(1) This Act may be called the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981.

(2) It extends to the whole of the State of Bihar.

(3) It shall come into force at once.

In this Act unless the context otherwise requires

(a) Board means the Sugarcane Board established under Section 3;

(b) cane means sugarcane intended for use in a factory or unit;

(c) Cane Commissioner means the officer appointed to be the Cane Commissioner under Section 12;

2[(d) Cane grower's means a person who grows cane either by himself or by members of his family or by hired labour.]

(e) Cane Officer means the Cane Officer appointed under Section 13 and includes the Additional Cane Officer;

(f) Collector means the Collector of a district and includes any officer not below the rank of a Deputy Collector appointed by the State Government to discharge all or any of the functions of a Collector under this Act;

2 [(g) Cane growers Co-operative Society means society registered under the Bihar Co-operative Societies Act, 1935 (Bihar Act 6 of 1935) one of the objects of which is to develop cane grown by the members.]

3[(g-1) Cane Growers Co-operative Union means any affiliated body of cane growers Co-operative Society registered under the Bihar Co-operative Societies Act, 1935 (Bihar Act 6 of 1935)].

(h) council means a Zonal Development Council established under Section 7;

(i) crushing year means the year commencing on the 1st day of July in any year and ending on the 30th June in the year next following;

(j) factory means any premises, including the precincts thereof in any part of which sugar is manufactured by means of vacuum-pan process;

(k) manager means the manager appointed under Section 25;

(l) occupier of a factory means a person carrying on business of manufacturing sugar by vacuum-pan process in a factory and having the ultimate control over the affairs of the factory;

(m) prescribed means prescribed by Rules;

(n) requisition slip means a slip issued by or on behalf of the occupier of a factory under which a cane grower or a co-operative society is required to bring cane grown in a reserved area on a date and place specified therein for purchase by or on behalf of the person issuing the slip,

(o) reserved area means any area, wherein sugarcane is grown or is likely to be grown and which is reserved for a factory under Section 31;

(p) Rules means Rules made under this Act;

(q) State Government means the Government of the State of Bihar;

(r) Sugar means any form of sugar containing more than ninety per centum of sucrose including sugarcandy or khandsari sugar (sugar produced by open panprocess) or bura sugar or crushed sugar or any sugar in crystalline or powdered form or sugar in process in a factory or raw sugar produced therein;

(s) unit means a manufacturing unit engaged or ordinarily engaged in the manufacture or production of Khandsari sugar, gur, shakkar, gul, jagari or rab from cane juice by power crusher;

(t) power crusher means a crusher working with the aid of diesel, electrical or steam power and engaged or ordinarily engaged in crushing sugarcane and extracting juice therefrom for the manufacture of gur, shakkar, gul, jagari, rab or khandsari sugar.

Sugarcane Act removes the generality causing - any confusion by reference to general Co-operative society and classify the same according to the provisions of the Act as Co-operative society of cane growers of Cane Cooperative Marketing Union. This action puts the sugarcane growers as select body. There cannot be any impediment that sugarcane grower may supply sugarcane to a sugar factory located in a reserved area and still he may get membership of a Cane Grower Co-operative Society or a Cane Co-operative Marketing Union. Uday Shankar Prasad v. State of Bihar, 2002 (2) PLJR 687.

As amended by Bihar Act 11 of 1994. By this amendment sugarcane growers and sugarcane factories have been benefited. There has been direct contact between sugarcane growers and sugar factories. Moreover, sugarcane Commission agent or intermediary businessman have been eliminated. Main purpose of the amendment is to ensure that sugarcane is neither purchased nor taken out of reserved area for negating the purpose of assigning an area to a sugar factory. Held, amendment can not be arbitrary. Uday Shankar Prasad v. State of Bihar, 2002 (2) PLJR 687.

Provisions of Market Act, 1960 have no role or applicability in the transactions of purchase and sale of sugarcane in the market area, after enactment of Bihar Sugarcane (Regulation of Purchase and Supply), Act, 1981, which was enacted after Market Act, 1960. S.K.G. Sugar Ltd. v. State of Bihar, 1989 BLJ 531 : 1989 (2) BLJR 64 : 1989 BBCJ 409 : 1989 PLJR 532.

Mill owner refused either to allow inspection of the Mill or to submit papers or to allow the Mill to be sealed at the instance of an officer of Sugarcane Department having no authority to act as a Cane-Officer. Moreover, the said officer was not even appointed as Cane-Officer. Moreover, the said officer was not even appointed as Cane-Officer. Held, such action of the Mill owner can not be termed as an offence. Bishwanath Agarwal v. State of Bihar, 1989 PLJR 964 : 1990 BRLJ 3.

ADMINISTRATIVE

(1) With effect from such date as the State Government may, by notification in the Official Gazette, specify in this behalf, there shall be established for the purposes of this Ordinance a Board, to be called the Sugarcane Board, for the State of Bihar.

(2) The Board shall consist of the following members, namely:

(a) Minister incharge and State Minister incharge of Sugarcane who shall be the Chairman and Deputy Chairman respectively.

(b) five members to represent the Bihar Legislature, of whom four members shall be elected from amongst themselves by the members of the Bihar Legislative Assembly and one member shall be elected from amongst themselves by the members of the Bihar Legislative Council, on the principle of proportional representation by means of a single transferable rate;

(c) seventeen members to be appointed by the State Government in the following proportion to represent:

(d) the Director of Agriculture, Bihar, Director of Sugarcane Research Institute, Chief Engineers of Electricity, Road Construction, Irrigation, Minor Irrigation, Chairman of the Bihar State Co-operative Marketing Union and the Cane Commissioner who shall be ex-officio members; and

(e) the Secretary to the State Government of Sugarcane Department or such other officer as may be nominated by the State Government, who shall be ex-officio Secretary of the Board:

Provided that during the period of operation of any Proclamation issued under Article 356 of the Constitution, in relation to the State of Bihar, such persons as may be nominated by the State Government in this behalf shall be the Chairman and members respectively in place of the Minister-in-charge of sugarcane and members representing under clause (b) of this sub-section the Bihar Legislative Assembly dissolved under the said Proclamation:

Provided further that before the appointment of representatives of co-operative societies under clause (c) of this sub-section, recommendations of the apex society of such societies shall be called for.

(3) During the period of operation of the proclamation referred to in the first proviso to sub-section (2), the Chairman of the Board shall have the power to nominate any member to preside in his absence over the meeting of the Board.

(4) The Board shall be constituted initially for a period of three years and shall thereafter be reconstituted for periods of like duration. The term of office of the Chairman, Deputy Chairman, Secretary and the member of the Board shall be co-terminus with the period of constitution or reconstitution of the Board, as the case may be:

Provided that the State Government may, if it thinks expedient at any time, accept the resignation of any member of the Board and fill up the vacancy subject to the provisions of sub-section (2).

(5) The Board, its executive committee or sub-committee shall discharge its functions and conduct its business in such manner, and shall meet at such times and places and shall observe such Rules and procedures in regard to the transaction of business at its meetings as may be prescribed.

(1) The Board shall advise the State Government on the following matters, namely:

(a) planning of development schemes connected with production, research, transport and sale of sugarcane;

(b) matters pertaining to regulation of supply, purchase and weighment of cane;

(c) the varieties of sugarcane, tested by the Sugarcane Research Institution in the State, which are suitable or unsuitable for use in a factory;

(d) recommendations in respect of the price of cane to be supplied to factories;

(e) determination of the price of cane payable by owners of units;

(f) maintenance of healthy relations between the occupiers and managers of factories on the one hand the cane-growers and co-operative societies on the other; and

(g) such other matters as may be prescribed.

(2) In addition to the function specified in sub-section (1) the Board may,

(a) inspect, supervise, review and co-ordinate the activities of the councils and make arrangements for concurrent audit of their accounts;

(b) given general or special direction, for carrying out the functions specified in clause (a), which shall be implied with by the councils; and

(c) recover, wholly or partly, cost of the concurrent audit, referred to in clause (a) as public demand.

(3) In the event of any council failing to comply with any direction of the Board under clause (b) of sub-section (2), the Board shall send a report to the State Government specifying therein the details of such failure for such action including sub-pension, wholly or partly, of payments specified in Section 9, as may be considered necessary by the State Government.

(1) The Board may constitute a subcommittee consisting of not more than five of its members for carrying out any of its functions under sub-section (1) of Section 4 and the sub-committee so constituted may appoint one of its members to be the convenor.

(2) A sub-committee shall have power to co-opt any official or non-official expert qualified to advise it on any matter entrusted to it:

Provided that any person so co-opted shall not be entitled to vote.

(1) The Board shall administer the following funds:

(i) the sum received as grant under Section 49;

(ii) the sum transferred under Section 9; and

(iii) the sum received from any other source.

(2) The Board may utilise its funds to meet the expenditure incurred in connection with its duties and functions and may, subject to the previous approval of the State Government, sanction by its resolution travelling allowances and sitting fees to the non-official members including the persons co-opted under sub-section (2) of Section 5 for attending the meetings of the Board, or a sub-committee, as the case may be:

Provided that nothing in excess of 5 per centum of the amount received under Section 49 shall without the approval of the State Government, be spent as administrative expenses:

Provided further that the amount transferred under Section 9 shall be spent only in the interest of the council concerned.

(3) In making use of the funds the policy of spending maximum amounts in the interest of the areas of the financially weak councils and factories that have not completed the fifth crushing year since establishment and commissioning (hereinafter referred to as new factories) shall be adopted and the minimum proportion of the total expenditure therefor by the Board or under its authority, in respect of any crushing year shall be such as may be prescribed.

(1) With effect from such date as the State Government may, by notification in the Official Gazette, specify in this behalf, there shall be established a Zonal Development Council for each reserved area consisting of

(a) the Collector of the district or the Sub-divisional Officer or the District Development Officer, who shall be the Chairman;

(b) the District Agriculture Officer or the Assistant Director of Agriculture (Sugarcane) or the Sub-divisional Agriculture Officer;

(c) a nominee of the Cane Commissioner who shall be the Secretary;

(d) the District Engineer;

(e) four representatives of local cane-growers and co-operative societies who shall be nominated by the State Government and of whom not less than two shall be representatives of the co-operative societies and shall be such persons as are recommended by the co-operative society referred to in Section 4[2]; and

(f) one representative of the occupier of the factory to be nominated by the State Government on the recommendation of the occupier:

Provided that where the reserved area is so constituted to spread over more than one sub-division or district, as the Chairman shall be appointed and membership of the Council augmented in such manner as may be prescribed to provide for representation of all parts of the reserved area.

(2) The Council shall initially be constituted for a period of three years and shall subsequently be reconstituted for periods of like duration.

(3) The term of office of the Chairman, Secretary and members of the Council shall be co-terminus with the periods of constitution or reconstitution of the Council, as the case may be, and shall include any further period which may elapse between the expiration of the period of the constitution or reconstitution, as the case may be, and the succeeding reconstitution of the Council;

Provided that the State Government may, if it thinks expedient at any time, accept the resignation of any member of the Council and fill up the vacancy subject to the provisions of sub-section (1).

(4) The Council shall have power to co-opt, for the discussion of any particular matter before it, any officer of the State Government or any expert qualified to give advice on the matter:

Provided that any person so co-opted shall not be entitled to vote.

(5) The Council shall perform its functions and conduct the business in such manner and shall meet at such times and places and shall observe such Rules and procedure in regard to the transaction of business at its meetings as may be prescribed.

(6) Joint meetings of all councils of the district may be held to consider such matter and in such manner as may be prescribed.

(7) The Collector of the district shall preside over such, meetings and anyone from amongst Secretaries of the Councils nominated by the Cane Commissioner shall be the convenor of the meeting.

Discretion is entirely with State Government to determine amount of commission to be apportioned between Co-operative Society and Zonal Development Council. Impugned Notification No. S.O. No. 104 dated 10.8.2002 depriving Co-operative Societies of any part of commission received from occupier of factory is violative of Article 14 and accordingly set aside. State of Bihar v. C.D. and CM. Union Chanpatia, 2011 (1) BBCJ 129.

The functions of the Council shall be as follows:

(a) to consider and prepare the programme for the development of communications, irrigation, soil analysis and other agricultural facilities relating to sugarcane;

(b) to devise ways and means for executing development plan in all its essential including improvement and development of communications, cane varieties, supply of good quality seeds, fertilisers and manures plant protection and prevention and control of diseases and pests;

(c) to render all possible help in agricultural extension work of cane;

(d) to assist in arrangements for the training of cultivators in improved methods of sugarcane cultivation: and

(e) to perform such other functions pertaining and conducive to the general development of the reserved area as may be prescribed.

This provision in the Act has been incorporated with a view to ensure that the amount received as commission by the Council must be spent on preparing programmes for development of communication and irrigation etc. relating to sugarcane. State of Bihar v. Pratappur Sugar and Industries Ltd., 2005 (4) PLJR 772.

Quid pro quo. In view of the settled law it has to be considered as to whether quid pro quo is present or not in enhancing the amount of commission so it has to be seen as to whether the commission amount collected is co-related to the purpose enumerated under the provisions of the Act. Moreover, as held by Apex Court it is not necessary for a quid pro quo that the benefit should go to the contributory alone. State of Bihar v. Pratappur Sugar and Industries, 2005 (2) BLJ 668.

(1) The Council may administer

(i) any sum placed at its disposal by the State Government in form of grant, under Section 48 or 49 or otherwise;

(ii) any sum contributed by the factories, cane-growers and co-operative societies;

(iii) any other sum which the State Government may, from time to time require to be credited to the fund of the Council; and

(iv) the amount received from any other source.

(2) The Council shall utilise its funds to meet the charges in connection with the discharge of its duties and performance of its functions under this Act and may pay to its non-official members including persons co-opted under sub-section (4) of Section 7, allowances and sitting fees, for attending its meetings or the joint meetings under sub-section (6) of Section 7, at such rates as may be approved by the State Government in consultation with the Board.

(3) The Council shall utilise its funds for administrative expenses within the limits prescribed.

(4) In the event of the failure of the Council to commence implementation of any development work relating to a crushing year within two years of its inclusion in the programme of improvement, the amount concerned shall be transferred to the Board and the Board shall have the power to spend it and the Council shall comply with the order of the Board in respect of such amount.

(1) The Board and every council shall be bodies corporate by the names under which they are established each having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both moveable and immoveable and to contact and shall by their names sue and be sued.

(2) No act or proceeding of the Board or any council shall be invalidated merely by reason of

(a) any vacancy or any defect in its constitution; or

(b) any defect in the appointment of a person acting as its member, or

(c) any irregularity in its proceedings not affecting the merits of the case.

(3) The accounts of the Board and every council shall be subject to audit by an auditor appointed by the State Government in this behalf:

Provided that instead of appointing any auditor under this Section, the State Government may, by notification in the Official Gazette, direct that the accounts of the Board or a council shall be subject to audit under the Bihar and Orissa Local Fund Audit Act, 1925 (B. & O. Act II of 1925) and the Board or the Council shall be deemed to be a local authority and its fund shall be deemed to be a local fund for the purposes of the said Act.

(4) The auditor shall submit his report to the Board or the Council, as the case may be and forward a copy of it to the State Government which may, after giving the Board or the Council an opportunity to offer explanation in respect thereof, issue such directions thereon as it may deem fit and the Board or the Council shall carry them out.

(5) The auditor, other than an auditor appointed under the Bihar and Orissa Local Fund Audit Act, 1925 (B. & O. Act II of 1925) shall be paid from the fund of the Board or the Council, as the case may be such remuneration as may be prescribed.

(1) If in the opinion of the State Government, any council is persistently negligent in the performance of its duties and functions under this Act or the Rules, or commits any act which is prejudicial to its interest or wilfully disobeys any direction of the Board under clause (b) of sub-clause (2) of Section 4 or is otherwise not functioning properly, the State Government may, by notification in the Official Gazette, direct, any time, after giving the Council a reasonable opportunity of being heard, that the Council shall be dissolved on such date and for such period as may be specified in the notification.

(2) When the Council is dissolved under sub-section (1), all members of the Council, including the Chairman and the Secretary shall from the date of dissolution, be deemed to have vacated their offices, but without prejudice to their eligibility for re-appointment or re-nomination and all powers and duties of the Council, shall during the period of dissolution, be exercised and performed by such person or persons as the State Government may appoint in this behalf.

(3) Within six months of dissolution, the Council shall be reconstituted in accordance with the provisions of Section 7.

(1) The State Government may, by notification in the Official Gazette, appoint any person to be the Cane Commissioner for the State of Bihar and to exercise the powers and perform the duties conferred and imposed on the Cane Commissioner by or under this Act.

(2) The State Government may, by notification in the Official Gazette, appoint such person as it thinks fit to be the Additional Cane Commissioner, Joint Cane Commissioner, Deputy Cane Commissioner and Assistant Cane Commissioner to assist the Cane Commissioner within such local limits as may be assigned to them and confer and impose upon them all or any of the powers and duties of the Cane Commissioner within their respective jurisdiction.

(1) The State Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Cane Officers for the purposes of this Act within such local limits as may be assigned to them.

(2) The Cane Commissioner, every person appointed under sub-section (2) of Section 12 to assist the Cane Commissioner, every District Magistrate and every Sub-divisional Magistrate shall be an ex-officio Cane Officer within his jurisdiction.

(3) The State Government may also, by notification in the Official Gazette, appoint such officers as it thinks fit to be Additional Cane Officers for all or any of the purposes of this Act within such local limits as it my assign to them respectively.

(4) In any area where there are more Cane Offices than one, the State Government may, by notification in the Official Gazette declare the functions which each Cane Officer shall perform.

(5) A Cane Officer may, within the local limits of his jurisdiction,

(a) enter any place which is or which he has reason to believe to be used as a factory or a unit or a godown or any place, where cane is weighed or payment is made therefor, and make such examination as he may think necessary of the weighbridge or scaies or any other machine used for weighment and of any records, registers accounts maintained in connection with the purchase of cane;

(b) cause cane-crafts or wagons including trucks and any other means of transport, or consignments of cane to be weighed or re-weighed in his presence:

Provided that cane already loaded shall not ordinarily be required to be unloaded for the purposes of re weighment except under special circumstances to be intimated in writing to the manager of the factory and the Cane Commissioner;

(c) record the statement of any person whom he may deem necessary to examine for the proper discharge of his duties;

(d) call from the occupier or manager of a factory or owner of a unit any information relating to the production, supply or crushing of cane, the manufacture of sugar and the quantity or the quality of sugar, rab or molasses produced, issued or in stock and payment of the prices of cane;

(e) call for from a sugarcane-grower or a co-operative society any information relating to the production, cultivation and supply of sugarcane or cane and payment of the price therefor 5[and any other relevant matter]; and

5[(e-1) call for any book, account or other account relating to cash/credit accounts.]

(f) shall perform such other functions as may be prescribed or directed by the State Government.

(6) Where the Cane Officer has reasons to believe that the provisions of this Act, and the Rules or the terms or conditions of any licences granted thereunder has been, are being or are about to be contravened, he may

(a) direct the owner of the unit to produce any book, accounts or other documents relating to such contraventions;

(b) inspect or break open and search in the presence of two witnesses any part of the unit or its premises or any place used for the purpose of the unit;

(c) take or cause to be taken extracts from or copies of documents showing transactions relating to such contraventions;

(d) search, seize and remove in the presence of two witnesses any vital part of any machinery of the unit, including any power-crusher, so as to make it inoperative;

(e) for reasons to be recorded in writing seize, accounts registers or documents of the factory or unit relating to purchase of cane or cane juice or payment of price of cane by or on behalf of the occupier of the factory or the owner of the unit, as the case such seized accounts, registers or documents shall be retained for so long as may be reasonably necessary for examination thereof or for a prosecution under Section 52 or any proceeding under Section 57 and shall thereafter be returned in the prescribed manner:

Provided that if the seized accounts, registers, or documents are retained by the Cane Officer for more than ninety days, the reasons for doing so shall be recorded in writing and the approval of the Cane Commissioner shall be obtained.

Explanation. For the purpose of clause (d), the expression power-crusher* means a crusher working with the aid of diesel, electric or steam power engaged or ordinarily engaged in crushing cane and extracting juice therefrom for the manufacture of rab or khandsari sugar.

(7) A Cane Officer may call for information relating to

(i) production, purchase, supply or survey of cane, the price of cane, the amount deducted from the price of cane and its-deposit under Section 44; or

(ii) the production or supply of cane juice and its price from the occupier of factory, owner of a unit or secretary of a co-operative society situated outside his jurisdiction if such occupier or owner or co-operative society purchases cane or juice of cane grown within his jurisdiction.

(8) The Cane Officer may issue such instruction for equitable purchase of cane as he deems necessary and such instructions shall be complied with immediately:

Provided that the prescribed authority may, either suo motu or on an application being made to it by any party concerned, suspend the operation of the instruction and, after giving reasonable opportunity of being heard to the parties concerned, revise the instruction and the order in revision shall be final.

(9) The occupier of a factory, the owner of a unit, persons acting on their behalf, every sugarcane-grower or cane-grower or other person or a co-operative society shall comply with any order, direction or instruction issued under this Section.

14. Disqualification for appointment as Cane Commissioner, etc. No person, who is directly or indirectly interested in a factory or unit or in any process or business carried on therein or any patent or machinery connected therewith shall be appointed to assist the Cane Commissioner or to be Cane Commissioner or Cane Officer and no person shall, after such appointment, hold such office, if he becomes so interested,

LICENCES

(1) No cane shall be crushed in a factory unless the occupier thereof has obtained a licence, from the State Government in the form prescribed, authorising, crushing of such quantities of cane, in the relevant crushing year, as may be specified in the licence:

6[Provided that the quantity specified in licence may be enhanced with the availability of the cane during the relevant crushing year.]

(2) On an application being made to the State Government in the prescribed form and manner, the licence shall be granted:

Provided that the State Government may refuse to grant licence in respect of a factory if

(a) it has already cancelled or refused to renew a licence previously granted; or

(b) no application was made to renew, for the preceding crushing year, a licence previously granted.

(3) Except with the previous permission of the State Government, the quantity of cane crushed in the factory in the relevant crushing year shall not exceed the quantity specified in the licence.

Applicant filed an application for grant of a licence for manufacturing Khandsari Sugar only after consideration of the terms and conditions attached to a licence and also on conditions having direct bearing to the production of Khandsari Sugar. Held, grant of licence can not be refused on considerations not given in the provisions of the Act and the Rules. Industrial Corporation (P) Ltd. v. State of Bihar, 1990 (2) BLJ 114 : 1990 (2) BLJR 1026 : 1990 (1) PLJR 740.

(1) No cane shall be crushed or cane juice shall be purchased for manufacture of rab and khandsari sugar or gur, shakkar, gur or jagari in a unit, in the relevant crushing year, except under and in accordance with the terms and conditions of a licence to be obtained by the owner of the unit from the Cane Commissioner by making an application to him and depositing with the prescribed authority, in the prescribed manner such sum of money, if any, as may be prescribed as security for the due performance of the conditions of the licence:

Provided that where only cane grown by the owner of the units is crushed in the unit and no other cane nor cane juice is purchased for use in the unit, the owner of the unit shall not be required to obtain a licence.

(2) If, after giving an opportunity of being heard to the owner of the unit and the occupier of the factory concerned, the Cane Commissioner is satisfied that the unit unduly impairs production of sugar by such occupier, he may refuse to grant a licence.

(3) The licence granted under this Section shall be non-transferable.

(4) The security deposited under sub-section (1) shall be maintained, forfeited and replenished in the prescribed manner and during any period in which the deposit is depleted or extinguished by forfeiture and is not replenished the licence shall be deemed to have been cancelled.

Rejection of petitioner's application for a licence for setting up an unit held, wrong on the part of the authorities, when petitioner disclosed that he has surplus sugarcane from his own land and the required quantity of sugarcane can be fulfilled with such surplus quantity of sugarcane as well as having purchased sugarcane from adjoining sugarcane non-reserved areas. Sunil Kumar v. State of Bihar, 2000 (4) PLJR 348.

Authorities rejected an application for licence to set up an unit for production of Khandsari sugar by power crusher. Held, it was wrong on the part of the authorities to reject petitioner's petition when petitioner was ready/able to show that he produces surplus sugarcane from his own land. He can also arrange for the required quantity of sugarcane by purchasing the same from adjoining non-reserved areas. Sunil Kumar v. State of Bihar, 2000 (4) PLJR 348.

Article 226 of Constitution of India. Cane Commissioner instead of deciding question regarding grant of Khandsari licence independently referred the matter to the Secretary of Department and Secretary made a reference to the Minister concerned about that matter. Departmental Secretary was the Appellate Authority u/s. 20 of the Act. Held, exercise of discretion by Cane Commissioner was irregular and perverse. Riga Sugar Company Ltd. v. State of Bihar, 1997 (2) BLJ 392.

(1) A licence granted under Section 15 shall be subject to such conditions as the State Government may impose in respect of the following matters, namely:

(a) the quantity of cane to be crushed during the crushing year;

(b) the dates of starting and closing the factory for the purpose of crushing cane; and

(c) such other incidental matters as may be prescribed.

(2) A licence granted under Section 16 shall be subject to such conditions as the Cane Commissioner may, in conformity with general principle laid down by the Board in this behalf, impose in respect of all or any of the following matters namely:

(a) the maximum quantity of cane or cane juice to be purchased in the relevant crushing year;

(b) purchase of cane or cane juice partly or wholly through a co-operative society existing in the area and payment of commission to such co-operative society at such rate not exceeding the rate payable to a co-operative society in the same area under Section 48, as the Cane Commissioner may specify;

(c) the period and hours of working of the unit;

(d) prohibition of use of the unit for any purposes other than those for which the licence has been granted;

(e) prohibition of extension, addition or alteration to the unit or change of its location without previous permission;

(f) intimation to be given in the event of the transfer or sale of the unit or any part thereof;

(g) maintenance of the accounts of cane crushed, cane juice used, rab or khandsari sugar or gur, sakkar gur or jagari produced, kept in storage or despatched and production of the records thereon of demand for inspection and examination;

(h) immediate access to the premises of the unit to be allowed to the Cane Officer; and

(i) such other matters as may be prescribed including price and payment thereof, packing disposal, delivery or distribution of cane purchased or khandsari sugar or gur, sakkar, gur or jagari rab produced.

Where the licensee of a licence granted under Section 15 or 16 commits any breach of the conditions of the licence or contravenes any of the provisions of this Act, or the Rules the State Government or the Cane Commissioner, as the case may be, may (without prejudice to any other action that may be taken against the licensee) cancel or suspend the licence by an order in writing after giving the licensee an opportunity of being heard.

(1) Where the Cane Commissioner is satisfied that a unit unduly impairs the production of sugar by the factory concerned he may, by an order in writing issued in this behalf, require the owner of the unit to shift the unit to such a place outside the reserved area as may be specified in the order:

Provided that no such order of shifting shall be issued unless the occupier of the factory concerned undertakes to pay the cost of shifting determined by the Cane Commissioner on the basis of an agreement between the parties, or, if there be no such agreement, on a fair and reasonable basis after affording the parties an opportunity to make representation in writing as to the cost involved and the basis of calculation thereof:

Provided further that where only sugarcane grown by the owner of the unit is crushed in the unit and no other cane nor cane juice is purchased for use in the unit the owner of the unit, shall not be required to shift it.

(2) Upon the Cane Commissioner issuing the order under sub-section (1) the owner of the unit shall suspend the operation of the unit forthwith and shall produce the licence before the Cane Commissioner for entry of the changed site.

Any person aggrieved by any order of the Cane Commissioner under Section 16, 18 or 19 may appeal to the prescribed authority within fifteen days of the receipt of such order.

In writ petition filed in the matter of grant of Khandsari licence question regarding availability of alternative remedy raised. Held, availability of alternative remedy does not quest jurisdiction of a Writ Court. Writ petition held maintainable. Riga Sugar Company Ltd. v. State of Bihar, 1997 (2) BLJ 392.

(1) Notwithstanding anything contained in this Chapter, a licence, held by the occupier of a factory or the owner of a unit under the Bihar Sugarcane (Regulation of Supply and Purchase)-Ordinance, 1973 (Bihar Ordinance no. 47 of 1973) at the commencement of this Ordinance shall continue to be valid for the remainder of the crushing year as if it were a licence granted under this Ordinance.

(2) The subsisting licence, referred to in sub-section (1) shall be replaced by a fresh licence under this Act on an application being made for it within the period prescribed for grant of licence under Section 15 or 16, as the case may be, and on payment of the prescribed fee.

(1) Such fees shall be paid for licences granted under this Chapter as may be prescribed.

(2) Different scales of fees may be prescribed for different classes of factories or units.

Where regard being had to the special facts and circumstances of any class of persons, the State Government is satisfied that application of any or all provisions of this Chapter to such class of persons shall be inequitable or involve any hardship, it may by notification in the Official Gazette exempt such class of persons from the operation of such provisions.

(1) Where the State Government after giving a reasonable opportunity of being heard to the occupier of the factory concerned, is satisfied that for adequately protecting interests of the cane-growers and co-operative societies it is expedient to control, by licencing, the activities of employees of the factory operating in any area in connection with purchase of cane and payment of price thereof, it may by notification in the Official Gazette, direct that in such area no person or class of persons to whom licence has not been granted in the prescribed manner shall be employed by the occupier of the factory or the manager in connection with any transaction for the purchase of cane or payment of price of cane.

(2) No person shall be granted licence under sub-section (1) unless such person has deposited the prescribed sum of money, in the prescribed manner, as security.

(3) Where the security is forfeited in whole or in part under sub-section (2) of Section 57 and the licensee fails to replenish it within fifteen days of such forfeiture, the licence shall be deemed to have been cancelled.

PURCHASESUPPLY OF CANE

(1) Within thirty days of the commencement of this Act and thereafter within the same period before the commencement of every crushing year the occupier of a factory shall send to the Collector a notice of appointment of any person as manager for the purposes of this Act or the Rules:

Provided that until the first notice of appointment of manager under this Act is sent, the person appointed or deemed to be appointed as manager under the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1973 (Bihar Ordinance 47 of 1973) shall be deemed to be a manager under this Act.

(2) No person shall be deemed to have been appointed as manager until a sum of two thousand and five hundred rupees is deposited by him or on his behalf as security, with the Collector concerned in the prescribed manner.

(3) Whenever a new manager is appointed, the occupier of the factory shall send to the Collector a written notice of the change within fifteen days of the date on which the new manager assumes charge of his work.

(4) During any period for which provisions of sub-sections (1) and (2) are not complied with or the person appointed as manager does not manage the factory, or his security money is not replenished to the extent of its forfeiture under sub-section (2) of Section 57, the occupier of the factory himself shall be deemed to be the manager of the factory for the purposes of this Act and the Rules.

(1) An occupier of a factory or manager may carry out operations relating to weighment or purchase of cane or payment of price of cane with the aid of paid employees.

(2) Subject to the provisions of sub-section (1), the occupier of the factory or manager shall not appoint any person as purchasing agent for the purposes specified in that sub-section nor shall be utilise services of any person as purchasing agent directly or indirectly for any such purpose.

(1) The occupier of every factory shall submit to the Cane Commissioner, on or before the prescribed date, in every crushing year, an estimate, in the prescribed manner, of the quantity of cane which may be required in the factory during such crushing year.

(2) The Cane Commissioner shall examine every estimate submitted under sub-section (1) and where the occupier of a factory has failed to submit an estimate under sub-section (1), he shall draw up an estimate by himself in the prescribed manner and shall publish the same in such manner as may be prescribed with such modifications, if any, as he may think fit, after consultation with the council concerned.

(3) The prescribed authority may, either suo motu or on an application made to it by the occupier of the factory, within thirty days of the publication of the estimate under sub-section (2), revise the estimate, published under that sub-section and that authority shall cause the estimate so revised to be published in the prescribed manner.

(1) The occupier of a factory or any person acting on his behalf shall not commence the purchase of cane unless adequate arrangements, as may be prescribed, have been made in respect of the following matters, namely:

(a) weighment of cane to be purchased;

(b) payment of the price of cane purchased;

(c) parking of cane-carts;

(d) approach roads to the place of weighment; and

(e) distribution of requisition slips.

(2) Where survey has not been made under Section 34, the occupier of the factory shall, before the commencement of purchase of cane, have the survey of the standing cane-crop made as the prescribed manner.

(1) The occupier of a factory 7[xxx] may establish a purchasing centre after giving a notice in writing to the Collector at least thirty days before the commencement of purchase of cane and copies of such notice shall be sent by the occupier of the factory 8[xxx] forthwith to the Cane Officer concerned and the Cane Commissioner:

Provided that in urgent circumstances, a purchasing centre may be established at shorter notice, with the previous approval of the Collector:

Provided further that establishment of a purchasing centre at any railway station or at any place within eight kilometres of the purchasing centre already established for supply of the cane to another factory shall require previous sanction of the Cane Commissioner.

(2) The Collector may, subject to sub-section (1) after consulting the council concerned and giving the occupier of the factory 7[xxx], an opportunity of being heard, order in writing that such factory occupier 9[xxx] shall

(a) shift the location of any purchasing centre to another place in accordance with the order:

(b) establish a new purchasing centre at a place specified in such order; and

(c) suspend the operation of a purchasing centre already established.

(3) The prescribed authority may, either suo motu or on an application made to it by the occupier of the factory 10[xxx], within, fifteen days of the receipt of Collector's order under sub-section (2), revise such order.

(4) Subject to other provisions of this Act any order or direction of the Cane Commissioner in respect of purchase of cane or its movement from any area including its despatch by rail may be revised by the prescribed authority which shall have the power to initiate proceedings in revision either suo motu or on an application made to it by any aggrieved person within fifteen days of the receipt by him of such order or direction.

Challenge to allotment of cane purchasing centres. Reserved areas have already been declared and allotted to petitioners-Mills as per their proposals by authorities concerned. Reserved areas and purchase centres granted to petitioners are not being affected, altered, modified or taken away by impugned orders of authorities. Petitioners have raised no grievance with respect to any declaration of reserved area made by authorities. Provision of Section 31 not attracted. Impugned orders upheld. Vishnu Sugar Mills Limited v. State of Bihar, 2012 (1) BLJ 191 (PHC).

No transport rebate can be claimed by a sugar mill in respect of the purchase centres set up under the provisions of Section 29(1) of the Act as a matter of right. As such there cannot be any dispute to the rate of rebate fixed by Central Government. However, transport rebate may be claimed in case purchase centres set up Sugar Mill under Section 29(2) of the Act. Bihar Sugar Mills Association v. Union of India, 2006 (1) BLJ 637.

Clause 3 of Sugar Control Order, 1966. Claim made for transport rebate irrespective of sugarcane purchase centres. Such rebate is only admissible in respect of those purchase centres for which direction has been given to sugar mill to set up in terms of Section 29(2) of the Act. Petitioners were not in a position to show that they were obliged to set up purchase centres u/s. 29 of the Act and as such they can not be granted any relief. Writ petition dismissed. Bihar Sugar Mills Association v. Union of India, 2005 (4) PLJR 336.

Clause 3 of Sugar Control Order, 1966. Transport rebate with regard to sugarcane purchase centres claimed by sugar mills. There can not be any legal compulsion is the matter if purchasing centres is set up according to the provisions of Section 29(2) of the Act on the initiative of the sugar mills itself. It is seen that purchasing centres are set up by the Sugar mills away from the factory premises for getting additional amount of sugarcane. Sugar mills have to balance the cost of transportation. As such claim for higher rate of transport rebate can not be raised by sugar mills as a matter of legally enforceable right. Bihar Sugar Mills Association v. Union of India, 2005 (4) PLJR 336.

The State Government or any officer authorised by it in this behalf may, by general or special order, prohibit in any area weighment of cane by the occupier of a factory or any person acting on his behalf between sunset and sunrise.

Challenge to allotment of cane purchasing centres. Reserved areas have already been declared and allotted to petitioners-Mills as per their proposals by authorities concerned. Reserved areas and purchase centres granted to petitioners are not being affected, altered, modified or taken away by impugned orders of authorities. Petitioners have raised no grievance with respect to any declaration of reserved area made by authorities. Provision of Section 31 not attracted. Impugned orders upheld. Vishnu Sugar Mills Limited v. State of Bihar, 2012 (1) BLJ 191 (PHC).

(1) The Cane Commissioner may, having regard to the crushing capacity of the factory, the availability of sugarcane in such area and the need for production of sugar and after consulting the council concerned and the occupier of the factory or the occupiers of other affected factories and after considering any objection that may be raised, issue an order, by notification in the Official Gazette, declaring any area to be the reserved area for the purpose of supply of cane to the factory during a particular crushing year or years and may likewise cancel any such order or alter the extent of the area so reserved:

11[Provided that in case of a factory situated outside the State of Bihar, such declaration may be made only when the occupier of such factory make an application to the Cane Commissioner requesting him in the prescribed form that certain area in Bihar may be reserved for supply of Cane to the factory and such declaration shall be made on the condition that such occupier shall establish a Branch office in the State of Bihar and deposit a sum of rupees five thousand as security to a Collector in the State of Bihar and gives an undertaking in the prescribed form to purchase of cane grown in the area.]

(2) Any person aggrieved by an order of the Cane Commissioner under sub-section (1) may, within thirty days of the receipt of such order or within the same period from its publication in the Official Gazette, appeal to the prescribed authority.

Declaration as reserved area. Cane Commissioner is authorized to issue order by notification in Official Gazette declaring any area to be reserved area for the purpose of supply of cane to factory during a particular crushing year. Impugned order not published in Official Gazette nor any exceptional circumstance recorded. Impugned order quashed. Sasamusa Sugar Works Ltd. v. State of Bihar, 2012 (1) BLJ 126 (PHC).

Issues involving fixed tenures i.e., grant of yearly licence should in public interest, be examined and decided by court even if no relief can be granted to petitioner. Single Judge perfectly justified in dealing with issues governing power, duties and functions of Cane Commissioner. State of Bihar v. Vishnu Sugar Mills, 2011 (1) BBCJ 202.

Court can deal with the matter and expound the law in public interest even after crushing season is over, if issues are likely to recur in coming years. State of Bihar v. Vishnu Sugar Mills, 2011 (1) BBCJ 202.

Inspite of the fact that the crushing season in sugar factories may be over, the Court has the jurisdiction in appropriate cases to deal with the issue regarding reservation of traditional villages in favour of sugar factories. Court is also entitled to extend the law in larger interest of the public if such issues are likely to rear in the years following. State of Bihar v. Vishnu Sugar Mills Ltd., 2011 (1) BBCJ V-202.

Reservation of cane growing areas for sugar factories. Cane Commissioner shall take into account crushing capacity of factory, availability of sugarcane in such area, need for production of sugar, and after consulting council concerned and occupier of factory or occupier of other affected factories. There is obligation on Cane Commissioner to consider aspects of matter mentioned in Section 31 and then pass a speaking order. Failure to assign reasons is tantamount to confronting Court with its bare conclusions. State of Bihar v. Vishnu Sugar Mills, 2011 (1) BBCJ 202.

While deciding the issue regarding reservation of villages/areas for sugar factories Cane-Commissioner is obliged to hear the parties and take into account all the relevant circumstances. He must exclude all the irrelevant circumstances at the time of hearing. Order passed by him must be reasonable and he should also assign reasons in support of his order to enable the Superior Court to adjudge the same if be necessary. State of Bihar v. Vishnu Sugar Mills Ltd., 2011 (1) BBCJ V-202.

While declaring reserved area, Cane Commissioner must pass an speaking order taking into consideration different proposals of the sugar factories. He must assign reasons for accepting or not accepting or partly accepting the proposals of the sugar factories. State of Bihar v. Vishnu Sugar Mills Ltd. 2011 (1) BBCJ V-202.

Crushing season of Sugarcane in the sugar factories actually starts from November and ends in March with some variations. As such it is imperative that the time table prescribed as per Rule 25 must be followed. Held, direction given by Single Judge to Cane Commissioner strictly justified. State of Bihar v. Vishnu Sugar Mills Ltd., 2011 (1) BBCJ V-202.

In the matter of reservation of period, order passed by Hon'ble Single Judge that traditional areas be allotted for five years and non-traditional areas for three years with a view to ensure certainty in state of affairs so that the burden of sugar factories be reduced. Impugned order held most appropriate. State of Bihar v. Vishnu Sugar Mills Ltd., 2011 (1) BBCJ V-202.

It is necessary that allotment of Cane growing areas be published in the Official Gazette in terms of the provisions of Section 31 of the Act, to enable the concerned parties, sugar factories to know about their rights and liabilities. By doing so cane grower would know name of sugar factories to which they have to supply sugarcane grown. Similarly sugar factories would locate the village for purchase of sugarcane. State of Bihar v. Vishnu Sugar Mills Ltd. 2011 (1) BBCJ V-202.

Declaration of reserved area. Before making any reallocation of the illegal or modification in the existing arrangement, an opportunity of hearing has to be given to all concerned. Instantly, authorities did not to follow the procedures provided under the Act. Court issued certain guidelines for following the procedures given in the Act in future while making reservation of the area. Vishnu Sugar Mills Ltd. v. State of Bihar, 2005 (2) PLJR 495.

Order of declaration of reserved area must be passed by a speaking order assigning reasons for amalgamation of villages for different sugar mills. Such list of amalgamated villages has to be published in the Gazette as per requirement of the law. Vishnu Sugar Mills Ltd. v. State of Bihar, 2005 (2) PLJR 495.

Power and functions of Cane Commissioner. Court can deal with issues governing powers, duties and functions of Cane Commissioner, interest of cane growers as well as sugar factories. Cane Commissioner does not very often follow calendar causing great hardship to cane growers and sugar factories. Differences in crushing capacity and installed capacity of different sugar factories, area of cane growing potential of different villages, proximity of one factory with village, policy of State Government to protect its own industries, or question whether or not interest of cane growers would be better served by assigning them to sugar factory in adjoining State(s), may be relevant considerations and must be reflected in order. Cane Commissioner is obliged to follow principle of natural justice. Order passed by Single Judge affirmed. State of Bihar v. Vishnu Sugar Mills Limited, 2010 (4) BLJ 196 (PHC).

Sugarcane is actually crushed in a sugar factory from November to March. Time table mentioned in Rule 25 must be followed, otherwise cane growers cannot supply sugarcane and factories cannot purchase sugarcane. Cane Commissioner must follow statutory calendar strictly. State of Bihar v. Vishnu Sugar Mills, 2011 (1) BBCJ 202.

Publication of reservation of area. Refusal on part of sugar factory to purchase sugarcane from area allotted to it will make it liable for compensation. Parties should be aware of their rights and liabilities in terms of Section 31. State of Bihar v. Vishnu Sugar Mills, 2011 (1) BBCJ 202.

(1) The Cane Commissioner may, by order notified in the Official Gazette, fix with respect to any specified sugarcane-grower or sugarcane-growers generally the quantity or proportion of sugarcane grown in the reserved area by the sugarcane-grower or sugarcane-growers concerned, as the case may be, which each sugarcane-grower by himself, 12[x x x] shall supply to the factory concerned.

(2) Every sugarcane grower 13[x x x] or occupier of the factory concerned shall be bound to supply or purchase, as the case may be, the quantity or proportion of sugarcane fixed under sub-section (1) by entering into agreement in the manner specified in sub-sections (3) and (4) and any wilful failure on the part of any such person to do so shall constitute a breach of the provisions of this Act:

[Proviso deleted by Bihar Act 11 of 1994 dated 1.6.1994]

(3) A cane grower 14[x x x] in a reserved area may offer in the form and by the date prescribed to supply to the occupier of the factory for which the area is reserved cane grown in such area by the cane grower 15[x x x] as the case may be.

(4) The occupier of a factory for which an area is reserved shall enter into an agreement in such form, by such date and on such terms and conditions as may be prescribed, to purchase the cane offered in accordance with the provisions of sub-section (3):

Provided that

[Deleted Clause (i) by Bihar Act 11 of 1994 dated 1.6.1994.]

(i) the occupier shall not be required to purchase, or enter into an agreement to purchase, sugarcane of any variety, if the sugarcane of such variety has been declared by notification under Section 36, to be unsuitable for use in such factory;

[Deleted Clause (iii) & (iv) by Bihar Act 11 of 1994 dated 1.6.1994.]

(5) An appeal against any order of the Cane Commissioner under sub-section (1) or sub-section (4) may be preferred to the prescribed authority within fifteen days of the publication of the notification in the Official Gazette and subject to the result of such appeal, if any, such order shall be final.

(6) Except with the permission of the State Government, cane grown in a reserved area shall not be sold to or purchased by

(i) the occupier of any factory other than the factory for which the area is reserved: or

(ii) any person for the purpose of supply to any factory other than the factory for which the area is reserved; or

(iii) the owner of a unit to whom a licence has not been granted under Section 16.

(7) Cane grown in a reserved area shall not be sold by any person other than a cane grower 16[x x x]:

Provided that a cane grower 16[x x x] may deliver cane through another cane-grower or through a carrier.

(8) During the crushing year, the State Government may, by order, direct that sugarcane grown outside the reserved area shall not be purchased by the occupier of a factory or any person on his behalf until the occupier of the factory enters into an agreement to purchase all the sugarcane in the reserved area offered to him within the time to be specified in the order:

[Proviso deleted by Bihar Act 11 of 1994 dated 1.6.1994].

(9) Subject to the provisions of sub-section (1), the State Government may prohibit or restrict or otherwise regulate the movement of sugarcane from any reserved area except under and in accordance with a permit issued by it in this behalf.

17[32-A. Payment of Compensation. If cane remains undisposed in reserved area, the order for payment of compensation to the cane growers concerned shall be after due enquiry by the Cane Commissioner after giving an opportunity of being heard to both the parties concerned.]

Publication of reservation of area. Refusal on part of sugar factory to purchase sugarcane from area allotted to it will make it liable for compensation. Parties should be aware of their rights and liabilities in terms of Section 31. State of Bihar v. Vishnu Sugar Mills, 2011 (1) BBCJ 202.

Respondents are entitled to claim for compensation. Absence of agreement can not take away such valuable right of respondents. Whole effort on the part of the petitioner is only to somehow wrangle out of the liability which has been created under law. No infirmity found in the composite application filed by respondent for compensation. Application dismissed. New Swadeshi Sugar Mills Ltd. v. State of Bihar, 2009 (3) PLJR 320.

Cane grown in any area other than reserved area and intended to be supplied to the occupier of a factory shall not be purchased by any person except

(a) the occupier of the factory or a person employed by him for the purpose of making such purchase; or

[Clause (b) Deleted by Bihar Act 11 of 1994 dated 1.6.1994.]

Provided that a person entitled to purchase cane may take delivery thereof through a sugarcane-grower or through a carrier.

(1) The State Government when it considers it expedient may, by notification in the Official Gazette, order a survey to be made of sugarcane grown in any area and of any area fit for cultivation of sugarcane and recover the cost of such survey from the factory or factories to which the cane of such area is supplied.

(2) Every such survey shall be made by an officer appointed by the State Government in this behalf.

(3) After issue of the notification under sub-section (1), it shall be lawful for an officer appointed under sub-section (2) and for persons required by him to assist him in the discharge of his duties

(i) to enter upon and survey and take levels of any land in such locality and to do all things and make all enquiries necessary for effecting the survey and demarcation of the boundaries thereof;

(ii) to dig or bore into the sub-soil;

(iii) to make levels, boundaries, and lines by placing marks and cutting trenches; and

(iv) where otherwise the survey cannot be completed and the levels taken and the boundaries and line marked, to cut down and clear away any part of any standing crop, fence or jungle.

(4) A person appointed under sub-section (2) of Section 12, to assist the Cane Commissioner, or a Cane Officer, may exercise all or any of the powers enumerated in sub-section (3) within such local limits as may be notified in the Official Gazette.

(5) An officer appointed under sub-section (2) or referred to under sub-section (4) shall pay or tender payment for any damage done to any property in course of making the survey and in case of dispute as to the sufficiency of the amount so paid or tendered, he shall at once refer the dispute to the Collector who may, after giving the parties reasonable opportunity of being heard and after such enquiry as he may consider necessary, pass such order as he thinks fit.

(6) The order of the Collector under sub-section (5) and subject to such order, the order of the officer appointed under sub-section (2) or referred to in sub-section (4) shall be final.

(7) Every person owing or occupying land in any area in respect of which a survey is being made under sub-section (1) shall render to the officer making such survey such assistance, and offer him such facilities as may be prescribed.

(8) Any amount due from the factory or factories under sub-section (1) shall be recoverable as a public demand as an arrear of land revenue.

(9) The records of any survey under this Section shall not be admissible as evidence in any proceedings in a civil or revenue court.

(1) 18[(1) The occupier of a factory shall maintain, in the prescribed form, a register of all cane growers, supplier of cane or cane growers who are members of the Co-operative Society in each of the following area; namely

(a) the areas reserved for the factory under Section 31, and

(b) any other area from which the factory may purchase cane.]

(2) The owner of a unit shall maintain in the prescribed form a register in respect of the cane or cane juice crushed or purchased by him or on his behalf.

(3) The State Government may, by Rules, provide for

(a) the correction of entries and the addition of new entries in such registers;

(b) the payment of costs in connection with such entries or addition and the manner in which such costs shall be realised; and

(c) the supply, on payment of the prescribed fee, of copies of entries in the registers.

The State Government may, after consulting the Board by notification in the Official Gazette, declare that

(a) sugarcane of any variety grown in any area specified in such notification is unsuitable for use in all or any factory situated in the said area; and

(b) sugarcane-seed of any variety is unsuitable for distribution to cultivators in any area specified in such notification.

(1) The occupier of a factory or any other person acting on his behalf shall not distribute sugarcane-seed of any variety to any person to be used by cane-growers or the members of the co-operative societies in any area if sugarcane-seed of that variety has been declared under Section 36, to be unsuitable for distribution to cultivators in that area.

(2) The occupier of a factory or any other person acting on his behalf shall not grow sugarcane of any variety if such variety of sugarcane has been declared under Section 36 to be unsuitable for use in such factory.

The occupier of a factory shall maintain a prescribed nursery of sugarcane-seed in the prescribed manner over such area of land as the Cane Commissioner may, after consulting the Board and giving the occupier of the factory a reasonable opportunity of being heard and after taking into account the crushing capacity and requirement of cane of the factory, determine.

(1) The occupier of every factory, the owner of every unit 19[x x x] and every person in charge of weighments shall maintain, subject to such limits of error as is prescribed by the State Government under the law relating to weights and measures, for the time being in force, a record of the correct weight of cane purchased at the place of weighment.

(2) No cane shall be purchased without being weighed.

The occupier of a factory 20[x x x] purchasing cane at any purchasing centre shall make such provisions for the following and keep them in such repairs as may be prescribed, namely:

(a) approach road and parking space for animal-driven carts;

(b) sheds for animals and cart-drivers;

(c) drinking water for persons using the purchasing centre; and

(d) drinking water and water-trough for animals.

(1) The occupier of a factory 21[x x x] or any other person purchasing cane at any purchasing centre shall not detain an animal driven cart at such centre for a period exceeding six hours.

(2) Where an animal-driven cart is detained at such purchasing centre for a period exceeding six hours, the occupier of the factory 22[x x x] or such other person, as the case may be, shall be liable to pay compensation in the prescribed manner to the supplier of cane for such detention at the rate 23[specified by the State Government from time to time.]

(3) The persons referred to in sub-section (1) shall make such arrangements for noting the time of the entry and exit of animals driven carts in the parking ground as may be prescribed and in the event of a strike or breakdown of machinery or any reason beyond their control such persons shall be exempted from the liability to pay compensation to such extent as may be prescribed.

PAYMENTPRICE OF CANE AND OTHER MATTERS

The State Government may, after consulting the Board, determine by notification in the Official Gazette, in respect of any area the minimum price of cane payable by the owners of units to the cane-growers 24[x x x] for cane supplied to them in the crushing year concerned:

Provided that the minimum price so determined shall not exceed the minimum price payable by the occupier of a factory under any law for the time being in force, in respect of the cane supplied from the same area.

Order passed by Cane Commissioner fixing price of sugarcane is absolutely illegal. State Executive, in exercise of its executive authority, cannot infringe rights of citizens merely because State Legislature has power to legislate in regard to subject on which executive power has been exercised. Bihar Sugar Mills Association v. State of Bihar, 2009 (1) PLJR 733.

Scope of power of fixing of price of sugarcane by State Government. In view of conflicting decisions of Apex Court, matter referred to large Bench. U.P. Co-operative Cane unions' Federation v. West. U.P. Sugar Mills Association, 2003 (1) BLJ 223.

Section 3 of the Industries (Development & Regulation) Act, 1951 and Section 3 of the Essential Commodities Act, 1955 and clauses 39(1), 2 and 5A of Sugarcane Control Order, 1966. For the purpose of purchasing sugarcane by the Sugar factories in the State of Bihar Cane Commissioner fixed rate of sugarcane. Such fixation of price of sugarcane is also applicable for the sugar factories situated in the State of Uttar Pradesh. Which purchase sugarcane from Bihar under the provisions of Section 42 and 43. Bihar Sugar Mills Association v. State of Bihar, 1997 (2) PLJR 795.

Section 2 of the Industries (Development & Regulation) Act, 1951 and Section 3 of the Essential Commodities Act, 1955 and clauses 39(1), 2 and 5A of Sugarcane Control Order, 1966. Fixation of price for purchase of sugarcane by Cane-Commissioner Sugar being a scheduled industry is controlled by Central Government. Power of fixation of price of Sugarcane to be paid by factories has been conferred on Central Government under the provisions of Essential Commodities Act, 1955. Provisions of the Essential Commodities Act has not been amended to the extent of empowering State of Bihar to fix the price of sugarcane. Order fixing price of sugarcane by the Cane Commissioner held invalid and accordingly set aside. Bihar Sugar Mills Association v. State of Bihar, 1997 (2) PLJR 795.

Essential Commodities Act, 1955. Section 3. Industries (Development and Regulation) Act, 1995. Section 2 and First Schedule, Constitution of India-List I, 7th Schedule, Entry 52. Cane Commissioner issuing order fixing price of sugarcane to be purchased by sugar factories. Sugarcane (Control) Order has jurisdiction of fixing price of sugarcane to be paid by sugar factories against supply of sugarcane. Cane Commissioner was not competent to issue such order under the provisions of Section 42 of the Act. Impugned order quashed. Bihar Sugar Mills Association v. State of Bihar, 1997 (1) BLJ 767 : 1997 (1) All PLR 253.

(1) The occupier of a factory shall make such arrangements for the payment of price of cane as may be prescribed.

(2)(i) As soon as cane is supplied to a factory, the occupier of such factory shall be liable to pay the price of cane so supplied.

(ii) Where the occupier, liable under clause (i) makes default in payment of the price for a period exceeding fourteen days from the date of supply of cane to the factory, he shall be liable to pay interest thereon at the rate specified in Section 51 from the date of supply.

(3) [Deleted by Bihar Act 11 of 1994 dated 1.6.1994].

(4) The owner of the unit shall make payment of the price of cane supplied to it immediately after the supply and on failing to do so shall be liable to pay interest at the rate prescribed.

(5) Notwithstanding anything contained in sub-section (2) 25[x x x] or sub-section (4), the occupier of the factory 26[x x x] or the owner of the unit shall be punishable under Section 52 for failure to make payment of the price in time.

(6) Any arrears of the price of cane, with interest thereon, if any, shall be recoverable as public demand or arrears of land revenue.

(7) Subject to any claim of the Central Government in respect of a tax or duty of excise, the price of cane shall be the first charge on the properties of the factory other than sugar.

Amount of arrears. Sugarcane price not disbursed inspite of receiving financial assistance from Central Government. Action of the State Govt., can not be said justified in keeping the matter pending for such a long time. Direction issued to State Govt. for considering the grievances of the petitioner. Writ petition disposed off. Ram Naresh Singh v. State of Bihar, 2006 (3) BLJ 105.

Non-disbursement of financial assistance by State Government amongst Sugarcane growers. Financial assistance was granted by Union of India to instigate hardship of cane growers. Non-utilization of amount so granted is against interest of sugarcane grower. Ram Naresh Singh v. State of Bihar, 2006 (4) BBCJ 347.

Union of India sanctioned some amount as financial assistance (loan) to the State Government for payment of sugarcane price due to the cane-growers. State Govt. did not disburse the said amount due to adjustment of the loan amount already paid to cane-growers as part payment. State Govt. kept the matter pending by not making specific averment about clearance of the entire loan amount of sugarcane growers. Such action of State Govt. held not justified. Ram Naresh Singh v. State of Bihar, 2006 (3) PLJR 494.

With a view to clear the arrear amount of sugarcane price payable to sugarcane growers Union of India sanctioned financial assistance to the State Govt. But due to inaction of the State Govt. said amount was not utilised keeping the sugarcane growers in hardships. Non-payment of the amount is against the interest of the sugarcane growers who are suffering due to non-payment of arrears. Direction given to respondents for considering the grievances of the petitioners/sugarcane growers and to pass necessary order for mitigating their hardships. Ram Naresh Singh v. State of Bihar, 2006 (3) PLJR 494.

Sugar Factory, an unit of the Bihar State Sugar Corporation did not make payment of Sugarcane price to the farmers. Penal action is available for both type of factories i.e. private factory and the other owned by Governments. Liquidation of the Bihar State Sugar Corporation can not come in way of making payment to sugarcane growers. If the Corporation is not in a position to make payment, State Govt. should make payment of the amount payable to the farmers after proper verification of each case. Cane Development and Cane Marketing Union v. State of Bihar, 2003 (3) PLJR 311.

Sugarcane growers/farmers supplied sugarcane to Sugar factories for which they were not paid. For realisation of the said arrear amount certificate proceeding was initiated against the sugar mills. Held, sugar can not be attached in execution of the certificate. Eastern Sugar & Industries Ltd. v. State of Bihar, 2001 (1) PLJR 622.

Cane Officer has to perform various statutory duties given in Section 13(1) within the local limits of his jurisdiction as such cane officer has also authority for taking suitable steps regulating sale and purchase of sugarcane which may be either in the interest of sugarcane growers or in the interest of Co-operative societies. Madhu Sudan Sharma v. State of Bihar, 1996 (2) PLJR 276.

Cane Officer has full jurisdiction to file requisition before the Certificate Officer on behalf of Cane-growers if payment of their produce (Sugarcane) is not made by occupiers of the factory to which Sugarcane was supplied by cane-growers. Madhu Sudan Sharma v. State of Bihar, 1996 (2) PLJR 276.

Cane Officer is supposed to safeguard and look into any dispute arising between the cane growers and occupier of the factory on account of non-payment of fine or interest of sugarcane supplied by them to the occupier of the sugar factory. Cane-officer has to do such duty in view of the object and scheme of the Act because cane growers have no option but except to supply sugarcane to the occupier of the factory in terms of the directions of the Cane Officer. Madhu Sudan Sharma v. State of Bihar, 1996 (2) PLJR 276.

Finding allegations against different Primary Agriculture Credit Go-operative Societies of defalcation, misappropriation of the amount received against supply of sugarcane by different sugar cane growers, Cane-Commissioner took decision that the price of sugarcane would be paid directly to members of Co-operative society with a view to ensure prompt payment. Primary Agriculture Credit Co-operative Society v. State of Bihar, 1994 (2) BLJ 473 : 1994 (2) PLJR 20.

Section 32 of the Sugarcane Act is an enabling provision for purchase of sugarcane grown in reserved area whereas 43(1) provides for making payment of price by an occupier of the factory and for this an agreement as per the provisions of the Act has to be made. However, Section 43 is salient about mode of payment etc. Similarly, provisions of Rule 32 of the Rules provide for payment of price of sugarcane by occupier of a factory. Held, there is no conflict or contradiction between the provisions of Section 32 or 43 of Act of 1981 and Rule 32 of 1978 Rules. Primary Agriculture Credit Co-Operative Society v. State of Bihar, 1994 (2) BLJ 473 : 1994 (2) PLJR 20.

Provisions for payment of price of the sugarcane by the occupier has been made. Sub-rule (5) of the Rule empowers the Cane Commissioner to direct such payment in appropriate cases to be made directly to a member or members of Co-operative Society as the case may be. Held, Such direction issued by the Cane Commissioner not invalid. Primary Agriculture Credit Co-Operative Society v. State of Bihar, 1994 (2) BLJ 473 : 1994 (2) PLJR 20.

Writ petition filed for making payment for supplies of sugarcane to the sugar factories. Right of receiving payment for supply of sugar is statutory u/s. 43 which is mandatory in character. Since the writ petition has already been admitted as such no direction can be given to the petitioners for availing an alternative remedy of appeal. Held, writ is maintainable. Akhileshwar Prasad Narain Singh v. State of Bihar, 1988 BLJ 951 : AIR 1988 Pat. 347 : 1988 BLJR 791 : 1988 BRLJ 113 : 1988 PLJR 1005.

Cane Officer filed requisitions for initiation of certificate proceeding on behalf of Cane growers before the Certificate Officer. Cane-growers have no option but has to supply sugarcane to the occupier of sugar factory as per directions of the Cane-Officer. He is fully competent to look into any dispute arising between the cane growers and occupiers of sugar factories on account of non-payment of price of cane supplied by them. Certificate proceeding filed by Cane Officer held maintainable. Madhu Sudan Sharma v. State of Bihar, 1997 (1) BLJ 126 : 1996 (2) All PLR 696 : 1996 (2) BLJR 1097.

Cane officer has full authority of taking suitable steps in the interest of sugarcane growers and/or co-operative societies for regulating sale and purchase of sugarcane. He is also required to perform various statutory duties within the local limits of his jurisdiction under the provisions of Section 13(5) of the Act. Madhu Sudan Sharma v. State of Bihar, 1997 (1) BLJ 126 : 1996 (2) All PLR 696 : 1996 (2) BLJR 1097.

Dues of cane growers not discharged by the Sugar Companies as such were proceeded. Sale of sugar by such companies were also prohibited. Company gave undertaking for discharging the entire liability if the ban imposed is vacated. Prohibitory order quashed conditionally. Eastern Sugar and Industries v. State of Bihar, 2001 (1) BBCJ-V 252.

(1) The occupier of a factory or any person on his behalf shall not make any deduction from the price of cane except on account of any loan advanced by him under Section 50.

(2) Any person in charge of payment of price of cane on behalf of a co-operative society shall not make any deduction from such price except on account of any loan advanced by the society to a member of such society or a cane-grower 27[as per list submitted by society concerned].

28[(3) Notwithstanding anything contained in sub-sections (1) and (2) where is any contributory scheme under any National or State or Sugar Developments plan or plan of the Central Govt. the realisation of the Contribution of the Cane growers or members of the cane growers Co-operative Society may be made on the basis of agreement executed by them.]:

Provided that the amount so deducted by the occupier of a factory shall be deposited in the funds of the council in the prescribed manner and in the event of his failure to do so, interest at the rate specified in Section 51 shall be payable by the occupier of the factory and the principal amount together with interest shall be realisable as public demand or as arrears of land revenue.

(4) The amount of deduction referred to in sub-section (3), made any time before commencement of this Act and remaining on the commencement of this Act with the occupier of a factory or any other person shall be deposited in the funds of the Board or the Council concerned in accordance with the order, in this behalf, of the State Government. On the failure of such occupier or other person to so deposit such amount, it shall be recoverable as public demand or as an arrear of land revenue and shall bear interest at rate specified in Section 51.

(1) On the expiry of two years from the close of any crushing year, the State Government may, by an order notified in the Official Gazette, require the occupier of a factory to deposit, within the time specified in the order, the price of cane together with interest thereon, if any, which have remained unpaid to cane-growers or suppliers of cane or the Co-operative Societies with the Collector of the district in which the factory is situated or, in the case of a factory situated outside the State of Bihar, with the Collector of the district from which the occupier has purchased cane.

(2) The Collector shall pay out of the amounts deposited under sub-section (1) all claims considered payable by him, and preferred before him within three years of the date of the application of the order of the State Government in the Official Gazette.

(3) The amount remaining with the Collector after paying off the claims under sub-section (2) shall be credited, within six months, to the fund of the Council concerned.

(1) If any dispute arises regarding the price of cane supplied to the occupier of a factory the person entitled to the price or the document on the basis of which the price is claimed, payment of the price shall be withheld and, the occupier of the factory to which the cane was supplied shall enter the dispute in a register in the prescribed form and refer it within the prescribed period to the prescribed authority who shall, after giving the parties a reasonable opportunity of being heard and after such inquiry as he may consider necessary, decide the dispute:

Provided that whenever the payment of the price is withheld under this sub-section, the occupier of the factory shall deposit with the prescribed authority in the prescribed manner the amount in dispute, within one week of such reference.

(2) Any other dispute touching an agreement for purchase of cane by the occupier of a factory or its supply to him and any dispute relating to purchase of cane or cane-juice by the owner of a unit and payment of price thereof shall be referred to the authority prescribed under sub-section (1) who shall decide it in the manner laid down in that sub-section.

Explanation. Where an offer has been made by a cane grower 29[x x x] for supply of cane to the occupier of a factory under the provisions of this Act and the occupier has failed to execute the agreement in accordance with the provisions of this Act a dispute relating to such unexecuted agreement shall be a dispute within the meaning of this sub-section.

(3) Any person aggrieved by a decision made under sub-section (1) or sub-section (2) may, within thirty days of the decision, prefer an appeal to the Collector who shall, after giving the parties a reasonable opportunity of being heard and after such inquiry as he may consider necessary, pass such order as he thinks fit.

(4) An order of the Collector under sub-section (3) and subject to such order, the decision of the prescribed authority under sub-section (1) or sub-section (2) shall be final.

Sections 406, 409 and 420 of India Penal Code, 1860. Inspite of offence being under the 1981 Act, if there be some other elements attracting penal provisions of IPC then there is no bar to incorporate/include the penal provisions. If there is any dispute in the account of the Bank concerning farmers, the same may be redressed under the provisions of Section 46 and when there is no question of defalcation/misappropriation. Question of application of Section 406 and 409 IPC does not arise. If there is not any intentional duping from the side of petitioners. Provisions of Section 420 IPC not attracted. Laxman Pd. Srivastava v. State of Bihar, 2001 (3) PLJR 807.

Final decisions or orders made under Section 46 shall, on application, be enforced by a civil court of competent jurisdiction in the same manner as a decree of such court:

Provided that where the final decision or order is in respect of price of cane, such price together with interest, if any shall be recoverable as a public demand or as arrears of land revenue.

30[(1) The State Government may by notification in the Official Gazette determine the amount of commission payable by the occupier of the factory on the purchase of sugarcane by such occupier or on his behalf and may by a like notification exempt the occupier of a new factory to be specified in the notification from the payment of the amount of such commission for a prescribed period.]

31[(2) The commission payable under sub-section (1) shall be collected in the prescribed manner and the State Government shall determine the share of Zonal Development Council and Co-operative Society.]:

Provided that no amount in excess of the amount at the rate of seven paise per quintal on the cane supplied by a co-operative society shall be payable to it and the whole of the remaining amount shall be paid to the Council concerned.

(3) The arrears of the commission payable under sub-section (1) shall bear interest at the rate specified in Section 51 and shall be recoverable together with interest as a public demand or as an arrear of land revenue.

Element of quid pro quo for enhancement of commission on purchase of sugarcane. Amount collected as commission has to be utilised for the development of work concerning sugarcane and also for the benefit of sugarcane growers of reserved area, such purpose can be held to be co-related with the enhanced amount of commission. Held, quid pro quo present for enhancement in commission. State of Bihar v. Pratappur Sugar and Industries Ltd., 2005 (4) PLJR 772.

Fixation of percentage of commission. Clause 3 of Sugarcane (Control) Order, 1966 empowers the Union of India to fix minimum price of sugarcane to be paid by occupiers/producers of sugar for the purchase of Sugarcane by them. However, no maximum price has been fixed on the basis of an agreement between occupier and sugarcane growers, more price of sugarcane is paid by the occupier for the sugarcane purchased by him, the same cannot be treated as invalid or impermissible when actual price has been fixed by the State, the same cannot be held as unreasonable. Notification issued is held valid. State of Bihar v. Pratappur Sugar and Industries Ltd., 2005 (4) PLJR 772.

It can not to said that in the notification fixing and enhancing the rate of sugarcane there was absence of quid pro quo or enhancing the commission. When the prices of essential commodities required for development works have gone high. Increase in the amount of commission can not be said unreasonable. State of Bihar v. Pratappur Sugar and Industries, 2005 (2) BLJ 668.

Notification enhancing the amount of commission being a part of the Act which provides for increase in the rate of commission, any contrary provision made in the previous rule in this regard has to be held in applicable. Held, State has wide jurisdiction in the matter of enhancing the amount of commission. Moreover, when the amount has been fixed by the notification which is a part of the Section of the Act, any amount fixed under the provisions of rule is of no value. State of Bihar v. Pratappur Sugar and Industries, 2005 (2) BLJ 668.

Notification regarding payment of Commission to be paid to Co-Operative Societies and Cane Development Council overlooked share of Co-Operative Societies and made provisions for payment of commission only to Zonal Development Council. No reason for issuance of such notification assigned. Impugned notification being against the provision of the Act quashed. C.D. & C.M. Union v. State of Bihar, 2005 (1) BLJ 494.

Notification regarding determination of commission earned on purchase of cane by the Sugar Factories issued in absence of corresponding amendment in Rule 35 of the Rules, 1978. Impugned notification held unenforceable. Bihar Sugar Mills Association v. State of Bihar, 2005 (1) BLJ 681.

Notification issued increasing amount of commission of cane purchase. Before issuing notification relevant rules not amended. Held notification in conflict with the findings and directions of High Court given in earlier round of litigation on such issues. Impugned notification quashed. Bihar Sugar Mills Association v. State of Bihar, 2005 (1) BLJ 681.

Earlier High Court held that payment of commission among the Zonal Development Council and Co-operative Societies should be done by State Government after determining the share of both the units, State Government instead of adopting impartial attitude determined the entire share to the Zonal Development Council. A notification to this effect was also notified by the State Government. It cannot be imagined that while determining the share 100% would be given to one unit and zero share to another. Co-operative Societies held entitled for some share. Impugned notification quashed. Writ petition allowed with heavy cost. C.D. & C.M. Union v. State of Bihar, 2005 (1) PLJR 532.

High Court ordered for distribution of the amount of commission among the Zonal Development Council and Co-operative Societies according to their shares. State Govt. due to partial attitude allotted 100% share to Zonal Development Council and zero share to Co-operative Societies. State Govt. played fraud not only with the Co-operative Societies but also with the order of the High Court. When certain things are to be distributed in share or in any proportion, then some thing has to be given in share of each of the parties. Impugned notification allotting 100% share in favour of Zonal Development Council quashed. C.D. & C.M. Union v. State of Biliar, 2005 (1) PLJR 532.

Amount of commission received u/s. 48(1) has to be distributed between the Zonal Development Council and Co-operative Societies. Required share of each has to be determined by State Govt. Direction given to State Government for issuing necessary notification determining the share of Zonal Development Council and Co-operative Society. Subhash Singh v. State of Bihar, 2002 (3) PUR 113.

When Bihar Sugarcane Act, 1981 provides that the amount of commission collected u/s. 48(1) of the Act has to be distributed between the Zonal Development Council and Co-operative Society, then by means of circulating some administrative circular fiat statutory provision can not be superseded. Instantly, some report given by Industrial Development Commission or Secretary cannot override the provisions of law. Only legislature has jurisdiction to legislate the law and the same cannot be done by Commissioner or Secretary. Subhash Singh v. State of Bihar, 2002 (3) PLJR 113.

Determination of share in commission received on purchase of sugarcane. Amendment of any provision of the Act has to be treated as repeal and re-enactment. Similarly, notification issued according to the provisions of the Act is a part of the Act. In the instant case, in view of amendment of Section 48(1) regarding determination of commission by issuance of notification and publication of the same in the Official Gazette, no role is left to be exercised under the proviso of Rule 35 of 1978 Rules. As notification has been held to be apart of the Section itself fixes the commission an amount fixed by the rule cannot be sustainable. Any contrary provision in the mater of fixation of commission to the provisions will have no applications. State of Bihar v. Pratappur Sugar and Industries Ltd., 2005 (4) PLJR 772.

Notification dated 19.12.2001 for the purpose of charging fee on actual price of sugarcane cannot be implemented since it is regarding determination of the amount of fee, which is arbitrary. Direction given for notifying a fresh proper notification. Vishnu Sugar Mills v. State of Bihar, 2002 (3) PLJR 746.

Fixation of the amount of enhanced commission payable to Zonal Development Council. Manner of fixation when of commission has been withdrawn by the new amendment of 1994. State authorities have been authorised to determine the quantum of commission. Similarly task of distribution of commission between Zonal Development Council and Co-Operative Societies has been conferred upon the discretion of authorities. Impugned notification held unenforceable. Vishnu Sugar Mills v. State of Bihar, 2002 (3) PLJR 746.

Amount of commission collected under the provisions of Section 48(i) has to be distributed among Zonal Development and Co-operative Society. State Govt. is competent to determine percentage of share of, each one as per the provisions of the Act. Such statutory provisions can not be superseded by administrative circulars. Subhas Singh v. State of Bihar, 2002 (3) PLJR 113.

In the matter of determination of share in the amount of commission received on account of purchase of sugarcane by the sugar factories. Some reports of Industrial Development Commissioner, Cane Commissioner or Secretary can not override the statutory provisions of law. It is only legislature which is competent to legislate the law. Direction issued to State Govt. for determining the share of the two units i.e. Zonal Development Commission and Co-operative Society. Subhas Singh v. State of Bihar, 2002 (3) PLJR 113.

Notification, dated 19.12.2001 was issued for charging the fee on actual price of sugarcane. Impugned notification for the determination of the quantum of fee being an arbitrary one can not be implemented. Direction issued for issuance of a proper notification. Vishnu Sugar Mills v. State of Bihar, 2002 (3) PLJR 746.

So far the question of distribution/apportionment of the amount of commission, received from the occupier of the factory, between the Co-Operative Society and Zonal Development Council is concerned, it has been settled by the notification in the writ petition. Accordingly entire amount of commission was given in the share of Zonal Development Council and no part of it in terms of Section 48 of the Act was given in the share of Co-Operative Society. State of Bihar, C.D. & C.M. Union, Chanpatia, 2001 (1) BBCJ-V-129.

In the matter of distribution of amount of commission received from the occupier of the factory, discretion is entirely with the State Government. Cane Growers Co-operative Societies is a recognised identity under the provisions of the Act and Rules likewise the Council. Held, apportionment/distribution of Commission of the Zonal Development Council excluding the Co-operative Society is being hit by the doctrine of proportionality and as such arbitrary within the meaning of Article 14 of Constitution. State of Bihar, C.D. & C.M. Union, Chanpatia, 2001 (1) BBCJ-V-129.

Writ petitions filed against fixing 2% fee on actual price of sugarcane paid and accordingly payment of commission to Zonal Development Commission was enhanced. According to the new provision made in the amendment of 1994 fixation of commission has been withdrawn and discretion has been given to authorities for determining the quantum of commission. As per the provisions of Section 48(2) when no quantum has been fixed according to the provisions of unamended sub-section (1) distribution of shares has also be kept in abeyance. Vishnu Sugar Mills v. State of Bihar, 2002 (3) PLJR 746.

(1) The State Government may, by notification in the Official Gazette, impose

(a) a tax not exceeding 32[one rupee and seventy five paise] per quintal on entry of sugarcane into a local area specified in such notification, for consumption or use of, or sale to a factory situated therein;

(b) a tax not exceeding 32[one rupee and seventy five paise] per quintal on the purchase of sugarcane by or on behalf of the occupier of a factory:

Provided that the tax under clause (b) shall not be payable by the occupier of a factory in respect of sugarcane for which a tax imposed under clause (a) is payable by him.

(2) Notwithstanding anything contained in sub-section (1) the State Government may, by notification in the Official Gazette

(a) reduce or remit, in whole or in part, such tax in respect of cane used in any such factory for the purposes of research, seed-distribution, crushing of diseased cane or intake of excessive crop;

(b) exempt for prescribed period from such tax any new factory or a factory unable to run without State aid.

(3) The tax payable under sub-section (1) shall be paid by the occupier of the factory to the Collector of the district concerned in such manner as may be prescribed and the amount of arrears of such tax shall bear interest at the rate specified in Section 51 and shall together with interest be recoverable as a public demand or as an arrear of land revenue.

(4) There shall be levied and collected in such manner as may be prescribed, a tax on the purchase of sugarcane by the owner of a unit at such rate not exceeding 33[one rupee and seventy five paise] per quintal of sugarcane, as may be notified in the Official Gazette:

Provided that the tax under this sub-section shall be payable on the quantity of sugarcane actually purchased or, at the option of the owner of the unit, on the quantity of sugarcane assumed in the manner prescribed 34[but in no case less than rupees five thousand per annum].

(5) The owner of the unit shall make payment of the tax payable under sub-section (4) to the Collector in the prescribed manner and interest at the rate of 7 per centum per annum shall be charged on the amount of arrears. The amount of arrears shall be realisable together with interest as a public demand.

(6) Subject to the claim of the Central Government in respect of any tax or duty of excise, the claim of the State Government in respect of the tax imposed under sub-section (1) shall be the first charge on the sugar produced in the crushing year concerned.

(7) Until the tax imposed under sub-section (1) is paid at the rate per quintal of sugar, notified in the Official Gazette, by the State Government and the certificate of payment is obtained from the Cane Officer concerned, the occupier of any factory or any person acting on his behalf or any other person shall not remove sugar from the factory.

(8) There shall be paid to the Board and the Council as grant, in the manner prescribed, such proportions of the amount realised under sub-sections (3) and (5) in respect of every crushing year as the State Government may, from time to time, determine in this behalf to enable the Board and the Council to meet the cost of such schemes of development as may be undertaken by them with the approval of the State Government:

Provided that one-fifth of the amount payable under this sub-section shall be paid to the Board and the rest to the Council in proportions to the quantities of the cane crushed by the factories concerned.

Appeal filed praying for exemption from taxation for purchase of sugarcane for the period 1981-1982 and 1982-1983. Exemption for the period 1982-1983 granted in the light of decisions contained in CWJC Nos. 4120 and 4121 of 1987. So far period 81-82 was concerned, direction issued to the competent authority for deciding the same. Appeal dismissed. State of Bihar v. Triveni engineering & Industries Ltd. 2010 (1) PLJR 859.

Exception from tax to factories of Uttar Pradesh purchasing Sugarcane from State of Bihar. Division Bench has granted benefit of exemption to petitioner also for period 1982-1983 on identical ground which was granted with regard to period 1981-1982. No change of opinion is necessary in this case. Matter remitted to competent authority. State of Bihar v. Triveni Engineering & Industries Ltd., 2009 (3) BLJ 133 (PHC).

Challenge to validity of notification dated 20.1.2006, providing exemption from payment of purchase tax for three crushing years. Impugned notification to the extent, it provides execution only to Bihar Sugar Mills, set aside. Exemption would be available to all sugar Mills who are purchasing sugarcane in Bihar and who in absence of same notification be liable to pay purchase tax under sales tax. Bajaj Hindustan Sugar & Industries Ltd. v. State of Bihar, 2008 (2) BBCJ 53.

Petitioner, purchaser of sugarcane challenged the purported notification issued by State Govt. restricting the exemption from payment of purchase tax to sugar Mills of Bihar. Similar notification earlier was set aside by the High Court. Impugned notification set aside. Such exemption from payment of purchase tax would be applicable for all sugar mills of Bihar purchasing sugarcane in Bihar. Bajaj Hindustan Sugar & Industries Ltd., State of Bihar, 2008 (2) BBCJ 53.

Exemption from payment of tax Sugar factories situated in Uttar Pradesh can be granted exemption from payment of tax for purchasing sugarcane from Bihar on the assumption that earlier the said sugar factory was situated in Bihar. State of Bihar v. Triveni Engineering & Industries Ltd., 2009 (3) BLJ 133 (PHC).

It is not correct to say that the amount realized as tax under the Act is an exclusive levy for the purpose of production, supply and distribution of sugar, because only a portion of the amount realized as tax is utilised by the Board/Council created under the Act and the rest goes to the State Exchequer. As such it is held that amount realized under sub-section (1)(b) is a tax and not fee due to absence of quid pro quo. Gobind Sugar Mills v. State of Bihar, 1997 (3) PLJR 166.

Two taxes can be imposed for the same commodity or on the same person on the basis of enactment of two different Acts without one repealing the other. As such tax imposed under Sugarcane Act, 1981 has no concern with the liability of purchase tax imposed under the provisions of Bihar Finance Act, 1981. Madhu Sudan Sharma v. State of Bihar, 1996 (2) PLJR 276.

Exemption from payment of purchase tax on sugarcane can not be refused merely on the ground that petitioner factory is located in the area lying outside the territory of Bihar i.e. in U.P. despite direction to crush sugarcane of the area reserved for other factories also. Held, such refusal is violative of Article 14 of Constitution. Pratappur Sugar and Industries v. State of Bihar, 1991 (1) BLJ 459 : 1991 (1) BLJR 352.

(1) The occupier of a factory or any person acting on his behalf may advance loan to a cane-grower 35[a member of a] or co-operative society for such purpose in connection with cultivation or supply of cane in such means and not exceeding such amount as may be prescribed:

Provided that where an order or direction is made under clause (iii) or (iv) of the proviso to sub-section (4) of Section 32 no such loan shall be advanced to a canegrower except through the Co-operative society concerned.

(2) Interest at the rate specified in Section 51 shall be payable on the loan advanced under sub-section (1) and the loan and the interest shall be realisable in the prescribed manner.

(1) The rate of interest realisable from the occupier of a factory under Section 43, 44, 48 or 49 or from any other person under Section 44 shall be eleven per centum per annum:

Provided that the rate of interest specified in this sub-section shall be deemed to have been increased or decreased by the margin of increase or decrease in the existing bank rate (standard rate) referred to in Section 49 of the Reserve Bank of India Act, 1934 (2 of 1934).

(2) The rate of interest payable to the occupier of a factory under Section 50 shall be the rate of interest paid by such occupier to any bank for advances on the pledge of sugar or otherwise:

Provided that where the occupier of a factory is paying interest to one or more banks at different rates, the rate payable to him under this sub-section shall be the lowest of such rates.

(3) Where the State Government is satisfied that the occupier of a factory is spending the funds of the factory for a purpose other than the purpose of the factory, it may, by notification in the Official Gazette and after giving an opportunity of being heard to such occupier, enhance the rate of interest payable, by the occupier of the factory, under sub-section (1).

Cane growers not paid price of sugarcane supplied to sugar factories. Direction was issued by the High Court for making payment of the price due with interest. Dr. Maha Chandra Prasad Singh v. State of Bihar, 1992 (2) PLJR 853.

Writ petition filed for payment of supplies made of sugarcane. Writ already admitted. No direction as such can be given to the petitioner for availing alternative remedy instead of availing writ jurisdiction. Writ petition held maintainable. Akhileshwar Prasad Narain Singh v. State of Bihar, 1988 PLJR 1005.

MISCELLANEOUS

If any person contravenes or attempts to contravene or abets the contravention of any of the provisions of this Act or the Rules or of any order made or direction given thereunder or the terms and conditions of any licence, he shall be punishable with imprisonment which may extend to six months or with fine which may extend to five thousand rupees or with both and in the case of a continuing contravention, with an additional fine which may extend to one thousand rupees for every day during which such contravention continues after conviction for the first contravention:

Provided that where the offender has been acting on behalf of the occupier of the factory or the manager such occupier or manager, as the case may be, shall be similarly liable in addition or alternatively to the actual offender unless he proves that he had used all the due deligence to enforce the observance of this Act or the Rules or of the order made or direction given thereunder or the terms and conditions of any licence and that the offence was committed without his knowledge or consent.

Alleged irregularity in measurement survey of area as well as issuance of slip. Whatever irregularity has been alleged, those were to be dealt with by Cane Officer on its own level. Vague allegation without identifying any of petitioner has been made. Allegation covered under Special Law as Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 whereunder prosecution by police case is not at all identifiable. Only complaint case is permissible. Police case quashed. Petition allowed. Darshan Thakur v. State of Bihar, 2012 (2) BLJ 29 (PHC).

Cognizance for offence of alleged overlifting of sugarcane beyond fixed quota taken. It appears from the report of Cane Officer that petitioner purchased sugarcane within the limit prescribed. Held. It is not proper to direct the petitioner to participate in criminal proceeding after a long gap of time. Order taking cognizance quashed. B.K. Surekha v. State of Bihar, 2010 (4) PLJR 417.

On a complaint filed u/s. 52 of the Act for violating provisions of Section 13(9), cognizance taken by the Magistrate. Cane Commissioner as well as Cane-Officer have issued clear instructions/directions to the owner and occupier of the factory not to close the Mills without completing crushing of the entire sugarcanes allotted to the company. If the same provisions are violated persons liable shall have to face prosecution. Impugned order taking cognizance required no interference when the Cane-Commissioner have assigned reasons while granting approval for initiation of the proceeding. Hari Prasad Agarwal v. State of Bihar, 1998 (1) PLJR 868.

Only with the prior approval of Cane-Commissioner, Cane-Officer can file complaint petition for violation of the provisions of Sugarcane Act, 1981. However, Cane-Commissioner has to give such approval for filing complaint by an speaking order giving reasons therein. Mere endorsement by Cane Commissioner cannot be held as sanction for prosecution. Md. Iqbal Ahmad v. State of Bihar, 1988 PLJR 858.

For violation of the provisions of Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981. FIR lodged by Executive Magistrate. State Government has not authorised Executive Magistrate for filing FIR in the case of violation of the provisions of the Sugarcane Act, 1981. FIR quashed. Hira Lal Bahoti v. State of Bihar, 1997 BBCJ 553.

No prosecution under this Act shall be instituted except upon a complaint made in writing by an officer authorised in this behalf by the State Government.

Prior approval of the Cane Commissioner for initiation of a prosecution is a must by speaking order. Instantly, prosecution initiated u/s. 43 only on the basis of the word approved being the only endorsement of the complaint petition by the Cane Commissioner. Prosecution initiated held invalid. Prithivi Chand Khandelia v. State of Bihar, 1992 (2) PLJR 793.

Initiation of prosecution u/s. 43 by the Cane Officer. Prior approval of Cane Commissioner for initiating a prosecution by a speaking order is necessary. In the instant case Cane Commissioner has merely written the word approved on the complaint petition. Impugned initiation of the prosecution held invalid. Prithavi Chand Khandolia v. State of Bihar, 1988 PLJR 1005.

On the application of a person accused of an offence under this Act, the Cane Commissioner may, at any stage before conviction, compound the offence in lieu of such amount, not exceeding the maximum amount of fine which may be imposed under this Act for the offence as the Cane Commissioner may fix; and such amount shall be recoverable from the said person as if it were a fine imposed by the court:

Provided that an offence in respect of weighment of cane or payment of price of cane shall not be compounded.

Alleged irregularity in measurement survey of area as well as issuance of slip. Whatever irregularity has been alleged, those were, to be dealt with by Cane Officer on its own level. Vague allegation without identifying any of petitioner has been made. Allegation covered under Special Law as Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 whereunder prosecution by police case is not at all identifiable. Only complaint case is permissible. Police case quashed. Petition allowed. Darshan Thakur v. State of Bihar, 2012 (2) BLJ 29 (PHC).

(1) Where a person has deposited any security under Sections 16, 24, 25 or 31 the Collector may, in the event of such person contravening the provisions of this Act or the Rules or any order made or direction given thereunder or the condition of a licence, call upon him to show cause why such security shall not be forfeited to the State Government, or the whole or any portion of such security shall not be paid to a person or persons who have suffered any loss owing to the misconduct of the person or any person acting on his behalf.

(2) The Collector may, after considering the cause shown, if any, under sub-section (1), forfeit the whole amount of the security or any part thereof and may order that the whole or any part of the forfeited amount shall be paid to the person or persons who have suffered any loss referred to in sub-section (1):

Provided that the security of any person shall not be forfeited for the misconduct of any person acting on his behalf if such person proves to the satisfaction of the Collector that such other person misconducted in spite of all due diligence on his part.

(3) Where any action is taken under sub-section (2) against any person, such person shall not be liable to prosecution under Section 52 for the same contravention.

(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 under this Act on the Rules or any order made thereunder.

(2) No suit or other legal proceeding shall be 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 this Act or the Rules or any order made thereunder.

The Cane Commissioner, every Cane Officer and every person appointed to assist the Cane Commissioner shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code, 1860 (45 of 1860).

For the purposes of enquiries under this Act the Cane Commissioner or any person exercising the powers of the Cane Commissioner or a Cane Officer or an Officer appointed under Section 34 shall have the same powers to summon and enforce the attendance of witnesses and parties and to examine them on oath and to compel the production of document as a civil court under the Code of Civil Procedure, 1908 (5 of 1908):

Provided that for the purpose of any penalty under the provision of the said Code upon any defaulter, a reference shall be made to the civil court of competent jurisdiction for appropriate action.

(1) Where the occupier of a factory is a firm or other association of individuals any of the individual partners or members thereof may be prosecuted and punished under this Act for any offence for which the occupier of the factory is punishable:

Provided that the firm or association may give notice to the Cane Commissioner that it has nominated one of its partners or members to be the occupier of the factory for the purposes of this Act and such individual shall be deemed to be occupied for the purposes of this Act until further notice cancelling his nomination is received by the Cane Commissioner or until he ceases to be a partner or member of the firm or association.

(2) Where the occupier of a factory is a company, any of the Directors thereof, or in the case of a private company any one of the shareholders thereof, may be prosecuted and punished under this Act for any offence for which the occupier of the factory is punishable:

Provided that the company may give notice to the Cane Commissioner that it has nominated a Director, or in the case of a private company, a shareholder, to be the occupier of the factory for the purposes of this Act and such Director or shareholder shall be deemed to be the occupier of the factory for the purposes of this Act until further notice cancelling his nomination is received by the Cane Commissioner or until he ceases to be a Director or shareholder.

60. [Deleted by Bihar Act 11 of 1994 dated 1.6.1994.]

The State Government may by notification in the Official Gazette, direct that any power exercisable under this Act by it may be exercised, in such cases and subject to such conditions, if any, by such officer or authority as may be specified in the direction.

The State Government may, by an order published in the Official Gazette, exempt any factory or unit owned by a co-operative society established under the Bihar and Orissa Co-operative Societies Act, 1935 (B. and O. Act VI of 1935), from any of the provisions of this Act or direct that the provisions of this Act shall apply in relation to any such factory or unit with such modifications as may be specified in the order:

Provided that any modification in the provision of this Act affecting interest of any such factory or unit concerned adversely shall not be made without giving a reasonable opportunity of being heard to that factory or unit.

Where an appeal is preferred under the provisions of this Act or the Rules, to any authority for setting aside any decision or order, such appellate authority may, in order to prevent the ends of justice being defeated, make such interlocutory order pending the decision in appeal, as may appear to it to be just and convenient or such order as may be necessary for the ends of justice or to prevent the abuse of the process of the appellate authority and may entertain the appeal even after the period laid down for filing it if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

(1) Notwithstanding any judgment, decree or order of any court, tall cesses and taxes imposed, assessed or collected or purporting to have been imposed, assessed or collected under any State law before the commencement of this Act, shall be deemed to have been validly imposed, assessed or collected, in accordance with law as if this Act had been in force at all material times when such cess or tax was imposed, assessed or collected and accordingly

(a) no suit or other proceeding shall be maintained or continued in any court for the refund of any cess or tax paid under any State law;

(b) no court shall enforce a decree or order directing the refund of any cess or tax paid under any State law;

(c) any cess or tax imposed or assessed under any State law before the commencement of this Act but not collected before that date may be recovered (after assessment of the cess or tax, where necessary) in the manner provided under that State law.

(2) For the removal of doubts it is hereby declared that nothing in sub-section (1) shall be construed as preventing any person

(a) from questioning in accordance with the provisions of this Act and the Rules the assessment of any cess or tax for any period, or

(b) from claiming refund of any cess or tax paid by him in excess of amount due from him under any State law and the Rules made thereunder.

Explanation. For the purposes of this Section, State law means

(a) the Bihar Sugar Factories Control Act, 1937 (Bihar Act VII of 1937);

(b) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1968 (Bihar Ordinance III of 1968);

(c) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1968 (Bihar Ordinance VI of 1968);

(d) the Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1968 (Bihar Ordinance XIII of 1968);

(e) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1969 (Bihar Ordinance IV of 1969);

(f) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1969 (Bihar Ordinance VI of 1969);

(g) the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1969 (President's Act 8 of 1969);

(h) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1971 (Bihar Ordinance no. 20 of 1971);

(i) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1971 (Bihar Ordinance no. 49 of 1971);

(j) the Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1971 (Bihar Ordinance no. 69 of 1971);

(k) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1972 (Bihar Ordinance no. 61 of 1972);

(l) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1972 (Bihar Ordinance no. 110 of 1972);

(m) the Bihar Sugarcane (Regulation of Supply and Parchase) Third Ordinance, 1972 (Bihar Ordinance no. 165 of 1972);

(n) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1973 (Bihar Ordinance no. 47 of 1973);

(o) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1973 (Bihar Ordinance no. 113 of 1973);

(p) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance; 1974 (Bihar Ordinance no. 15 of 1974);

(q) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1974 (Bihar Ordinance no. 84 of 1974);

(r) the Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1974 (Bihar Ordinance no. 115 of 1974);

(s) the Bihar Sugarcane (Regulation of Supply and Purchase) (Amendment) Ordinance, 1974 (Bihar Ordinance no. 185 of 1974);

(t) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1975 (Bihar Ordinance no. 36 of 1975);

(u) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1975 (Bihar Ordinance no. 91 of 1975);

(v) the Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1975 (Bihar Ordinance no. 135 of 1975);

(w) the Bihar Sugarcane (Regulation of Supply and Purchase) Fourth Ordinance, 1975 (Bihar Ordinance no. 183 of 1975);

(x) the Bihar Sugarcane (Regulation of Supply and Purchase) (Amendment) Ordinance, 1975 (Bihar Ordinance no. 215 of 1975);

(y) the Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1976 (Bihar Ordinance no. 43 of 1976):

(z) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1976 (Bihar Ordinance no. 118 of 1976):

(aa) the Bihar Sugarcane (Regulation of Supply and Purchase) (Second Amendment) Ordinance, 1976 (Bihar Ordinance no. 119 of 1976);

(ab) the Bihar Sugarcane (Regulation of Supply and Purchase) (Third Amendment), Ordinance, 1976 (Bihar Ordinance no. 195 of 1975);

(ac) the Bihar Sugarcane (Regulation of Supply and Purchase) (Third Amendment), Ordinance, 1976 (Bihar Ordinance no. 196 of 1975);

(ad) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance 1977 (Bihar Ordinance no. 49 of 1976);

(ae) the Bihar Sugarcane (Regulation of Supply and Purchase) (Amendment) Ordinance, 1977 (Bihar Ordinance no. 48 of 1977);

(af) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordnance, 1977 (Bihar Ordinance no. 93 of 1977);

(ag) the Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1977 (Bihar Ordinance no. 150 of 1977);

(ah) the Bihar Sugarcane (Regulation of Supply and Purchase) Fourth Ordinance, 1977 (Bihar Ordinance no. 197 of 1977);

(ai) the Bihar Sugarcane (Regulation of Supply and Purchase) Fifth Ordinance, 1977 (Bihar Ordinance no. 262 of 1977);

(aj) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1978 (Bihar Ordinance no. 20 of 1978);

(ak) the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1978 (Bihar Ordinance no. 104 of 1977);

(al) the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1979 (Bihar Ordinance no. 33 of 1979);

(am) The Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance 1979 (Bihar Ordinance no. 76 of 1979);

(an) The Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1979 (Bihar Ordinance no. 127 of 1979);

(ao) The Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1980 (Bihar Ordinance no. 47 of 1980);

(ap) The Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1980 (Bihar Ordinance no. 78 of 1980);

(aq) The Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1980 (Bihar Ordinance no. 127 of 1980);

(ar) The Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1981 (Bihar Ordinance no. 35 of 1981);

(as) The Bihar Sugarcane (Regulation of Supply and Purchase) (Amendment) Ordinance, 1981 (Bihar Ordinance no. 62 of 1981);

(at) The Bihar Sugarcane (Regulation of Supply and Purchase)(Second Amendment) Ordinance, 1981 (Bihar Ordinance no. 76 of 1981); and

(av) the Bihar Sugarcane (Regulation of Supply and Purchase) (Second Amendment) Ordinance 1981 (Bihar Ordinance no. 125 of 1981).

(1) The State Government may subject to the condition of previous publication make Rules for arriving into effect the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such Rules may provide for all or any of the following matters, namely:

(i) the functions of the Board and the Councils and the manner in which the functions shall be performed;

(ii) the manner in which the business of the Board and the Councils shall be conducted;

(iii) the manner and form in which the funds placed at the disposal of the Board and Councils shall be maintained and the application of, and payment from such funds;

(iv) the audit of the accounts of the Board and the Councils and the matters incidental thereto;

(v) remuneration to be paid to an auditor other than the auditor appointed under the Bihar and Orissa Local Fund Audit Act, 1925 (B. and O. Act II of 1925);

(vi) the function of the Cane Commissioner and of other authorities and officers by whom any functions under this Act or the Rules are to be performed;

(vii) licences under Chapter III;

(viii) appointment of manager under Section 25;

(ix) date and manner of submission of estimate of cane required by a factory during a crushing year and the manner of publication of the estimate under Section 27;

(x) authority which may revise the estimate made under Section 27;

(xi) establishment and working of purchasing centres under Section 29:

(xii) form in which an application may be made by a factory, situated outside the State of Bihar or reservation of area under Section 31 for supply of cane to such factory;

(xiii) authority to which an appeal against an order made by the Cane Commissioner under sub-section (1) of Section 31 shall lie;

(xiv) form, date, terms and conditions relating to agreement or purchase of cane in a reserved area by occupier of a factory;

(xv) order to be made by the Cane Commissioner under Section 32;

(xvi) authority before which appeal against order of Cane Commissioner, made under clause (iii) of the proviso to sub-section (4) of Section 32 shall lie;

(xvii) the assistance to be rendered by owners and occupiers of lands to the officer making survey under Section 34;

(xviii) form of the register to be maintained under Section 35, correction of entries and addition of new entries in the register, the payment of cost in connection with such correction or addition, the manner of realisation of such costs, fee payable for the supply of copies of entries in the register;

(xix) seed-nursery and the manner of its maintenance, as required by Section 38;

(xx) arrangements for payment of price of cane, as required by Section 43;

(xxi) deduction from cane-price under Section 44 and payment of the amount to the Council concerned;

(xxii) form of register in which dispute shall be entered, the period within which and the authority to which the reference shall be made, under Section 46;

(xxiii) manner in which and the authority with which the price shall be deposited under Section 46;

(xxiv) manner of payment of commission as required by Section 48;

(xxv) the proportion and manner in which the commission shall be paid under sub-section (2) of Section 48;

(xxvi) manner of collection of tax payable under Section 40;

(xxvii) manner in which and the extent to which loan may be advanced under Section 50;

(xxviii) the time within which applications and appeals may be presented under this Ordinance in cases for which no specific provision has been made;

(xxix) the fees to be paid in respect of applications and appeals under this Ordinance and the manner of the payment of such fees;

(xxx) the distribution of requisition slips by occupiers of factories, co-operative societies or other persons;

(xxxi) the correct weight of cane, the provision of facilities for weighment, checking of weighments, timing of weighments, class or type of heavy machines to be kept;

(xxxii) the provisions for approach roads, parking space for carts bringing cane to the place of weighment, sheds for animals and cart drivers, water troughs for animals and other connected matters; and

(xxxiii) any other matter which is required by this Ordinance to be prescribed.

(1) The Bihar Sugar Factories Control Act, 1937 (Bihar Act VII of 1937), the Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance 1981 (Bihar Ordinance no. 125 of 1981) and the Bihar Sugarcane (Regulation of Supply and Purchase) (Second Amendment) Ordinance, 1981 (Bihar Ordinance no. 76 of 1981) are hereby repealed.

(2) Anything done or any action taken (including any Rule made or notification issued with prospective or retrospective effect, order passed, appointment made, proceeding commenced, dispute decided or referred to arbitration, right accrued or liability incurred) under the Bihar Sugar Factories Control Act, 1937 (Bihar Act VII of 1937) or Bihar Sugarcane (Regulation of Supply and Purchase) Second Ordinance, 1981 (Bihar Ordinance no. 125 of 1981) or the Bihar Sugarcane (Regulation of Supply and Purchase) (Second Amendment) Ordinance, 1981 (Bihar Ordinance no. 76 of 1981) or under Section 64(2) of State Law before the commencement of this Act shall notwithstanding the repeal thereof be deemed to have been done or taken under this Act as if the provisions of this Act were in force at all material times when such thing was done or action taken.

1. Published in Bihar Gazette (Ex. ord.) No. 37, dated 18.1.1984.

2. Clause (d) & (g) Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

3. Clause (g-1) Ins. by ibid.

4. Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

5. Ins. by Bihar Act 11 of 1994 dated 1.6.1994.

6. Proviso Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

7. The word or the Secretary of a Co-operative Society deleted by Bihar Act 11 of 1994 dated 1.6.1994.

8. The words or the Secretary of the Society deleted by ibid.

9. The words or Secretary deleted by ibid.

10. The words or the Secretary of the Co-operative Society deleted by Bihar Act 11 of 1994 dated 1.6.1994.

11. Proviso Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

12. The words or if he is a member of a Co-operative Society of the reserved area, through such society deleted by Bihar Act 11 of 1994 dated 1.6.1994.

13. The comma and words Co-operative Society deleted by ibid.

14. The words or a Co-operative Society deleted by ibid.

15. The words or by the members of Co-operative Society or Societies deleted by ibid.

16. The words or a Co-operative Society deleted by Bihar Act 11 of 1994 dated 1.6.1994.

17. Ins. by ibid.

18. Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

19. The comma (i) and words Secretary of every Co-operative Society deleted by ibid.

20. The words or a Co-operative Society deleted by Bihar Act 11 of 1994 dated 1.6.1994.

21. The words or a person acting on behalf of a Co-operative Society deleted by ibid.

22. The comma and words the Co-operative Society deleted by ibid.

23. Subs. by ibid.

24. The words or a Co-operative Society deleted by Bihar Act 11 of 1994 dated 1.6.1994.

25. The words sub-section (3) deleted by Bihar Act 11 of 1994 dated 1.6.1994.

26. The words or the Secretary or the Treasurer of the Co-operative Society or any other person in-charge of payment on behalf of such society deleted by ibid.

27. Ins. by Bihar Act 11 of 1994 dated 1.6.1994.

28. Subs. by ibid.

29. The words or a Co-operative Society deleted by Bihar Act 11 of 1994 dated 1.6.1994.

30. Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

31. Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

32. Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

33. Subs. by Bihar Act 11 of 1994 dated 1.6.1994.

34. Ins. by ibid.

35. Ins. by Bihar Act 11 of 1994 dated 1.6.1994.