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The Punjab Sugarcane (Regulation of Purchase and Supply) Act, 1953

Punjab · state statute
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SUGARCANE (REGULATION OF PURCHASE  & SUPPLY) 
THE PUNJAB SUGARCANE (REGULATION OF PURCHASE AND SUPPLY) 
ACT, 1953 
Punjab Act No. 40 of 1953 
Received at the assent of the Governor of Punjab on the 30th October 1953 and was first 
published in the Punjab Govern ment Gazette (Extraordinary), of the 2nd November 
1953). 
       1 2 3 4 
Year No. Short title Whether repealed or otherwise affected 
by legislation 
1953 40 The Punjab 
Sugarcane 
(Regulation of 
Purchase and 
Supply) Act, 
1953. 
Extended to Pepsu Territory by Punjab 
Act 18 of 1958. 
Amended by Punjab Act, 19 of 1959. 
 
Amended by Punjab Act, 25 of 1964. 
 
Amended by Punjab Act, 7 of 1966. 
    
 
      An Act to regulate the purchase and supply of sugarcane required for use in sugar 
factories. 
 It is hereby enacted as follows: - 
1.(1) 
 
   (2) 
   (3)  
   (4) 
       
This Act may be called the Punjab Sugarcane (Regulation of 
Purchase and Supply) Act, 1953. 
It extends to the whole of the State of Punjab. 
It shall come into force at once. 
Sugarcane (Regulation of Purchase and Supply) 
[Short title, 
extent and 
commencement] 
 
[1953: Pb Act 
40] 
 
 
2. 
   (1) 
 
   (2) 
   (3)  
   (4) 
 
   (5) 
 
 
 
   (6) 
 
 
   (7) 
   (8) 
 
 
   (9) 
 
 
 
 
 (10) 
 (11) 
 
 
 (12) 
 (13) 
 
DEFINITIONS: - 
In this Act unless the context otherwise requires: - 
(1) "Assigned area" means an area assigned to a factory under this 
Act. 
"Board" means the Sugarcane Control Board; 
"Cane" means sugarcane intended for use in a factory. 
"Cane Commissioner" means the Officer appointed by the                
Government to perform the functions of Cane Commissioner; 
"Cane-grower" means a person including a tenant who 
cultivates cane either himself or through members of his family 
or through hired labo ur, and who is not a member of a Cane -
growers' Cooperative Society; 
"Cane-growers' Coope rative Society" means a society 
registered under "Cooperative Societies Act, 1912, one of the 
objects of which is to sell cane grown by its members; 
"Collector" means the Chief Revenue Authority of a district; 
"Crushing season" means the period commencing on the 15th 
day of October, in any calendar year and ending on the 30th 
June of the following year: 
"Factory" means a sugar factory wherein 20 or more workers 
are working or were working, on any day of the preceding 
twelve months and in any part of which a ny manufacturing 
process connected with the production of sugar is being carried 
on or is ordinarily carried on which the aid of power: 
"Government" means the Government of State of Punjab;   
"Occupier of a factory" means the person who has control over 
the affairs of a factory, and where the affairs of a factory are 
entrusted to the managing agent, such agent 
"Prescribed" means prescribed by rules made under this Act. 
"State" means the State of Punjab.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.(1) 
 
 
 
   (2) 
   (3) 
 
 
   (4) 
 
 
 
4.   
 
 
    
 
5. 
 
 
 
 
 
 
 
 
 
 
 
6(1) 
 
 
 
 
 
   (2) 
 
 
 
 
 
7 (1) 
 
   (2) 
 
 
   (3) 
 
 
 
 
 
 
 
 
  
 
8 (1) 
 
 
 
 
The Government shall establish and constitute a Sugarcane 
Control Board for the State  and ascribe to it such duties and 
functions in pursuance of the provisions of this Act, as may be 
prescribed. 
The Board shall be consisting of fifteen members. 
The term of the Board shall be three years, provided that the 
Government may dissolve the Board  before the expiry of its 
term if it is satisfied that it is necessary to do so. 
No proceedings of the Board shall be rendered invalid for the 
mere fact that there was one or more  unfilled vacancy in the 
Board at the time that such proceedings took place. 
 
The government may appoint any officer to be the Cane 
Commissioner and may also appoint such other staff, body or 
committee as may be necessary for the performance of any 
duty or function under this Act. 
 
Where the occupier of a factory is a firm or a com pany or other 
association any one of its partners, or directors or members 
may be prosecuted and punished under this Act for any offence 
for which the occupier of the factory is punishable. 
  Provided that such firm or company or 
association may give notic e to the Cane Commissioner that it 
has nominated one of its partners or directors or members to be 
the occupier of the factory for the purposes of this Act and such 
individual shall be deemed to the occupier for the purposes of 
this Act until further notic e canceling his nomination is 
received by the Cane  Commissioner. 
 
No cane shall be purchased for a sugar factory unless its 
occupier has, in the prescribed form sent a notice of such 
intention to the Cane Commissioner, nominating one or more 
person as agents for making such purchases, and no agent shall 
be changed without prior notice in writing to the Cane 
Commissioner 
Any person appointed as agent under sub -section (l) shall 
deposit as security a sum of rupees one thousand in cash or 
Government Promissory notes and no person shall be deemed 
to have been appointed as agent until such deposit is made and 
he has been given a license in the manner prescribed. 
 
No person shall act as purchasing agent under this Act, unless 
he has been licensed as such in the prescribed manner. 
No person other than a purchasing agent shall be employed by 
an occupier of a factory to do any work in connection with any 
transaction for the purchase of cane within the State. 
A license shall not be granted to any person under such -section 
(l) unless such person has paid the prescribed deposit or 
furnished the prescribed security and the Cane Commissioner 
may subject to rules made in this behalf, in case of any breach 
of the conditions of the license, order that the deposit paid or 
security furnished in respect of such license shall be forfeited 
to Government or shall not be returned before the prescribed 
period or that the whole or any portion of such deposit or 
security shall be paid to any person who has suffered any loss 
owing to any misconduct or default of such licensee. 
 
The agent or agents of a sugar factory shall maintain an office 
in one or more places within the State as may be required by 
the Cane Commissioner , and shal maintain such accounts and 
submit such returns and statements as may be     prescribed. 
If an occupier or an agent: - 
Sugarcane 
Control Board 
 
 
 
 
 
 
 
 
 
 
 
Appointment of 
Cane 
Commissioner 
 
 
 
Determination 
of "occupier" 
for purposes of 
this Act, 
   
 
 
 
 
 
 
 
 
Appointment 
Of an agent 
 
 
 
 
 
 
 
 
 
 
 
Licensing of  
Purchasing 
Agent 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Duties of an  
Agent 
 
 
 
   (2) 
 
 
 
 
 
 
 
9. 
 
  
 
 
10(1) 
 
 
 
   (2) 
 
 
 
 
 
 
  (3) 
 
 
 
 
 
 
11(1) 
 
 
  (2) 
 
 
 
  (3) 
 
 
 
12 
 
 
 
 
 
13(1) 
 
 
 
 
   (2) 
 
 
 
14(1) 
 
 
 
 
(a)  intentionally fails to maintain correctly any document or 
register, or  
(b)   Intentionally commits any breach of any condition or duty 
imposed under this Act, he shall be punishable with fine 
which may extend to two thousand rupees for every such 
failure or breach. 
 
Any person contravening any of the provisions of Act or any 
rule made there under, for which no penalty is otherwise 
provided shall be punishable with fine, which may extend to 
two thousand rupees. 
 
The Cane Commissioner may order the occupier of any factory 
to submit to him on or before any specified date, an estimate of 
the quantity of cane intended to be purchase for his factory 
during any particular crushing season. 
On receipt of an estimate, the Cane Commissioner shall cause 
the same to be submitted to the Sugarcane Control Board for 
their approval. The Sugarcane Control Board shall be 
competent to confirm, modify or reject the estimate, and in 
case of its not being rejected, to a ssign the area from which the 
cane may be purchased, on such terms and conditions as it may 
deem fit. 
If the Sugarcane Control Board is of the opinion that a survey 
of any area is necessary for the purpose of assigning it to a 
factory, the Cane Commissione r shall cause such survey to be 
made and report the result to the Sugarcane Control Board. The 
cost of such survey shall be payable by the occupier of such 
factory. 
 
Every survey mentioned hereinbefore shall be made by an 
officer authorized neither by the Cane Commissioner nor in the 
manner prescribed. 
Every person owning or occupying land in any area in respect  
of which a survey is being made shall afford to the officer 
making the said survey such assistance and facilities for 
making the said survey as may be necessary.  
Any amount due from the occupier of a factory in respect of 
any survey shall be recoverable from such occupier as an arrear 
of land revenue. 
 
The Government, may on the recommendation of the 
Sugarcane Control Board, declare unsuitable for all or any 
factory cane of any variety grown in any area specified in such 
notification and no agent shall be competent to purchase any 
cane declared unsuitable for his factory. 
 
 The occupier of a factory or any other person acting on his      
behalf shal l not distribute seed cane of any variety to any 
person to be used by cane -growers or the members of Cane -
growers Cooperative Societies in any area if the same has been 
declared under this Act, to be unsuitable for the factory. 
The occupier of a factory, o r any other person acting on his 
behalf shall not plant cane of any variety declared under this 
Act, to be unsuitable for the factory. 
 
A cane-grower of a Cane -growers' Cooperative Societies in an 
assigned area may sell by the date prescribed in this behal f to 
the occupier of the factory to which the area is assigned , cane 
grown by the cane growers or by the members of such Cane -
growers Cooperative Society, as may be, not exceeding the 
quantity prescribed for such grower or cane growers' 
 
 
 
 
 
 
 
 
 
Penalty for 
contravention 
Not other wise 
provided for 
 
Estimate of 
quantity of 
cane required 
by factory 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Survey of Area 
 
 
 
 
 
 
 
 
 
  
Powers to 
declare 
Varieties of 
cane to be 
unsuitable For 
use in factories 
 
Prohibition of 
distribution of 
Certain kinds 
of Seed 
 
 
 
 
 
 
Purchase of 
cane in 
assigned area 
 
 
 
 
   (2) 
 
 
 
 
 
 
 
 
  (3) 
 
 
  (4) 
 
 
 
 
 
15(1) 
 
 
 
 
 
 
16(1) 
 
 
  (2) 
    
 
    
 
 
 
 
17(l) 
 
 
 
 
 
 
 
 
     
(2) 
 
 
17-A 
 
 
 
 
 
 
18(l) 
 
    (2) 
 
Cooperative Society. 
The agent of a factory shall enter into an agreement with a cane 
grower or with a Cane -growers Cooperative Society, as the 
case may be, in such form, by such date and on such terms and 
conditions as may be prescribed, for the purposes of purchasing 
the cane offered in accordance with sub -section (l). No person 
other than the agent aforementioned shall purchase or enter into 
an agreement to purchase cane grown by members of a Cane -
growers Cooperative Society from any other person except in 
accordance with such agreement. 
Except with the permission of the Government , cane grown in 
an assigned area shall not be purchase d by any person other 
than the agent of the factory for which such area has been 
assigned. 
It shall be competent for the prescribed authority to specify any 
area within the assigned area of a factory, the entire cane of 
which area the agent of the said factory shall be bound to 
purchase, and the cane growers or cane growers' Cooperative 
Society shall be bound to sell to the said agent. 
 
If the c ane-growers or Cane -growers Cooperative Society or 
Societies in the assigned area are not willing to enter into 
agreement to supply, or fail to supply the requisite quantity of 
cane the agent may, after giving the prescribed notice to the 
Cane Commissioner, purchase the balance of the cane required 
by him from outside the assigned area. 
 
The agent of a factory for the purposes of which an area has 
been assigned shall maintain a register in the prescribed form 
and manner. 
The Government may prescribe the procedure for- 
(a) The correction of entries in, and the addition of new entries 
to such register. 
(b) The payment of the costs in connection with such 
correction or addition and the manner in which such costs 
shall be realized; and 
(c) The supply, on payment, of copies of entries in the register. 
 
The State Government may, after consultation with the 
Sugarcane Control Board, impose a tax, not exceeding three 
annas per maund, on the purchase of cane by or on behalf of a 
sugar factory, and when a tax is so imposed  it shall be notified 
in the official Gazette, and shall be charged, levied & collected 
in the manner prescribed; 
         (provided that a notification imposing the tax issued 
during crushing season shall be, and shall be deemed always to 
have been, i n operation from the commencement of such 
season). 
All sums due as the aforementioned tax, and not paid by the 
due date, shall be recoverable as arrears of land revenue. 
 
The Government, if satisfied that a factory has exported out of 
India, any quantity o f sugar manufactured by it, may refund to 
such factory whether prospectively or retrospectively the 
amount of tax imposed on and paid by it under section 17 in 
respect of the cane purchased by it and utilized in 
manufacturing the quantity of sugar so exported. 
 
No prosecution shall be instituted under this Act except upon a 
complaint made by a District Magistrate. 
On the application of a person accused of an offence under this 
Act, the District Magistrate may compound such offence by 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of 
cane outside 
the assigned 
area 
 
 
 
 
Maintenance of 
Register 
 
 
 
 
 
 
 
 
 
 
Tax on the 
purchase of 
cane 
 
 
 
 
 
 
 
 
 
 
 
 
Prayer to 
refund Tax on 
cane utilized 
for 
manufacturing 
sugar exported 
out of India. 
 
Institution of 
Proceedings 
 
 
 
    (3) 
 
 
19. 
 
 
 
 
20 (l) 
 
    (2) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21. 
levying a composition fine not exceeding two thousand rupees, 
at any stage before the judgment in the case has been 
announced. 
No court inferior to that of a (Judicial Magistrate) of the first 
class shall try any offence under this Act. 
 
No suit, prosecution or other legal proce eding shall lie against 
the Government or against any person for anything which is in 
good faith done or intended to be done under this Act or the 
Rules framed there under. 
 
The Government may make rules to carry out the provisions of 
this Act. 
In particul ar and without prejudice to the generality of the 
forgoing powers, such rules may provide for: 
(a) the constitution, powers, duties and procedure of the  
     Sugarcane Control Board; 
(b) the powers and duties of the Cane Commissioner: 
(c) the authorities by which any functions under this Act 
     or the rules made there under are to be performed; 
(d) the form in which any notices required under this Act 
      should be given. 
(e) the procedure to be followed in making a survey under this 
Act, the manner of calculating the cost of such survey, the 
amount to be deposited in connection therewith and the 
assistance to be afforded by owners and occupiers of land to 
the officer making such survey. 
(f) the form of agreement to be entered into for the purchase of 
cane, the date by which such agreement should be made and 
the terms and conditions thereof. 
(g) the quantity of cane, which may be purchased in an 
assigned area during any particular crushing season. 
(h) the posting of notices and the maintenance of records, 
register and accounts and the submission of returns the 
supply of copies of entries therein and the fees to be charged 
for the same; 
(i) the method by which the minimum price of cane is to be 
fixed under this Act; 
(j) the form and manner in which applications for licenses may 
be made, the terms and condition of each license, their 
renewal, suspension and cancellation and the fees to be 
charged for the same; 
(k) the correct weighment of cane, the provisions of facilities 
for weighments and  for checking weighment ,and timings 
of weighments; 
(l) the payment of the price for cane; and 
(m) Any other matter which is to be or may be prescribed under 
this Act. 
 
The Sugarcane Act, 1934 (Act XV of 1934), in so far as it is 
applicable to the Stat of Punjab, and the Sugarcane (Punjab 
Amendment) Act, 1943 (Punjab Act IX of 1943), is hereby 
repealed. Anything done or any action taken in exercise of 
powers conferred by, or under the repealed Acts or purporting 
to have been done or taken under the Punjab Sugar Factories 
Control Act, 1950 (Punjab Act l of 1950) shall, to the extent of 
being consistent with the provisions of this Act, be deemed to 
have been done or taken under this Act, as if this Act, were in 
force at the time when such thing was done or such action was 
taken. 
 
                                        ********** 
 
 
 
 
 
 
 
 
 
Bar of suit or 
other 
Proceedings 
 
 
Power to make 
rules 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repeal of the 
Sugarcane Act, 
1934 and the 
Sugarcane 
(Punjab 
Amendment 
Act,1943 and 
saving ) 
 

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