{"id":144714,"date":"1999-02-10T00:00:00","date_gmt":"1999-02-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/bileshwar-khan-udyog-khedut-vs-v-union-of-india-and-another-on-10-february-1999"},"modified":"2016-01-19T01:22:39","modified_gmt":"2016-01-18T19:52:39","slug":"bileshwar-khan-udyog-khedut-vs-v-union-of-india-and-another-on-10-february-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/bileshwar-khan-udyog-khedut-vs-v-union-of-india-and-another-on-10-february-1999","title":{"rendered":"Bileshwar Khan Udyog Khedut &#8230; vs V.Union Of India And Another on 10 February, 1999"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Bileshwar Khan Udyog Khedut &#8230; vs V.Union Of India And Another on 10 February, 1999<\/div>\n<div class=\"doc_author\">Author: V.N.Khare<\/div>\n<div class=\"doc_bench\">Bench: V.N. Khare, R.P. Sethi.<\/div>\n<pre>           PETITIONER:\nBILESHWAR KHAN UDYOG KHEDUT SHAHAKARI\n\n\tVs.\n\nRESPONDENT:\nV.Union of India and another\n\nDATE OF JUDGMENT:\t10\/02\/1999\n\nBENCH:\nV.N. Khare, R.P. Sethi.\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p>V.N.Khare, J.\n<\/p>\n<p>\tThe appellants in  these  appeals  are\tCo-operative<br \/>\nSugar  Factories  engaged  in the business of manufacture of<br \/>\nsugar in the State of Gujarat.\t  On  15th  June,  1972\t the<br \/>\nrespondent   issued   an   order   known   as\tSugar  Price<br \/>\nDetermination Order and on the same day.   The\tLevy  (Sugar<br \/>\nControl)  Order,  1972\twas  issued  under  which  the sugar<br \/>\nmanufacturers were required  to\t sell  sugar  to  the  Union<br \/>\nGovernment,  State  Government\tor  their  nominees  at\t the<br \/>\ncontrolled price of Rs.\t  124.59  per  quintal\tfor  D-Grade<br \/>\nsugar.\t The appellants challenged the aforesaid Sugar Price<br \/>\nDetermination Order and\t Levy  Control\tOrder  by  means  of<br \/>\nseparate petitions  before  the\t Gujarat High Court.  In the<br \/>\nwrit petition there was a prayer for  interim  relief  also.<br \/>\nInterim\t prayer\t as  contained in the writ petition reads as<br \/>\nfollows :<\/p>\n<p>\t&#8220;That pending the hearing of the  petition<br \/>\n\tyour Lordships will be pleased to issue an<br \/>\n\tinterim\t   injunction\t restraining   the<br \/>\n\trespondents their servants and agents  and<br \/>\n\tor  their  successors  in  office  as  the<br \/>\n\timpugned orders requiring  the\tpetitioner<br \/>\n\tto supply sugar to the State Government or<br \/>\n\tUnion Government or to their nominees at a<br \/>\n\tprice of Rs.  150\/- per quintal.&#8221;\n<\/p>\n<p>\tThe High Court by an order  dated  31.7.72  admitted<br \/>\nthe writ petition and granted interim order as prayed for in<br \/>\nthe writ  petition.  Subsequently on 29.8.72, the stay order<br \/>\nwas made absolute.   Some  time\t in  March,  1973  the\twrit<br \/>\npetition came up for hearing and on that day the counsel for<br \/>\nthe  appellant stated before the Court that by inpse of time<br \/>\nthe writ petition was rendered\tinfructuous.\tConsequently<br \/>\nthe writ petition the Parliament passed an Act known as Levy<br \/>\nSugar Price   Equalisation   Fund  Act.\t   197\t(hereinafter<br \/>\nreferred to as the &#8220;Act&#8221;).  One of the objects\tof  the\t act<br \/>\nwas to make provisions for refund of excess realisation made<br \/>\nby the sugar factories on the basis of interim orders issued<br \/>\nby the\tcourts.\t   After  the  Act came into force, Union of<br \/>\nIndia filed separate applications for issuing  direction  by<br \/>\nthe  High Court to the writ petitioners whose writ petitions<br \/>\nwere dismissed by the High Court to pay\t the  difference  of<br \/>\nprice between Rs.    124.59  and  Rs.\t 150\/-\tper  quintal<br \/>\nreleased by them on account of interim order granted by\t the<br \/>\nHigh Court  along  with\t interest.    The  High\t Court after<br \/>\nhearing the matter directed the appellants to credit to levy<br \/>\nsugar price equalisation fund  the  difference\tbetween\t the<br \/>\ncontrol price  of Rs.  124.59 and the price released by them<br \/>\nin respect of levy sugar sold by  them\tbetween\t 31.7.72  to<br \/>\n12.3.73.    The\t  High\t Court\tfurther\t directed  that\t the<br \/>\nappellants shall credit to the fund interest at the rate  of<br \/>\n12-1\/2%\t per  annum  on the excess realisation made by them.<br \/>\nIt is against this order the appellants came to\t this  Court<br \/>\nby means of special leave petitions.\n<\/p>\n<p>\tThis  Court granted special leave in all the appeals<br \/>\nlimited to the question as  regards  the  liability  of\t the<br \/>\nappellants  to\tpay  interest on the amounts which they were<br \/>\ncalled upon to refund the excess relisation meaning  thereby<br \/>\nthat  leave  was  refused  to the extent the appellants were<br \/>\nrequired to refund the\texcess\trealisation  made  by  them.<br \/>\nThus  the only question which is before us is, as to whether<br \/>\nthe appellants are liable to pay interest  at  the  rate  of<br \/>\n12-1\/2% per annum on all the excess realisation made by them<br \/>\non the basis of interim orders obtained by them.\n<\/p>\n<p>\tLearned\t counsel appearing for the appellants raised<br \/>\ntwo arguments.\tThe first argument is that the amount  which<br \/>\nthe  appellants\t were  required\t to refund was not an excess<br \/>\nrealisation within the meaning\tof  the\t expression  &#8220;excess<br \/>\nrealisation&#8221;  as  contained  in Section 2(b)(ii) of the Act.<br \/>\nThe second argument is that their cases are not governed  by<br \/>\nsub-section  (3) of Section 3 of the Act but are governed by<br \/>\nSection 3(4) and (5) of the Act.\n<\/p>\n<p>\tComing\tto the first argument, the contention of the<br \/>\nappellants counsel is that since the interim order passed by<br \/>\nthe High Court on the basis of\twhich  the  appellants\tmade<br \/>\nexcess\trealisation having not set aside by the appellate or<br \/>\nhigher court, the realisation made by the  appellants  would<br \/>\nnot  fall  within  the ambit os Section 2(b)(ii) of the Act.<br \/>\nThe  contention\t is  that  interim  order  passed  in\twrit<br \/>\npetitions although automatically lapsed on dismissal of writ<br \/>\nthe  petitions,\t but  were not set aside by the appellate or<br \/>\nhigher court.  This contention is wholly untenable.   It  is<br \/>\nnot disputed that on the dismissal of the writ petitions the<br \/>\ninterim\t orders\t passed\t therein  were\tautomatically  stood<br \/>\ndischarged.  The ordinary meaning of the word &#8216;set aside&#8217; is<br \/>\nto revoke or quash, the effect\tof  which  is  to  make\t the<br \/>\ninterim order  inoperative  or non-existent.  In the present<br \/>\ncase when High Court dismissed the writ petition the interim<br \/>\norder passed therein became non-existent  and  in-operative.<br \/>\nThe  effect of setting aside an order or automatic discharge<br \/>\nconsequent upon the dismissal of writ petition is the  same.<br \/>\nIn  fact the expression &#8216;set aside&#8217; used in Section 2(b)(ii)<br \/>\nmeans the interim order has come to an end  and\t has  become<br \/>\ninoperative.   We,  therefore,\treject the first argument of<br \/>\nlearned counsel for the appellant.\n<\/p>\n<p>\tSo far as the second argument is concerned, we\thave<br \/>\nheld hereinbefore that the interim orders passed in the writ<br \/>\npetitions  came\t to an end on dismissal of the writ petition<br \/>\nbefore the Act came into force, and under such circumstances<br \/>\nSection\t 3(4)  and  (5)\t can  have  no\tapplication  in\t the<br \/>\nappellants&#8217; case.    The  Supreme  Court  in  The  Ankepalle<br \/>\nCo-operative Agricultural &amp; Industrial\tSociety\t Ltd.\t and<br \/>\nanother etc.  vs.   Union of India and others etc.  1977 (4)<br \/>\nS.C.C.\t2041 has  held\tthat  sub-section  (4)\tand  (5)  of<br \/>\nSection 3 do not apply to a case in which interim order made<br \/>\nby  a  Court  has  already  come  to  an  end as a result of<br \/>\ntermination of final proceedings before the commencement  of<br \/>\nthe Act.    Moreover,  the  special  leave against the order<br \/>\npassed by the High Court directing the appellants to  refund<br \/>\nthe excess realisation made by them was refused.  Thus it is<br \/>\nnot  open  to  the  appellants to raise this argument again.<br \/>\nSince in the present case sub-section (3) of  Section  3  of<br \/>\nthe  Act  which provides for grant of interest on the excess<br \/>\nrealisation  made  by  the  appellant  is   applicable\t the<br \/>\nappellants are\tliable\tto  pay\t interest.    We, therefore,<br \/>\nreject the second contention of the counsel.\n<\/p>\n<p>\tFor all the reasons stated above, we do not find any<br \/>\nmerit  in  the\tappeals.  The  appeals are dismissed with no<br \/>\norder as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Bileshwar Khan Udyog Khedut &#8230; vs V.Union Of India And Another on 10 February, 1999 Author: V.N.Khare Bench: V.N. Khare, R.P. Sethi. PETITIONER: BILESHWAR KHAN UDYOG KHEDUT SHAHAKARI Vs. RESPONDENT: V.Union of India and another DATE OF JUDGMENT: 10\/02\/1999 BENCH: V.N. Khare, R.P. Sethi. JUDGMENT: V.N.Khare, J. The appellants in these [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-144714","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bileshwar Khan Udyog Khedut ... vs V.Union Of India And Another on 10 February, 1999 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/bileshwar-khan-udyog-khedut-vs-v-union-of-india-and-another-on-10-february-1999\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bileshwar Khan Udyog Khedut ... vs V.Union Of India And Another on 10 February, 1999 - Free Judgements of Supreme Court &amp; 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