Uttar Pradesh act 24 of 1953 : The U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT' 1953 (24 OF 1953)

Date: 14 Jul 1953

Department

Department of Cane Development

PDF

26 LAW RELATING TO SUGAR INDUSTRIES IN U.P. [Ann.

(2) (a) Repairs shall be classifled under three heads:

({} annual repairs, fi) quadrennial! repairs, fil) special repairs or

renewals. .

(b) () “Annual repairs” shall mean ordinary repairs which are done

to a bullding annually such as white-washing or distempering wall

surfaces and repairing leaks in roofs, etc. .

{ti} "Quadrennial repair” shall include items of work which need be

earrled out only once in four years such as painting or varnishing doors

and windows or repairing roads.

(tii) Special repairs or repairs which do not recur at regular intervals,

being chiefly. renewals of structure.

(3) In order to estimate the life of each class of work and calculate the

sum which, set aside annually as a sinking fund, may reproduce the

value of the work‘within the period of its estimated life, the following

annual charges shall be made for the periods mentioned :

List of worlc Percentage of value to be set aside annually

100 years sen 1/10th pe r cent

80 to 70 years net 1 /5th "

60 years ne pn 2/5th 7

50 years 2 /3rd

40 years a ws we 1 -

30 years 84 see - we 2 "

25 yéars ve 2-1/2 -

20 years we us 3 -

2. Renewals (te., special repairs), which do not cau se an increase In

the capital value of a building. will be charged in full to repairs, and

those which really represent an Increase in value, for in stance when a

thatch roof Is replaced by roof of a superior kind, e.g: , by a jack-arch

roof, will only to the extent of such increase, be chargea ble to the capital

cost, the balance being debitable to repairs.

3. The annual quadrennial, and special repairs t aken as a whole

shall not exceed 2.1 per cent per annum of the capital value: of the

residential building and an endeavour should be made to keep them as

low as possible. Note.—In any case where it is proposed to exceed

the percentage the

approval of the Commissioner must be obtained.

THE U.P. SUGARCANE (REGULATION OF SUPPLY

_ AND PURCHASE} ACT, 1953! .

U.P. Act No. XXIV of 1953 as Amended by U.P. Acts No. XXT of 1956, No. If of 1966. No. VI of 1962, No. IV of 1964, No. XI of 1966, No. VI o

f 1971: No. If of 1972, No. VII of 1974, No. XXVIII of 1974, No. X of 1976

and Act No. XXXIV of 1976 and No. 30 of 1979.

1, For SOR see Gazette, Extra, dated July 15, 1953.

n n n

ne E E

A NE

I P N F A I E E E

S. 1] THE U.P, SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1953 27

CONTENTS

Sections ‘Sections CHAPTERI . 13. Register of Cane-grower and

Cane-growers Co-operative PRELIMINARY Society or Socteties.

1. Short title, extent and ‘14. Power of Survey, ete. Roaueneement 15. Declaration of reserved area

and assigned area. 2. Di S, . efinitions 16. Regulation of purchase and

CHAPTER I supply of cane in the reserved and assigned areas. *

Oe RCENERY. 17. Payment of cane price. HINERY 18. Commission on purchase of

3. Sugarcane Board. * cane. . 4. Functions orine Board, 19. Power to declare varieties of

5. The Development Counell fae te unpullable fer use ln 6. Functions of the Council. . 7. Casual vacancy. CHAPTER IV - 8. Counell Fund. MISCELLANEOUS 9. Sugar Commissioner and 20. Tax on sale of cane,

, Cane-Commissloner. 21. Determination of occupier for 10. Additional, Deputy or the purpose of this Act.

Assistant’ Cane 22. Penalties. a Poeaunisolenet: 23, Institution of Proceedings.

. Inspectors. 24, Special powers of Magistrates. _CHAPTER Ill 25. Protection of action taken

ra ~ under the Act. BURGE One 26. Repeal and Saving.

IRCHAS} CANE 27. Transitlonary Provisions. 12, Estimates of requirements. 28. Power to make rules.

[As passed by the U.P. Legislature}

An Act to regulate the supply and purchase of sugarcane required for” Viacet sugar {factories and Gur, Rab or Khandsari Sugar Manufacturing

nits}. € ,

Whereas it is expedient to regulate the supply and purchase of Sugarcane required for use in sugar [factories and Gur, Rab or Khandsart Sugar Manufacturing Units]?and other connected matters;

It Is hereby énacted as follows :

CHAPTER |

Preliminary

2, Short title, extent and commencement.—(1) This Act may be called the U.P. Sugarcane (Regulation, of Supply and Purchase) Act, 1953.

(2) It extends to the whole of Uttar Pradesh. (3) It shall come into force at once.

1. Subs, by U.P. Act II of 1960. 2. Subs. by U.P. Act II] of 1960.

25 LAW RELATING TO SUGAR iNDUSTRiES i_N U.P. (Ann. C (2) (a) Repairs shall be classiﬁed under three heads : (l) annual repairs. (ii‘) quadrennial repairs. (ill) special repairs or renewals. - (b) (1') "Annual repairs" shall mean ordinary repairs which are done to a building annually such as white-Washing or distempering wall surfaces and repairing leaks in roofs. etc. , (ii) “Quadrennial repair" shall include items of work which need be carried out only once in four years such as painting or varnishing doors and windows or repairing‘roads. (i‘i'i') Special repairs or repairs which do not recur at regular intervals. being chieflyrenewais of structure. [3) In order to estimate the life of each class of work and calculate the sum which. set aside annually as a sinking fund. may reproduce ‘the value of the work Within the period of its estimated life. the following annual charges shall be made for the periods mentioned : List of work Percentage ofvalue to be set aside annually 100 years l/lOth per cent 30 to 70 years l/Sth " 60 years 2/5th " 50 years Z/ard " 40 years i “ 30 years .I 2 " 25 years 2-1/2 " 20 years .. 3 ' 2. Renewals (1.9., special repairs]. which do not cause an increase in the capital value of a building, will be charged in full to repairs. and those which really represent an increase in value. for instance when a (hatch roof is replaced by roof of a superior kind. e.g:'. by ajack—areh roof. will only to the extent of such increase. be chargeable to the capital cost. the balance being debitabie to repairs. 3. The annual quadrennial. and special repairs taken as a whole shall not exceed 2.1 per cent per annum of the capital value of the residential building and an endeavour should be made to keep them as low as possible. Note.—ln any case where it is proposed to exceed the percentage the approval of the Commissioner mustbe obtained. THE U.P. SUGARCANE (REGULATION OF SUPPLY _ AND PURCHASE) ACT. 1953‘ . U.P. Act No. XXIV of 1953 as Amended by U.P. Acts Na. xxz of1955, No. 111 of 1966. No. VI of 1962, No. 1Vof 1964, No. xi of 1966. No. Vi of 1971: No. 11 of 1972. No. Vii of 1974. No. xxvm of 1974. No. x of 1976 and Act No. xxxrv Qle76 and No. 30 of 1979. i. For we see Gazelle. am. data: July is. 1553. 3‘:ng s. 11 THE U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) Acr, 1953 27 CONTENTS Sections Sections CHAPTER 1 . )3. Register of Cane-grower and Cane-growers Coaoperative PRELWARY Society or SOCIBUCS. i. Short title. extent and “- PW" “f 5"”“Y- “c- commencement. 15. Declaration of reserved area and aslgncd area. 2. p '. ‘ eﬂnlllons 15. Regulation ofpurchase and cma " sugply of cans in the reserved an assigned areas. ' mﬂsrmrrve 17. Payment oi cane price. ENERY iB. Commission on purchase of a. Sugarcane Board. ’ cane- ' 4_ Funmons or the Board. 19. Power to declare varieties of 5. n. mama... cmai. gaggegnsul'ab‘e f°r "s In ' 5. Functions of the Council. ' 7_ Casual “cam” CHAPTER iv . a. Councy Md. MISCELLANEOUS 9. Sugar Commissioner and 20. Tax on sale at cane. _ Cane-Commissloner- 2i. Detenninauon of occupier for 10. Additional. Deputy or the purpose or this Act. Assistant Cane 22. Penalties. n Fommlssloncr- 23, institution or Proceedings. - nspcciom- 24. Special powers of Magisuat'es. ,.CHAPTER m 25. Protection of action taken 1/ s under the Act. PURZUPFlgoAFN'D 26. Repeal and Saving. ‘ HAS CANE 27. Tiansitionary Provisions. 12. Estimates of requirements. 23. Power to make rules. [As passed by-Lhe U.P. Legislature] [in Act to regulate the supply and purchase of sugarcane required for' Bsestrll 1sugar [factories and Guthab' or Khandsart Sugar Manufacturing m . ' I Whereas it is expedient to regulate the supply and purchase of sugarcane required for use in sugar [factories and GUI. Rab or- Khandsart Sugar Manufacturing Unitslzand other connected matters: it is hereby enacted as follows : CHAPTERl Preliminary 1. Short title. extent and commencement—(1) This Act ma be called the U.P. Sugarcane (Regulation of Supply and Purchase) Act. 19):.33. (2) it extends to the whole of Uttar Pradesh. (3) it shall come into force at once. 1. Subs. by up. Act iii of isso. 2. Subs. by u.i=. Act iii of 1960.

28 LAW RELATING TO SUGAR INDUSTRIES IN U.P. [s.1

Comments

Act and Notification, dated 27th September, 1954—Not violative of

Article 190)() and (g).—The power given to the Cane Commissioner under Sectlon 15 of the Act for declaring reserved or assigned areas is not absolute nor is it unguided and, therefore, does not fall within the mischief of Article 19(1) () and (g) and the notification dated 9th November, 1955, cannot be Impugned on that ground. The same is the position with regard to notification, dated 27th September, 1954. The

restriction which Is imposed upon the cane-growers in regard to sales of . thelr sugarcane to the occupiers of factories in areas where the

membership of the Cane-operative Society Is not less than 75 per cent of

the total cane-growers within the area is a reasonable restriction in the

public interest designed for safeguarding the interest of the large Majority of grower of sugarcane in the area and works for the greatest good of the greatest number. Lill

That being so, it comes well. within the protection of Article 19(6) and

the imipugned notification cannot be challenged ds violative of the fundamental right guaranteed under Article 19(1)() and (g); per Bhagwati, J.—Ch. Tika Ramji v. The State of Uttar Pradesh.)

8 Act and Notifications thereunder—Not violative of Article 31 of

Constitution:—If these impugned notificatlons are intra vires the State

Legislature, they cannot be challanged also under Article 31 as one of the

petitioners is being deprived of his property. if any, save by the authority

of law per Bhagwati J.—Ch. Tika Ramjiv. The State of Uttar Pradesh.2

Act does not violate Article 301 of Constitution.—The Act does not

violate Article 301 of the Constttution. The sugarcane growers are not

free to sell thelr sugarcane to any body other than the occupier of a

factory or even to him except through the agency of a Cane-growers Co- operative Society and are not at all entitled to sell their sugarcane to

anyone outside the State. Assuming this Is so, the short answer to this contention is furnished by the provisions of Article 301 of the Constitution per Bhagwati, J.—Tika Ramji v. The State of Uttar

Pradesh3 Act ts intra vires of U.P, Legistature.—The impugned Act merely

confined ttself to the regulation of the supply and purchase of sugarcane

required or use in sugar factories and did not concern itself at all with

the controlling or licensing the sugar factories, with the production or

manufacture of sugar with the trade and commerce in, and the

production, supply and distribution of sugar.

Hf that was so, there was no question whatever of its trenching upon

the jurisdiction of the Centre in regard to the sugar industry which was a

controlled Industry within Entry 52 of List 1 and the U.P. Legislature had

* Jurisdiction to enact the law with regard to sugarcane and had legislative competence to enact the impugned Act per Bhagwati, J.—Ch. Tika Ramji

v. The State of Uttar Pradesh.*

1. 1956 SCR 393 : 1956 SCA 974 2, 1956 SCR 393 : 1956 SCA 97% a. 1956 SCR 393 ; 1956 SCA 97 4. 1956 SCR 393 : 1956 SCA 97

956 AWR (HC) 667 ; 1956 SCJ 625 : AIR 1956 SC 676. 956 AWR (HC) 667 : 1956 SCJ 625 : AIR 1956 SC 676. 95G AWR (HC) 667 : 1956 SCJ 625 : AIR 1956 SC 676. 956 AWR (HC) 667 : 1956 SCJ 625 : AIR 1956 SC 676.

S.1] THE U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 195329

Act is not repugnant to Sugarcane Control order 1955 and U.P. Sugarcane Regulation of Supply and Purchase Order 1954.—There is no repugnancy whatever between the Sugarcane Control Order, 1955 and the U.P. Sugarcane Regulation of Supply and Purchase, Order, 1954 and the impugned Act and the Rules framed thereunder as also the U.P. Sugarcane Regulation of Supply and Purchase Order 1954, do not trench upon the field covered by the Essentlal Commodities Act 10 of 1955 per Bhagwati, J.— Ch, Tia Ramjiv. The State of Uttar Pradesh)

Act not repugnant to Industries (Development and Regulation) Act (65 of 1951) (as amended by Act 26 of 1953) and to Essential Commodities Act (10 of 1953).—If the Act had remained ‘as originally enacted the -provisions of the Act would not have been jn any manner whatever repugnant to the provisions of U.P. Act 1 of 1938 because the Acts covered diferent flelds. Act 26 of 1953, however, Introduced certain amendments in the Act including Section 18-G. Sugar Industry being one of the scheduled industries sugarcane was an article relatable to the sugar ‘industry ‘and was, therefore, within the scope of Section 18-G and the Central Government was authorised by notifled order to provide for regulating the supply and distribution thereof and trade and commerce therein.

If that was so the fleld of legislation in regard to sugarcane was covered by this provision of the Act and was taken away from the jurisdiction of the State Legislatures, the avowed intention being to cover the whole field of such legislation. Articles relatable to scheduled industry comprised only those finished products which were of the same nature of description as the article or class of articles manufactured or produced in the scheduled industry and did not comprise the raw materials for the scheduled industry. :

The structure of the whole Act 65 of 1951 related to the development | and regulation of the scheduled industries and all the provisions which were contained in the Act including those which were introduced therein by Act 26 of 1953 were designed for effectuating that purpose.

It is significant to note that, even in Section 18-G, the regulation which was Intended was that of the supply and distribution of the article or class of articles relatable to the scheduled industry and the production of those articles was not sought to be. regulated at all. The raw materials would certainly be essential ingredients in the process of manufacture or production of the articles In the scheduled industry but would not be of the same nature or description as the article or class of articles manufactured or produced therein.

The whole object of enactment of Sectlon 18-G was to secure the equitable distribution and avatlabilty at fair prices of such articles which by relation thereof to. the article or class of articles manufactured or produced in the ‘écheduled Industry would affect such manufacture or Production or the supply and distribution thereof or trade and commerce

erein,

1, 1956 SCR 393 : 1956 SCA‘979 ; 1956 AWR (HC) 657 : 1956 SQJ 625 : AIR 1956 SC 676.

211 LAW RELATING To SUGAR INDUSTRIES IN U.P. [5. 1 Comments Act and Notification. dated 27th. September. 1954—Not uiolatiue of Article 190107 and (g).—The power given to the Cane Commissioner under Section 15 of the Act for declaring reserved or assigned areas is not absolute nor is it unguided and. therefore. does not fall within the mischief of Article 19(1) '0} and (g) and the notiﬁcation dated 9th November. 1955. cannot be impugned on that ground. The same is the position with regard to notification. dated 27th September. 1954. The restriction which is imposed upon the cane-growers in regard to sales of. their sugarcane to the occupiers of factories in areas where the membership of the Cane-operative Society Is not less than 75 per cent of the total cane-growers within the area is a reasonable restriction in the public interest designed for safeguarding the interest of the large majority of grower of sugarcane in the area and works for the greatest good of the geatest number. ‘ ‘ ' That being so. it comes well within the protection of Article 19(6) and the impugned notiﬁcation cannot be challenged as violative of the fundamental right guaranteed under Article 19(1)(ﬂ and (g) : per Bhagwaii. J.—-Ch_ ﬂirt: Rani/i v. The State of Uttar Pradesitl- ’ Act and Notiﬁcations thereunder—Not uiolatiue of Article 31 of Constitution—if these impugned notiﬁcations are I'ntra uires the State Legislature. they cannot be chailanged alsounder Article 31 as one of the petitioners is being deprived of his property, if any. save by the authority of law per Bhagwati' J.—Ch. 713m Ramji v. The State of Uttar i’radesh.Z Act does not violate Article 301 of Constitution—The Act does not Violate Article 301 of the Constitution. The sugarcane growers are not free to sell their sugarcane to any body other than the occupier of a factory or even to him except through the agency of a Cane-growers Co- operative Society and are not at all entitled to sell their sugarcane to anyone outside the State. Assuming this is so. the short answer to this contention is furnished by the provisions of Article 301 of the Constitution per Bhugwati, J.—Tika Ranyi v. The State of Uttar Prairiesh.a Act is intro uires of U.P. Legislature—The impugned Act merely confined itself to the regulation of the supply and purchase of sugarcane required or use in sugar factories and did not concern itself at all with the controlling or licensing the sugar factories. with the production or manufacture of sugar With the trade and commerce 'in. and the production. supply and distribution of sugar. if that was so. there was no question whatever of its trenching upon the jurisdiction of the Centre in regard to the sugar industry which was a controlled industry within Entry 52 of List 1 and the U.P. Legislature had ' Jurisdiction to enact the law with regard to sugarcane and had legislative competence to enact the impugned Act per Bhagwoti', J.—Ch_ ﬁlm Rdmji' v. The sum: of Uttar Pradesh.“ i 1956 SCR 393 : 1956 SCA s7 2. 1956 SCR 393 : 1956 Sc». 97 a. 1956 scR393:V1956_sc./\97 4. igsescaasangsesmm 956 (““1 [HC) 667: 1556 so! 525 : AIR 1956 so 676. 956AWRIHC)657:195€SCJ 525 : AIR 1956 SC 676. 956 AWRIHC) 667: 1956st 525:AIR1956 SC 676. 556A\VR(HC)667:1956 sci 625 : AIR 1956 SC 676. S. 1] THE U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1953 29 Act is not repugnant to Sugarcane Control order 1955 and U.P. Sugarcane Regulation of Supply and Purchase Order 1954.—There is no repugnancy whatever between the Sugarcane Control Order, 1955 and the U.P. Sugarcane Regulation of Supply and Purchase Order. 1954 and the impugned Act and the Rules framed thereunder as also the U.P. Sugarcane Regulation ofSupply and Purchase Order 1954. do not trench upon the ﬁeld covered by the Essential Commodities Act 10 of 1955 per Bhagwati'. J.— ch. Tilca Ramjiv. The State ofUttar Pradesh.‘ Act not repugnant to Industries [Development and Regulation] Act (65 or 1951) [as amended by Act 26 of 1953) and to Essential Commodities Act (10 of 1953).—lf the Act had remained 'as originally enacted the .provisions of the Act would not have been in any manner whatever repugnant to the provisions of U.P. Act 1 of 1938 because the Acts covered different fields. Act 26 of 1953. however. introduced certain amendments in the Act including Section 18-G. Sugar industry being one of the scheduled industries sugarcane was an article relatable to the sugar industry and was. therefore. within the scope of Section 13—6 and the Central Government-was authorised by notiﬁed order to provide for regulating the supply and distribution thereof and trade and commerce therein. if that was so the field of legislation in regard to sugarcane was covered by this provision of the Act and was taken away from the jurisdiction of the State Legislatures. the avowed intention being to cover the whole field of such legislation. Articles relatable to scheduled industry comprised only those ﬁnished products which were of the same nature of description as the article or class of articles manufactured or produced in the schcduled industry and did not comprise the raw materials for the scheduled industry. - The structure of the Whole Act 65 of 1951 related to the development_ and regulation of the scheduled industries and all the provisions which were contained in the Act including those which were introduced therein by Act 26 of 1953 were designed for effectuating that purpose. it is signiﬁcant to note mat. even in Section 18-6. the regulation which was intended was that of the supply and distribution of the article or class of articles relatable to the scheduled industry and the production of those articles was not sought to be. regulated at all. The raw materials would certainly be essential ingredients In the process of manufacture or production of the articles in the scheduled industry but would not be of the same nature or description as the article or class of articles manufactured or produced therein. The whole object of enactment of Section lB-G was to secure the equitable distribution and availability at fair prices of such articles which byyrelation thereof to. the article or class of articles manufactured or produced in the dcheduled industry would alTect such manufacture or Koduction or the supply and distribution thereof or trade and commerce erein. 1- 1956 scR 39:1: 1956501579 : 1956 [amino 657: lSSGSCJ 525 :AIR 1556 Sc 676.

30 . LAW RELATING TO SUGAR INDUSTRIES IN U.P. is.2

Section 18-G did not cover the field of sugarcane and the Central Government was not empowered by the introduction of Section 18-G by Act,26 of 1953 to legislate In regard.to stgarcane. The field of sugarcane was not covered by Act 65 of 1951 as amended by the Act 26 of 1953 and the legislative powers of the Provinclal Legislatures in regard to sugarcane were not affected by it in any manner whatever. If the two fields were different and the Central Legislation did not Intend at all to cover that fleld, the field was clear for the operation of State Legislation and there was no repugnancy at all between Act 65 of 1952 and the impugned Act per Bhagwati, J.—Ch. Tika Ramji v. The State of Uttar Pradesh.)

Act not repealed—There was no repeal of the U.P. Sugarcane (Regulation of Supply and Purchase} Act or the U.P. Sugarcane (Regulation of Supply and Purchase Order, 1954 by Section 16 of the Act 10 of 1955 or by Clause 7 of the Sugarcane Control Order, 1955 per Bhagwat J.—Ch, Tika Ramji v. The State of Uttar Pradesh.2

Notification, dated 27th September, 1954 under Act 24 of 1953—Does not violate Article 19(1}(c}.—There is no compulsion at all on any cane-grower to become a member of the Cane-growers'’ Co-operative Society. Similarly, no cane-grower is prevented from resigning his membership of a Cane-growers, Co-operative Society. These are voluntary organisations which a cane-grower is entitled to join or not at his choice. .

There may be, of course, difficulties in the matter of his being able to sell the same to any person other than the owner of a factory or for any other purpose but that does not mean that there is an absolute restriction on his power of disposal of his goods: unless and until he becomes a member of a Cane-growers' Co-operative Society. He is at liberty not to become a member of Cane-growers’ Co-operative Society, if he chooses not to do so and no power on earth can compel him to become such a member.

‘Just as he ts not bound to become member of a Cane-growers' Co- operative Society, he is equally not bound to offer his sugarcane for sale to the occupier of a factory-even if he happens to be a cane-grower within the area reserved for that factory. His freedom in that behalf ts absolutely unrestricted and it cannot be urged that the provisions of the impugned Act and the Notification, dated 27th September, 1954. are violative -of his fundamental right under Article 196(1)(c} of the Constitution per Bhagwatt, J.—Ch. Tika Ramji v. The State of Uttar Pradesi.3

2. Definitions.—In this Act unless there is anything repugnant In the subject or context,—

(a) “assignéd area” means an area assigned to a factory uncer Sectidn 15; . .

1. 1956 SCR 393 : 1956 SCA 979 : 1956 AWR (HC) 657 : 1956 SCJ 625 : AIR 1956 SC 676. 2, 1956 SCR 393 : 1956 SCA 979 ; 1956 AWR [HC} 657 : 1956 SCJ 625 : AIR 1956 SC 676. 3. 1956 SCR 393 : 1956 SCA 979 : 1956 AWR [HC} 657 : 1956 SCJ 625 : AIR 1956 SC 676.

S.2] ‘THE U.P, SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 195331

(b)

{e)

(a)

(e}

(9)

(hy;

319-0

“1g -t

5[()

“Board” means the Sugarcane Board established under Section 3

“Cane” means sugarcane intended for use-in a factory 'or Gur, Rab or Khandsari Sugar Manufacturing Unit);

“Cane Commissioner” means the Officer appointed to be Cane . Commissioner under Section 9, and includes an Additional Cane Commissioner appointed under Section 10; -

“Cane-grower” means a person who cultivates cane elther by himself or by members of his family or by hired labour and who is not a member of a “Cane-growers' Co-operative Society; “Cane-growers’, Co-operative Society” means a soclety- registered under the Co-operative Societies Act, 1912, one of the objects of which is to sell cane-grown by lts members and includes the federation of such societies registered under Section 8 of the said Act;

“Collector“ includes any person whom the State Government may. by notification appoint to exercise and perform the powers and duttes of a Collector under this Act;

“Council” means the Cane Development Council established under Section 5;

“Crushing season” means the period 2[beginning on the Ist October in any year and ending on the 15th July next following]; “Factory” means any premises, including the precincts thereof wherein twenty or more workers are working or were working on any day during the preceding twelve months and In any part of which any manufacturing process connected with the production of sugar by means of vacuum pans ts being carried on‘or 1s ordinarily carried on with the aid of mechanical power; % . Mes “Gur, Rab or Khandsari Sugar Manufacturing Unit" means a unit engaged or ordinarily engaged in the manufacture -or Production of gur, rab or khandsari sugar in a reserved area, and which is capable of handling sugarcane fuice produced with the aid of a crusher driven by any mechenical power;] “Inspector” means any person appointed or any officer designated as inspector under Section 11;] “Occtpier” in relation to a factory or a gur, rab or khandsart Sugar Manufacturing Unit, means the person (including a company, firm or other association of individuals) who, or the authority which, owns or has the ultimate control over the

a z Ins. by U.P. Act IV of 1964. ‘ ‘Subs. 1970. *

by U.P. Act No. 6 of 1971. This amendment has been enforced w.e.f. 30th June,

Added by U.P. Act Ill of 1960. Ins. by Sec. 2 of U.P. Act 34 of 1976. Subs. by Sec, 2 of U.P. Act 7 of 1974 and be deemed always to have been substituted.

so _ LAW RELATING To SUGAR lNDUSTﬂlES 1N U.r. Is. 2 Section 18-G did not cover the fleld of sugarcane and the Central Government was not empowered by the introduction of Section lS-G by Act,26 of 1953 to legislate 1n regard.to sugarcane. The field of sugarcane was not covered by Act 65 of 1951 as amended by the Act 26 of 1953 and the legislative powers of the Provincial Legislatures in regard to sugarcane were not affected by it in any manner whatever. if the two fields were different and the Central Legislation did not intend at all to cover that field. the field was clear for the operation of State Legislation and there was no repugnancy at all between Act 65 of 1951 and the impugned Act per Bhagwati, J.—Ch. Tika Ramﬂv. The State of Uttar Pradesh.1 Act not repealed—There was no repeal of the U.P. Sugarcane (Regulation of Supply and Purchase) Act or the u.1>. Sugarcane (Regulation of Supply and Purchase Order. 1954 by Section 16 of the Act 10 of 1955 or by Clause 7 of the Sugarcane Control Order. 1955 per Bhagwatt J.—Ch. 711m Ram]! V. The State Qf Ultar Prouiest2 Notification, dated 27th September, 1954 Lmder Act 24 of 1953—13025 not violate Article 19(i){c).—There is no compulsion at all on any cane»growcr to become a member of the Cane-growers' Oct—operative Society. Similarly. no cane-grower is prevented from resigning his membership of a Cane-growers. Co»operative Society. These are voluntary organisations which a cane-grower is entitled to join or not at his choice. ' There may be. of course, difficulties in the matter ofhis being able to sell the same to any person other than the owner of a factory or for any other purpose but that does not mean that there is an absolute restriction on his power of disposal of his goods- unless and until he becomes a member of a Cane-growers' Co-operative Society. He is at liberty not to become a member of Cane-growers Co-operative Society. if he chooses not to do so and no power on earth can compel him to become such a member. ' Just as he is not bound to become member of a Cane-growers Co- operative Society. he is equally not bound to olTer his sugarcane for sale to the occupier of a factory even if he happens to be a cane-gower within the area reserved for that factory. His freedom in that behalf is absolutely unrestricted and it cannot be urged that the provisions of the impugned Act and the Notiﬁcation. dated 27th September. 1954. are violative *of his fundamental right under Article 196(1)(c) of the Constitution per Bhagwati. J.—-Ch. 11kt: Ramjlv. The State of Uttar PradeshfI 2. DeﬁnitionsL—ln this Act unless there is anything repugnant in the subject or context.— {a} "assignéd area" means an area assigned to a factory under Section 15: ' ' 1. 1956 SCR 393. 1956 SCA 97 956AWR (He) 657: 1956 SC.) 625 : AIR 1956 Sc 576. 2. 1956 SCR 393 : 1956 SCA 97s : 1956 AWR [HC) 657: 1956 SC! 625 : AIR 1956 SC 676. a. 1956 SCR393:1956 501979: 1955 AWRIHC) 657 : 1956 sci 625 : AIR 1956 SC 676. p s. 2] 111': U.r. SUGAnCANE (REGULATION OF SUPPLY AND PURCHASE) Acr, 19s: 31 (b) (a) (d) (e) (g) (h); m U) 510-0 “iii-ii} 5[(k) “Board“ means the Sugarcane Board established under Section 3: “Cane' means sugarcane intended for use-in a factory 1[or Gur. Rab or Khandsan‘ Sugar Manufacturing Unit]: ‘Cane Commissioner" means the Ofﬁcer appointed to be Cane . Commissioner .under Section 9. and includes an Additional Cane Commissioner appointed under Section 10: , “Cane-grower” means a person who cultivates cane either by himself or by_members of his family or by hired labour and who is not a member of a "Cane-growers' Co-operative Society: “Cane-growers' Co-operative Society" means a society» registered under the Co-opcratlve Societies Act. 1912. one of the objects of which is to sell cane-grown by its members and includes the federation of such societies registered under Section 8 of the said Act: “Collector“ includes any person whom the State Government may. by notification appoint to exercise and perform the powers and duties of a Collector under this Act: ‘Council” means the Cane Development Council established under Section 5: "Crushing season" means the period 2[beginning on the ist October in any year and ending on the 15th July next following]: “Factory“ means any premises. including the precincts thereof wherein twenty or more workers are working or were working on any day during the preceding twelve months and in any part of which any manufacturing process connected with the production of sugar by means of vacuum pans is being carried on‘ or is ordinarily carried on with the aid of mechanical power: ' . ‘ . . “Gur. Rob or Khandsw-l Sugar Manufacturing Unit“ means a unit engaged or ordinarily engaged in the manufacture -or production of gur. rab or khundsari sugar in a reserved area. and which is capable of handling sugarcane Juice produced with the aid of a crusher driven by any mechanical powerzl "inspector” ,means any person appointed or any officer designated as inspector under Section 1 1:] ‘Occupier" in relation to a factory or a gur. rob or khandsorl Sugar Manufacturing Unit. means ,the person (including a company. ilrm or other association of individuals) who. or the authority which. owns or has the ultimate control over the _,. . Ins. by u.1=.Ac11vor1964. . Subs. 1970. ' by U.P. Acl No. 6 of 1971. This amendment has been enforced w.c.f. amh June. Added by U.P. Act 111 of 1960. Ins. by Sec. 2 ofU.P. 1121.54 ef1976. Subs. by Sec. 2 of u.1>. Act 7 of 1974 and be deemed always to have been subsiituiad.

32 LAW RELATING TO SUGAR INDUSTRIES IN U.P. 1s.3

affairs of such factory or unit and where the said affairs are

entrusted to a Managing Agent or a Director or other Officer of

such person or authority, includes such Managing Agent,

Director or other officer :

Explanation.—Notwithstanding that the affairs of a factory

or unit are entrusted to a Managing Agent or a Director or

other officer, the liability under Section 17 of the person,

who or the authority which owns or has the ultimate

control over the affairs of the factory or unit shall remain

unaffected:]

{2) “Prescribed” means prescribed by rules;

(m) tr * *) 2[({n) “Reserved area” shall mean the area reserved for a factory

under an ‘Order for reservation of Sugarcane areas made under

Rule 125-B of the Defence of India Rules, 1962, and when no

such order is in force, the area specified in an orde: made under

Section 15:]

(o) “Rules” means a rule made under this Act;

{p) “State Government” means the Government of Uttar Pradesh;

and’ . .

(q) “Sugar Commissioner” means ‘the Official appointed to be

Sugar Commissioner under Sectlon 9 “fand Includes an

Additional Sugar Commissioner appointed under Section 10).

CHAPTER Il

Administrative Machinery

3. Sugarcane Board.—(1} There shall be established by the State

Government a Sugarcane Board for Uttar Pradesh.

(2) The Board shall consist of—

4[(a} the minister in charge of Industries];

S{(aa) the Minister in charge of Cane Development]:

{b} ®|twenty-one members} to be appointed by the State Government

of whom five shall be representatives of sugar factories 7[five

shall be representatives of Gur, Rab or Khandsari Sugar

Manufacturing Units and five shall be representatives of cane-

growers and the Cane-growers' Co-operative Societies and the

remainders shall be persons possessing technical knowledge In

sugarcane or otherwise interested in the development of

sugarcane and its products;

Omitted, ibid . Subs. by U.P. Act IV of 1964, w.e.f 171h October, 1963. Ins, by U.P, Act TV of 1964. Subs. by U.P. Act Il of 1960'and again subs. by U.P. Act VI of 1962.

Added by U.P. Act HI of 1960. g

Subs. by U.P, Act IV of 1964. Added by U.P, Act III of 1960. N

O P e y e

$.5] THE U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 195333

fc) the Cane Commissloner or his representative who shall be ex- officio member; and.

(b) the Secretary to the State Government in the Industries Department or such othér officer as may be nominated by the State Government. -He shall also be ex-officio Secretary of the Board.

_ (8) The MinIster in charge of Industries shall.be ex-officio Chairman of the Board and in his absence the 1[Minister in charge of Cane

. Development] and, if he also, Is absent, the representative of the Minister in charge of Industries to be nominated by him, shall preside over the meetings of the Board. .

{4).The term of the Board shall be two years : provided that the State” Government may if it Is satisfied that it is necessary so to do dissolve the Board before the expiry of its term.

(5) Where the Board is dissolved the following consequences shall follow— : .

(a} all members referred to in Clause (b) of sub-section (2), shall.on a date to be specified in the order, vacate their offices but

* without: prejudice to their eligibility for appointment or nomination as a member;

(b) the Board shall be reconstituted by the State Government in accordance with the provisions of sub-section (2}. _

4. Functions of the Board.—The Board shall advise the State Government on the following matter, namely—

* fa) matters pertaining to the regulation of supply and purchase of cane for sugar factories; 5

{b) the varietles of cane which are suitable or unsuitable for. use in sugar factories:

{c}. the maintenance of healthy relations between occuplers or. Tanagers of factories, cane-growers, Cane-growers’: Co- operative Societies, Cane Development Council 2[* *}; and

* (a) such other matters as may be prescribed.

-6, The Development Council.—(1) There shall be established for the reserved area of a factory a Cane Development Council (hereinafter called Council) which shall be body corporate by the name of such area or such other name as may be prescribed, having perpetual succession, and subject to such restrictions or qualiflcatlons as may be fmposed under this Act or any other enactment, vested with the capacity of suing and being sued In Its corporate name, of acquiring, holding, administering and transfering property both movable and immovable. and of ‘entering Into contracts : .

Provided that where the Cane.Commissioner so directs the Council may be established for a larger or smaller area than the reserved area of a factory.

1. Subs. by U.P. Act IV of 1964. ‘ 2, ‘The words “and purchasing agenis” were omitted by Sec. 3 of U.P. Act 7 of 1974. w.c-(,

22-12-1973. .

32 LAW RELATING To sum“! lN'DUSTRlEs lN U.P. is. J affairs of such factory or unit and Where the said affairs are entrusted to a Managing Agent or a Director or other Ofﬁcer of such person or authority, includes such Managing Agent, Director or other ofﬁcer : Explanation.—¢Notwlthstanding that the affairs of a factory or unit are entrusted to a Managing Agent or a Director or other ofﬁcer. the liability under Section 17 of the person, who or the authority which owns or has the ultimate control over the affairs of the factory or unit shall remain unaffectedil (l) “Prescribed" means prescribed by rules: (m) ‘l' ‘ 'l- 2[(n) “Reserved area" shall mean the area reserved for a factory unde'r‘an Order for reservation of Sugarcane areas made under Rule 125-B of the Defence of india Rules. 1962. and when no such order is in force, the area speciﬁed in an order made under Section 15:] (0) ”Rules” means a rule made under this Act: (p) "State Government" means the Government of Uttar Pradesh: and’ ' ' (:1) “Sugar Commissioner" means'the Ofﬁcial appointed to be Sugar Commissioner under Section 9 3[and includes an Additional Sugar Commissioner appointed under Section 10]. CHAPTER II Administrative Machinery 3. Sugarcane Board.—-(l) There shall be established by the State Government a Sugarcane Board for Uttar Pradesh. (2) The Board shall consist of— 4[(a) the minister in charge of industries]: 5[(a.a) the Minister in charge of Cane Development]: (b) E[twenty-one members] to be appointed by the State Government of whom ﬁve shall be representatives of sugar factories 7|ﬁve shall be representatives of Gur. Rab or Khandsari Sugar Manufacturing Units and ﬁve shall be representatives of cane- growers and the Cane-growers' Co-opemtlve Societies and the remainders shall be persons possessing technical knowledge in sugarcane or otherwise interested in the development of sugarcane and its products: i Omitted. ibhi. Subs. by U.P. Act Wei 1964. w.e.f. 17th October. 1963. ins. by U.F. Actl'V of 1964. > Subs. by U.F. Act in or 1960 and again subs. by U.P. AclVl of1962. Added by U.P.Acliilof1960. . Subs. by U.F. Act iv of 1964. Addoi by U.P. Act ill of 1960. SPMsPPr s. 5] THE U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) Acr, 1953 J: (c) the Cane Commissioner or his representative who shall be ex- Qﬂicio member: and (b) the Secretary to the State Government in the industries, Department or such other officer as may be nominated by the State Govemmentul-le shall also be ex-oﬂlcl'o'Secretary of the Board. , (3) The Minister in charge of industries shall.be ex—qD‘tcio Chairman of the Board and in his absence the 1[Minister in charge of Cane . Development] and. if he' also. is absent. the representative of the Minister in charge of Industries to be nominated by him. shall preside over the meetings of the Board. , (4) The term of the Board shall be two years : provided that the State' Government may if it is satisﬁed that it is necessary so to do dissolve the Board before the expiry ofits term. (5) Where the Board is dissolved the following consequences shall follow— ' ' (a) all members referred to in Clause (b) of sub-section [2). shall.on a date to be specified in the order. vacate their ofﬁces but ' without- prejudice to_ their eligibility for appointment or nomination as a member; (b) the Board shall be reconstituted by the State Government in accordance with the provisions of sub-section (2). _ 4. Functions of the Board.——The Board shall advise the State Govcmment on the following matter. namely-— ' (a) matters pertaining to the regulation of supply and purchase of cane for sugar factories: . (b) the varieties of cane which are suitable or unsuitable for use in sugar factories: (c) the maintenance of healthy relations between occupiers or, managers of factories. cane-growers. Cane-growers" Co- operative Societles. Cane Development Council 2[‘ '1: and ‘ (d) such other matters asmay be prescribed. .5. The Development Council.—[1) There shall be established for ‘the reserved area of a factory a Cane Development Council [hereinafter called Council] which shall be body corporate by the name of such area or such other name as may be prescribed. having perpetual succession. and subject to such restrictions or qualiﬁcations as may be imposed under this Act or any other enactment. vested with the capacity of suing and being sued in its corporate name. of acquiring. holding. administering and transfering property both movable and immovable. 2nd ofentering into contracts : . Provided that where the Cane.Comrnissloner so directs the Council may be established for a larger or smaller area than the reserved area of a factory. l Subs. byUJ". Act NM 15164. ‘ 2. The words 'and purchasing ngenis‘ were omitted by Soc. 3 ofU.F. Act 7 of 1974. w.e.f. 2142-1973. '

34 LAW RELATING TO SUGAR INDUSTRIES IN U.P. {s.s

{2) The area for which a Development Councll Is establis hed shall be

called a zone. Zi

4{(3) The Council shall consist of the following, namel y :—

(i) two representatives of the sugar factory conce rned, to be

nominated by the occupier: *

2{(t) Ove representatives of the Cane-growers* Co-operative Socletles

functioning in the reserved area, to be elected by the members of

the Committees of Management of Such societies from among st

the members of such societles :

Provided that, subject to availability, two of such repres entatives

shall be from the weaker sectlons; §

Explanation.—For the purposes of this clause the expr ession

"weaker sections’ means the person belonging to the Sche duled

Castes and Scheduled Tribes and include. farmers who hold

unirrigated agricultural Jand exceeding two hectares and who se

principal source of livelihood is Income from agricultural Ja nd

or by manual labour on such land or from both].

(iit) one representative of the licensed power driven k handsari

manufacturing units in the reserved area, to be elected by their

owners; {iv) the District Cane Officer:

(v) the Sugarcane Protection Inspector:

3[(iv) the Seed Production Officer;]

{vii} the Senior Cane Development Inspector, who shall be ex-officio

Member-Secretary.

(3-A4} The members of the Council shall elect from a mong themselves

a person not being a Government servant, to be the Chairman o f such

Council];

(4) The term of the Council shall be three years and upon its expiry

thé Council shall be reconstituted in accordance with the. provisions of

sub-section (3) : .

Provided that the Cane Commissioner. if he 1s satisfied tha t it is

necessary so to do may. with the approval of the’ State Government

dissolve the Councll before the expiry of Its term, or remove “(the

Chairman or any other member thereof] for reaso ns to be recorded.

5[Provided further that the term of the first council to be const ituted

after the promulgation of the Uttar Pradesh Sugarcane (R egulation of

Supply and Purchase) (Amendment) Ordinance, 1975 , shall be one year

only.) ’

(5) Where a Council is dissolved the following conse quences shall

follow ;

Subs. by U.P. Act No, 30 of 1979. Subs. by U.P. Act No. 30 of 1979.

+ Subs. by U.P. Act No, 30 of 1979. Subs. by Sec. 4 of U.P. Act No: 7 of 1974, w.e.f. 21-12-1973. Ins. by Sec. 2 of U.P. Act No. 10 of 1976, w.c.f. 17-9-1975. e

e e

$.8| THE U.P, SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 195335

(a) 3[the Chairman and all members but not the Secretary] shall on

a date to be specified inthe order vacate their offices but without

prejudice to their eligibility for appointment or nomination as

member;

(b) the Council shall be reconstituted by the Cane Commissioner in

accordance with the provisions of sub-section (3): and

({c) the duties, power and functions of the Councll shall, pending Its

reconstitution, be discharged, exercised and performed 2[by the

Secretary] may direct, for such perlod and subject to

restrictions as may.be specified In the order.

6. Functions of the Council.—(1) Functions of the Council shall * be

(a) to consider and approve the programme of development for the

zone; . ;

(b) to devise ways and means. for the execution of the development

‘plan in all its essentials such as cane varieties, cane seed,

sowing programme, fertilizers and manures;

agricultural facilitles in the zone; ‘ .

{d) to take necessary steps for the prevention and control of

diseases and pests and to render all possible help in the soil

extension work; {e} to impart technical training to cultivators in matters relating

to the production of cane; :

(f to administer the funds at its disposal for the executton of the

development scheme subject to the general or special directions

of the Cane Commissioner; and

{g) to perform other prescribed functions pertaining and conducive

to the general development of the zone.

(2) The State Government may by rule provide for an annual meeting

of all the Development Council in a district. Every such meeting shall be

presided over by the Collector. .

7. Casual vacancy.—A casual vacancy in the Council shall be filled

up, as far as may be, in the manner stated in sub-section (3) of Section 5.

8. Council! Fund.—(1) There shall be a fund at the disposal of the

Council to meet the charges In connection with the discharge of its duties

and performance of its functions under this Act.

(2) The fund of the Council shall consist of — :

(a) grants, if any made by the Indian Central Sugarcane

Committee; 8

{b) grants, if any, made by the State Government;

Khandsari Sugar Manufacturing Units} and 'Cane-growers' Co-

, operative Societies at rates to be prescribed; and :

1. Subs. by See-4 of U.P, Act No. 7 of 1974, w.e.f. 21-12-1973. 2. Subs. by Sec. 4 of U.P, Act'No. 7 of 1974, w.e.f. 21-12-1973. 3. Added by U.P. Act Ill of 1960.

31 LAW RELATING TO SUGAR INDUS111IE5 1N U.l’. [5. s (2) The area for which a Development Council is established shall be called a zone. _ I[(3) The Council shall consist of the following. namely :— (1} two representatives of the sugar factory concerned. to be nominated by the occupier: ' 21“!) live representatives of the Cane-growers Co-opemUVe Societies functioning in the reserved area. to be elected by the members of the Committees of Management of such societies from amongst the members of such societies : Provided that. subject to availability. two of such representatives shall be from the weaker sections; . Explanation..—For the purposes of this clause the expression 'weaker sections' means thevperson belonging to the Scheduled Castes and Scheduled Tribes 'and include farmers who hold unirrigated agricultural land exceeding two hectares and whose principal source of livelihood is income from agricultural land or by manual labour on such land or from both]. (tit) one representative of the licensed power driven khondsari manufacturing units in the reserved area. to be elected by their owners: (in) the District Cane Ofﬁcer: (11} the Sugarcane Protection Inspector: 3|(iv) the Seed Production Officeril (vii) the Senior Cane Development Inspector, who shall be woof/iota Member-Secretary. [Ci-A) The members of the Council shall elect from among themselves a person not being a Govemment servant. to be the Chairman of such Council]: [4) The term of the Council shall be three years and upon its expiry the Council shall be reconstituted in accordance with the provisions of sub-section (3) : ~ Provided that the Cane Commissioner.. if he is satisfied that it is necessary so to do may. with the approval of the' State Government dissolve the Council before the expiry of its term, or remove “(the Chairman or any other member thereof] for reasons to be recorded. 5(Provided further that the term of the ﬁrst council to be constituted after the promulgation of the Uttar Pradesh Sugarcane [Regulation of Supply and Purchase) (Amendment) Ordinance,' 1975. shall be one year only.] ' (5) Where a Council is dissolved the following consequences shall follow : Subs. by up. Act No. so or 1979. Subs. by 11.9. Act No. no of 1979. - Subs. by u.1=. M1 No. 30ni‘1979. Suns. by Sec. 4 oiu.P. Act No. 7 011974. We 1' 21-12-1973. Ins. by Sec. '2 of up. A51 No. 10 of 1975. w.e. . 17-9-1975. P‘PE‘P.’ s. 81 THE U.P. SUGAitCANE (iuzGuLA‘rioN or surrLY AND PURCHASE) AU, :95: as (a) l[the Chairman and all members but not the Secretary] shall on a date to be speciﬁed in-the order vacate their offices but without prejudice to their eligibility for appointment or nomination as member: (12) the Council shall be reconstituted by the Cane Commissioner in accordance with the provisions of sub-section (3): and (c) the duties. power and functions of the Council shall. pending its reconstitution. be discharged, exercised and performed 2[by the Secretary] may direct. for such period and subject to restrictions as maybe speciﬁed in the order. 6. Functions of the Council.——(l) Functions of the Council shall ' he— (a) to consider and approve the programme of development for the Zone: ' - (b) to devise ways and means for the execution of the development 'plan in all its essentials such as cane varieties. cane seed.- sowing programme. fertilizérs and manures: (c) to undertake the development of irrigation and other agricultura} facilities in, the zone: I - [d] to take necessary steps for the ‘ prevention and control of diseases and pests and to render all possible help in the soil eittension work: (e) to impart technical training to Cultivators in matters relating to the production of cane: » U) to administer the funds at its disposal for the execution of the development scheme subject to the general orrspeciai directions of the Cane Commissioner: and (g) to perform other prescribed functions pertaining and conducive to the general development of the zone. [2) The state Government may by rule provide for an annual meeting of all the Development Council in a district. Every such meeting shall be presided over by the Collector. ' 7.' Casual vacancy.—A casual vacancy in the Council shall be filled up. as far as may be. in the manner stated in sub-section (3) ofSection 5. 8. Council Fund.—(l) There shall be a fund at the disposal of the Council to meet the charges in connection with the discharge of its duties and performance of its functions undepthis Act. (2) The fund of the Council shall consist of— . (a) grants. if any made by the Indian Central Sugarcane Committee: . (b) grants. if any, mode by the State Government: (c) contributions .made by the sugar factories [Gun Rob or Khandscu-il'Sogar'Manufactui-ing Units]:| and 'Cane-growers' Co- , operative Societies at rates to be prescribed: and ' 1- Subs. by Sec;4 of U.F. Act No. 7 of 1574. w.e.i. 21-12-1973. 2. Subs. by See. 4 ofUJ’. An'Nn. 7 of 1974. w.c.f. 21-12-1973. 3- Adm-aw U.P. Act 111 of 1960.

36 LAW RELATING TO SUGAR INDUSTRIES IN U.P. {S. 8-A.

(a) any other sums, which the State Government may require ta be

credited to it.

1{9-A. Supersession of Council.—If at any time. the State

Government is, after taking into consideration the explanation, If any.

of the Council satisfied that the Council has made a wilful default in the

performance of any of its functions and duttes under this Act, It may, by

notification supersede the Council for such period as may be specified,

and shall make such arrangements for the performance of the functions

and duties of the Council, during the period of supersession, as it may

deem fit.] ‘

9. Sugar Commissioner and Cane Commissioner.—The State

Government may for purposes of this Act appolnt—

(a) a Sugar Commissioner, and {b) a Cane Commissioner:

who shall perform.the duties and exercise all powers conferred or

imposed upon them by or under this Act :

Provided that nothing in this section shall prevent the State

Government from appointing the same person to be Sugar Commissioner

and the Cane Commissioner.

10, Additional, Depity or Assistant Cane Commissioner.—

2(The State Government may appoint-any person or designate any

Government Officer as Additional, Deputy or Assistant Cane

Commissioner or Additional, Deputy or Assistant Sugar Commissioner.}

11. Inspectors.—(1) The State Government may for purposes of this

Act appoint any person or designate such officers of the Government as it

thinks fit to be Inspectors within such local limits as may be assigned to

them. :

(2) The Inspectors shall perform the duties and exercise ‘the powers,

conferred or,imposed upon them by or under this Act. a

CHAPTER III

Supply and Purchase of Cane

12. Estimates of requirements.—(1) The Cane Commissioner,

may for purposes of Section 15, by order, require the occupier of any

factory to furnish in the manner and by the date specified in the order to,

the Cane Commissioner an estimate of the quantity of cane which will-be

required by the factory during such crushing seasons 3for crushing

seasons] as may be specified in the order. :

(2) The Cane Commissioner shall examine every such estimate and

shall publish the same with such modifications, if, any, as he may make.

(3) An estimate under sub-section (2) may be revised by an authority

to be prescribed. .

13. Register of Cane-growers and Cane-growers' Co-operative

Society or Societies.—(1) The occupler of a factory shall maintain in

1. ‘Ins. by Section 3 of UP Act No. 10 of 1976. w.e.f. 17-9-1975. 2. Sub, by U.P, Act IV of 1964. 3. Ins, by UP Act XXI of 1956.

Br e

ci s

6.15] THE U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1953 37

the prescribed form a register of all such cane-growers and Cane-

growers” Co-operative Society or Societies, and shall sel! cane to that

factory.

{2) The State Government may, by rules, make provision for the

Tollowing—

(a) ‘correction of entries made In the register and addition of new entries if necessary;

fixing of prices in respect of the entries so corrected of added in

the register and prescribing of the procedure for payment of

. such price; and

the supply of copies of entries made In the register on payment

of the prescribed fee. 14, Power of survey ete.—(1) The State Government may, for

purposes of Section’15, by order provide for—

fa) asurvey to be made of the area proposed to be served or assigned

for the supply of cane.to a factory and the recovery of the cost of

such survey from the occupier of the factory;

the appointment of an Officer for purposes of such survey, his

duties‘and powers; a

the procedure In accordance with which the ‘survey shall be

made; -

the assistance and facilities to be provided to the officer

appointed in pursuance of Clause’ (b} by the persons owning or

occupying land in the area; and #

such incidental and consequential matters as may appear to be

necessary or desirable for this purpose.

(2) Any amount due from the occupier of a factory In pursuance of |

Clause (a) of sub-section (1) shall be recoverable from such occupler as an

arrear of Iand revenue. . 15. Declaration of reserved ‘area and assigned area.—(1)

Without prejudice to any order made under Clause (d} of sub-section (2) of

Section 16 the Cane Commissioner may, after consulting the Factory

and Cane-growers' Co-operative Society In the manner to be prescribed :

(a) reserve any area (hereinafter called the reserved area); and

{b) assign any area (hereinafter called an assigned area),

for the purposes of the supply of cane to a factory in accordance with the _

{b)

{e)

0b)

(c}

(d)

fe)

- provisions of Section 16 during [one or more crushing seasons as may be

Specified]! and may likewise at any time cancel such order or alter the

boundaries of an area so reserved or assigned.

(2) Where any area has been declared as reserved area for a factory.

the occupier of’ such factory shall, if so directed by.the Cane

‘Commissioner, purtfiase all the cane grown in that area, which is offered: for sale to the factory.

(3) Where any area has been declared as assigned area for a factory,

the occupier of such factory shall purchase such quantity of cane grown.

1. Ins, by UP Act XX1 of 1956.

36 LAW RELATING To SUGAR INDUSTRIES IN U.P. IS. s-A (d) any other sums. which the State Government may require to be credited to it. ‘lB—A. Super-session of Council.——lf at any time. the State Government is. after taking into consideration the explanation. if any. of the Council satisfied that the Council has made a wilful default In the performance of any of its functions and duties under this Act. It may. by notincation supersede the Council for such penod as may be speciﬁed. and shall make such arrangements for the performance of the functions and duties of the Council. during the period of supersesslon. as it may deem flt.] ' 9. Sugar Commissioner and Cane Commissioner.—The State Government may for purposes of this Act appoint— (a) a Sugar Commissioner; and (b) a Cane Commissioner: who shall perform.the duties and exercise all powers conferred or imposed upon them by or under this Act : Provided that nothing in this section shall prevent the State Government from appointing the same person to be Sugar Commissioner and the Cane Commissioner. 10. Additional, Depirty or Assistant Cane Commissioner.— lehe State Government may appoint. any person or designate any Government Officer as Additional. Deputy or Assistant Cane Commissioner or Additional. Deputy or Assistant Sugar Commissioner.) 11. Inspectors—(1) The State Government may for purposes of this Act appoint any person or designate such officers of the Government as it thinks fit to be Inspectors within such local limits as may be assigned to them. . (2) The lnspeetors shall perform the duties and exercise‘the powers conferred onimposed upon them by or under this Act. . CHAPFER lll Supply and Purchase of Cane 12. Estimates of requirements.——(l) The Cane Commissioner. may for purposes of Section 15. by order. require the occupier of any factory to fumish in the manner and by the date speciﬁed in the order to, the Cane Commissioner an estimate of the quantity of cane which wilfbe required by the factory during such crushing seasons 3[or crushing seasons] as may be specified in the order. » (2] The Cane Commissioner shall examine every such estimate and shall publish the same with such modiﬁcations. if, any. as he may make. (5) An estimate under subsection (2) may be revised by an authority to be prescribed. . 13. Register of Cane-growers and Cane-growers' Coo—operative Society or Societies.—[i) The occupier of a factory shall maintain in i. Ins. by Section 3 ofU‘FAci No. 10 or 1976. w.e.f. 17-9-1975. 2. Sub. by LLP. mi N at 1954. a. Ins. byuPAcixxI ofl955. :i on J: .51... s. is] THE U.P. SUGARCANE (REGULATION or SUPPLY AND PURCHASE) ACI‘, 1953 37 the prescribed form a register of all such cane-growers and Ca'ne- growers" Co-operatlve Society or Societies. and shall sell cane to that factory. (2) The State Government may. by rules. make provision for the' following— (a) 'correction of entries made in the register and addition of new entries if necessary: fixing of .prices in respect} of the entries so corrected or added in the register and prescribing of the procedure for payment of . such price: and the supply of copies of entries made in the register on payment of the prescribed fee. 14. Power of survey etc.—(1) The State Government may. for purposes of Section'ls. by order provide for— (a) a survey to be made of the area proposed to be served or assigned for the supply of cane to a factory and the recovery of_the cost of such survey from the occupier of the factory: the appointment of an Oﬂicer for purposes of such survey. his dutim‘and powers: . the procedure in accordance with which the survey shall be made: — . the assistance and facilities to be provided to the officer appointed in pursuance of Clausc' (b) by the persons owning or occupying land in the area: and . such incidental and consequential matters as may, appear to be necessary or desirable for this purpose. (2) Any amount due from the occupier of a factory ln pursuance of_ Clause (at) of subsection (1) shall be recovemblé from such occupier as an arrear of land revenue. " 15. Declaration of reserved area and assigned area.—[ 1) Without prejudice to any order made under Clause (d) of subsection (2) of Section 16 the Cane Commissioner may. after consulting the Factory and Cane-growers Co-operative Society in the manner to be prescribed : (a) reserve any area (hereinafter called the reserved area): and (b) assign any area [hereinafter called an assigned area). for the purposes of the supply of cane to a factory in accordance with the . (b) {c} (b) {c} (d) {e} - provisions of Section 16 during [one or more crushing seasons as may be Specified]l and may intewise at any time cancel such order or alter the Mundanes of an area so reserved or asslg-Ied. (2] Where any area has been declared as reserved area for a factory. the occupier of" such factory shall. if so directed by . the Cane ‘Commissloner. purEHase all the cane grown in that area. which is olTered > for sale to the factory. (3) Where any area has been declared as assigned area for a factory. the occupier of such factory shall purchase such quantity of cane grown 1- Ins. by up ActX'Xl of 1956.

38 LAW RELATING TO SUGAR INDUSTRIES IN U.P. {S. 16

in that area and offered for sale to the factory as may be det ermined by

the Cane Commissioner.

(4) An appeal shall He to the State Government against the order of

the Cane Commissioner passed under sub-section (1).

Comments

Does not violate Art. 14 of the Constituticn.—The powers given t o the

Cane Commissioner under Section 15 are well defined and have not to be

exercised within the limits prescribed after consulting the factories and

the Cane-growers' Co-operative Societies vide Section 15( 1) and any

order made by the Cane Commissioner thereunder liable to an app eal to .

the State Government at the instance of the party aggrieved v ide Section

15(4).

The same ts the position In regard to the orders made by th e Cane |

Commissioner in the course’ of.his management. Supervision of the

Cane-growers' Co-operative Societles and any order made by him in

regard thereto !s subject to appeal to the State Government at the

instance of the party aggrieved vide Rule 63. If this Is the position, i t

cannot: be urged that wide powers are conferred on the Cane

Commissioner which can be used by him in a discriminatory manner so

as to violate the fundamental rights guaranteed under Article 1 4 of the

Constitution.

Any Cane-grower ora Cane-growers’ Co-operative Society of the

occupier of a factory. can, if aggrieved, take an appeal to the St ate

Government against any order passed by the Cane Commissione r and

such provision is a sufficient safeguard provided In the Act and the ru les

against any arbitrary exercise of those powers by the Cane

Commissloner and takes them out of the ban of Article 14 (per Bhagwat,

J.)—Ch. Tica Ram v. The State of Uttar Pradesh.) .

16. Regulation of purchase and supply of cane in the reserved and assigned areas.—{1} The State Government may, for

maintaining

supplies, by order, regulate—

(a) the distribution, sale or purchase of any cane in any reserved or

assigned area; and

{b) purchase of cane in any area other than a reserved or assigne d -

area.

(2) Without prejudice to the generality of the foregoing powers such

order may provide for— . . .

{a) the quentity of cane to’be supplied by each Cane-grower or

Cane-growers’ Co-operative Soclety in such area to the factory

for which the area has so been reserved or assigned:

{b) the manner in which cane grown in the reserved area or the

assigned area, shall be purchased by the factory for which the

area has been so reserved or assigned and the circumstance In.

which the cane grown by a cane-grower shall not be purchased

except through a Cane-growers'.Co-operative Soclety:

1. 1956 SCR 393; 1956 SCA 979 : 1956 AWR (HC) 657 : 1956 SCJ 625 : AIR 1956 SC 676.

Sa i

$.17] THE UP. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1953, 39

{c) the form and the terms and conditions of the agreem ent to be

executed by the occupier or manager of the factory for which an

area Js reserved or assigned for the purchase of cane offered for

sale;

+ .{d) the cireumstancés under. which permission ma y be granted—

(i) for the purchase of cane grown in reserved or assigned

area by a '[Gur, Rab or Khandsari Manufacturing Unit or

any person or factory} other than the factory for which

area has been reserved or assigned, and

(ti) for the sale of cane grown in a reserved or assigned area to

a2(Gur, Rab or Khandsart Manufacturing Unit or any,

person or factory] other than the factory for which the

area is reserved or assigned;

{e} such Incidental and consequential matters as may ..ppear to be

necessary or desirable for this purpose. sot x

17. Payment of cane price.—[(1) The occupier of a fac tory shall

make such provision for speedy payment of the price of cane purchased

by him as may be prescribed]. 2

(2) Upon the delivery of cane the occupier of a factory shall be Hable

to pay immediately the price of the cane so supplied. toge ther with all

other sums connected therewith, 4[* *]. .

(3 Where the person Hable under sub-section (2) Is in default In

making the payment of the price for a period exceeding fifteen days from

the date of delivering,-he shall also pay interest at a rate of 7-1/2 per cent

per annum from the said date of delivering, but the Cane Commissioner

may, in any case, direct, with the approval of the State Government, that

no interest shall be paid or be ;.ald at such reduced rate as he may fix:

S[Provided that in relation to default In payment of pric e of cane

purchased after the commencement ‘of this proviso, fo r the figure ‘7-1/2!

’ the ‘figure 12° shall be deemed substituted.)

(4) The Cane Commissioner, shall forward to the Collector a

certificate under his signature specifying the amount of arrears on

account of the price of cane plus interest, if any. d ue from the occupier

and the Collector, In recelpt of such certificate, sha ll proceed to recover

from such occupier the amount specifled therein as if it wer e an arrear of

Jand revenue. .

6[(5)(a) Without prejudice to the provistons of the foregoi ng sub-

sections, where the: owner or any other person h aving control over the

affairs of the factory or any other person competent in tha t behalf enters

into an agreement with a bank under which the bank ‘agrees to give

advance to him on the security of sugar produced or to be pro duced in the

factory, the sald owner or other person shall provide in such agreement

Subs. by UP Act TV of 1964. Subs, by UP Act TV of 1964." Subs. by UP Act IV of 1964. 8 ‘Omitted by Section 5 of UP Act No. 7 of 1974, w.ef. 21-12-1973, Ins, by UP Act No. 28 of 1974, Sectlon 2. -

Added by UP Act No. 2 of 1972, w.e.£ 30th December. 1971. g g a e N e

33 LAW RELATING TO SUGAR INDUSTRIES iN U.l’. is. 16 In that area and offered for sale to the factory as} may be determined by the Cane Commissioner. (4) An appeal shall lie to the State Government against the order of the Cane Commissioner passed under subsection (1). Comments Does not violate Art. 14 of the Constitution—The powers given to the Cane Commissioner under Section 15 are well deﬁned and have not to be exercised within the limits prescribed after consulting the factories and the Cane-growers' (Jo-operative Societies vide Section 15(1) and any order made by the Cane Commissioner thereunder liable to an appeal to . the State Government at the instance of the party aggrieved vide Section 15(4). The same is the position in regard to the orders made by the Cane ‘ Commissioner in the course of.his management. Supervision of the Cane-growers' Co-operative Societies and any order made by him in regard thereto is subject to appeal to the State Government at the instance of the party aggrieved vide Rule 63. If this is the position. it cannot' be urged that wide powers are conferred on the Cane Commissioner which can be used by him in a discriminatory manner so as to violate the fundamental rights guaranteed under Article 14 of the Constitution. Any Cane-grower or‘a Cane-growers' Co-operative Society of the occupier of,a factory. can. if aggrieved. take an appeal to the State Government against any order passed by the Cane Commissioner and such provision is arsufﬁcient safeguard provided in the Act and the rules against any arbitrary exercise of those powers by the Cane Commissioner and takes them out of the ban of Article 14 (per Ehagwatl. J .)—-Ch. Tika Ram v. The State of utter ProdesiL‘ . 16. Regulation 6i purchase and supply of cone in the reserved and assigned cream—(1) The State Government may. for maintaining supplies, by order. regulate— (o) the distribution, sale or purchase of any cane in any reserved or assigned area: and (b) purchase of cane in any area other than a reserved or assigned » area. (2) Without prejudice to the generality of the foregoing powers such order may provide for— - . . (a) the qur-ntity of cane tolbe supplied by each Cane-grower or Cane-growers' Co-opcrative Society in such area to the factory for which the area has so been reserved or assigned: (b) the manner in which can'e grown in the reserved area or the assigned area. shall be purchased by the factory for which the area has been so reserved or assigned and the circumstance in. which the cane grown by a cane-grower shall not be purchased except through a Cane-growers'-Co-opcrative Society: 1. 1956 SeRasa: issssm 979 : 1956AWRIHC)657: IBSGSQ1625:AIR 155656575. s:.‘. s. 17] THE U.l’. SUGARCANE (REGULATlON OF surrLY AND PURCHASE) ACI‘, 1953 39 (c) the form and the terms and conditions of the agreement to be executed by the occupier or manager of the factory for which an area is reserved or assigned for the purchase of cane offered for sale: - (d) the circumstances under. which permission may be granted— (i) for the purchase of cane grown in reserved or assigned area by a ‘lGur. Rab or Khaquari Manufacturing Unit or any person or factory} other than the factory for which area has been reserved or assigned. and (ii) for the sale of cane grown in a reserved or assigned area to a ilGur, Rab or Khandsart Manufacturing Unit or any. person or factory] other than the factory for which the area is reserved or assigned: (2) such incidental and consequential matters as may ..ppear to be necessary or desirable for this purpose. . ,.. . 17. Payment of cone price.—3[(l) The occupier of a factory shall make such provision' for speedy payment of the price of cane purchased by him as may be prescribed]. ' (2) Upon the delivery of cane the occupier of a factory shall be liable to pay immediately the price of the cane so supplied. together with all other sums connected therewith. 4[‘ 'l. - [3) Where the person liable under sub-section (2) is in default in making the payment of the price for a period exceeding fifteen days from the date of delivering-he shall also pay interest at a rate of 7-1/2 per cent per annum from the said date of delivering. but the Cane Commissioner may. in any case, direct. with the approval of the State Government. that no interest shall be paid or be gald at. such reduced rate as he may ilx : 5[Provided that in relation to default in payment of price of cane purchased after the commencement ’of this proviso. for the ﬁgure '7-1/2' ' the 'ﬂgure 12‘ shall be deemed substituted.) [4) The Cane Commissioner shall forward to the . Collector a certiﬁcate under his signature specifying the amount of arrears on account of the price of cane plus interest, if any. due from the occupier and the Collector. in receipt of such certificate. shall proceed to recover from such occupier the amount specified therein as if it were an arrear of land revenue. ' 5i(5)(o) Without prejudice to the provisions of the-foregoing sub- sections. where the- owner or any other person having control over the affairs of the factory or any other person competent in that behalf enters into an agreement with a bank under which the bank agrees to give advance to him on the security of sugar produced or to be produced in the factory. the said owner or other person shall provide in such agreement Subs. byUPActWof l964. Subs. by U'F Act W of 1964.' subs. by or Act W “1964. . Omuied. by Section 5 ofUP Act No. 7 of 1974. met. 21-12- i573. ins; by UPActNo. 28 of 1974. Secuon 2. - Addml by UP Act No. 2 of 1972, w.e.f. 30th December. 197i. 91!"??‘Pr'

40 LAW RELATING TO SUGAR INDUSTRIES IN U.P. [s.18

that a [percentage determined by such authority and in such manner as may be prescribed] of the total amount of advance shall be set apart and be available only for re-payment to cane-growers or their co-operative societies on account of the. price of sugarcane purchased or to be purchased for the factory during the current crushing season from those cane-growers or from or through those societies, and Interest thereon and, such societies, commission in respect thereof.

(b) Every such owner or other person as aforesald shall send a copy of every such agreement to the Collector within a week from the date on which it is entered into]. .

18. Commission on purchase of cane.—({1) There Shall be paid by the 2[occupier of a factory or a Gur, Rab or Khandsari Sugar Manufacturing Unit] a commission for every one maund of cane purchased by the “[factory or a Gur, Rab or Khandsari Sugar Manufacturing Unit]—~ z

fa) ‘where the purchase is made through a Cane-growers’ Co- operative Society, the commission shall be payable to the Cane- rowers’ Co-operative Society and the Council in such Proportion as the State Government may declare. so, however, * that the share payable to the Counell shall not: exceed 50 per cent; and

(6) where the purchase Is made directly from the cane-grower, the commission shall be payable to the Council :

4[Provided that different rates of commission may be prescribed for a factory and for a Gur, Rab or Khandsari, Sugar Manufacturing Unit :

Provided further that the State Government may by notification in the official Gazette remit in whole or in part such commission In respect of a factory or a Gur, Rab or Khandsari Sugar Manufacturing Unit for a limited purpose specifled in the notification].

(2) The commission payable under clauses (a) and (b) of sub-section (1) shail be at such-rates as may be prescribed : provided, however, that the rate fixed under clause (b) shall not exceed the rate at which the commission may be payable to the Council under clause (a).

{3) The provisions relating to’ payment, interest and recovery including recovery as arrears of land revenue, applicable to price of cane shall mutatis mutandis apply to payment and recovery of commission under sub-section (1). .

19. Power to declare varieties of cane to be unsuitable for use in factories.—(1) The State Government may, by notification, declare that— ~ a

fa} cane of any varlety grown in “any area specifled In such notification is. unsuitable. for use in all or any factories situated in the satd area;

‘Subs, bySection 5 of Act No. 7 of 1974 and be deemed always to‘have been substituted. Subs. by U.P. Act IIL of 1960, Added by U.P. Act No. 2 of 1972, w.e.f. 30Lh December, 1971. Added by U.P. Act Il of 960. ss e S

§.20) ‘THE U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1953 41

(b) ratoon cane of any variety grown In any area specified in such

notification is unsuitable for use in any or all factories situated

in the said area; and

{c) seed cane of any varlety is unsuitable for distribution to

cultivators in an area as specified In such notifIcatton.

(2) The notification under sub-section (1) shall be tssued after

December 31, and before September 1, in any calender year.

(3) Where any seed cane of any variety has been declared under sub-

section (1) to be linsuitable for distribution to cultivators in that area, the

océupier of a factory or any other person acting on his behalf or Cane-

growers’ Co-operative Soclety shall not distribute seed cane of such

variety .or varieties to any, person to be used by cane-growers or the

memibers of the Cane-growers’ Co-operative Societles in any area. _.

(4) Where cane or ratoon cane of any variety has been declared under

sub-section (1) to’be unsuitable for use in a factory, the occupler of such

factory or any other person acting on his behalf or a cane-grower or a

Cane-growers' Co-operative Society shall not plant cane of any variety,

or keep ratoon cane of any such variety.

CHAPTER IV

Miscellaneous

1{20. Tax on sale of cane.—(1) The Governor may, by notification,

impose a cess not exceeding four annas a maund on the entry of

sugarcane into an area specified in such notification for consumption,

use or sale there > ¥

Provided that the State Government may: by notification,- remit in

whole or in part such cess in respect of sugarcane used or Intended to be

used in a factory for any purpose specified in such notification. .

(2) The State Government shall make rules specifying the authority

empowered to assess and collect cess and the person from whom and the

manner in which the cess shall be collected. 4 nto befor th

agreement for the sale of cane is entered into before the

inapeeitien or - cess under this ‘section, the seller will be entitled to

recover from the buyer in addition to. and as part of the contracted price,

the amount of such cess to which the seller may be wane: : 7

re any person ts in default in making the payment of e

abe he authority empowered to collect the cess may direct that In

addition to the amount of the arrears a sum not exceeding 10 per cent

thereof shall be recovered from the person lable to pay the cess, by way

of penalty. .

e) es authority empowered to collect the. cess may forward to oe

Collector a cerfificate under his signature specifying the amount of

arrears due-from’ the person concerned and the Collector, on receipt of

such certificate, shall proceed to recover from such person ‘the amount

specified therein as if it were an arrear of land revenue.

1. Section 20 of the Act‘has been repealed vide Section 9 of the U-P. Sugarcane Cases Act. _ 1956.

4|? LAW RELATING TO sucnn mommies [N U.l". [5. is that a ‘lperccntage determined by such authority and in such manner as may be prescribed] of the total amount of advance shall be set apart and be available only for re-payment to cane-growers or their co-operative societies on account of the. price of sugarcane purchased or to be purchased for the factory during the current crushing season from those cane-growers or from or through those societies. and Interest thereon and. such societies. commission in respect thereof. (1.7) Every such owner or other person as aforesaid shall send a copy of every such agreement to the Collector within a week from the date on which it is entered into]. ' 18. Commission on purchase of cane.—(1) There shall be paid by the 2[occupier of a factory or a Our. Rab or Khandsarl Sugar Manufacturing Unit] a commission for every one maund of cane purchased by the “[factory or a Our. Rab or Khandsari Sugar Manufacturing Unitl— . (a) 'where the purchase is made through a Cane-growers‘ Co- operative Society. the commission shall be payable to the Cane» growers' Co-operative Society and the Council in such proportion as the State Government may declare. so. however. ' that the share payable to the Council shall not exceed 50 per cent: and (b) where the purchase is made directly from the cane-grower. the commission shall be payable to the Council : 4(Provlded that different rates of commission may be prescribed for a factory and for a Our. Rab or Khandsan‘. Sugar Manufacturing Unit : Provided further that the State Govemment may by notification in the ofﬁcial Gazette remit in whole or in part such commission In respect of a factory or a Our, Rab or Khandsari Sugar Manufacturing Unit for a limited purpose speciﬁed in the notification]. (2) The commission payable under clauses (a) and (b) of sub-section (1) shall be at such-rates as may be prescribed : provided. however. that the rate ﬁxed under clause (b) shall not exceed the rate at which the commission may be payable to the Council under clause (a). (3) The provisions relating to' payment. interest and recovery including recovery as arrears of land revenue. applicable to price of cane shall mutatis mutandis apply to payment and recovery of commission under sub-section (1). ' 19. Power to declare varieties of cone to be unsuitable for use in factories.—(l) The State Government may. by notiﬁcation. declare that— ' ' (a) cane of any variety grown in ‘any area specified in such notiﬁcation is unsuitable for use in all or any factories situated in the said area: ' subs. bySecuon 5 olAcl No. 7 of 1974 and be deemed always to have been subsumed. Subs. by U.F. Act ill of i950. Added by U.P. Act No. 2 ol'1972.w.e.f. aolii December. 197). Added by LLP. Act lil 0(1960. » PFNr s. 20] THE Ur. SUGARCANE (REGULATION or SUPPLY AND PURCHASE) ACT, 1553 ii (b) ratoon cane of any variety grown in any area specified in such notification is unsuitable for use in any or all factories Situated in the said area: and (c) seed cane of any variety is unsuitable for distribution to . cultivators in an area as specified In such notiﬁcation. (2) The notification under sub-section (1) shall be issued after December 31. and before September 1. in any calender year. '(3) Where any seed cane of any variety has been declared under sub- section (1) to be unsuitable for distribution to cuitivators in that area. the occupier of a factory or any other person acting on his behalf or Canc- growers' Co-operatlve Society shall not distribute seed cane of such varietyor varieties to any person to be used by cane-growers or the members of the Cane-growers Co-operative Societies in any area. W . [4] Where cane or ratoon cane of any variety has been declared under sub-section (1) to'be unsuitable for use in a factory. the occupier of such factory or any other person acting on his behalf or a cane-grower or a Caric-growers' Co-operatlve Society shall not plant cane of any variety, or keep ratoon cane of any such variety. CHAPTER l'V Miscellaneous l[20. Tax on sale of cone.—(i) The Governor may, by noufication.‘ impose a cess not exceeding four annas a maund on the entry of sugarcane into an area speciﬁed in such notiﬁcation for consumption. use or sale there :_ ‘ Provided that the State Government may by notification.» remit in whole or in part such cess in respect of sugarcane used or intended to be used in a factory for any purpose specified in such notiﬁcation. . (2] The State Government shall make mics specifying the authority empowered to assess and collect cess and the person from whom and the manner in which the cess shall be collected. d t h f _ d, a cement for- the sale of cane is entere in o e ore_ e impggiélloraingf Ecess under this 'section. the seller will be entitled to recover from the buyer in addition to. and as part of the contracted price. the amount of such css to which the seller may be liable. , t r 31 re an erson isin default in making t c paymen o e ces;?]&h:umogwpempowered to collect the cess may direct that in addition to the amount of the arrears a sum not exceeding 10 per cent thereof shall be recovered from the person liable to pay the cess. by way of enal . ' p(5) “tile authority empowered to collect the cess may forward to the; collector a certiﬁcate under his signature specifying the amount 0 arrears due frofn’the person concerned and the Collector. on receipt of such certificate. shall proceed to recover from such person the amount specified therein as if it were an arrear of land revenue. 1. Section 20 of ihe nevi-ms been repealed "He SecIJon 9 of the us. Sugarcane Cases Iict. . 1956.

42 LAW RELATING TO SUGAR INDUSTRIES IN U.P. [s. 21

(6) Any sum imposed by way of penalty under sub-section (4) st recoverable in the manner i -S ovary of eS provided in sub-section (5) for the recovery of

21. Determination of occupier '[for the purposes 22}.—(1) Where the occupter of 2[a factory or gur, up A Katwlearl ooo Manufacturing Unit] is a firm or other association of individuals, 2{(not being a company)] any one or more of the Partner or member thereof may be prosecuted and punished under this Act for any offence for which the occupier of “[the factory or the Gur, Rab or Khandsari Su Manwectunng Unit] is punishable : . aur

rovided that the firm or assoclatlon may give notice to that it has nominated one of its members to Le occupler of tieeee the purpose of [this sub-section} and such individual shall be deemed to be the occupier for the purpose of §[this sub-section] until further notice cancelling his nomination {s received by, the Collector or until he ceas: to BP cueor member of the firm or association. “

ere the occupier of a factory is a compar the directors thereof, or, in the case of a private cornea ony Oe o more of the share-holders thereof may be prosecuted and punished under this Act for any offe punishable: y fence for which the occupier of the factory is

Provided that the company may give notice to the Collector that lt” has nominated a director, or in the case of a private co: holder to be the occupier of the factory for the Surpoue af? fe ae section] and such director or share holder shall be deemed to be the occupter of the factory for the purposes of §[this sub-section] until further notice cancelling his nomination fs received by the Collector or until h ceases to be a director or share-holder. °

22. Penalties.—If any person contrav enes any of the provisions of ole Pet or any rule or of order made thereunder, he shall be Hable to ne isonment upto six months or to a fine not exceeding rupees five fee thence ang in the case of continuing contravention to a

ot exceeding one thousarid for contravention continues. Sach deg auEne whiten the .__ %[22-A, Powers of certain offi : cers to investigate inte offences punishable under this Act.—(1) An Inspector specially empowered in —____—_ 4 1. Subs, by

d Subs: by r Section 6 of U.P. Act No. 7 of 1974 and be deemed always to have been

si Subs by U.P. Act III of 1960. ins. by Act No, 7 of 1974 and be deemed al to hi

Subs. by U.P. Act ITI of 1960. Nyala nave bese beri: Subs. by Section 6 .P, ‘ eee Pee lon 6 of U.P. Act No. 7 of 1974 and be deemed always to have been

Subs. by Section 6 Subs. by S n 6 of U.P. Act No. 7 of 1974 and be deemed always to have been

7. Subs. bySection q : 3 suibetinaneck 6 of U.P. Act No, 7 of 1974 and Je deemed always to have been

8. Subs, by Section 6 A ‘ Babe by Section of U.P. Act No. 7 of 1974 and be deemed always to have been

9. Ins, by U.P. Act 34 of 1976.

p e p e

S.26) THE UP. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1953 43.

relation to cases generally or to any class of cases by the State Government, by notification, in that behalf may Investigate Into any

offence punishable under this Act committed within the limits of the

area in which such officer exercise Jurisdiction. -

(2) Any such officer may exercise the same powers In respect of such

Investigation as an officer-in-charge of a police station may exercise in a

cognizable case under the provisions of Chapter XII of the Code of

Criminal Procedure, 1973.

22-8, Duty of officers of certain departments to report offences and to assist Inspectors.—Every officer of the Police,

Revenue and Excise Departments shall be bound to glve imme diate

‘information to an Inspector of all‘ breaches of any of the provisions of

this Act which may come to his knowledge and upon request made by an

Inspector, to aid him in carrying out the provisions of this Act an d the

23. Institution of proceedings.—(1) No prosecution shall be

instituted under this Act except upon complaint made by or under

authority from the Cane Commissioner or the District Magistrate. .

(2) On the application of a person accused of an offence under this Act,

the Cane Comimissioner or the District Magistrate with the previou s

concurrence of the Cane Commissioner may at any stage compound such

offence by levying a composition fee not exceeding the fine which could

be Imposed for such offence.

(3) No Court inferior to that of a Magistrate of the second class sha ll

try any offence against this Act or any order or rule made thereunder.

24, Special powers of Magistrates.—Notwithstanding anything

contained in Section 32 of the Code of Criminal Procedure, 1898, it shall

be lawful for a Magistrate of the First Class specially empowered by the

State Government in this behalf and trying any case under this Act or

any order or rule made thereunder to pass a sentence of fine not

exceeding five thousand rupees on any person convicted for any offence

under this Act. : .

25. Protection of action taken under the Act.—(1) No suit -

prosecution or other legal proceeding shall lie against any person for

anything which is in good faith done or Intended to be done in pursuance

of any order or rule made under this Act

(2) No suit or other legal proceeding shall le against the State

Government for any damage caused or likely to. be caused by anythin g

which is in good faith done or intended to be done in pursuance of any

order or rule made under this Act. : ‘ . i

26. Repeal and saving.—The U.P. Sugar Factories Control Act,

1938 (hereinafter In. this section and Section 27 referred to as “the said

Act’) Is hereby repealed : .

Provided that without prejudice to the general application of Section

6 and 24 of the U.P. General Clauses Act, 1904, with regard to repeal an d

continuation of appaintments, notifications, orders. etc., under

enactment repealed and re-enacted, this repeal shall not prej udice or

affect— .

42 LAW RELATING To SUGAR lNDUSTRlES iN U.P. is. 21 (6) Any sum imposed by way of penalty under sub-section (4) l recoverable in the manner ' - ' 5 roll be the arm“ ofcess.) prowded in sub section [5) for the recovery of 21. Determination of occupier 1[for the ur oscs 22).—(i) Where the occupier of 2la factory or gur,’ rgb (5‘ kahnzgoiiegiclganr Manufacturing Unit] is a firm or other association of individuals “[[not being a companyll any one or more of the partner or member thereof ma be prosecuted and punished under this Act for any offence for which thle, occupier of “Ithe factory or the Gur, Rab or Khandsari Su Mariaui‘acltiuléing Unit] is punishable; ' gar rovi e that the firm or association ma ive notice to that it has nominated one of its members to beg occupier of artiﬁcial-:3}: the purpose of 5[this sub-section) and such individual shall be deemed to be the occupier for the purpose of 6[this sub-section] until further notice cancelling his nomination is received by. the Collector or until he ceas to baa‘plairmegr,member of the firm or association. es ere e occupier of a facto is a com an the directors thereof. or. in the casxeyof a privzgte loaniga‘rjfyegynéﬁ is: more of the share-holders thereof may be prosecuted and punished under this Act for an off punishable: y ence for which the occupier of the factory is Provided that the company may give notlce to the Collector that it ’ has nominated a director. or in the case of a rivate co holder to be the occupier of the factory for the purposxglffn l‘thalSShsEllfg- section] and such director or share holder shall be deemed to be the occupier of the factory for the purposes of a[this sub-section] until further notice cancelling his nomination is received by the Collector or until h ceases to be a director or shareholder. e 22.‘ Penelties.—If any person contrav cnes any of the revisions of xtl'llsrfict or any nile or of order made thereunder, he shalf’bc liable to til-:11: sonment upto six months or to a fine not exceeding rupees five fuftil'lliiniidngli'1btoth an: in the case of continuing contravention to a o excee ng one thousand for contravention continues. each day during WhiCh the . Size-A. Powers of certain om ‘ . cers to investigate into offences punishable under this Act—ii) An inspector specially empowered in K 1. s bs. b I 5:1, 511ml, Ejection s of U.P. Act No. 7 of 1974 and be deemed always in have been . (Subs. by U.P.Actlllollsso. ns.byActNo.7nrl974nndbcdc¢mednl t h Subs by U.P. Act III or 1960. ways D mm been mm Subs. b Secli 5 . . ' smmuym on of U P Act No. 7 or 1974 and be deemed always to have been Subs. b Sectlo 6 “bsmuycd- n of U.P. Act No. 7 of 1974 and be deemed always to have been 7. Subs. b Seellon ' ' . subsiliui’ed. 6 of U.P. Act No. 7 of l974 and be deemed always to have been B. Subs, b Sectlo 6 ' - subsmuym n of U.P. Act No. 7 of 1974 nnd be deemed always in have been 9. Ins. by U.P. Act 34 of 1976. weer P’ s. 16] THE Ur. SUGAnCANE- (REGULATION or SUPPLY AND PURCHASE) Act, 195: a: relation to cases generally or to any class of cases by the State Government. by notiﬁcation. in that behalf may investigate into any offence punishable under this Act committed within the limits of the area in which such officer exercise jurisdiction. - (2) Any such officer may exercise the same powers in rupect of such investigation as an ofﬂcer-imcharge of a police-station may exercise in a cognizable case under the provisions of Chapter XII of the Code of Criminal Procedure. 1973. ' 22-3. Duty of officers of certain departments to report offences and' to assist Inspectors—Every officer of the Police. Revenue and Excise Departments shall be bound to give immediate information to an Inspector of all' breaches of any of the provisions of this Act which may come to his knowledge and upon request made by an inspector. to aid him in carrying out the provisions of this Act and the rules made thereunder] . .;: .. . _ 23. Institution of proceedings.—(i) No prosecution shall be instituted under this Act except upon complaint made by or under authority from the Cane Commissioner or the District Magistrate. ' (2) On the application of a person accused of an offence under this Act. the Cane Commissioner or the District Magistrate with the previous concurrence of the Cane Commissioner may at any stage compound such offence by levying a composition fee not exceeding the line which could be imposed for such offence. (3) No Court inferior to that of a Magistrate of the second class shall try any offence against this Act or any order or rule made thereunder. 24. Special powers of Magistrates—Notwlthstandlng anything contained in Section 32 of the Code of Criminal Procedure. 1398. it shall be lawful for a Magistrate of the First Class specially empowered by the State Government in this behalf and trying any case under this Act or any order or rule made thereunder to pass a sentence of fine not exceeding five thousand rupees on any person convicted for any offence under this Act. . . 25. Protection of action taken under the Act.—(l) No suit , prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or Intended to be done in pursuance of any order or rule made under this Act (2) No suit or other legal proceeding shall lie against the State Government for any damage caused or likely to be caused by anything which is in good faith 'done or intended to be done in pursuance of any order or rule made under this Act. , . > . 26. Repeal and saving—The U.P. Sugar Factories Control Act. 1938 (hereinafter in this section and Section 27 referred to as “the said Act“) is hereby repealed : ' Provided that without prejudice to the general application of Section 6 and 24 of the U.P. General Clauses Act. 1904. with regard to repeal and continuation of appointments, notiﬁcations. orders. etc.. under enactment repealed_and re-enacted. this repeal shall not prejudice or affect— ,

a4 “LAW RELATING TO SUGAR INDUSTRIES IN U.P. (S. 27°

fa) the operation of any notice served, order made or any permit, licence or sanction granted before the commencement of this * Act under the powers conferred by the said Act:

(b) the continued validity of any cess, tax fee or other penalty assessed or imposed under the said Act prior to its repeal or the power to assess or impose any such cess, tax, fee or penalty In respect of the period prior to its repeal or anything done or permitted to be done thereunder, and such cess, tax, fee or penalty may be assessed or imposed and any such thing done as if the said Act had not been repealed;

{c) the continuance of a Board, or Cane Development Council constituted under the said Act and the same shall, till such Board or Council has been duly constituted under and In accordance with this Act, exercise the powers, duties and functions exercisable or dischargeable by it under this Act ; or

(d) the continued operation of any immunity. exemption or. protection granted by or under the sald Act :

Provided further, that any area declared to be a reserved area or an assigned area under the said Act shall unless directed otherwise or superseded by anything done or any action taken under this Act, continue in force as if declared under this Act.

27. Transitionary provisions.—The State Government may for the Purpose of removing any difficulties In relation to the transition from the provisions of the said Act to this Act, by order published in the officlal Gazette— 8

(a) direct that this Act shall during such periods as may be specified in the order take effect subject to such adoptions whether by way of modification, addition or omission as it may deem fit to be necessary or expedient ; and

(b) make such other temporary provision for the purpose of Temoving any such difficulty as it may.deem fit to be necessary or expedient,:

Provided that no such order shall be made after twelve months from the commencement of this Act.

28. Power to make rules }[* * * *]. (2) 299 #4, 3

{3) The rules made under this section shall come into force from a date to be appointed by the State Government.

(4) All such rules shall be laid before the State Legislature when it meets immediately after their enforcement and shall be subject to such omissions, alterations and additions as the Legislature may make.

1. In Sec, 28 clauses (1) and (2) have been omitted by Act 7 of 1974 {w.e.f. 21-12-1973), 2. In Sec. 28 clauses (2) and (2} have been omitted by Act 7 of 1974 [w,e.f, 21-12-1973).

i t

Rg) THE U.P, SUGARCANE (RE GULATION OF SUPPLY & PURCHASE)

RULES, 19: 45 1 a

£) RULES, 1954

F SUPPLY. .P. SUGARCANE (REGULA

TION 01

ais AND PURCHASE) RULES, 108M 5a Pt Ad

' published in U.P. Gazette, dated-September 4, A, DP.

pupusyed 0463 Notification No. 2662-HS/XVIE-C—1

723-53,

: dated September 1, 1954 star Pradesh

In exercise of the powers conferred by Section, 28 OF

ne 1 eee

sage ind arse ke henge mor is plea: db DO ae om

e ao force frorn the d ate of thelr publication

ire

Gazette. In the # -

title and commencement x .

1. These rules ber be cal led the Uttar Pradesh Sug

arcane (Regulation

of Supply and Purchase) Rules, 1954 .

CHAPTER IL

Definitions

2. In these rules unless t here Is anything repugnan

t in the subject or

onal SAGE means the Uttar Pradesh Sugarcan

e (Regulation of Supply

and Purchase) Act, 1953 (Act XXIV of 1953):

{b) "Budget Year” means the year commencing

) Te ine" means the Collector of the Distri

ct in eee

‘« jurisdiction the factor y or the Poe ere a

la eee

e assigned area or the he I

arnt Society as the case may be, is situated;

division:

{e) “Federation” means the .Utta

Unions’ Federation Ltd.; e . t

which cane {s “ Centre” mea

ns any ‘place al a

@ Peneed, cupped. d elivered, weighed or paid f

or and oe :

Such portion of the premi ses of a factory as is use

these purposes; .

(g) “Section” means a sec tion of the Act;

das such by a Cane- “Sc 4,” means any per

son appointe

ne see Socoperative Society to do any work

connected with

the supply, purchase, pa yment and weighment of

cane ata -

purchasing centre}} .

{i} “Sub-Divisional Officer’

revenue sub-division; chiding beam

Uj) “Weighbridge”.means any mechanism or scales

(including

scales} used to welgh cane;

1. Ins. by Notification No, 3129 -S/XVII-C—l

1964.

from the first day of

fa revenue

1+ Pradesh Co-operative C ane

means the officer-in-cha rge of a

601-63. dated April 28. 1964. w.e-f May 2.

41 VLAW RELATING TO SUGAR INDUSTRIES 1N U.l=. is. 27 ‘ (a) the operation of any notice served, order made or any permit. licence or sanction granted before the commencement of this " Act under the powers conferred by the said Act: (b) the continued validity of any cess. tax fee or other penalty assessed or imposed under the said Act prior to its repeal or the power to assess or impose any such cess. tax, fee or penalty in respect of the period prior to its repeal or anything done or permitted to be done thereunder. and such cess, tax. fee or penalty may be assessed Gi’ imposed and any such thing done as if the said Act had not been repealed: (c) the continuance of a Board, or Cane Development Council constituted under the said Act and the same shall. till such Board or Council has been duly constituted under and In accordance with this Act. exercise the powers, duties and functions exercisable or discharge'able by it under this Act : or [d] the continued operation of any immunity. exemption or protection granted by or under the said Act : Provided further. that any area declared to be a reserved area or an assigned area under the said Act shall unless directed otherwise or superseded by anything done or any action taken under this Act'. continue in force as if declared under this Act. 27. Transitional-y provisions—The State Government may for the purpose of removing any difficulties in rclatlon to the transition from the provisions of the said Act to this Act. by order published in the omclal Gazette— ' (a) direct that this Act shall during such periods as may be specified in the order take effect subject to such adoptions whether by way of modiﬁcation. addition or omission as it may deem ﬁt to be necessary or expedient : and (b) make such other temporary provision for the purpose of removing any such diiliculty as it may deem lit to be necessary or expedient: Provided that no such order shall be made after twelve months from the commencement of this Act. 28. Power to make rules I[' ' ‘ 'l. [2) 2l‘ . . .1. - (3) The rules made under this section shall come into force from a date to be appointed by the State Government. (4) All such rules shall be laid before the State Legislature when it meets immediately after their enforcement and shall be subject to such omissions. alterations and additions as the Legislature may make. 1. in Sec. 25 dausds (1) and (2] have been on-mmd by Act 7 of1974tw.e.f. 21-12-1973). 2. in Sec. 28 dauss (1) and (2) have been emitted by Act 7 of 1974 (wet. 2142-1973]. i5 . It 2 THE Ul’ SUGARCANE REGULATION or SUPPLY erURCHAs R n: 19 as 1 i E) U s, 51 F SUPPLY . . SUGAR-CANE (REGULATION 0 THE U P AND PURCHASE) RULES. 19514954“: [A pp ‘ - ' .P. Gazette. dated‘September 4, -_ , . RTE-2:9: T5733 Notiﬁcation No. 2662rHS/XVIH-C—l 723 53, ' dated September 1, 1954 um: Hades“ l xercise of the powers conferred by Section 231011315123 (U p Act No. _ smug; We“ °‘ Sew seismzzzeaamg as. .nd .. mor 5 ea dl ectotgilagtsgleys‘:hglolv:ome int]; force from the date of their publication 1' Gazette. in the C R 1 title and commencement , . 1 These rules :1; lb: called the Uttar Pradesh Sugarcane (Regulation ofSupply and Purchase) Rules, 1954. CHAPTER ll Definitions > 2. In these rules unless there is anything repugnant in the subject or C”Maia—“Act" means the Uttar Pradesh Sugarcane [Regulation of Supply and Purchase) Act.' 1953 [Actmv of 1953): (b) "Budget Year‘ means the year commencing I fgglector" means the Collector of the Distrffhénregehrgzd (c jurisdiction the factory or the upuﬁfasér‘ilgﬁihérsroa Council or a e assi ed area or e e _ 22:22:?Socletal as the case may be. is situated. (:1) “Commissioner“ means _ the Commissioner 0 division: (e) ‘Federation‘ means the Utta Unions' Federation Ltd; " - t which cane is “ Centre means any place a 5 U7 Pﬁh‘agesdngupplied, delivered, weighed or paid for agd 1:33:51 1‘ ggeh portibn of the premises of a factory as is use these purposes: . {9) “Section" means a section of the Act. d as such by a Cane- “ ' k" means any person appointe ‘(hl gigszg'céeS-operauve Society to do any work connected with the supply purchase. payment and weighment of cane at a - purchasing centrell n (1') "SubaDlvisional Officer- revenile‘ sub-division: . 1 din beam [1) “Weighbﬂdge'-means any mechanism or scales (inc u g scales) used to weigh cane; / 1. Ins. by Nouﬂcallnn No. 3129-s/xv'iii-c—i 1964. from the first day of f a revenue r Pradesh Co-operative Cane means the ofﬁcer-in-charge of a 601-63. dated April 23. 1564. w.e.f. May 2.

Uttar Pradesh act 24 of 1953 : The U.P. SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT' 1953 (24 OF 1953)

SECTIONS