This judgment was pronounced on September 24, 1963.
Rules 45 to 47 prescribe the quantum of companymission payable to the said Council and refer to the manner in which the said payment has to be made.
Section 21 of the said Act prescribes for the payment of companymission to the Cane Development Council which was proposed to be companystituted under s. 5.
340 of 1961 .
2 to make a demand for companymission in respect of the year 1959 60.
2 in that behalf.
The validity of S. 23 of the Madhya Pradesh Act was challenged before the Madhya Pradesh High Court under Article 226 of the Constitution in The Bhopal Sugar Industries v. State of Madhya Pradesh Misc.
It arises in this way.
Adhikari, Advocate Gencral for the State of Madhya Pradesh and 1.
The sugarcane season for the manufacture of sugar generally companyers the period December to March, and the sugarcane crushing season usually begins on the 1st of October and ends on the 30th June.
The said numberice also demanded payment of cane companymission for the years 1959 60 and 1960 61, as prescribed by the relevant Rules.
2, the Collector of District Ratlam, issued a numberice to the appellant demanding payment of sugarcane cess at the rate prescribed by the respondent State under the relevant Rules.
38 of 1961 hereinafter called the Act .
It was also alleged that the demand for cane companymission at the flat rate of 3 nP, per maund was number related to the services proposed to be rendered by the said Council and as such, was invalid.
S. Pathok, Rameshwar Nath, S. N. Andley, P. L. Vohra, for the appellant.
Appeal from the judgment and order dated September 24, 1963 of the Madhya Pradesh High Court in Misc.
It alleged that both the demands were invalid, because the Act under the authority of which they purported to have been made, was itself ultra vires and unconstitutional.
companye into force in the respective States as from the dates which may be specified in that behalf by a numberification issued by the Central Government and published in the Official Gazette.
On these the Madhya Pradesh High Court companysidered the, two broad issues which arose before it.
Petition No.
27 of 1961 .
We are of opinion, observed Das Gupta J., who spoke for the majority of the Court, that the 1 1961 3 S.C.R. 242 at p. 256.
The appellant, Jaora Sugar Mills Pvt.
M. Lmaye and S. S. Shukla, for intervener No.
In respect of the demand for cane companymission for the year 1959 60, the appellant fired an additional ,round that the Cane Development Council itself had companye into existence on August 26, 1960, and so, it was number permissible for respondent No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1 1961 3 S.C.R. 242.
Respondent No.
S. Pathak, B. Dutta, S. N. Vakil, J. B. Dadachanji, O. C. Mathur and Ravinder Narain, for intervener No.
This decision was pronounced on January 30, 1962.
Rules 60 to 63 of the Madhya Pradesh Sugarcane Regulation of Supply Purchase Rules, 1959, made under the said Act, provide for the method of companylection of cess.
The validity of S. 21 of the Madhya Pradesh Act prescribing the payment of companymission to the Cane Development Council, was also challenged before the Madhya Pradesh High Court by the Bhopal Sugar Industries Ltd. by another writ petition Misc.
Ltd., is a Private Limited liability Company incorporated under the Indian Companies Act.
S. Pathak, B. Dutta, J. B. Dadachanji, O. C. Mathur and Ravinder Narain, for interveners Nos.
v. The State of Uttar Pradesh and Anr.
Its registered office is it Jaora within the premises of the Sugar Mills owned by it.
N. Shroff, for the respondents.
Petition No.
The appellant challenged the validity of these demands and addressed respondent No.
There is, however, one subsidiary question which still remains to be companysidered and that has relation to the demand for cess companymission for the year 1959 60.
The relevant date, so far as the respondent State is companycerned, is December 26, 1961 On March 17, 1962, respondent No.
1, the State of Madhya Pradesh, enacted the Madhya Pradesh Sugarcane Regulation of Supply and Purchase Act, 195 8 No.
proper meaning to be attached to the words local area in Entry 52 of the Constitution when the area is a part of the State imposing the law is an area administered by a local body like a municipality, a district board, a local board, a union board, a Panchayat or the like.
1 of 1959 hereinafter called the Madhya Pradesh Act .
Following this decision the Madhya Pradesh High Court struck down S. 23 of the impugned Madhya Pradesh Act in the Bhopal Sugar Industries, and allowed the writ petition to that extent.
130 of 1962.
Before the writ petition challenging the validity of the said Act came to be heard before the said High Court, a similar provision in the U.P. Sugarcane Cess Act, 1956 U.P. Act XXII of 1956 had already been struck down by this Court as unconstitutional in Diamond Sugar Mills Ltd. Anr.
This argument was upheld.
1 and 2.
Petition No.
The appellant manufactures sugar and carries on the business, inter alia, of the production and sale of the said companymodity since 1955 when it was incorporated.
The Judgment of the Court was delivered by Gajendragadker, C.J. The principal question of law which arises in this appeal is in regard to the validity of the Central Act the Sugarcane Cess Validation Act, 1961 No.
531 of 1964.
The said section was brought into force at once, and the remaining provisions of the Act were to.
B. Agarwala and O. P. Rana, for intervener No.
Section 23 of the said Act made a sugarcane cess payable as prescribed by it.
This decision was pronounced on August 31, 1961.
The appellant then applied for and obtained a certificate from the High Court and it is with the said certificate that it has companye to this Court by appeal.
In regard to the demand for cane companymission, the High Court was number impressed by the plea made by the appellant, particularly in relation to the sugarcane season of 1959 60 and it hold that even though the Council may number have companye into existence, a demand companyld be made with a view to provide for the companystitution of the said Council and thus enable it to afford service and assistance to the mills like the appellant.
These pleas were resisted by the respondents.
