S.K.G SUGAR LTD. versus STATE OF BIHAR AND ORS.

S.K.G SUGAR LTD. versus STATE OF BIHAR AND ORS.

There is no statutory prohibition on payment of higher price than the minimum prescribed under the Sugarcane (Control) Order, 1966. The price fixed by the State Government, based on agreement between the Sugar Factory Owners Association and cane growers, is enforceable. The recovery proceedings through the Collector for the price difference are valid in law, and no separate suit by growers is needed.

Parties
Appellant: S.K.G. Sugar Ltd.; Respondent: State of Bihar; Respondents: Others
Jurisdiction
India
Judgment Date
15 January 1997
Procedural Posture
Civil Appeal / Final Supreme Court Decision, Appeals From Patna High Court
Outcome
Appeals dismissed
Legal Topics
Sugarcane Price Fixation, Statutory Powers of State, Revenue Recovery Proceedings
Administrative Law Agriculture Law Revenue Law Sugarcane Price Fixation Statutory Powers of State Revenue Recovery Proceedings

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Parties

S.K.G. Sugar Ltd.

Appellant

State of Bihar

Respondent

Others

Respondents

Procedural Posture

Civil Appeal / Final Supreme Court Decision, Appeals From Patna High Court

Legal Issues

  1. 1 Whether State Government can fix sugarcane price higher than minimum fixed by Central Government
  2. 2 Validity of revenue recovery proceedings for difference in price

Ratio Decidendi

There is no statutory prohibition on payment of higher price than the minimum prescribed under the Sugarcane (Control) Order, 1966. The price fixed by the State Government, based on agreement between the Sugar Factory Owners Association and cane growers, is enforceable. The recovery proceedings through the Collector for the price difference are valid in law, and no separate suit by growers is needed.

Court Disposition

Appeals dismissed

Orders

  • Respondents are at liberty to proceed in accordance with law if demand persists; if no demand remains, respondents may not take any further steps; no costs awarded.