THE PUNJAB SUGARCANE (REGULATION OF
PURCHASE AND SUPPLY) ACT, 1953
TABLE OF CONTENTS
Sections.
1. Short title, extent and commencement.
2. Definitions.
3. Sugarcane Control Board.
4. Appointment of Cane Commissioner.
5. Determination of “Occupier” for purposes of this Act.
6. Appointment of an agent.
7. Licensing of Purchasing.
8. Duties of an agent.
9. Penalty for contraventions not otherwise provided for.
10. Estimate of quantity of cane required by factory.
11. Survey of area.
12. Power to declare varieties of cane to be unsuitable for
use in factories.
13. Prohibition of distribution of certain kinds of seedcane.
14. Purchase of cane in assigned area.
15. Purchase of cane outside the assigned area.
15-A. Payments.
16. Maintenance of register.
17. Tax on the purchase of cane.
17-A. Power to refund tax on cane utilized for manufacturing
sugar exported out of India.
18. Institution of proceeding.
19. Bar of suit or other proceedings.
20. Power to make rules.
21. Repeal of the Sugarcane Act, 1934, and the Sugarcane
(Punjab Amendment) Act, 1943, and saving.
1THE PUNJAB SUGARCANE (REGULATION OF
PURCHASE AND SUPPLY) ACT, 1953
PUNJAB ACT NO. 40 OF 1953
[Received the assent of the Governor of Punjab on the 30th October,
1953, and was first published in the Punjab Government 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Year No. Short title Whether repealed or otherwise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 Extended to the territories which,
Sugarcane (Regu- immediately before the 1st Nove-
lation of Purchase mber, 1956, were comprised in the
and Supply) Act, State of Patiala and East Punjab
1953 States Union by Punjab Act 18 of 19582
Amended by Punjab Act 19 of 19593
Amended by Punjab Act 25 of 19644
Amended by Punjab Act 7 of 19665
Amended by Haryana Adaptation of
Laws Order, 19686
Amended by Haryana Act 22 of 19707
Amended by Haryana Act 8 of 19718
1. For Statement of Objects and Reasons, see Punjab Government Gazette
(Extraordinary), 1953, page 1630; for proceedings in the Assembly and
Council, see Punjab Legilative Assembly and Council Debates, 1953.
2. For Statement of Objects and Reasons, see Punjab Government Gazette
(Extraordinary), 1958, page 546.
3. For Statement of Objects and Reasons, see Punjab Government Gazette (Extra),
1959, page 382.
4. For Statement of Objects and Reasons, see Punjab Government Gazette (Extra),
1964, pages 935-937.
5. For Statement of Objects and Reasons, see Punjab Government Gazette (Extra),
1965, page 1144.
6 . See Haryana Government Gazette (Extra), dated 29th October, 1968, pages
531-567.
7. For Statement of Objects and Reasons, see Haryana Government Gazette (Extra),
1970, page 619.
8. For Statement of Objects and Reasons, see Haryana Government Gazette (Extra),
1971, page 244.
1953 : Pb. Act 40 ] SUGARCANE (REGULATION OF PURCHASE AND SUPPLY)
464 SUGARCANE (REGULATION OF [1953 : Pb. Act 40 PURCHASE AND SUPPLY)
Amended by Haryana Act 5 of 19721
Amended by Haryana Act 43 of 19732
Amended by Haryana Act 9 of 19743
Amended by Haryana Act 14 of 19784
An Act to regulate the purchase and supply of sugarcane
required for use in sugar factories.
It is hereby enacted as follows :—
1. (1) This Act may be called the Punjab Sugarcane (Regualtion
of Purchase and Supply) Act, 1953.
(2) It extends to the whole of the State of 5[Haryana.]
(3) It shall come into force at once 6[in the principal territories
and on the 15th May, 1958 in the transferred territories.]
2. In this Act, unless the context otherwise requires,—
(1) “assigned area” means an area assigned to a factory under
this Act ;
(2) “Board” means the Sugarcane Control Board ;
(3) “cane” means sugarcane intended for use in a 7[factory or
Khandsari sugar manufacturing unit ;]
(4) “Cane Commissioner” means the officer appointed by the
Government to perform the functions of Cane Commissioner ;
1 For Statement of Objects and Reasons, see Haryana Government Gazette
(Extra), 1972, page 50.
2. For Statement of Objects and Reasons, see Haryana Government Gazette
(Extra), dated, the 2-11-1973; page 2002.
3. For Statement of Objects and Reasons, see Haryana Government Gazette
(Extra), dated, the 14-1-1974 ; page 138.
4. For Statement of Objects and Reasons, see Haryana Government Gazette
(Extra), dated, the 11-3-1978 ; page 330.
5. Substituted for the word “Punjab” by the Haryana Adaptation of Laws Order,
1968.
6. Added by ibid.
7. Substituted by Haryana Act 14 of 1978.
1 2 3 4
Year No. Short title Whether repealed or otherwise
affected by legislation
Definitions.
Short title,
extent and
commence-
ment.
(5) “cane-grower” means a person including a tenant who
cultivates cane either himself or through members of his family or
through hired labour, and who is not a member of a Cane-growers’
Co-operative Society;
(6) “Cane-growers’ Co-operative Society” means society
registered under Co-operative Societies Act, 1912, one of the objects
of which is to sell cane grown by its members ;
(7) “Collector” means the Chief Revenue Authority of a
district ; 2[(8) “crushing season” means such period as the State
Government may, by notification, specify ;]
(9) “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 any manufacturing process
connected with the production of sugar is being carried on or is
ordinarily carried on with the aid of power ;
(10) “Government” means the Government of the 1[State of
Haryana] ; 3[(10A) “Khandsari sugar manufacturing unit” means a unit
engaged or ordinarily engaged in the manufacture or production of
khandsari sugar with the aid of a crusher driven by any mechanical
power ;] 4[(11) “occupier of a factory or Khandsari sugar manufacturing
unit” means the person who has control over the affairs of a factory or
Khandsari sugar manufacturing unit and where the said affairs are
entrusted to the managing agent, such agent ;]
(12) “prescribed” means prescribed by rules made under this
Act ;
(13) “State” means the 1[State of Haryana].
3. (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.
1. Substituted for the word “Punjab” by the Haryana Adaptation of Laws Order,
1968.
2. Substituted by Haryana Act 14 of 1978.
3. Inserted by ibid.
4. Substituted by ibid.
Sugarcane
Control Board.
1953 : Pb. Act 40 ] SUGARCANE (REGULATION OF PURCHASE AND SUPPLY)
466 SUGARCANE (REGULATION OF [1953 : Pb. Act 40 PURCHASE AND SUPPLY)
(2) The Board shall consist of fifteen members.
(3) 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.
(4) 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 proceeding took place.
4. 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.
1[5. Where the occupier of a factory or Khandsari sugar manu-
facturing unit is a firm or a company 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 or Khandsari
sugar manufacturing unit is punishable.]
6. (1) 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 :
2[Provided that the occupier of a factory shall not nominate any
person to be the purchasing agent at an out cane purchasing centre if such
a person has worked as purchasing agent at that centre for a total period of
three years :
Provided further that such a person may be renominated as a
purchasing agent at that centre after a period of at least five years has
expired since he last so served.]
(2) Any person appointed as agent under sub-section (1) 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 untill such deposit is made, and he has been given a licence in the
manner prescribed.
1. Substituted by Haryana Act 14 of 1978.
2. Added by ibid.
Appointment
of Cane
Commissioner.
Determination
of occupier for
purposes of this
Act.
Appointment
of an agent.
7. (1) No person shall act as purchasing agent under this Act,
unless he has been licensed as such in the prescribed manner.
(2) 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.
(3) A licence shall not be granted to any person under sub-
section (1) 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
licence, order that the deposit paid or security furnished in respect of
such licence 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.
1[(4) Any person aggrieved by an order of the Cane Com-
missioner made under sub-section (3) may, within a period of thirty days
of the date of such order, prefer an appeal to the Government in such form
and manner as may be prescribed.]
8. (1) 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 shall maintain such accounts and submit such
returns and statements as may be prescribed.
2[(2) [* * * * *]
3[9. (1) If any person contravenes any of the provisions of this Act,
or of any rule made thereunder, he shall be punishable with rigorous
imprisonment for a term which may extend to one year, or with fine
which may extend to five thousand rupees or with both.
(2) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973, all offences punishable under this Act and the
rules made thereunder shall be cognizable.]
1. Inserted by Haryana Act 14 of 1978.
2. Omitted by ibid.
3. Substituted by ibid.
Licensing of
Purchasing.
Duties of an
agent.
Penalty and
cognizance of
offences.
1953 : Pb. Act 40] SUGARCANE (REGULATION OF PURCHASE AND SUPPLY)
468 SUGARCANE (REGULATION OF [1953 : Pb. Act 40 PURCHASE AND SUPPLY)
10. (1) 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 purchased for his factory during
any particular crushing season.
(2) 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 assign the area from which the cane may be purchased on
such terms and conditions as it may deem fit.
(3) 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 Commissioner 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.
11. (1) Every survey mentioned hereinbefore shall be made by
an officer authorised by the Cane Commissioner in the manner
prescribed.
(2) 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.
(3) Any amount due from the occupier of a factory in respect
of a survey shall be recoverable from such occupier as an arrear of
land revenue.
12. 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.
13. (1) The occupier of a factory or any other person acting on
his behalf shall not distribute seed-cane of any variety to any person to
be used by cane-growers or the members of Canegrowers’, Co-operative
Societies in any area if the same has been declared under this Act, to
be unsuitable for the factory.
(2) The occupier of a factory or any other person acting on
his behalf shall not plan cane of any variety, declared under this Act,
to be unsuitable for the factory.
Estimate of
quantity of
cane required
by factory.
Survey of
area.
Power to
declare
varieties of
cane to be
unsuitable for
use in factories.
Prohibition of
distribution of
certain kinds of
seed cane.
14. (1) A cane-grower or a Cane-growers Co-operative Society
in an assigned area may sell by the date prescribed in this behalf, to the
occupier of the factory to which the area is assigned, cane grown by
the cane-grower or by the members of such Cane-growers’ Co-operative
Society as the case may be, not exceeding the quantity prescribed for
such grower or Cane-growers’ Co-operative Society.
(2) The agent of a factory shall enter into an agreement with
a cane-grower or with a Cane-growers’ Co-operative Society, as the
case may be, in such form, by such date and on such terms and
conditions as may be prescribed, for the purpose of purchasing the
cane offered in accordance with sub-section (1). No person other than
the agent aforementioned shall purchase or enter into an agreement to
purchase cane grown by members of a Cane-growers’ Co-operative
Society from any other person except in accordance with such
agreement.
(3) Except with the permission of the Government, cane
grown in an assigned area shall not be purchsed by any person other
than the agent of the factory for which such area has been assigned.
(4) 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’ Co-operative Society shall be
bound to sell to the said agent.
15. If the cane-growers or Cane-growers’ Co-operative 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 1[if permitted by the Cane-Commissioner.]
2[15A. (1) The occupier of a factory shall make such arrangement
for the payment of price of cane as may be prescribed.
(2) As soon as cane is supplied to a factory, the occupier of
such factory shall be liable to pay the price of cane so supplied.
1. Added by Haryana Act 43 of 1973.
2. Inserted by ibid.
1953 : Pb. Act 40] SUGARCANE (REGULATION OF PURCHASE AND SUPPLY)
Purchase of
cane in
assigned area.
Purchase of
cane outside
the assigned
area.
Payment.
470 SUGARCANE (REGULATION OF [1953 : Pb. Act 40 PURCHASE AND SUPPLY)
(3) Where the occupier liable under sub-section (2) makes
default in payment of the price for a period exceeding fourteen days from
the date of supply of cane to the factory, he shall be liable to pay interest
thereon at such rate 1[not exceeding fifteen per cent per annum], as the
State Government may, by notification, determine from the said date.]
16. (1) 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. 2[(1A). The occupier of a Khandsari sugar manufacturing unit
shall maintain a register in the prescribed form and manner.]
(2) 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 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.
17. 4[(1) The State Government may,—
(i) after consultation with the Sugarcane Control Board,
impose a tax not exceeding two rupees per quintal on
the purchase of cane by or on behalf of a sugar factory;
and
(ii) impose a tax not exceeding one rupee per quintal on
the purchase of cane by or on behalf of a Khandsari
Sugar manufacturing unit,
and when a tax is so imposed it shall be notified in the Official Gazette,
and shall be levied, charged and collected in the manner prescribed.] 3[(2) If the tax levied under sub-section (1) is not paid on or
before the due date, interest 5[at such rate, not exceeding fifteen per cent
per annum, as the State Government may, by notification, determine
from time to time,] shall be charged on the amount of tax from the
said date till the date of payment.
1. Substituted by Haryana Act 14 of 1978.
2. Inserted by ibid.
3. Substituted by Haryana Act 43 of 1973.
4. Substituted by Haryana Act 9 of 1974 and further substituted by Haryana Act
14 of 1978.
5. Substituted by Haryana Act 14 of 1978.
Maintenance
of register.
Tax on the
purchase of
cane.
(3) All sums due as tax or interest, and not paid by the due
date, shall be recoverable as arrears of land revenue.]
1[17-A. The Government, if satisfied that a factory has exported
out of India any quantity of 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.]
2[17-B. The Government, if satisfied that it is necessary on
account of low recovery of sugar from cane or with a view to encourage
or regulate the supply of cane to or its purchase by sugar factories,
may, from time to time by notification in the Official Gazette,
exempt or refund, in whole or in part, the tax payable or paid under
section 17.]
3[17-C. (1) In addition to the tax payable under section 17, there
shall be paid by or on behalf of a sugar factory a surcharge at the rate
of two percentum on the amount of such tax.
(2) The provisions of this Act shall, so far as may be, apply
in relation to the surcharge payable under sub-section (1), as they apply
to the tax payable under this Act.
(3) The State Government may, by notification, discontinue
the levy of the surcharge at any time.]
4[18. On the application of a person accused of an offence under
this Act or the rules made thereunder, the Cane Commissioner or any
other officer authorised by the State Government in this behalf may
accept from him a sum of money not exceeding two thousand rupees
by way of composition for such offence at any stage before the judgment
in the case has been announced.]
1. Section 17-A. instered by Punjab Act 7 of 1966.
2. Section 17-B. instered by Haryana Act 8 of 1971.
3. Section 17-C. instered by Haryana Act 5 of 1972.
4. Substituted by Haryana Act 14 of 1978.
1953 : Pb. Act 40] SUGARCANE (REGULATION OF PURCHASE AND SUPPLY)
Power to refund
tax on cane
utilized for
manufacturing
sugar exported
out of India.
Power to ex-
empt tax on the
purchase of
cane.
Levy of
surcharge.
Power to
compound
offences.
472 SUGARCANE (REGULATION OF [1953 : Pb. Act 40 PURCHASE AND SUPPLY)
19. No suit, prosecution or other legal proceeding shall lie against
the Government or against any person for anything which is in good
done or intended to be done under this Act or the rules framed
thereunder.
20. (1) The Government may make rules to carry out the
provisions of this Act.
(2) In particular and without prejudice to the generality of
the foregoing 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 thereunder are to be
performed ; 1[(cc) the form and manner in which an appeal may be
preferred ;]
(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,
registers and accounts and the submission of returns,
the supply of copies of entries therein and the fees
to be charged for the same ;
1. Inserted by Haryana Act 14 of 1978.
Bar of suit or
other pro-
ceedings.
Power to make
rules.
(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
licences may be made, the terms and conditions of
each licence, their renewal, suspension and
cancellation and the fees to be charged for the same;
(k) the correct weighment of cane, the provision of
facilities for weighment and for checking
weighments, 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.
21. The Sugarcane Act, 1934 (Act XV of 1934) in so far as it is
applicable to the State of Punjab, and the Sugarcane (Punjab Amendment)
Act, 1943 (Punjab Act IX of 1943), are hereby repealed. Any thing done
or any action taken in exercise of powers conferred by, or under repealed
Acts, or purporting to have been done or taken under the Punjab Sugar
Factories Control Act, 1950 (Punjab Act I of 1950) shall, to the extent of
being consistent with the provisions of this Act, as if this Act were in
force at the time when such thing was done or such action was taken.
Repeal of the
Sugarcane Act,
1934, and the
Sugarcane
(Punjab
Amendment
Act, 1943) and
saving.
1953 : Pb. Act 40] SUGARCANE (REGULATION OF PURCHASE AND SUPPLY)