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2018 DIGILAW 493 (ALL)

D. S. M. SUGAR ASMOLI, SAMBHAL v. STATE OF U. P.

2018-02-23

RAM SURAT RAM (MAURYA)

body2018
JUDGMENT Hon’ble Ram Surat Ram (Maurya), J.—Heard Sri Shakti Swarup Nigam for the petitioner, Standing Counsel for State of U.P., Sri Tarun Agrawal, for M/S Rana Sugars Limited and Shree Ajudhia Sugars Limited and Sri Ravindra Singh, for Co-operative Cane Development Union, Amroha. The petitioners in all these writ petitions are same as such with the consent of the parties these writ petitions were heard together and are decided by a common judgement. 2. Writ C No. 63244 of 2017 has been filed against the orders of Cane Commissioner, U.P. dated 28.10.2017 (No. 49-C), declaring reserved/assigned area for purchasing sugarcane, for crushing season 2017-2018, for M/s. Rana Sugars Ltd., which includes purchase centres of villages Ahroi, Dhanhori Ahir, Gularia, Husainpur, Dyorhi @ Hadipur and Ramhat, which were assigned area of the petitioner in previous year and State of U.P. dated 14.12.2017, dismissing the appeal of the petitioner. These orders have been passed in exercise of powers under Section 15 of U.P. Sugarcane (Regulation of Supply & Purchase) Act, 1953 (hereinafter referred to as the Act), read with Rule-22 of U.P. Sugarcane (Regulation of Supply & Purchase) Rules, 1954 and Clause-6 of Sugarcane (Control) Order, 1966. 3. Writ C No. 63245 of 2017 has been filed against the orders of Cane Commissioner, U.P. dated 28.10.2017 (No. 49-C), declaring reserved/assigned area for purchasing sugarcane, for crushing season 2017-2018, for M/S. Rana Sugars Ltd., which includes purchase centres of villages Aziz Nagar, Chabariya and Prithwipur, which were assigned area of petitioner in previous year and State of U.P. dated 14.12.2017, dismissing appeal of the petitioner. 4. Writ C No. 633 of 2018 has been filed against the order of State of U.P. dated 19.12.2017, allowing the appeal of M/s. Rana Sugars Ltd. and assigning purchase centre Entt-Ka-Rarha to it, taking it from the petitioner, which was reserved area, of the petitioner in previous year. 5. Writ C No. 920 of 2018 has been filed against the order of State of U.P. dated 18.12.2017, allowing the appeal of Shree Ajudhia Sugars Ltd. and assigning purchase centre Timanpur Pancham to it, taking from the petitioner. 6. 5. Writ C No. 920 of 2018 has been filed against the order of State of U.P. dated 18.12.2017, allowing the appeal of Shree Ajudhia Sugars Ltd. and assigning purchase centre Timanpur Pancham to it, taking from the petitioner. 6. Writ C No. 922 of 2017 has been filed against the orders of Cane Commissioner, U.P. dated 28.10.2017 (No. 47-C), declaring reserved/assigned area for purchasing sugarcane, for crushing season 2017-2018, for Shree Ajudhia Sugars Ltd., so far as it includes purchase centre of villages Khawari Gandu, Rasoolpur Gausar, Janakpur, Fatehpur, Salawat Nagar and Timanpur Dwitiya and State of U.P. dated 18.12.2017, dismissing the appeal of the petitioner. 7. M/s. Dhampur Sugar Mill, unit Asmoli, Sambhal (the petitioner) is manufacturing crystal sugar through vacuum pan process, having capacity of 9000 TCD (ton crushed daily). The petitioner has installed a co-generation plant of 49 mega watt, for generation of electricity. Khoi (chaff) is required for operating the plant. Cane Commissioner U.P., through order dated 21.9.2017, passed under Section 12 of the Act, estimated 128.86 lac quintal sugarcane, as the requirement of petitioner for crushing season 2017-18. 8. M/s. Rana Sugar Ltd., unit Belwara, Moradabad is manufacturing crystal sugar through vacuum pan process, having capacity of 6500 TCD (ton crushed daily). It has installed a co-generation plant of 28 megawatt, for generation of electricity. Khoi (chaff) is required for operating the plant. Cane Commissioner U.P., through order dated 21.9.2017, estimated 79.39 lac quintal sugarcane as its requirement for crushing season 2017-18. Shree Ajudhia Sugar Ltd., unit Raja-Ka-Sahaspur, Bilari, Moradabad is manufacturing crystal sugar through vacuum pan process and has capacity of 4500 TCD (ton crushed daily). It has a co-generation plant of the capacity of 27 megawatt, for generation of electricity. Khoi is required for operating it. Cane Commissioner U.P., through order dated 21.9.2017, estimated 51.48 lac quintal sugarcane as its requirement for crushing season 2017-18. 9. Cane Commissioner U.P. through his letter No. 47/C/Kray-Sur/2017-18, dated 28.10.2017, declared, reserved/assigned area for crushing season 2017-2018, for Shree Ajudhia Sugar Ltd., as follows: Part - 1 (Ka) S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. 9. Cane Commissioner U.P. through his letter No. 47/C/Kray-Sur/2017-18, dated 28.10.2017, declared, reserved/assigned area for crushing season 2017-2018, for Shree Ajudhia Sugar Ltd., as follows: Part - 1 (Ka) S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Bilari Mill gate 0 6525 45.39 Reserved 2 Amarpur Kashi 7 317 2.21 Reserved 3 Turkheda-Pratham 9 264 1.84 Reserved 4 Turkheda-Tritiya 10 140 0.97 Reserved 5 Kunderki-Pratham 7 223 1.55 Reserved 6 Kunderki-Dwitiya 7 318 2.21 Reserved 7 Kunderki-Tritiya 10 362 2.52 Reserved 8 Jalalpur-Pratham 9 143 0.99 Reserved 9 Jalalpur-Dwitiya 12 479 3.33 Reserved 10 Moradabad Bagha-Dwitiya 25 200 1.39 Reserved 11 Bilari Jamalpur-Pratham 23 377 2.62 Reserved Total Reserved 9348 65.03 Part - 1 (Kha) S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Bilari Timanpur-Dwitiya 9 184 1.28 Assigned From Asmoli Mill Grand Total 9532 66.31 Part-2 S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Moradabad Bagha-Pratham 25 201 1.4 Assigned To Asmoli Mill 2 Bilari Hafizpur 31 206 1.43 Assigned 3 Mubarakpur 30 228 1.59 Assigned 4 Jamalpur Dwitiya 21 184 1.28 Assigned 5 Turkheda-Dwitiya 9 451 3.14 Assigned 6 Syodara-Pratham 11 522 3.63 Assigned 7 Syodara-Dwitiya 10 394 2.74 Assigned Total 2186 15.21 10. Cane Commissioner U.P. through his letter No. 49/C/Kray-Sur/2017-18, dated 28.10.2017, declared, reserved/assigned area for crushing season 2017-2018, for M/s. Rana Sugar Ltd., as follows: Part - 1 (Ka) S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Muradabad Swar Mill-gate 0 2443 17 Reserved 2 Muradabad Peepalsana 15 621 4.32 Reserved 3 Ghosipura Babupura 12 295 2.05 Reserved Converted name of Bhaupura 4 Pasiyapura 14 276 1.92 Reserved 5 Patia Nagla 18 138 0.96 Reserved 6 Chatarpur 23 355 2.47 Reserved 7 Beerpur 16 180 1.25 Reserved 8 Aliganj-Pratham 19 157 1.09 Reserved 9 Alignaj-Dwitiya 23 196 1.36 Reserved 10 Aliganj-Tritiya 22 164 1.14 Reserved 11 Roshanpur 27 335 2.33 Reserved Total Reserved 5160 35.9 Part - 1-Kha S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Moradabad Dadupur 13 221 1.54 Assigned From closed Sugar Mill, Rampur 2 Mundapande 22 256 1.78 Assigned ” 3 Mankara 25 203 1.41 Assigned ” 4 Rajaura 25 280 1.95 Assigned ” 5 Jagrampura 35 142 0.99 Assigned ” 6 Hirapur 39 398 2.77 Assigned ” 7 Dalpatpur-First 21 200 1.39 Assigned ” 8 Dalpatpur-Second/Govindpur 22 397 2.76 Assigned ” 9 Dalpatpur-Third 19 196 1.38 Assigned ” 10 Domghar-First 28 561 3.9 Assigned ” 11 Domghar-Second 28 266 1.84 Assigned ” 12 Bakipur 41 176 1.22 Assigned ” 13 Domghar-Third 17 359 2.6 Assigned ” 14 Gangan 20 247 1.72 Assigned ” 15 Jatpura/Nankar 22 288 2 Assigned ” 16 Lalateekar 15 130 0.9 Assigned ” 17 Govindpur 39 385 2.68 Assigned ” 18 Rampur Saidnagar 8 571 3.98 Assigned ” 19 Banjariya 9 598 4.16 Assigned ” 20 Mildwar Rampur 0 97 0.68 Assigned ” 21 Moradabad Manpur Patti 29 159 1.11 Assigned ” 22 Amroha Dhansurpur 51 233 1.72 Assigned From closed Sugar Mill, Amroha 23 Kaker Saray 45 71 0.53 Assigned 24 Ahroi 48 145 1.07 Assigned 25 Dhanauri Ahir 46 269 1.99 Assigned 26 Gularia 55 162 1.2 Assigned 27 Husainpur 50 244 1.81 Assigned 28 Dyorhi @ Hadipur 36 240 1.78 Assigned 29 Ramhat 41 167 1.24 Assigned 30 Aziz Nagar 38 126 0.93 Assigned 31 Chaubaria 40 142 1.05 Assigned 32 Prithwipur 37 108 0.8 Assigned 33 Narangpur 39 67 0.5 Assigned Total Assigned 8102 57.25 Part-2 S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Muradabad Tahamdan-Pratham 13 154 1.07 Assigned Milak Narainpur Sugar Mill 2 Tahamdan-Dwitiya 15 303 2.11 Assigned 3 Tahamdan-Tritiya 13 196 1.36 Assigned 4 Aliganj Chaturtha 24 48 0.33 Assigned Rani pur Nangal Sugar Mill Total 701 4.87 Grand Total 36931 193.92 11. Cane Commissioner U.P. through his letter No. 50/C/Kray-Sur/2017-18, dated 28.10.2017, declared, reserved/assigned area, for crushing season 2017-2018, for the petitioner, which is as follows: S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. Cane Commissioner U.P. through his letter No. 50/C/Kray-Sur/2017-18, dated 28.10.2017, declared, reserved/assigned area, for crushing season 2017-2018, for the petitioner, which is as follows: S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Asmoli Mill Gate 0 9287 65.78 Reserved Purchase 2 Dhampur 12 101 0.72 Reserved Centre 3 Dhakia 8 377 2.69 Reserved Burhanpur Mafi 4 Machharia 8 193 1.37 Reserved Merged in Mill gate 5 Nandpur Bita 10 181 1.29 Reserved Mill-gate 6 Nekpur-Pratham 12 136 0.97 Reserved Centres 7 Seemli 11 142 1.01 Reserved Khawari Gandu 8 Nekpur-Dwitiya 11 136 0.97 Reserved Rasoolpur Gausar 9 Hasanpur Hazibeda Dwitiya Chitawali 15 430 3.07 Reserved Salawat Nagar 10 Echauda Kamboh 8 260 1.85 Reserved Janakpur 11 Alia Kalyanpur 11 161 1.15 Reserved Bilari Mill 12 Hariharpur Kalan 10 160 1.14 Reserved By dividing centre Alia Kalyanpur 13 Hazibeda-Pratham 10 233 1.66 Reserved 14 Kalyanpur-Pratham 8 130 0.93 Reserved 15 Kalyanpur-Dwitiya 8 306 2.18 Reserved 16 Satupura-Pratham 9 271 1.93 Reserved 17 Satupura-Dwitiya/Haiderpur 13 401 2.86 Reserved 18 Sewada 10 230 1.64 Reserved 19 Chandawali 9 181 1.29 Reserved 20 Bhadraula 10 212 1.51 Reserved 21 Chandausi Bagadpur-Pratham 22 47 0.34 Reserved 22 Amroha Akhvandpur 15 203 1.5 Reserved 23 Asawar 18 112 0.83 Reserved 24 Gajraula Prabhuvan 17 110 0.81 Reserved 25 Burhanpur Mafi 18 450 3.33 Reserved 26 Chaudharpur 18 97 0.72 Reserved 27 Chotipura-Pratham 24 94 0.69 Reserved 28 Chotipura-Dwitiya 23 94 0.69 Reserved 29 Hasanpur Kalan 12 378 2.7 Reserved 30 Ekaunda 13 339 2.51 Reserved 31 Tofapur 13 181 1.34 Reserved 32 Lambhia-Pratham 18 96 0.71 Reserved 33 Lambhia-Dwitiya 17 96 0.71 Reserved 34 Rajabpur 22 242 1.79 Reserved 35 Himayun Nagar 32 76 0.56 Reserved 36 Mohammadpur 19 114 0.85 Reserved 37 Sarkara Kamal-Pratham 17 147 1.09 Reserved 38 Sarkara Kamal-Dwitiya 18 147 1.09 Reserved 39 Sarkari Mundi 17 126 0.94 Reserved 40 Kuwan Khera 17 126 0.93 Reserved 41 Bhawalpur Bansali-Pratham 15 127 0.91 Reserved 42 Bhawalpur Bansali-Dwitia 16 127 0.91 Reserved 43 Entt Ka Rarha 20 186 1.38 Reserved 44 Raipur Shahjadpur 23 85 0.63 Reserved 45 Rasoolpur 24 59 0.44 Reserved 46 Bilari Sirsi 11 147 1.02 Reserved 47 Timanpur-Pratham 17 132 0.92 Reserved 48 Timanpur-Tritiya 17 317 2.21 Reserved 49 Timanpur-Chaturth 17 183 1.27 Reserved 50 Timanpur-Pancham 18 162 1.13 Reserved 51 Moradabad Aurangabad-Pratham 19 106 0.74 Reserved 52 Aurangabad-Dwitiya 18 76 0.53 Reserved Shahpur merged 53 Bahadurpur Rajput Dwitiya/Matipur 19 101 0.7 Reserved 54 Gindauda 14 151 1.05 Reserved 55 Guraitha 18 182 1.27 Reserved 56 Lalwara Pandit Nagla 16 352 2.45 Reserved 57 Doraha/Bagapur 23 64 0.45 Reserved 58 Baretha Khijarpur/Hisampur 16 234 1.63 Reserved 59 Lodhipur Rajput 17 283 1.97 Reserved 60 Naurangi 19 112 0.78 Reserved 61 Wajidpur 18 120 0.83 Reserved 62 Chaudharpur 18 155 1.08 Reserved 63 Bahadurpur Rajput-Pratham 17 350 2.43 Reserved Total Reserved 20613 146.87 Part – 1 Kha S. No. Society Purchase Centre Distance between Mill and Centre (km) Area of Sugarcane (hectare) Sugarcane Production (lac. quintal) Conserved/Assigned Remarks 1 Moradabad Bagha-Pratham 25 201 1.4 Assigned From Bilari Sugar Mill 2 Bilari Hafizpur 31 206 1.43 Assigned 3 Mubarakpur 30 228 1.59 Assigned 4 Jamalpur-Dwitiya 21 184 1.28 Assigned 5 Amroha Atrasi 19 174 1.29 Assigned 6 Devipura 20 108 0.8 Assigned 7 Waraspur 21 146 1.08 Assigned 8 Nizam nagla 15 111 0.82 Assigned 9 Joj Kheda (new) 15 111 0.82 Assigned 10 Kalsa 21 283 2.1 Assigned 11 Didauli-Pratham/Chubka 20 347 2.57 Assigned 12 Sibaura 19 140 1.04 Assigned 13 Milak Katai 28 205 1.52 Assigned 14 Chakbaraspur 26 116 0.86 Assigned 15 Majhauli 27 94 0.7 Assigned 16 Hasanpur Katia 20 121 0.89 Assigned 17 Lodipur Banjara 25 111 0.82 Assigned 18 Moradabad Payanti Kalan 25 102 0.71 Assigned 19 Amroha Bhatpura Sakania 28 78 0.58 Assigned 20 Badaunia 28 176 1.3 Assigned 21 Bahlolpur 28 162 1.2 Assigned 22 Amroha Nandeda/Devipura 28 152 1.12 Assigned From closed Mill 23 Jalilpur Bakkal 30 100 0.74 Assigned 24 Chakkalilet 25 146 1.08 Assigned 25 Kumharia 25 128 0.95 Assigned 26 Bilari Kasampur-Pratham 28 85 0.59 Assigned From mill Majhawali 27 Kasampur-Dwitiya 26 365 2.54 Assigned 28 Bhawanipur 24 83 0.58 Assigned 29 Amroha Asgaripur 14 173 1.28 Assigned From closed mill 30 Gaffarpur 30 181 1.34 Assigned 31 Mangupura 29 69 0.51 Assigned 32 Pachokara 32 221 1.64 Assigned 33 Koobi 28 223 1.65 Assigned 34 Akbarpur Patti 30 237 1.76 Assigned 35 Durgopur 25 149 1.44 Assigned 36 Papsara 38 211 1.56 Assigned 37 Sarkadi Aziz 27 176 1.31 Assigned 38 Adalpur Taj 30 222 1.65 Assigned 39 Dhela Nagla 28 112 0.83 Assigned 40 Shekhupur Gurjar 26 125 0.93 Assigned 41 Majhaula Khurd 32 173 1.28 Assigned 42 Didauli Dwitiya 23 163 1.21 Assigned 43 Faraspura 20 103 0.76 Assigned 44 Gajraula Noorpur Kalan-III 23 100 0.74 Assigned From Mill Gajraula 45 Lakhauri Jalalpur-II 21 129 0.95 Assigned 46 Gyanpur 11 329 2.44 Assigned 47 Sharifpur-II new 11 152 1.13 Assigned 48 Singhpur Sani-II new 10 141 1.04 Assigned 49 Dehra-II new 15 197 1.46 Assigned 50 Lakhauri-III new 14 127 0.94 Assigned Total-Assigned 8224 60.23 Grand Total 28837 207.1 12. The petitioner filed an appeal (registered as Appeal No. 75) for purchase centre of villages Ahroi, Dhanauri Ahir, Guladia, Husainpur, Dyorhi @ Hadipur and Ramhat, against M/s. Rana Sugars Ltd. State of U.P. by order dated 14.12.2007, dismissed the appeal, which has been challenged in Writ-C No. 63244 of 2017. The petitioner filed an appeal (registered as Appeal No. 79) for purchase centre of villages Aziz Nagar, Chabariya, Prithwipur, against M/s. Rana Sugars Ltd. State of U.P. by order dated 14.12.2007, dismissed the appeal, which has been challenged in Writ-C No. 63245 of 2017. M/s. Rana Sugars Ltd. filed an appeal (registered as Appeal No. 41) for purchase centre of villages Entt-Ka-Rarha and Durgopur, against the petitioner. State of U.P. by order dated 19.12.2007, partly allowed the appeal in respect of purchase centre Entt-Ka-Rarha, which has been challenged in Writ-C No. 633 of 2018. Shree Ajudhia Sugars Ltd. filed an appeal (registered as Appeal No. 44) for purchase centres Timanpur-Pratham, Timanpur-Tritiya, Timanpur-Chaturth, Timanpur-Pancham, Mubarakpur, Hafijpur and Jamalpur-Dwitiya against the petitioner. State of U.P. by order dated 18.12.2007, partly allowed the appeal, for village Timanpur-Pancham, which has been challenged in Writ-C No. 920 of 2018. The petitioner filed an appeal (registered as Appeal No. 78) for purchase centre of villages Khawari Gandu, Rasoolpur Gausar, Janakpur, Fatehpur, Salawat Nagar and Timanpur Dwitiya against Shree Ajudhia Sugars Ltd. State of U.P. by order dated 18.12.2007, dismissed the appeal, which has been challenged in Writ-C No. 922 of 2018. 13. The counsel for the petitioner submitted that M/s. Dhampur Sugar Mill, unit Asmoli, Sambhal has capacity of 9000 TCD (ton crushed daily). According to Section 2 (i) ‘crushing season’ is from 1st October to 15th July. Even if minimum 180 days is taken then also requirement of the petitioner would be 162 lac quintals. Cane Commissioner has illegally estimated 128.86 lac quintal sugarcane, as the requirement of petitioner for crushing season 2017-18. Cane Commissioner through letter No. 50 dated 28.10.2017, allotted quantity of 207.10 lac quintal, which comes approximately at the drawl rate of 61%. The petitioner has installed a co-generation plant of 49 megawatt, for generation of electricity. Khoi (chaff) is required for operating the plant. Rule-22 of the Rules, 1954 provides detailed guidelines for reserving/assigning the area to a factory. Neither Commissioner nor State of U.P. have adverted to the grounds mentioned under Rule-22, while passing the orders. The petitioner has installed a co-generation plant of 49 megawatt, for generation of electricity. Khoi (chaff) is required for operating the plant. Rule-22 of the Rules, 1954 provides detailed guidelines for reserving/assigning the area to a factory. Neither Commissioner nor State of U.P. have adverted to the grounds mentioned under Rule-22, while passing the orders. Distances of purchase centre of villages Ahroi, Dhanauri Ahir, Guladia, Husainpur, Dyorhi @ Hadipur and Ramhat, Aziz Nagar, Chabariya, Prithwipur, Entt-Ka-Rarha, Timanpur-Pancham, Khawari Gandu, Rasoolpur Gausar, Janakpur, Fatehpur, Salawat Nagar and Timanpur Dwitiya, which have been taken from the petitioner are less than their distances from mills of M/s. Rana Sugars Ltd. and Shree Ajudhia Sugars Ltd. State of U.P. has illegally mentioned that mill of the petitioner is connected with village roads having pits etc. without there being any material before it. In any case, the petitioner used to transport sugarcane from purchase centre to its mill and cane growers have not to face transportation problem. Price payment to cane growers of the petitioner has been 118.12%, while of M/s. Rana Sugar Ltd. is 84.03% and of Shree Ajudhia Sugars Ltd. was 81.56%, although according to Section 17 of the Act, payment should be 100%. For the last several years, the respondents were habitual defaulters. Aforementioned areas had been reserved/assigned to the petitioner and the petitioner invested money for its development by providing organic manure, hybrid seed, pesticides etc. Cane growers opinion was not taken into consideration. State of U.P. has not considered the grounds taken in appeal. In crushing season 2016-17 Dyorhi @ Hadipur, Gulrez, Ramhat, Dhanauri Ahir, Husainpur and Ahroi were assigned to the petitioner by Cane Commissioner. State of U.P. has allowed the appeal filed by M/s. Rana Sugars Ltd., by order dated 16.1.2017. The petitioner challenged the order dated 16.1.2017 in Writ C No. 3893 of 2017 which was allowed by this Court after hearing the parties by judgment dated 21.2.107. This judgment was brought to the notice of State Government in the appeals but State Government has not taken any notice of it. The petitioner challenged the order dated 16.1.2017 in Writ C No. 3893 of 2017 which was allowed by this Court after hearing the parties by judgment dated 21.2.107. This judgment was brought to the notice of State Government in the appeals but State Government has not taken any notice of it. He relied upon judgments of this Court in Triveni Engineering and Industries Ltd. v. State of U.P., 2000 (2) AWC 1014 (DB), Govind Nagar Sugar Ltd. v. State of U.P., 2001 (1) AWC 65 , Simbholi Sugar Ltd. v. State of U.P., 2010(3) ADJ 628 (LB) and Engineering and Industries Ltd. v. State of U.P., 2015(3) ADJ 619, in which it has been held that while making order relating to reservation/assignment, guidelines given in the Act and Rules have to be considered and Supreme Court in Sri-La Sri Subramania Desika Gnanasambanda Pandarasannidi v. State of Madras, AIR 1965 SC 1578 , in which it has been held that pleading in Rejoinder-affidavit has also to be considered. 14. I have considered the arguments of the counsel for the parties and examined the record. Legislative history relating to sugarcane production and sugar factories in India is that on 8.4.1932, Central Legislature passed Sugar Industry (Protection) Act, 1932 (Act 13 of 1932) to provide for the fostering and development of Sugar Industry in India in pursuance of the policy of discriminating protection of industries with due regard to the well being of the community. As a result of the protection thus granted to the sugar industry, number of sugar factories which was 31 prior thereto registered a rapid rise and by 1938 they were 139 in number. There was also a large expansion in the cultivation of sugarcane and millions of cultivators in province of U.P. began to grow sugarcane. In order to protect their interests and for the purpose of assuring to them a fair price for their produce, Central Legislature enacted Sugarcane Act, 1934 (Act 15 of 1934) on 1.5.1934 to regulate the price at which sugarcane intended to be used in the manufacture of sugar might be purchased by or for factories. In order to protect their interests and for the purpose of assuring to them a fair price for their produce, Central Legislature enacted Sugarcane Act, 1934 (Act 15 of 1934) on 1.5.1934 to regulate the price at which sugarcane intended to be used in the manufacture of sugar might be purchased by or for factories. Sugarcane was grown in various provinces and the declaration of controlled areas and the fixing of minimum price for the purchase of sugarcane intended for use in any factory in any controlled area was of necessity left to Provincial Governments and Provincial Governments were also empowered to make rules for the purpose of carrying into effect the objects of the Act including, in particular, the organisation of growers of sugarcane into Cooperative Societies for the sale of sugarcane to factories. On coming into force of Government of India Act, 1935, there was a distribution of legislative powers between Dominion Legislature and Provincial Legislatures and agriculture (Entry-20), trade and commerce within the Province (Entry-27) and production, supply and distribution of goods, development of industries subject to the provision in List I with respect to development of certain industries under Dominion control (Entry-29) were included in List II, Provincial Legislative List. The relevant provision in List I was contained in Entry-34: “Development of industries where development under Dominion control is declared to be in the public interest”. As a result of this distribution of legislative powers, the entire subject-matter of Act No. 15 of 1934 fell within Provincial Legislative List. It was felt that Act No. 15 of 1934 was not sufficiently comprehensive for dealing with the problems of sugar industry and it was found necessary to replace it by a new measure which provide for the better organisation of cane supplies to sugar factories. Governments of U.P. and Bihar, therefore, decided in consultation with each other to introduce legislation on similar lines for both the Provinces which together accounted for nearly 85 per cent of production of sugar in India. U.P. Legislature accordingly enacted U.P. Sugar Factories Control Act, 1938 (U.P. Act I of 1938) on 10.2.1938 to provide for the licensing of the sugar factories and for regulating the supply of sugarcane intended for use in such factories and the price at which it may be purchased and for other incidental matters. U.P. Legislature accordingly enacted U.P. Sugar Factories Control Act, 1938 (U.P. Act I of 1938) on 10.2.1938 to provide for the licensing of the sugar factories and for regulating the supply of sugarcane intended for use in such factories and the price at which it may be purchased and for other incidental matters. This Act provided for (a) the licensing of sugar factories, (b) the regulation of the supply of sugarcane to factories, (c) the minimum price for sugarcane, (d) the establishment of Sugar Control Board and Advisory Committee, and (e) a tax on the sale of sugarcane intended for use in factories, and repealed Act 15 of 1934. This Act was to remain in force initially until 30.6.1947 but the period was extended to 30.6.1950 by U.P. Act 13 of 1947 and to 30.6.1952 by U.P. Act 21 of 1950. Sugarcane Act, 1934 was repealed by U.P. Sugar Factories Control Act, 1938 (U.P. Act 1 of 1938). Section 26 of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 repealed U.P. Sugar Factories Control Act, 1938. Sugar is an essential commodity as such exercising powers under Essential Commodities Act, 1955, Sugarcane Control Order 1966 was passed by Central Government. Cane Commissioner has been given jurisdiction under the Act as well as under Sugarcane Control Order 1966. 15. Constitution Bench of Supreme Court in U.P. Coop. Cane Unions Federations v. West U.P. Sugar Mills Assn., (2004) 5 SCC 430 , held that provisions under the Act and Rules have been made for the benefit of the sugar factory so that it is assured of and gets a continuous supply of freshly harvested sugarcane in quantity according to its crushing capacity and for the whole duration of the crushing season. No doubt, the cane-grower also gets some advantage in the sense that purchase of his yield is assured but at the same time many limitations and restrictions are imposed upon him. In view of the aforesaid statutory provisions, the position of a cane-grower becomes entirely different from that of a farmer producing any other kind of agricultural crop where there are absolutely no restrictions upon him. He is at absolute liberty to harvest his crop at his convenience without being dictated by a third party, to sell it to anyone whomsoever he likes and whenever he wants. He is at absolute liberty to harvest his crop at his convenience without being dictated by a third party, to sell it to anyone whomsoever he likes and whenever he wants. The preamble of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 is an Act to regulate the supply and purchase of sugarcane for use in sugar factories, gur-, rab- or khandsari sugar-manufacturing units. The various provisions of the Act show in unmistakable terms that it regulates the supply and purchase of sugarcane required for use in sugar factories. “Regulate” means to control or to adjust by rule or to subject to governing principles. It is a word of broad impact having wide meaning comprehending all facets not only specifically enumerated in the Act, but also embraces within its fold the powers incidental to the regulation envisaged in good faith and its meaning has to be ascertained in the context in which it has been used and the purpose of the statute. 16. Sugarcane needs to be harvested within a specific season to derive maximum sugar when crushed. In Uttar Pradesh, best season for harvesting sugarcane is November to March. Prior to November, crop is not ripen and after March, sugarcane began to dry, which results in loss of sugar contents. Cane growers are also interested to harvest the crop during this season so that they can grow other crop in the field. Wandering cattle also ruined the standing crops. For these reasons, in Uttar Pradesh sugar factories are usually closed up to 15th April, as supply of sugarcane is discontinued till then. 17. As stated above, purpose of enactment of the Act and Rules is for the benefit of the sugar factory. This object has to be achieved by ensuring a continuous supply of freshly harvested sugarcane in quantity according to its daily crushing capacity, for the whole crushing season. This determines the imperative necessity for continuous supply of sugarcane to sugar factories depending on their crushing capacity and crushing programme. Section 12 of the Act authorizes Cane Commissioner to decide and publish the estimate of requirements of sugarcane of the factories, by specified date. For declaring reserved and assigned area of the sugar factories under Section 15, survey of the area has to be made to ascertain area and quantity of suagercane likely to be produced in the year under Section 14 of the Act. For declaring reserved and assigned area of the sugar factories under Section 15, survey of the area has to be made to ascertain area and quantity of suagercane likely to be produced in the year under Section 14 of the Act. Detail guidelines have been given under Rule-22 of the Rules, 1954 for determination of reserved and assigned area. Supreme Court in Purtabpore Co. Ltd. v. Cane Commr. of Bihar, (1969) 1 SCC 308 , has held that the dispute between two sugar factories in respect of reserved and assigned area had to be decided on the basis of the objective criteria, prescribed by Clause 6 of the Sugarcane (Control) Order, 1966 i.e. (1) crushing capacity of the mills; (2) availability of the sugarcane in reserved area and (3) need for the production of sugar. 18. Section 15 of the Act and Rule-22 of the Rules are quoted below:— “Section 15. (1) Without prejudice to any order made under clause (d) of sub-section (2) of Section 16 the Cane Commissioner may, after consulting the Factory and Cane-growers Co-operative Society in the manner to be prescribed— (a) reserve any area (hereinafter called the reserved area), and (b) assign any area (hereinafter called an assigned area), for the purpose of the supply of cane to a factory in accordance with the provisions of Section 16 during a particular crushing season and may likewise at any time cancel such order or alter the boundaries of an area so reserved or assigned. (2) Where any area has been declared as reserved area for a factory, the occupier of such factory shall, if so directed by the Cane Commissioner, purchase all the cane grown in that area, which is offered for sale to the factory. (3) Where any area has been declared as assigned area for a factory, the occupier of such factory shall purchase such quantity of cane grown in that area and offered for sale to the factory, as may be determined by the Cane Commissioner. (4) An appeal shall lie to the State Government against the order of the Cane Commissioner passed under sub-section (1)”. (4) An appeal shall lie to the State Government against the order of the Cane Commissioner passed under sub-section (1)”. Rule 22 : In reserving an area for or assigning an area to a factory or determining the quantity of cane to be purchased from an area by a factory under Section 15, the Cane Commissioner may take into consideration- (a) the distance of the area from the factory, (b) facilities for transport of cane from the area, (c) the quality of cane supplied from the area to the factory in previous years, (d) previous reservation and assignment orders, (e) the quantity of cane to be crushed in the factory, (f) the arrangements made by the factory in previous years for payment of cess, cane price and commission, and (g) the views of the Cane-growers’ Co-operative Society of the area. 19. Dictionary meaning of the word “assigned” is “to transfer or to make over to another, the right, one has in any object” and word “reserved” is “some thing retained or restored for future use”. Present writ petitions have been filed on the allegations that Cane Commissioner and State of U.P. under the impugned orders have taken purchase centres -Entt-Ka-Rarha, Khawari Gandu, Rasoolpur Gausar, Fatehpur, Salawat Nagar, Timanpur Dwitiya and Timanpur Pacham, which were “reserved area” of the petitioner and Ahroi, Dhanhori Ahir, Gularia, Husainpur, Dyorhi @ Hadipur, Ramhat Aziz Nagar Chabariya and Prithwipur, which were “assigned area” of the petitioner in previous year. From the literal meaning of the word “reserved” it is imperative that a reserved area cannot be disturbed ordinarily. It is only when the factory is not able to crush cane timely to the satisfaction of the cane growers, then reserved area can be disturbed. For determination of assigned area comparative need of sugar factories have to be examined. For disturbing reserved/assigned area of a factory, the factors enumerated under Rule-22 and Clause 6 of the Control order have been strictly considered. As held by Supreme Court in Purtabpore’s Case (supra). 20. M/S. Dhampur Sugar Mill, unit Asmoli, Sambhal has crushing capacity of 9000 TCD (ton crushed daily). It has installed a co-generation plant of 49 mega watt, for generation of electricity and a distillery of 100 Kilo Liter. Cane Commissioner, by order dated 21.9.2017, estimated 128.86 lac quintal sugarcane, as the requirement of petitioner for crushing season 2017-18 and allotted 207.10 lac quintal. It has installed a co-generation plant of 49 mega watt, for generation of electricity and a distillery of 100 Kilo Liter. Cane Commissioner, by order dated 21.9.2017, estimated 128.86 lac quintal sugarcane, as the requirement of petitioner for crushing season 2017-18 and allotted 207.10 lac quintal. M/S. Rana Sugar Ltd., unit Belwara, Moradabad has crushing capacity of 6500 TCD (ton crushed daily). It has installed a co-generation plant of 28 megawatt, for generation of electricity. Cane Commissioner, by order dated 21.9.2017, estimated 79.39 lac quintal sugarcane as its requirement for crushing season 2017-18 and allotted 93.15 lac quintal. Shree Ajudhia Sugar Ltd., unit Raja-Ka-Sahaspur, Bilari, Moradabad has crushing capacity of 4500 TCD (ton crushed daily). It has a co-generation plant of the capacity of 27 megawatt, for generation of electricity. Cane Commissioner, by order dated 21.9.2017, estimated 51.48 lac quintal sugarcane as its requirement for crushing season 2017-18 and allotted 81 lac quintal. Estimated quantity have not been challenged either the petitioner or the contesting respondents. Generation, paper manufacturing plant or distillery are run by a byproduct of the sugar factory. Under the Act, Rules or Order, there is no requirement for consideration of necessity of paper manufacturing, generation plant and distilleries, as such its need are not required to be considered while declaring reserved/assigned area. 21. Arguments of the counsel for the respondents is that in comparison of estimated requirement and allotted quantity, drawl rate of the petitioner come to 62%, M/S Rana Sugar Ltd. comes to 85.22% and Shree Ajudhia Sugar Ltd. comes to 78%, which is not a equal distribution. Object of the Act is to maintain equal distribution of sugarcane among various factories as such the appeals filed by the respondents were rightly allowed. 22. Section 15 gives a wide power to Cane Commissioner and State Government to regulate distribution of sugarcane among factories. These powers have to be exercised according to guidelines given in Rule-22. If the guidelines of Rule-22 are not followed that the power may be exercised arbitrarily in malfide manner to benefit some factory and to harm some factory. Installation of the factories are controlled by Cane Commissioner and State Government. In reserving/assigning area for a factory, the distance of the area from the factory and facilities for transport of cane from the area to the factory cannot be ignored. Installation of the factories are controlled by Cane Commissioner and State Government. In reserving/assigning area for a factory, the distance of the area from the factory and facilities for transport of cane from the area to the factory cannot be ignored. If distance is ignored then fresh sugarcane will not be supplied to the factory, which ultimately result in deterioration of sugar contents and loss of essential commodities. Cane growers may also face difficulty and in absence of quick transportation, their harvested sugar cane will remain at purchase centres and dry there. Equal distribution ratio has to be maintained among the factories situated in nearby locality and not between the factories situated at a long distance. 23. In present case distances of disputed purchase centres are as follows: S. No. Cane Purchase Centre Distance from M/s D.S.M. Asmouli Distrance from M/s Rana Sugar Ltd. Belwara 1 Dhyodi urf Hadipur 25 55 2 Gulariya 33 75 3 Ramhat 36 60 4 Dhanhori Ahir 40 72 5 Husainpur 39 60 6 Aharoi 42 67 7 Aziz Nagar 17 38 8 Chanbariya 18 40 9 Prithwiput 32 37 10 Entt-Ka-Rarha 20 55 And S. No. Cane Purchase Centre Distance from M/s D.S.M. Asmouli Distrance from M/s Shree Ajudhia Sugar Ltd. Bilari 1 Khaabri Gandu, Rasoolpur, Gausar, Janakpur, Fatehpur, Salawatnaar (Mill gate villages) 29 6.50-7.50 2 Timanpur-II 17 9 3 Timanpur-V 18 9 24. From the aforementioned chart it is proved that purchase centres which has been assigned to M/s Rana Sugar Ltd. Taking it from assigned area of the petitioner in previous year are at a short distance from factory of the petitioner and there was no justification to take it from the petitioner and allot it to M/s Rana Sugar Ltd. Purchase centers which has been assigned to Shree Ajudhia Sugar Ltd. are at a shorter distance than its distance from the factory of the petitioner. Under Rule 22 (a) and (b) it were liable to be allotted to Shree Ajudhia Sugar Ltd. 25. Under Rule 22 (a) and (b) it were liable to be allotted to Shree Ajudhia Sugar Ltd. 25. Other factors as given under Rule-22 namely quality of cane supplied from the area to the factory in previous years, previous reservation and assignment orders, quantity of cane to be crushed in the factory, the arrangements made by the factory in previous years for payment of cess, cane price and commission, and views of the Cane-growers’ Co-operative Society of the area, were also in favour of the petitioner, which have been totally ignored by Cane Commissioner. State of U.P. In the impugned orders have only considered the circumstances in relation to M/s Rana Sugar Ltd. and totally ignored those very circumstances, which were in favour of the petitioner. View of Cane Growers Cooperative Society appears also in favour of the petitioner as in the counter-affidavit, they admitted prompt payment of price by the petitioner. 26. So far as drawl ratio is concerned, it also depends upon conduct of sugar factory towards cane-growers. If sugarcane is not lifted timely or payment of price is delayed un-usually then drawl ratio has to go down. After obtaining survey report under Section 14 of the Act, Cane Commissioner has to estimate drawl ratio of various sugar factories in consideration of distance from purchase centers to factory. There is no jurisdiction for Cane Commissioner to maintain drawl ratio ignoring distance. 27. The argument of the counsel for the respondents that this Court has no jurisdiction to set aside the impugned order, which are based upon appreciation of facts and circumstances is not liable to be accepted inasmuch as the impugned orders have totally ignored the statutory guidelines, while passing the order. 28. In view of aforesaid discussions, Writ C No. 63244 of 2017, Writ C No. 63245 of 2017 and Writ C No. 633 of 2018 are allowed. It is declared that purchase centers of villages Ahroi, Dhanhori Ahir, Gulariya, Husainpur, Dhyohi @ Hadipur, Rahmat, Aziz Nagar, Chanbaria, Prithwipur and Entt-Ka-Rarha will remain as assigned/reserved area of the petitioner for crushing season 2017-18. Order No. 49 dated 28.10.2017 in respect of aforesaid villages are modified. Order of State of UP dated 19.12.2017 in respect of purchase center of village Entt-Ka-Rarha is set aside. 29. Writ C No. 920 of 2018 and Writ C No. 922 of 2018 are dismissed.