SHIVASHAKTI SUGARS LIMITED versus SHREE RENUKA SUGAR LIMITED & ORS.

SHIVASHAKTI SUGARS LIMITED versus SHREE RENUKA SUGAR LIMITED & ORS.

Since M/s. RS was not operational and thus not an 'existing sugar factory' within the meaning of Clause 6A on the critical date, the distance requirement did not apply; appellant took bona fide, effective steps and public interest, economic investment, and employment generation all favored allowing the appellant’s factory to continue. Directions of the High Court set aside accordingly.

Parties
Appellant: Shivashakti Sugars Limited; Respondents: Shree Renuka Sugar Limited & Ors.
Jurisdiction
India
Judgment Date
09 May 2017
Procedural Posture
Civil Appeal / Appeal From High Court Judgment (karnataka High Court, Writ Petition Nos. 64254 of 2010, Decision Dated 29.03.2011)
Outcome
Appeal allowed
Legal Topics
Licensing of Sugar Factories, Interpretation of Statutory Orders, Economic Considerations in Legal Interpretation
Administrative Law Industrial Law Economic Regulation Licensing of Sugar Factories Interpretation of Statutory Orders Economic Considerations in Legal Interpretation

Case Brief

Summary, issues, holding and outcome

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Parties

Shivashakti Sugars Limited

Appellant

Shree Renuka Sugar Limited & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Judgment (karnataka High Court, Writ Petition Nos. 64254 of 2010, Decision Dated 29.03.2011)

Legal Issues

  1. 1 Whether M/s. RS was an 'existing sugar factory' within the meaning of Clause 6A of the Sugarcane (Control) Order, 1966 (as amended in 2006) when the appellant's permission was sought.
  2. 2 Whether the establishment of the appellant's sugar factory was in violation of Clause 6A due to distance restrictions.
  3. 3 Whether effective steps were taken by the appellant justifying extension under the Sugarcane Control Amendment Order.

Ratio Decidendi

Since M/s. RS was not operational and thus not an 'existing sugar factory' within the meaning of Clause 6A on the critical date, the distance requirement did not apply; appellant took bona fide, effective steps and public interest, economic investment, and employment generation all favored allowing the appellant’s factory to continue. Directions of the High Court set aside accordingly.

Court Disposition

Appeal allowed

Orders

  • Directions contained in the judgment of the High Court are set aside.
  • Appellant's factory is allowed to continue its operation subject to the condition that 14 villages originally assigned to respondent No.1 (Shree Renuka Sugar Limited) will be re-allotted to it after taking these villages from the appellant.