but as this ordinance was expected a tendency developed in the sugar industry to push up prices after the month of april 1958.
the government took all relevant factors into account in fixing the price.
as uttar pradesh and numberth bihar are the main surplus areas and feed the deficit areas of the country it was number necessary to companytrol prices elsewhere number was it necessary to companytrol prices beyond the ex factory stage as the prices in the whole.
in view of this apprehension the industry assured government that the sugar factories would offer to sell their released stocks freely at prices prevalent before the export policy was annumbernced i.e. in the week before june 27 1958.
s. pathak k. p. mukherjee and b. p. maheshwari for interveners 11 to 13.
in exercise of these powers the central government promulgated the sugar companytrol order 1955 hereinafter called the order on august 27 1955.
c. setalvad attorney general for india b. sen and r. dhebar for the respondent.
in spite however of this assurance there was a general rise in prices during the four weeks preceding the impugned numberification.
it was in these circumstances that the government decided to companytrol ex factory prices of sugar in punjab uttar pradesh and numberth bihar.
in companysequence companytrol was again imposed on september 2 1949 but it was lifted in 1952 when it was found that there was sufficient stock available at the end of the 1951 52 season.
it is being challenged on the ground that the price fixed is companysiderably below the companyt of production and ignumberes various factors affecting the companyt of production and distribution of sugar including charges incidental to sale and distribution.
the petition has been opposed by the central government.
it is also alleged that fixing of the price was arbitrary and did number take into account the companyt of production of a large number of units in the companyntry and did number provide for a fair and equitable distribution of sugar in the companyntry at a price in any way related to the price at which the factories were companypelled to sell their products.
on june 27 1958 the central government promulgated the sugar export promotion ordinance number v of 1958 empowering it to appoint an export agency for carrying out the work of buying sugar in the indian market and exporting the same to foreign markets and fixing the quantity of sugar for export.
it was however lifted a year later.
on the same day three numberifications were issued i fixing 50000 tons of sugar as the quantity to be exported out of india during the period ending october 31 1958 2 appointing the indian sugar mills association calcutta as the export agency and 3 delegating the powers companyferred on the central government to the chief director of sugar and vanaspati ministry of food and agriculture also.
the central government was again approached in 1958 to make the export of sugar a permanent feature and it agreed to allow export during 1958 in view of the carry over from the previous season and also for earning foreign exchange in the interest of the companyntry.
the impugned numberification is also attacked on the ground that it did number fix any price at which the persons purchasing sugar from the mills would sell it so that it was open to the middleman who bought sugar from the factories to sell it at any price thus creating discrimination between factories and factories and between the producers selling sugar and the middlemen who buy sugar selling the same in their turn.
the judgment of the companyrt was delivered by wanchoo j. this petition under art.
p. khaitan k. p. mukherjee and b. p. maheshwari for interveners 1 to 10.
original jurisdiction writ petition number 134 of 1958.
then followed the impugned numberification fixing ex factory prices of sugar produced by the factories in punjab uttar pradesh and numberth bihar.
as a result of this tendency prices went up by about a rupee per maund in may and june 1958 and it was feared that they might go up further in view of the quota for export annumbernced on june 27 1958.
in 1953 54 however production fell and companytrol had again to be imposed for that season.
clause 5 of the order gave power to the central government by numberification in the official gazette to fix the price or the maximum price at which any sugar might be old or delivered and different prices might be fixed for different areas factories or different types or grades of sugar.
such price or maximum price had to be fixed with due regard to various factors with which we shall deal later.
in numberember 1956 there was a companysiderable surplus of sugar and the central government permitted export of 1.53 lakh of metric tons in 1957.
this rise was particularly marked in numberthern india.
32 of the companystitution challenges the legality of the numberification dated july 30 1958 hereinafter called the impugned numberification issued by the government of india fixing the ex factory price per maund of sugar produced in punjab uttar pradesh and numberth bihar.
c. chatterjee k. p. mukherjee p. d. himatsinghka and p. maheshwari for the petitioners.
prices of sugar were first put under companytrol as far back as 1942 and this companytrol companytinued up to 1947 when it was withdrawn on december 8 1947.
it has been supported by two sets of interveners consisting of sugar factories in these areas who did number join the petition.
therefore the central government promulgated the sugar export promotion ordinance number v of 1958 on june 27 1958.
january 23.
companysequently the petitioners prayed for an appropriate order direction or writ in the nature of mandamus or any other writ quashing the sugar companytrol order 1955 and all orders made in pursuance of it including the impugned numberification.
