STATE OF MADHYA PRADESH versus VYANKATLAL & ANR.

Citation: [1985] 3 S.C.R. 561 · Decided: 28-03-1985 · Supreme Court of India · Bench: S. MURTAZA FAZAL ALI · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · cites 1 · see the full citation network in Lexace

Judgment (excerpt)

56i 
STATE OF MADflYA PRADESH• 
v. 
VYANKATLAL & ANR. 
March 28, 1985 
[S. MURTAZA FAZAL ALI AND R. B. MISRA, JJ.J 
Madhya Bharat EJsentia/ Supplies (Temporary Powers) Act, 1948. 
Supply price and ex.factory price-Differenc/ between-Credited to Sugar 
Fund-Refund of -To whom payable-Persons not identified-Can be utilized 
for the purpoJe of the creation Of the Fund. 
. 
R ~spondents are owners of sugar miH situated in erstwhile Jaora State 
l .. 
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which merged in the Stat<! of Madhya Bharat. After the merger, the Madhya 
h" 
Bharat Essential Supplies (Temporary Powers) Act, 1948 came into force. 
By 
a notification dated 5th September, 1949 the said Act included 'sugar' Jn ·ihe L' 
. 
. 
list of articles as an essential commodity. By another notification dated 5tti. 
September, 1949 the Government delegated its powers to the Director, Civil 
Supplies to issue· orders under the Act. The Director of Civil·Supplies by a 
notification datCd 14th January, 1950 fixed ex-factory prices for different sugar 
factories, which were to supply and despatch sugar of Grade E-27 at Rs. 32.400 
per maund F.0.R. destination~ The supply price was hi8:her than ex-factory 
E 
price. The differenc~ between the supply price and the ex-factory PiiCe ·was to· 
be credited to Madhya Bharat Government Sugar Fund. 
On demand by appellants, the respondents deposited a sum of Rs. 50,000 
under protest in the said Sugar Fund. 
' 
The respondents instituted a suit for the refund of the. amount deposited · 
by them towards Sugar Fund and Rs~, 10,000 towards interest. 'the suit V.:H.S · · 
dismissed. 
On appeal, the Higb Court set aside the Judgment and Decree of the trial'·; 
.Court and decreed the suit. 
Allowing the appeal of the State, 
'' 
HELD : 1. The respondents had not to pay the amount froin thCir;. 
coffers, The burden of paying the amount in question was transfered by the · 
respondents.to the purchasers and, therefore, they were not entitled to get a 
refund. Only the persons on whom lay the ultimate burden to pay the amount 
would be entitled to get a refund of the same. (568C] 
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~62 
SUPREME COURT REPORTS 
t19ss1 3 S.C.R. 
2. The amount deposited towards the Fund was to b3 utilise;! for the 
developaient of sugarcane. If it is not possible to identify the persons on whom 
bad the burden been, placed for payment towards the Fund, the amount of 
, the Fund can b= utilis.:i by t!J..: GJ{..:ram.:nt for th; purpose for which the 
Fund was created, n1mely, the d~velopment of sugarcane. There is no question 
of refunding the amount to the Respondents who had not eventually paid the 
amount towards the Fund .. Doing so would virtually amount to allow the 
respondents unjust cnricbmCnt. [568D-E] · 
The Orient Paper Mil/J Ltd. v. The State of Orissa & Ora. [1962] 1 · SCR 
S49. State of Bombay ,; The United Moton (India) Ltd. [1953] SCR 1096, 
Shiv Shankar Dal Mi/lute.;; State of Haryana [1980) I SCR 1170., Newabganei 
Sugar Mills v. Union of India & Ora. [1976] 1 SCR 803., Sales Tax Officer, 
Banaras & Ors. v. Kanhalya Lal Mukundlal Saraf,· [1959] SCR 1350., Ms Amar 
Nath Om Parkash & Ors. •· The State of Punjab & Ors., 1984 (2) SCALE 796, 
· relied upo~-
CIVIL APPELLATE. JURISDICrION : Civil Appeal No. 149 oJ 
!97l. 
I . I 
a, 
" On appeal by ·Certificate .. from the Judgment and Decree 
.a 
: . .J 
dated 28.4.69 of the ·Madhya Pradesh · High Court in First Appeal 
No. 14 of.1963. 
· 
·H. K.Purl for th~ Appellant. · 
UR.La/it, S.K. Gambhir, Asliok Mahajan and S. ·Kirplani for 
th~)tespondents. . 
. . 
The Judgment of the Court was delivered by 
MISRA J. The present appeal by 
certificate is 
dire~ted 
, against the judgment de.led 28th April, 1969 of the Hig~ Court of 
·. Madb~'Prajlesh,1ndore .Bench.· 
The facts leading to this appeal are brief. . The respondents 
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are the 'owners of Jaora Sugar Mills situaied at Jaora in the 
earlier State of Madhya Bharat. The erstwhile State of Jaora 
merged in the State of Madhya Bharat .. After· the.- merger the 
Madhya Bharat. Essential Supplies (Temporary Powers) Act, 1948 
came into force. By a notification No. 5163/XXX. (49) .dated 
5th September,'1949 the Madhya Bharat Government in exercise of 
thC~?owe~s. veste~ under the, ~aid Act included 'sugar' in the list• 
of articles as an essential: commodity. By another notificatio~' No. 
, 
M.i>. S:r.-t TE v, VYANKATLAL (Misra, J.) 
563 
5166/XXX(49) dated the 5th September, 1949 the Madhya Bharat 
Government delegated its powers to

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