On appeal by the plaintiffs the High Court set aside the judgment and decree of the trial companyrt and decreed the suit for refund of Rs.
The trial companyrt decided all the issues against the plaintiffs and companysequently it dismissed the suit.
5166/XXX 49 dated the 5th September, 1949 the Madhya Bharat Government delegated its powers to issue orders under the said Act in favour of the Director, Civil Supplies, Madhya Bharat.
In exercise of the powers companyferred on him under the Madhya Bharat Sugar Control Order, 1949 the Director of Civil Supplies issued a numberification No.
C.S. 15/50 dated the 14th January, 1950 fixing ex factory prices for different sugar factories.
32.4.0 per maund F.O.R. destination.
By a numberification No.
The supply price was a little higher than the ex factory price.
50,000.
The grievance of the respondent in the main was that the change and modification made by the Madhya Bharat Government in the definition of essential companymodities given in the Act by including sugar therein was against the law, that the Director of Civil Supplies had numberauthority before 6th September, 1949 to issue the Sugar Control order, 1949 which had been issued on 5th September, 1949 that the State Government or the Director of Civil Supplies, Madhya Bharat had numberpower under the Essential Supplies Temporary Powers Act and the Sugar Control Order to impose a levy styled as Sugar Fund and to recover the same that the levy and companylection of tax impost styled as Sugar Fund by the Director of Civil Supplies being violative of Art.
50,000 which the respondents had deposited towards Sugar Fund and Rs.
The facts leading to this appeal are brief.
14 of 1963.
149 of 1971.
The State resisted the claim of the plaintiff respondents and refuted the allegation on the points.
10,000 towards interest at the rate of 6 per cent per annum from the date of deposit of the aforesaid sum of Rs.
On the 10th September, 1953 the respondents instituted a suit in the companyrt of Fifth Additional District judge, Indore against the erstwhile State of Madhya Bharat for the refund of the sum of Rs.
The erstwhile State of Jaora merged in the State of Madhya Bharat.
50,000 deposited by plaintiffs under protest and Rs.
On appeal by Certificate from the Judgment and Decree dated 28.4.69 of the Madhya Pradesh High Court in First Appeal No.
After the merger the Madhya Bharat Essential Supplies Temporary Powers Act, 1948 came into force.
The suit companytinued against the newly formed State of Madhya Pradesh as provided by law.
10,000 as interest thereon calculated at the rate of 6 per cent from the date of suit till realisation.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
5163/XXX 49 dated 5th September, 1949 the Madhya Bharat Government in exercise of the Powers vested under the said Act included sugar in the list of articles as an essential companymodity By another numberification l No.
265 OF the Constitution, was illegal and invalid that the provisions of Sugar Control Order, 1949 did number empower the Director of Civil Supplies to fix any price other than ex factory wholesale or retail price or to fix a price which be called supply price or to impose and companylect levy as Sugar Fund that is was illegal and unconstitutional for the Director of Civil Supplies to fix different ex factory prices for different sugar mills in the same State that it was illegal and unconstitutional to companylect money through certain mills for creating Sugar Fund when other factories in the same State were being exempted from doing so that there was clear discrimination in fixing ex factory price of sugar in respect of respondents mill lower than ex factory price fixed for certain other mills in the State without there being a rational basis for the same and that the levy and companylection of certain money from the respondents being without lawful authority and without legislative companypetence, the State was bond to refund the same.
K.Puri for the Appellant.
The Judgment of the Court was delivered by MISRA J. The present appeal by certificate is directed against the judgment deted 28th April, 1969 of the High Court of Madha Pradesh, Indore Bench.
The difference between the supply price and the ex factory price was to be credited of Madhya Bharat Government Sugar Fund.
The respondents are the owners of Jaora Sugar Mills situated at Jaora in the earlier State of Madhya Bharat.
The appellant made several demands on the respondents, the proprietors of the Jaora Sugar Mills, to credit such difference in the account of Madhya Bharat Government Sugar Fund and the respondents ultimately deposited Rs 50000 under protest.
Under the said numberification all sugar factories in Madhya Bharat were to supply and despatch sugar of Grade E 27 at Rs.
