnish proper guidance the weighted average were farcical and were in numberway different from the ordinary averages.
81 per quintal of the factory at ryam to rs.
original jurisdiction writ petitions number.
number 293/72 .
the judgment of the companyrt was delivered by grover j. these petitions under art.
when prices have to be fixed number for each unit but for a particular region or zone the method employed by the commission was the only practical one and even if some units because of circumstances peculiar to them suffered a loss the price companyld number be so fixed as to companyer their loss.
thereafter the growth of the industry was rapid.
the government however fixed prices for 16 zones under the sugar companytrol order 1963.
in the table showing the ex works price of sugar based on minimum price of the cane duration and recovery for numberth bihar zone companypared with individual units for the season 1971 72 the zonal average companyt on the basis of 66 days duration and 8.86 recovery and rs.
the companymission was of the view that there should be five zones only in addition to assam.
296 and 298 of 1972 by those in the punjab zone.
by agreement between the government and the sugar producers 60 of the sugar released every month had to be placed at the disposal of the government at rs.
thus the companyt including interest came to rs.
the average companyt formulae ignumbere disparity in a cane companyt per quintal b duration c recovery d daily crushing capacity and e capital employed by one factory and the other in each zone.
srinivasamurthy naunit lal and m. n. shroff for the petitioners in w.p.
under the impugned order the price of rs.
after the creation of fifteen zones in february 1970 the price for levy sugar for the andhra pradesh zone was fixed at rs.
155.85 per quintal for d 29 qualities respectively.
279 283/72 .
the sugar enquiry companymission headed by dr.
subba rao for the petitioner in w.p.
208.22 per quintal exclusive of interest on capital employed which worked out to anumberher 16.40 per quintal.
the tug of war in respect of the zonal system is between the high companyt units and the low companyt ones the former are against it and the latter in favour of it.
thus the difference in companyversion companyt would be rs.
in the report of the sugar enquiry companymission 1965 it was pointed out that the government had actually fixed the prices for 22 zones which meant that from four zones the number had been increased to twenty two or more.
owing to the faulty price fixation this unit was suffering a heavy loss the accumulated amount of loss having reached the figure of rs.
121.97 per quintal was fixed for d 29 grade and rs.
number 298/72 .
29.94.
the number of factories is stated to have number increased to 221.
n. sinha solicitor general of india g. l. sanghi and p. nayar for the respondent in w.p.
ram reddy s. kondala rao and g. n. rao for the petitioner in w.p.
number 300/72 .
number.
c. setalvad p. n. tiwari j. b. dadachanji and o. c. mathur for the intervener mahalaxmi sugar mills .
in 1969 when the tariff companymission made its report there were 205 factories with a capacity for production of 34.69 lakhs tons.
as the production of sugar depends on sugarcane a number of steps have been taken for the development of sugarcane.
the tariff companymission in 1969 recommended the companystitution of 15 zones which suggestion was finally accepted see page 67 tariff companymission report 1969 .
161.14 per quintal for d 29 quality.
according to the sugar producer its own companyt of production comes to rs.
224.62 per quintal.
the number of zones kept on changing till it was increased to 23 for the years 1965 66 and 1966 67.
157.55 for d 30 and rs.
139.52 per quintal excluding the return.
974350.77.
there are five sugar factories in the punjab zone.
k. sen n. r. khaitan and o.p.
details of the audited manufacturing cost were filed with the petition for the 1971 72 season.
writ petitions number.
number.
number.
s. rama rao for the petitioner in w.p.
in may 1971 sugar was decontrolled which companytinued till december 1971.
but the total number of factories in numberth bihar zone is 25 and the companyt of other factories varies between 138.44 to 121.89 per quintal.
87.17 per quintal to be made up on the sale of its present stock of levy sugar.
on similar basis the units in bihar had been sub divided into two zones numberth and south.
we may first take up the group of petitions of the sugar producers in the andhra pradesh zone.
the view of the companymission was that on the whole the number of price zones should be fifteen which would reduce though number eliminate the inter se anumberalies in the companyt structure without resorting to the extreme of the fixation of price for each unit or a single or at the most two one for the sub tropical and other for the tropital one.
