TMI Blog1975 (11) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents. The use and supply of sugarcane is controlled under the provisions of the Essential Commodities Act, 1955. The Government of India promulgated the Sugar Cane Control order on 27 August 1955. The 1955 Control Order empowered the Government, inter alia, to fix the minimum price payable by the manufacturer of sugar to the grower of sugarcane. The Government was competent to fix different prices depending on the areas and qualities of sugarcane or on the basis of recovery of sugar from sugarcane. In 1966 the Sugar Cane Control (Additional Powers) Act, 1962 came in existence. In pursuance of powers conferred by the 1962 Act the Central Government amended the 1955 Control order by introducing clause 3A providing for payment of additional price for sugarcane purchased by producers of sugar during each of the four successive years beginning from 1 November 1958. The 1955 Control order was repealed and replaced by the Sugar cane Control order, 1966 to which reference has already been made. The 1966 Control order saved all orders made and actions taken under the repealed order. Under clause 6 of the 1966 Control order the Government was competent to denote an area where s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that during any year a factory has made no profit or has made inadequate profit, that Government, may by order in writing, exempt either wholly or partially, any producer of sugar from payment of the additional price due from him under sub-clause (1) in respect of sugarcane purchased for that factory during that year. The appellant in Civil Appeals No. 2070-2074 of 1970 is the factory situate at Hospet manufacturing sugar. The appellant buys sugarcane from growers in the area reserved for the said factory. The respondent is a co-operative society of growers of sugarcane who k have supplied sugarcane to the appellant factory. The members of the societies entered into agreement with the appellant factory through the respondent societies for the supply of sugarcane. The societies advanced monies to the grower members for their agricultural operations. The societies are recognised both by the Government of India and the appellant factory for the purpose of the 1966 Control order. The minimum price fixed by the Government of India for the seasons subsequent to 1958-59 was said by the sugarcane growers to be inadequate. The growers felt that the factories manufacturing sugar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt accepted the contention of the respondent on the ground that the impugned order was violative of principles of natural justice, because the Government failed to afford any opportunity to the growers to be heard in the matter. The respondent contended that the power of exemption affected the right of growers to get additional price for sugarcane supplied by them and that the Central Government was required to exercise the power judicially and in conformity with the principles of natural justice. Two questions arise for determination in these appeals. First, whether in view of the 1966 Control order opportunity should have been given to the respondent when the Government wanted to grant exemption, wholly or partially, to the appellant from paying additional price. Second, whether the High Court was right in giving direction to the Government to consider giving of an opportunity to the respondent. The appellant sugar factory contends that the cane growers were not required to be heard when the Government grantee exemption to the factories from payment of additional price. The respondent cane growers contend to the contrary. Clause 5 of the 1966 Control order relates to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal price and granting exemption from payment of additional price. The grant, of exemption from payment of price affects rights and interests of the growers of sugarcane. The Control order contains elaborate machinery for fixation of additional price having regard to all relevant factors. The additional price fixation authority afforded opportunity to both the growers of sugarcane as well as the producers of sugar to be heard in the determination of the additional price. The subsequent order by the Government granting exemption to the factories for payment of additional price takes away rights which had a accrued in favour of the growers of sugarcane. The manner of payment of additional price under clause S(6) of the 1966 Control order does not affect the right and interest of growers. ln providing for payment of additional price, the additional price fixation authority takes into account the relevant considerations relating to the conditions of sugarcane growers as well as the promotion of the sugar industry during the relevant period. The additional price fixation authority' also considers the conditions and circumstances relating to the appellant factory in determinin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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