By Order dated November 16, 1967, the Sugar Control Order, 1966 was amended and the above mentioned Clause 4 was substituted by the following Clause The Central Government may direct that numberproducer shall sell or agree to sell or otherwise dispose of, or deliver or agree to deliver any land of sugar or remove any kind of sugar from the bond ed godowns of the factory in which it ft produced, except under and in accordance with a direction issued in writing by the Central Government.
Most of the Sugar released for open sale was removed from their go downs within the time prescribed but each of the appellants was number able to put into open market a fraction of the sugar released for sale in the open market as the railway wagons were number made available to them in time due to some difficulty or other on the part of the Railways.
By a numberification dated June 10, 1966 the Central Government in exercise of the powers companyferred on it by Section 3 of the Essential Commodities Act, 1955 Act X of 1955 promulgated the Sugar Control Order, 1966.
1750/ESS.Com Sugar dated November 20, 1967 the powers companyferred by Clauses inter alia 4 and 5 of the Sugar Control Order 1966 are made exercisable by the Chief Director or Director in the Directorate of Sugar and Vanaspati Ministry of Food, Agriculture Community Deve Development and Co operation Department of Food .
2, the Director issued release Orders dated December 23, 1967 whereby he permitted the appellants to sell the quantity of sugar mentioned in each one of those Orders in the open market.
The Appellants Companies incorporated under the Indian Companies Act carry on business inter aha of producing, manufacturing and selling sugar.
It reads No producer 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 godowns of the factory in which it is produced, except under and in accordance with a direction issued in writing by the Central Government or the Chief Director.
In exercise of the powers companyferred by Clause 5 of the Sugar Control Order, 1966 read with aforesaid numberification dated 20th November 1966, Respondent No.
Clause 4 of that Order restricted the sale of sugar by producers.
Thereunder they were required to dispose of sugar released for sale in the open market on or before January 22, 1968.
Those Orders were received by the appellants on the 27th December, 1967.
Immediately after receiving the Order, the ap pellants entered into companytracts with the dealers for the sale of sugar.
A press numbere dated October 21, 1967, was issued announcing the above policy.
They also applied for railway wagons for transport of that sugar to the States outside their own.
They have their factories either in Uttar Pradesh or in Bihar.
By numberification No.
