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1997 (1) TMI 555

shmi Menon, Sunil Gupta, A.K. Verma, P.D. Tyagi, D. Goburdhun, D.N. Goburdhun, Pinky Anand, Geeta Luthra, B.B. Singh, Ashok Kumar Singh, Subhashini, A. Sharan, Gopal Singh, A.P. Singh, L.R. Singh, V. Shekhar, V.D. Mahajan, P.R. Seetharaman, B. Parthasarathi, Rani Chhabra, Sanjiv Seth and M.A. Krishnamoorthy, Advs ORDER 1. These two appeals arise from the judgment of the Division Bench of the Patna High Court, made on November 13, 1984 in Order No. 11 and Review Order arising thereunder in CWJC No. 2370/84. 2. The admitted position is that the appellant factory had a 'reserved area' under Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 (for short, the 'Supply Act') and had the sugarcane supplie .....

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process. Under the proviso, the Government have no power fix higher price of sugarcane supplied to sugar factory than that is fixed for the Khandasari units. The fixation of the price at ₹ 20.50 per quintal is without any authority of law or jurisdiction, for a issuance of a certificate what is required to be done is that the amount should be in accordance with law but not in accordance with any order passed by the State Government. The Dues in accordance with the price fixed under Clause 3 of the Order having been paid, the appellant is not due of any sugarcane price payable to the cane growers and, therefore, the view taken by the High Court is not correct in law. Even if there are dues, the same could be recovered in a suit by the .....

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e Order. In State of Madhya Pradesh v. Jaora Sugar Mills Ltd. and Ors. Etc. AIR1997SC600 by a Bench of two Judges, to which two of us (K. Ramaswamy and G.B. Pattanaik, JJ.) were members, considered the similar question and held thus: Rule 3(3) determines "where a producer of sugar purchases any sugarcane from a grower of sugarcane or from a sugarcane grower's co-operative society, the producer shall, unless there is an agreement in writing to the contrary between the parties, pay within fourteen days form the date of delivery of the sugarcane to the seller or tender to him the price of the cane sold at the rate agreed to between the producer and the sugarcane growers' of sugarcane growers' co-operative society or that fixed .....

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ent under Clause (1) of Rule 3. Only for postponement of payment beyond 14 days, there should be an agreement in writing between the parties obviously with the concurrence of the Central Government or authorised authority in that behalf. Thus, there is no statutory prohibition in that behalf to pay higher price. That would be further clear by Rule 3(2) which speaks of the contract between the parties for payment of higher price of sugarcane fixed under Clause (1) of Rule 3 pursuant to the agreement or pursuant to the minimum price fixed by the Central Government under Rule 3(1) of the Order. Under Rule 3(1) and additional price fixed under Rule 5A, it was within the domain of the contract between the sugarcane growers and the factories who .....

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ened by the State Government. In Jaora's case this Court had held thus: The question is : whether such a higher price has been agreed to be paid to the sugarcane growers, when contract has come into existence between the respondents and the cane growers with the aegis of the appellants? As a facts, except Kaluram, all representatives of other factories were present at the time of the agreement dated March 21, 1976. As far as Kaluram is concerned, on the first occasion he was present, but on the second occasion when the meeting was adjourned, he was not present, it has been averred in the counter-affidavit that the Secretary of the Sugarcane Factories Owners' Association had contracted him when he was in the hospital and thereafter, .....

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hat under Section 31 of the Supply Act, the State Government has power to fix the reserved area, in other words, zone was carved out for the appellant for the supply of sugarcane to the factory. All the farmers who are cultivating the sugarcane within that zone are bound by the State action to supply sugarcane to the factories within that reserved area. Consequently, the factory also is bound by the actions of the State Government. Obviously, pursuant to the obligation had by the State under the Supply Act, the meeting was convened by the State Government whereas the factory owners' Association and farmers participated and agreed to fix the price at ₹ 20.50 per quintal of sugarcane. As a consequence, both the cane growers as well .....

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quires to be considered. The appellant had crushed the sugarcane though vacuum pan process in producing sugar in the relevant period. So it alone is liable to pay the cane price. We find that the question in this case of sharing the liability by the State Government does not arise. Therefore, it is unnecessary for us to go into the question in these appeals. By order dated February 29, 1996 passed by this Court, the State Government was directed to work out the amount due and payable to the cane growers in terms of the undertaking given to this Court at the time of passing the interim order. Pursuant thereto, it appears and is not in dispute that the Government has worked out the dues at ₹ 62,90,398.72 and made a demand on March 22,19 .....

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