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2012 (1) TMI 205

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..... Appeal No. 4026 of 2009, Civil Appeal No. 4024 of 2009, CA No. 4025 of 2009, CA Nos. 4014-4023 of 2009 - - - Dated:- 17-1-2012 - CIVIL APPEAL NO. 7508 OF 2005, Civil Appeal No. 7509-7510 of 2005, Civil Appeal No. 150 of 2007, Civil Appeal No. 2664 of 2007, Civil Appeal No. 4026 of 2009, Civil Appeal No. 4024 of 2009, Civil Appeal No. 4025 of 2009, Civil Appeal Nos. 4014-4023 of 2009, Contempt Petition (C) No. 169 of 2006 in C.A. No.7508/2005, Contempt Petition (C) No.253 of 2007 in C.A. No.7508/2005, Contempt Petition (C) No. 254 of 2007 in C.A. No.7508/2005, Civil Appeal Nos. 3911-3912 of 2009, Civil Appeal No. 3925 of 2009, Civil Appeal Nos. 3996-3997 of 2009, Contempt Petition (C) Nos.263-264 of 2008 in C.A. Nos.3996-3997/2009, Contem .....

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..... ich existed in U.P. Act 1 of 1938 was deleted from the U.P. Sugarcane Act since that power was being exercised by the Centre under Clause 3 of the Sugar and Gur Control Order, 1950. The relevant paragraphs from pages 422, 433 and 434 of the Tika Ramji's case are reproduced as under: ... ... ...Even the power reserved to the State Government to fix minimum prices of sugarcane under Chapter V of U.P. Act I of 1938 was deleted from the impugned Act the same being exercised by the Centre under clause 3 of Sugar and Gur Control Order, 1950, issued by it in exercise of the powers conferred under Section 3 of Act XXIV of 1946. The prices fixed by the Centre were adopted by the State Government required under rule 94 was that the occupier o .....

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..... of sugarcane to be purchased by the factories. Even the provisions in behalf of the agreements contained in clauses 3 and 4 of the U.P. Sugarcane Regulation of Supply and Purchase Order, 1954, provided that the price was to be the minimum price to be notified by the Government subject to such deductions, if any, as may be notified by the Government from time to time meaning thereby the Central Government, the State Government not having made any provision in that behalf at any time whatever. ... ... ... 3. It has been specifically held in Tika Ramji's case that there was no power to fix a price for sugarcane under the U.P. Sugarcane Act or rules and orders made thereunder. 4. It is also submitted by the appellants that even if su .....

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..... e heard learned counsel for the parties at length. We have also carefully perused and analysed both the aforementioned judgments delivered by the two Constitution Benches of this Court in Tika Ramji and U.P. Cooperative Cane Unions Federations's cases. 7. In our considered view, there is a clear conflict in the aforementioned judgments of the Constitution Benches. It may be pertinent to mention that almost every year a spate of petitions are filed before the Allahabad High Court and thereafter before this Court on similar issues and questions of law. Therefore, in the interest of justice, it is imperative that the conflict between these judgments be resolved or decided by an authoritative judgment of a larger Bench of this Court. .....

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..... application of mind or rational basis and is therefore, invalid and illegal? 5) Does the State Advisory Price (for short `SAP') constitute a statutory fixation of price? If so, is it within the legislative competence for the State? 6) Whether the power to fix the price of sugarcane is without any guidelines and suffers from conferment of arbitrary and uncanalised power which is violative of Articles 14 and 19 (1) (g) of the Constitution of India? 10. We are conscious of the fact that ordinarily a Bench of three Judges should refer the matter to a Bench of five Judges, but, in the instant case since both the aforementioned conflicting judgments have been delivered by the Constitution Benches of five Judges of this Court and henc .....

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..... he peculiar facts and circumstances of these cases, we direct the sugar factories to pay the balance outstanding principal amount to the cane growers or to the cooperative societies according to the SAP of the relevant crushing seasons. In other words, in all those cases where the sugar factories and other buyers have not paid the balance outstanding principal amount to the cane growers or to the cooperative societies because of the stay orders obtained by them from this Court or from the High Court, they are now directed to pay the balance outstanding principal amount according to the SAP as fixed by the State Government from time to time. All the stay orders granted by this court or by the High Court are modified/vacated in the aforesaid .....

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