LexU.P. COOPERATIVE CANE UNION FEDERATION versus WEST U.P. SUGAR MILL ASSOCIATION AND ORS.
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A
B
U.P. COOPERATIVE CANE UNION FEDERATION
V.
WEST U.P. SUGAR MILL ASSOCIATION AND ORS.
MAY 5, 2004
[RAJENDRA BABU CJ., K.G. BALAKRISHNAN,
VENKATARAMA REDD!, B.N. SRIKRISHNA
ANO G.P. MATHUR, JJ.]
Sugarcane Act, 1934; Sections 5 and 7/UP. Factories Act, 1938;
C Sections 21 and 22-AIU.P. Sugarcane (Regulation of supply and Purchase)
Act, 1953; Sections 16 & 17/U.P. Sugarcane (Supply and Purchase) Order,
1954/Sugarcane (Control) Order, 1955/Sugarcane (Control) Order, 1966;
Clause 2(g). 3, and 5-A!Essential Commodities Act, 1956; Section 3 :
Fixation of price of sugurcane-Central Government/State
D Government-Jurisdiction of-State Government fixing the price!Stute
Advised price over and above the statutory minimum price fixed by the
Central Government Challenge to---Order of the State Government
quashed by High Court-However, in another matter, on the similar issue
the High Court al/ou•ed the writ petition in favour of the State-On appeal,
E Held:
Per majority ·
The provincial Governments could fix price of sugarcane taking into
account local conditions and empowered to make rules thereof-Sugar
f
Control Order stipulates price could either be the minimum price as fixed
by the Central Government or as agreed between the growers and the
producers and includes additional price as well-Thus, there could be a
price other than the minimum price fixed by the Central Government and
it could be higher than the minimum price so fixed-Repugnancy would
G arise if the State Government fixes a price lower than the minimum price-
By fixing higher price the provisions of 1966 Order stood complied with
by the State Government.
Regulator; of the State Government-State Government imposing
statutory conditions on sugarcane growers for continuous supply of fresh(v
H hurvested sugarcane of mi//s--lmplications-State Government in exercise
238
U.P. CO-OP. CANE UNION FEDERA T!ON v. WEST U.P. SUGAR MILL ASSON. 239
of its regulato1y power could also fix higher price of the sugarcane for the A
benefit of the cane growers-Fixation of higher price by the Sate Government
by itself could not have any major or substantial impact on the fixation
of price of the levy sugar by the Central Government-State Government
frxed the prices uniformly and not factorywise as was the impact of fixation
of the statutory price of the sugarcane by the Central Government-Hence, B
State Advised Price more just and equitable-Essential Commodities Act-
Section 3; Constitution of India, 1950-Article 254.
Agreement between the sugarcane growers and sugar producers-
Terms-Enforcing of-Agreement is the single composite transaction-It
is not open to the producers to enforce the terms thereof to their advantage C
and refuse the State Advised Price on the ground that their consent was
not obtained voluntarily.
Words and Phrases
'Price', 'minimum price', 'agreed price '-Meening of in the context
of Sugarcane Supply and (Control) Order, 1966.
'goods '-Meaning of in the context of Sales of Goods Act.
D
'Regulate '-Meaning of in the context of UP. Sugarcane (Regulation E
of Supply and Purchase) Act, 1953.
Per minority :
Central Government is empowered under the Essential Commodities F
Act to regulate the production, supply and distribution of the essential
commodities and provide for controlling the price thereof-Power to
control includes power to fix the minimum price-Power of the Central
Government under the Central Act and that of the State Government under
1953 Act are mutually exclusive-Since the State Legislation does not
contain provisions even for fixation of minimum price of sugarcane, the G
State Government cannot possess power to fix a price higher than the
minimum-Fixation of price higher than the minimum price by the State
executive. hit by Article 14 of the Constitution and renders its constitutionality
open to challenge-Such fixation of price of sugarcane by the State
amounts to violation of the fundamental right guaranteed under Article H
240
SUPREME COURT REPORTS (2004] SUPP. 2 S.C.R.
A 19(1){3) of the Constiturion--Stute Advised Price unnounced by the State
Government despite protest by the sugar producers--Hence. it cunnot be
termed as consensual price between the purties-Constitution of India,
19 5 0-Articles 1./ & 19.
B
Words and Phrases :
'minimum price·. 'fair price', 'remunerative price' and 'maximum
price '-Meaning of in the context of Essential Commodities Act, 1955.
'Advised Price Excerpt shown. Read the full judgment & AI analysis in Lexace.