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2002 (2) TMI 1101

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..... substituted rule after it became inoperative, old rule 49 would not revive. - Civil Appeal No. 9453 of 1996, Writ Petition (Civil) No. 811 of 1993, - - - Dated:- 7-2-2002 - KHARE V.N. AND PHUKAN S.N. AND ASHOK BHAN JJ. Senior Advocate: Sudhir Chandra, for the parties. Other Advocates; Buddy A. Ranganadhan and Achintya Dwivedi (for J.B.D. Co.), Pramod Swarup, Praveen Swarup and Prashant Kumar, and Arvind Varma (for Pradeep Misra), for the parties. -------------------------------------------------- The judgment of the Court was delivered by V.N. KHARE, J. -Appellant Nos. 4 to 22 before us are companies incorporated under the Indian Companies Act, 1956 and are engaged in the business of production and sale of sugar. These appellants own sugar factories (hereinafter referred to as "sugar factories") which are located in various parts of the State of Uttar Pradesh. One of the raw materials required for production of sugar is sugarcane which is purchased from sugarcane growers through sugarcane co-operative societies-which are the respondents in these matters. The purchase of sugarcane by the sugar factories is regulated under the provisions of U.P. Sug .....

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..... .. In the Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Rules, 1954, for the rules set out in column 1 below, the rules as set out in column 2 shall be substituted: Column 1. Column 2. Existing Rules Rules as hereby substituted 49. The occupier of a 49. The occupier of a factory shall factory shall pay a pay a commission on cane commission on cane purchased at the rate of 2.69 per purchased at the rate cent of the minimum statutory of five per cent of the cane price fixed by the Governminimum statutory ment of India, out of which sevcane price fixed by the enty-five per cent shall be pay Government of India, able to the cane growers' co-opout of which seventy- erative society and twenty-five five per cent shall be per cent to the Council payable to the cane Amount thus calculated at the rate of growers' co-operative 2.69 per cent per quintal will be society and twenty-five calculated to the nearest round figure per cent to the Council. to facilitate maintaining proper accounts." (emphasis is mine) 4.. The effect of the aforesaid notification was that existing rule 49 was deleted and in its place new rule 49 was substituted. However, the substituted rule .....

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..... the rate of 5 per cent of the minimum statutory price of sugarcane having been deleted or repealed and substituted by a new rule 49, providing for society commission at the rate of 2.69 per cent of the minimum statutory price of sugarcane, the old rule 49 does not revive even after the substituted rule ceased to be operative. The second argument is that, in any event of the matter, the High Court was not legally justified in applying section 6-C of the U.P. General Clauses Act for holding that after the substituted rules having become inoperative, the old rule 49 would revive. Whereas, learned counsel appearing for the respondents urged that since the substituted rule in pith and substance has been rendered non-existent, the old rule would revive and the respondents have a right to charge society commission at the rate under the old rules. 8.. On the argument of learned counsel for the parties, the first question that arise for our consideration is that once the old rule has been deleted or repealed and substituted by a new rule, whether the old rule would revive when the substituted rule ceased to be operative. 9.. In B.N. Tewari v. Union of India [1965] 2 SCR 421, the questi .....

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..... by the occupier of the factory or manufacturing unit. 14.. The Government of U.P., in exercise of power under section 28 read with section 18 of the Act, amended rule 49 by deleting it and substituting the same by a new rule 49 which provided the society commission at the rate of 2.69 per cent of the minimum statutory cane price fixed by the Government of India. The notification dated April 24, 1992 which has been extensively extracted above very clearly and in an unambiguous terms provided that old rule set out in column 1 below the rules shall be substituted by the rule set out in column 2. In fact, by doing so, the Government was very clear in its intention that it is substituting an old rule by a new one. Had the Government ever intended that after September 30, 1992 the old rule would revive, it could have added a proviso to the old rule 49 providing for society commission at the rate of 2.69 per cent with effect from October 1, 1991 to September 30, 1992. The deliberate omission to provide what has been contained in the new rule 49 by way of a proviso to old rule 49 shows that the State Government intended to repeal the old rule and substitute it by a new rule 49. 15.. It .....

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..... ate Legislature by the President or other authority referred to in sub-clause (a) of clause (1) of article 357 of the Constitution, and such Act, Ordinance or other law ceases to operate without being re-enacted (with or without modifications) the amendment of text made thereby shall also cease to operate." 17.. Section 20 of the U.P. General Clauses Act provides that where, by any Uttar Pradesh Act, a power to issue any statutory amendment is conferred, then expressions used in the statutory instruments shall, unless there is anything repugnant in the subject or context, have the same respective meanings as in the Act conferring the power. Sub-section (2) thereof further provides that the provisions of sections 4, 4A, 6, 6A, 6B, 7, 8, 9, 10, 10A, 10C, 11, 12, 13, 14, 15, 16, 17, 18, 19, 19A and 28 shall mutatis mutandis apply in relation to any statutory instrument issued under any Uttar Pradesh Act as they apply in relation to any Uttar Pradesh Act. 18.. A perusal of section 20 shows that several provisions of Uttar Pradesh General Clauses Act have been made applicable in relation to statutory instruments including the statutory rules issued under the Uttar Pradesh Act. Howev .....

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