CENTRAL DAIRY FARM versus GLINDIA LTD. AND ORS.

CENTRAL DAIRY FARM versus GLINDIA LTD. AND ORS.

The power of the State Government to fix prices under Section 15 of the Milk Act is merely an enabling one and is not obligatory in all circumstances. When prices were settled by mutual agreement and judicial intervention, statutory price fixation cannot be used to override them. The High Court's judgment containing binding directions was final and the notification seeking to nullify it was rightly quashed.

Parties
Appellant: Central Dairy Farm; Respondent: Glindia Ltd.; Appellant: State of Uttar Pradesh
Jurisdiction
India
Judgment Date
14 October 2003
Procedural Posture
Civil Appeal / Supreme Court Final Disposition
Outcome
Appeals dismissed
Legal Topics
Price Fixation, Statutory Interpretation, Mutual Agreement, Notification Under Milk Act, Winding Up Proceedings
Administrative Law Company Law Price Fixation Statutory Interpretation Mutual Agreement Notification Under Milk Act Winding Up Proceedings

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Parties

Central Dairy Farm

Appellant

Glindia Ltd.

Respondent

State of Uttar Pradesh

Appellant

Procedural Posture

Civil Appeal / Supreme Court Final Disposition

Legal Issues

  1. 1 Whether statutory price fixation can override mutually agreed terms between parties after final adjudication by High Court
  2. 2 Validity of State notification under Section 15 of Uttar Pradesh Milk Act, 1976 which reduced price below mutually agreed rate
  3. 3 Binding effect of prior High Court judgment settling pricing dispute

Ratio Decidendi

The power of the State Government to fix prices under Section 15 of the Milk Act is merely an enabling one and is not obligatory in all circumstances. When prices were settled by mutual agreement and judicial intervention, statutory price fixation cannot be used to override them. The High Court's judgment containing binding directions was final and the notification seeking to nullify it was rightly quashed.

Court Disposition

Appeals dismissed

Orders

  • Notification dated 12.1.1989 under Section 15 of Uttar Pradesh Milk Act quashed
  • Mutually agreed rate to prevail as per earlier High Court judgment