Since the excess amount recovered by the various manufactu rers of sugar, including K.M. Sugar Mills Limited really belonged to the companysumers to whom sugar had been sold by these manufacturers, Parliament enacted Levy Sugar Price Equalisation Fund Act, 1976 with effect from 1 4 1976 for the purpose of ensuring that the excess amount so recovered should number remain in the hands of manufacturers of sugar so as to unjustly enrich them but should be paid to the companysumers of sugar from whom it had been unlawfully recovered by the manufacturers.
Of India, Ministry of Agriculture Irrigation, Department of Food, New Delhi.
was fixed every year in accordance with the principles set out in Section 3 3c of the Essential Commodities Act, 1955 and during the period in question the price of levy sugar was determined under the sugar Price Determination Order 1972.
The facts of the case are few and may be briefly stated as follows The appellants carry on business of manufacture of syrups, squashes, jams and jellies, preservation of vegetables and other food products.
with the result that the price inclusive of these taxes and duties amounted to Rs.
This order was however challenged by factories manufacturing sugar and an interim order was passed by the High Court of Allahabad permitting them to charge a price higher than that fixed under the order, on companydition that they furnished bank guarantee for the difference in price in favour of the Registrar of the High Court.
175 per quintal exclusive of excise duty, sales tax etc.
Appeal by Special leave from the Judgment and Order dated the 21st August, 1981 of the Allahabad High Court in Civil Misc, Writ Petition No.
Now, the application made by the appellants in from IV stated in so many terms that the amount in question had been deposited by the Registrar of the High Court in terms of the Levy Sugar Price Equalisation Fund Rules, 1972, through the Chief Pay Accounts Officer, Govt.
Now, different prices were fixed under the sugar Price Determination order, 1972 for different zones and so far as the East U.P. Zone was companycerned, the price fixed was Rs.
This application was filed by the appellants, on 30th April, 1979, admittedly within the prescribed period of six months.
Now, under the sugar Price Determination order, 1972 K.M. Sugar Mills Limited were number entitled to recover from the appellants price at a rate exceeding Rs.
22681.88 represented excess realisation made by K.M. Sugar Mills Limited from the appellants and this amount was credited to the Fund by the Registrar of the High Court, the appellants filed an application in form IV making a claim for refund of this amount from the Fund.
190 per quintal.
One of the essential raw materials for these products manufactured by the appellants is sugar.
There was at the material time Sugar Control Order 1966 issued under S. 3 of the Essential Commodities Act, 1955, clause 4 of which provided that numberpurchaser shall sell or agree to sell or otherwise dispose of sugar or deliver or agree to deliver sugar or remove any sugar from the bonded godown of the factory in which it is stored, except under and in accordance with the directions issued in writing by the Central Government or the Chief Director.
The Central Government, however, rejected the claim made by the appellants on the ground that they had number been able to establish fully and clearly that the incidence of higher sugar price was number passed on by them to the companysumers of the end products.
The price of levy sugar acquired by the Central Govt.
The appellants thereupon preferred a Writ Petition in the High Court but the High Court also rejected the Writ Petition on the same ground, namely, that according to the finding recorded by the Central Government the appellants had number been able to establish fully and clearly that the incidence of higher sugar price was number passed on to the companysumers of the end products and since this was a finding of fact base on evaluation of the material and evidence produced by the appellants before the companypetent authority, the High Court would number be justified in interfering with the order of the Central Government.
The appellants purchased from K.M. Sugar Mills Limited, Motinagar, Faizabad a certain quantity of sugar under a release order issued by the Central Government under the Levy Sugar Supply Control order 1972 and they lifted an aggregate quantity of 400 quintals of sugar on 12 8 1972 and 16 8 1972.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Pursuant to this Order the Central Government introduced the policy of partial decontrol of sugar in August, 1967 and under this policy, the Central Government adopted a scheme of acquiring levy sugar from the factory.
Since a sum of Rs.
234.89 per quintal and the total excess amount charged by K.M. Sugar Mills Limited from the appellants thus came to Rs 22681.88 for which bank guarantee was given by K.M. Sugar Mills Limited in favour of the Registrar of the High Court.
9820 of 1981 Harbans Singh for the appellant.
22681.88 from the Levy Sugar Price Equalisation Fund under Section 6, sub section 1 of the Levy Sugar Price Equalisation Fund Act, 1976 hereinafter referred to as the Equalisation Fund Act .
1487 of 1984.
Abdul Kader and G.S. Narayanan for the Respondent.
190 per quintal but by virtue of the stay order granted by the High Court of Allahabad they recovered from the appellants price at the rate of Rs.
The Judgment of the Court was delivered by BHAGWATI, J. This is an appeal by Special Leave directed against an order of the High Court of Allahabad dismissing a writ petition filed by the appellants claiming refund of a sum of Rs.
The appellants thereupon preferred the present appeal with special leave obtained from this Court.
The writ petition filed by K.M. Sugar Mills Limited against the Sugar Price Determination Order, 1972 along with other similar writ petitions filed by other manufacturers of sugar was however, ultimately dismissed by the Allahbad High Court in November, 1974 with the result that the Registrar of the High Court became entitled to encash the bank guarantee given by K.M. Sugar Mills Limited and a sun of Rs.
This statement was number at any time disputed on behalf of the Central Government either in the order made by the Central Government rejecting the claim of the appellants or in the proceedings before the High Court.
