High Court Karnataka High Court

M/S India Sugars And Refineries … vs The Secretary To Government on 6 January, 2009

Karnataka High Court
M/S India Sugars And Refineries … vs The Secretary To Government on 6 January, 2009
Author: V.Gopalagowda And Swamy
IN THE mar»: com? or xARNA'rA;§i.%a 1%  ' ;   

CIRCUIT BEHCKAT DHARWAI1,     %

Rated this the 61:13. day of

FRESEM

THE HOIWBLE mR.JUsTIéE§i* mmua 
THE HOWELE nm...mfsrrzc:s  Namwgana swam?

'W A 1531,5139  (Gn¢+:é;fi$)

BETWEEN:     

M/5. ENDIA sU:;:;«.ARS'.,& REFINEZREES agsm.

HAVENG  '§:z'£:::r7;r;:,E":;T132:§;*?:E1f>-- QFFE€§E";AT
C;EIETWAD€}E«5832'1"1--~.__W  M J

HQSPET, mS'I'.B%3IJLARY"'   

REPR. BY ITS-.MA_NA'£}ElR .. 

me av, D,  S.SH1V,%E{UEs&--AE<--._ "

3/0 S.3x'§_%;'ERANNA' ~  ,.'API~'ELLAN"3'

x  1% fig?' S§"{§;&.E%Tj.:I'€3vSI§ASHIBE£;'aRA 9:}? ;<;E:i~;W & Ci€3»~--1'%'a.}:)V)

  

A 1 ':':%:;*.€«: S-E.CR ;E'£'§aRY Ti} GGVERNMEIQT

 i\;}  _  

 SQMMERCE & INDUSTRIES DEPARFMENT

N "G<;3~_VE§€NMENT 0;: KARNATAKA,

'--  v1_sj*Ij";'L<::ER:NT'§::~§m::~é*z?L%ificuiigjfi - = " 
HQSPEIT SUB DIVISION * ~   
HQSPET M-» 588 201

6 'I'HE ASSISTfid'sET cozvm1ss;{):¢1§;RVV%'w"
.H<i)S."f~"'E'I' SUB }3I"R;'ISl?<.*3?;%k'._    
$0393? W 583 201 

7 H0393'? RA1T§--:ARsa %$A_mA  ..  A
181? Ram,  % «   
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ma. :3,  VK?s§"'FR\Q§:§._ALAMA'{"FI
POST E-*JA€?»A§vZAL" If .  
NAiNEG;§%.LI'E'ALL!K. -- _ L _A
IZ>ES'?_VBAG;fi;L_I%{(}T'-   ...RESPOE\IDEN'FS

 V'  . -«(B§*' :SR'fE. C';S.PA'fIE;¥'AGA FOR R 14%
. '$9: '»?.VP;I{£}VLKARN£~§DV FQR R?)

-000-

This   filed under Seci:io11.4 of 333 Karnaiaka High

" ivéfiajéirt Act, .1961, praying to set. aside the order dtfij 1.2;':Z0{}8
.1 --V..pa:t~;:s;:~:~d  WP N.3 1332/ 2008.

'   REA coming on for orders befom the $01,221 this fiay,

 GOWDA,J., delivered the fcliowingi

mnemxr
T}'1iS awit appeal is directed against the zssrder

d't..5/ 112;' 2098 passed by ma iearrzad Singla Judge OI'{h'3f'§.i}g
E§2x://

 



Esme 0f natice to the rr3sp(n"1dent;S in writ. petiiiazx §°§;<::*..<V*i§_T.._f:;%";~:--':
appeliagzt, in the Writ petitizm the fefiewimg :*e?;i§%§f$' "ei1I:,j*;.:i§.f iiiée

§E'}.{€I'i111 prayer ware sought. 
(a) issue: a Writ 0:" 1'r:aI1déz;:{:t;s=.{1irr':w,<:tii"1g tbgé"---, if
rfizspondent 1 to 6 is step'-._ the  Ai}1ega}'=; 
t:r'a1::sp€::'t/ fixport of sugagtezne frcym the  §f'€3Sj§'i"¢It':fi{§
area 0:' the petitioner fact:21j§'=. as n0:iii:er:i..= tinder
netificaticn Vida Annex:.11*e~A_,__  ' '  

(33) Issue 21 "«£7'ZE*i'f  Qf' Z1"i;ajT1€}fl£Z£¥.f1}T§_1.&$-, €fi'£'€Cf'.i€3I1,
order preventmg thefl7"?"17'E3:s};1G1?.%.'§.<"?1V?§£ 02" 1:3
members or  gowy::':'*s- -- [of " ._s;~a11gai"(:aIn5e of the
petitioners  ,t*;:~*;$ é:"ved ;2":LI:'éa'*. "§r§;;_1;____VVf'transp01'ting
sugarcAa11e..<::3x1tif;§::y"trc1<§I} '1956."=--ii';;.  V'  

(C) Issue: a'?.w:'i:"<;rf mandamus, dircjction :0
rcspoiadéfit 3 €0.t€:~..L4t0.i:1%§i%ate })r0ceedi11gs Lindfir the
provisitrngm' of' VEJssénf;ia_1"'Comzlaedities Act, 1933
against V'Lr§?;sp0nd€'.at' No.8 for violating the
pro§:i$.i<_:ms of..Sug31'Cane {Central} Qrder 3.966.

V  Iérzue: writ of Mandamus, directiozi, orders
 ' gii1':3:ct,i3{;ig~ £116' respondents No.7, its 11::<::m.ber$ and

grows;-“.Sf”–«.,{)f .A’.T’*.’::L’£g&:1*ca::ze to suppij; sugarcane £0
‘petitioner’L§;L1’gar factory ag contempiated undar the
§31′(3E?:i$5._:}}f;’:S4-é}fSi1gaI’C£i1″1€ (Cantroii Order, 1966 and

_ _ (‘€31 Issue such other di;r’€:c1:io11, aerdsr as
éfieans fit in t:h<.=: facts and circumstas;1.c<:s of the
case irzciuding this cost.

INTERIM PRAYER

F01′ the reasons stated in para 39 abave, K is
respectftzfiy prayfid that, the raspondeni I :0 6 1:0
take i1ZI1I}1€:di&€€ steps Ea praveni.

tra11sp0r1;i;.z1g/ expo’rf:iI1g Qf Sugarcans by the
respondent. No.7′, its members or grewtars sf

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parag*aph ‘G5 application, it is stated as §1&re11mis::r:

sugarcanc from peiitiorzers sugaritane @’0\§£.’ifig’
mserved arsag to any Qthfsrr sugar factory i11c1.}.;_éi.i,.iVigL -. ‘2
respondent 1103, pendixlg dispesai of ‘f1I€–:__abGVC–.. -1-
Writ petition in the i1f}tSI”€S”t ofjustice and eé;1;;itjg,*’?. L”

2. This {hurt at the stage
20/12/2:303 passed the fcsiiswifig %’ a R
“C’rI_” R £5
Heard courage} thsi’ A —

Enterglrn order ffii2;jé¢teci to

strictly? coillpiy glaussié ‘:’3.1;:ga1*i:arr3£%” Camtrol
Oréér and p:~ee.;:;:: ififigai *:mfispai”tati.:3m.

33.53 135 ‘ .. w. ‘ 32; S. ..,_??i”Gcess withm 3
days; fai1ifi:g.L*%_.x:{I;i<;h ._ai.ppea1« stands dismissed
withoizt V 'r&f§:r-e1f;::<:f_ ~ . ' to Bench."

:3. g ‘rFh61″é&.§§BI” afipficafion is flied by the 7*?”

..;_?’/ 12}§Q08 seeking ta Vacate the inzerim

01*'(ii€;?’r:E)f§g’ documents as Annexuresmiil is 52?. In

_ The respondent submits that, due to the
” misztnazaagenzent and other Variaus reasons, the
‘g_a’pp:e11an’z; Company has become a sick i11dI.1Strj;i
anti hence they have apgaroached the BIFR for
‘ ‘V V. —-r€h3.bfiitatiQr1. The BIFR seems to have declared
the saié cempanjg as sick ixadustry. The appi-Lilansz

is not at all paying the 3.1110111}: to the farmcrs due

to them regulariy. I11 fact in the year 290:2»-«O3 and
2003~®4, ths company has net paid mifiixnum
price. fixed by Ttha central gavarnment. The
appellant company has to pay about Rs.2.00

§’e:~.¢./

Vt

crores ts tha farmers’ The respandarri associa4:&:>:’1«.._
hag approached the fiirscter of $ugar Cane, fez? , ”
pajéfiiiéflt cf the arrears of the sugar can:-1: _.}:vla-‘;§.<~:;¥.::*3″”–._I’e*i–fi..”§~7′.,
But hmvever, the appeiiani comifzaxiy has ,0;1i};f~.._. ”
Rs.83€}/- pm’ MT. Similarij,-:5 for the ‘year 2i}£*.3V~{)4,”;

221 minimum price of Rs.895,, 5{}_ pe:”‘l\.z1.’i’,. uw_aS”~.:{‘i§;”:3s:i”

by the {tantra} C«ovcrI1m€111t’.a._ But i10v_sée’\5er,V;th€
appefiant: company; 313$ p;~3i{1–. “§?sI840f– Apex’ ..ii}’E.’I’.
Ths ‘?*~?* raspondent’ ._é<;;?;so:§ia§:iQ'r1i1a7$.% appmached
the Director at" S"tw1g:éar¢ai.1z1<f:V.'¥"tg} 'i.a:pp1*0§:*iate
Eléititfii agajnst__the appgiiarit c01'fi}3a11}§~–'t0 §'t3COVf3I'
tbs ¢':ifli10t1I1t_f'_{'£i}IZi§_ th-:3 ap§e3iiaf1?"_z:_Gmp»any 3116 pay
the same its }}*.':jh,1*;{‘3.:e3r, on 26/412008.
The copy I:)f 71:.I3;”;: orrlers’-§+aT$S€d fiby ‘C1116 Directm’ of
S1.zgarCa11e_é-.re Iifz;::z*eW.i;§:I:1 p1’d<.'hiC€d anti marked a5
AflI}€LX11I_'f3S-VR §_ R'?,."'~'I_'1'm Direrzter of Su.ga3;<:ax1e
even fl1<::i;1gh has'""§)a;S$éa:1 i}he Grder an :26/4fi1E0O78,
the agpeliarzt CeIi3p.3;13:1'1as not paid. the arxiount

as directeii. by Ehr: Iii'-ireatsr of S11g&':§1'C{:1l'1€$"

13% para i3"VQ"'—';"~3;«1e application, ii is spaeifisaily stated

*4?» Vthat 'thé appeliarat, compafiy, without: there

'–…»being r¢as;é}r::: has urfilatezaliy cancaliezi the agreezizemt

1/2{¥€?§x":.a:1d refusad 1:0 pay' the sugarcane prics at the

'1._'_:"agi=§é'::{i_:4é}:e. It is its case that the apgeliant csnapany hag ta

. aipproxinzatalgs R366 csmrcs to the sugarcazie grewsr

1 * ' »f£;;z'm&1*s.

5. The Iearriad 301311361 far the 73% respondemt

Mr.V.P.Ku1}<:ar:1i further suhmits that the farz11€1's, whe are

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the members of the 'W1 respoiisziéizt, appr0a£7.hfif:i:§'4'['-.th€

mazzagament sevsral timeg and deznandé-2d to paji {héii?L:'~d;ii'.'::g§;

that the appeiiam; héreilu, just to 3;voj{§…pg3.y*n1::%ifi{"i1é:;3 " »

N0. 101/200? and obtairzed iI}j111'iC£iC.i_ 1 ~';c:1*:t.'1.«s?:r"

pztzvented the farmers from"j.;;ip.proa::hj11g_ T'i§11Aé«:._j"appt§£}an'£~ '

company. T336 interiin 0rci_¢r gra;f1.:%§§iLv.i1i.}.AOV};j;'2OO7 by
the iearrxed Additional Cfifiril' glhudgg F (3., Heme:
is prsduced at An§1é:§§;L1:fe~§§'? '.i%151e:..}«:%:;')1icat:1on.

5, A11 Apieadecz aims: in the
writ petiticag learned cminsel fax:

the 3.ppa1i%:*1¥;;! “Mr. ‘”subzI1i*:S that they are met

gerr):1an<:.ar:_d r<%:'1<~::1.Ie.1"r£:"' faf €.E§e purpoge of seeekisag the fibOV<fi

'gf¢i§€fsV if; {fie aifiii petition or the ir;€.€m'm. order in this wrii

a_§p:?a£V«ag;$i;is;s'§ ire fSfp.<§1'1t disputed by the learned counsel for the

:’éi§:;§féI3aT:§t i1*1-ail: it is deciared as 3. sick industry under the

1tjfQ§.ri’s§i’0:i:§ Bf S.I.C.A Act. [:5 rehabilitatiaxa ififilfifid unciar tha

VT :’§§:’§’:€r1£e approved by BIFR is 3:13} subsisting as on mday.

Ffirmar 13118 erders passed by flhfi’ C(i}I};”i111iSSiOI}€I” for Game

Devalepment as per Ar1neXures~R1 ta R3 dirscting the

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na.*~:1_ order made under paragaph 6?} cf sub–<:iat;$e {1}
a.p;j;§«ies, 311311 be bound to supply or purchase, as the
799456: may be, that quazitity of s'LzgarcaI1€ swayed by

' V '"a3:1}:* Wiifui fajiure on the part of thé e3u.garcaI1s

resarvefi area, the quantity or percentag6:g-
operative society of sugarcanyé: “‘g1?r5fa;és”s’_’
operating in the reserved (area; ‘i:hI’9u1gh.__s’u;:1_1″‘VV
society, shail supply “iihé “fZ*:*..<':;;v:;=:».5;..',,,.VTAi1TA
(30I1C€i'I1Cd§ : " '

((1) direct a taugarczane g:*t3§%*::;r 0:' éT:1ga:*Ce.r1e
growers' czwoperaigivtz—– sr}Cir?:_ty, "supppA_E§;ir1g
sugarcane to __a'i'~.. fa<;€tor§;,f" ~._£:H.}.€§, the factory
concerned to 611:6: a'I:: :2ggi*¢r::m€nt to
suppiy or pnrc11;¢1_s;e3.VVas_ fif1€"C:raSE3..';3fI*e3u;'§F be, the
q1:ant:ity_:of__sugjérCa11€ mlcisf paragaph

(a) <:Iiire<:.: nii khé1iuj._$a1'i séggar or sugar shall
,§::r::'= .m27:111ii%3;.€tL11'?¢d. frtjrn-v"Sugarcar1s cxctept

1._un&§€1*’€¥._{1CiV £1″; acfitzgjdaiiae with the conditicns

Vspécifisd ~§ht:*_1ic:g:1¢e issued in this behaif;
if) p1’0}2i}3i.’i: Q1′-_re’~:.tr’§;»:’;ii 9:’ othmwise reguiats the
” ‘mgport sugarcane fmm any area {incltzding

a_ ::;eserved»- —– -area) except; under and in
ascofdgancc with a yarinit issued in mi:-3

VA

(~23. E23813? sugarcane gmwer, sugarcane gowers’
<:0–r:}p<:ir2~;1tiv6: saciefcy and factsxy, to Wham or ta which

ffihe ageetnamt entered inte under the paragagzah mad

gmwer, sugarcane growers' cooperative society or the
factory to (10 so, shall coxmtituta a breach 9f the
}Z}'I'()ViSi01"1S of this (")rd6z':" ¥

Ym//

10

10. Thee ieamed 931311361 for ma Eippfiflfifit.-=f__}}8C€{i

strong relianctsz upan the Cforzstitutional Beyich ci:::gcH:f:%;is:§;i2–§;;fV’f3:”:€:

supreme Cami m the case of UP. CO–QPER}fFI§?§;”

UNIGNS FEBERATEONS v. WEST’ “.”S:I%VI:.€}f$’§:§€’VV: rvi::,i;~;S

fi;SSC}CIATI<I3§sE & QTI<{E3I~&S e?;:i:.,Vetc.,» «g:;éx:::{L%'2of4 .%%L§§;g: :3€’;§*;’}.V i§1;rcz:1fiéI,i_”t}1 eState can fix price

for purcha-.fse.£)f A é’e;1_gg{i’::,2z:1s».§$’c2″Q:* é.1’1€i…abave the minimmlz price
fixed by the Gentrai’ Tina word “GOV€1’I.iIIl€:fl’£” in

such pfGf’OH1i;az4-.4_}é1g3f€:€n1€’31s:’«f€.f€1’S in {he State {i’rav$r1’2m€m

3154;). ‘?§:£f::r<f:1_i<33'<;, thé""€:s::.u;'1sei has subzrzitteci that the decision

i'v$'-ap§:31ica§31§ '*:<§ facts 0f the case: ag the word 'mgulatfz'

%.__ ;1sed in. "iihe if} the Sugarcane: Contra} Omar has gas:

wider maégifig and therefore the I'€Ii€fS sought; for againsi

" x:é€;'per1éents parti<i:ulaz*Iy Regpondent N032 311:3

V' f+r;é*$poif:dent N033, are maintailiabie.

11, The above said subniission 1% asgaiiad by the

~ £earr:€{i COURSE} for the 791 .F€Sp0I1d€I1E com.eI1d.i11g {hat the

mid decisien has no application to thfi facts of tha saga; that

Mx

I1

Ehfif matter is requirsfl :0 be cazasitiered by tha

Judge with rarference to the reievant facts pa2fti§–:1:’ia§~§f§%’*

regard is agraement. to be ézzterarzi i:at.Q…b:§; 513$’ “g§t’€:éw¥:::*S”‘o:’«wiflé V’

2,1 {:<3~0;:%e:"a§ivé: society of sugarcane "§?;*0:*é%_.?€14S in 81%: ;4;11gh :§:§r1&’v._j$’::g:2:i’ca11€:’~ V

£3 gown in tat: reserved agfea, f1″§t3f”–*.”, iS fir; staf:;1t€3r}%\..:3b1igati01’1
fer fjilfiffl to supply the sa1i1’€:T ti)’ a§’§5§i£.§a:nt iaugar factary,
Themfore, he csntzérmis ‘ ;;:*§’§i3R§C&. xplaceci upozx {ha

d€CiSi0I’.l of the “‘;”§”L:_p%f:%ri£;e’ bjgr-« _*§;11€» appafianfs (:€}*’L£11S€},

I”f:.ff:IT€C}. t().r’¢3E}€}.V;€ ,.V -ig “ii::Z$p3.9;:<:d, E23396 it is 133: appiicabia E0

the fasts {2f"'t31i5$' etasjéx' 'V

12. ‘eViiih_ r:§:E::é5z;%geV:%:_”..:%¢ the afmesaid rival legai

mzaténtis-gas ‘x33:*ge<i"':”cic::*

vpassa’::i ‘b3é* kffiépiflg in view that the writ, appeal is

pI*’é:fer:’€:€i :3g a§31$t the amiss ordered in the Writ petition.

‘ . ‘ substanfial question wcmifi 833136 in wr*iI:. appeai

‘fixer; an i1″l€€I’1GCifi’,GI’§£’ order OF main {}I’d€f’ an gmarits is

.;g_af¢sser{ie1″ where

\’vvL//

12
i}{}?,iC€ is igsurzci and interim 0:*{3e:r is»; m’*d.t::’é:ai 2.3; ‘$3.15: §€:2s.:me:ci

Sifigifi .}’t1dg*a €:’;Xs€’:’I’C§.S}:11g his {iiscr6ti011ar§.; pawer. if 35%;. sat

asiziét {ha Oftifii’ is$’:.::i2″1g ncstice in tbs writ pc:t;:if,i'<3:1_;-.._:ti;:z§§::*e%

I"€IE}8i1'IS I10tl"1i:"1g fiiinf <:onside:'ati:'31"1 by this £1'_0'L–::/tt_.{f~., T'}f1.:€3€7§.A z';:fiTt V. 'V

appeal 5:311:16? be entertained 31 3.11. ::.§}.!11€:A:1. f5£1§;e,.I"ag§:1*:1€é

misi er consideraiticm. of interim: p:4é:3ei¢1’V-.Q1’11y.’af3;é1″ héexxing thee
corxtestizlg respondents rxamieiy ‘7E’t31;.;:”<~3s"p':)zi:f.*3.:t31§1t and also ether

r€:sp0ndeI1t3, the interim Qfiiflgf' is :3-a§;séd*_ag ;%s1§iist. R3.

14. ‘?31I3di*;3§utégi’–.fact”ihai the a1;>p::£1a11t {:m:za.pan§;
is a sick ifédiifitfii? _ tize Efiaard of Irxdusiriai am}

Piilanaiai }7£e:C’t:.:1str1_1c:tioi1,’>.- ‘T’ha reT§’::ahi1:%’ia_tie11 schezne

_a§;3;3:fQv;é§i’°~ b;j.zt.j’:’;_€ BTi§’.F:’_~—i3″s’5′::’i1} in apézrafiera. This fact is not

Séatéd *petiti0n 01′ in this wri’s: appeal, But the

‘ V’ 3,…v}ifig&fi{‘i>};iVé3€tf;Véé§?; E116 mtzmbers of £113 ‘?”=h respojgdsnt ané the

-4%T.[‘_;’~a.jg§p§1£ant f.E> crarss. ‘§’}:e1*e:f<};'e, havizzg

regard to the tiridisgltttfid fa<:t$ r1a:."z}.eIjs_;' ':'.he:"'<=:– E3 353.0 éigffifiiiififiiii".

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