THE LORD KRISHNA SUGAR MILLS LTD., AND ANOTHER versus THE UNION OF INDIA AND ANOTHER

THE LORD KRISHNA SUGAR MILLS LTD., AND ANOTHER versus THE UNION OF INDIA AND ANOTHER

The majority held that the restrictions imposed by the Sugar Export Promotion Act, 1958, were not unreasonable under Articles 14 or 19 of the Constitution, as arrangements were made to allow sugar manufacturers to recoup export losses through increased internal prices. The measure served the national interest by...

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Parties
Petitioner: The Lord Krishna Sugar Mills Ltd.; Petitioner: Shri Sushil Kumar; Petitioner: Shiva Prasad Banarsidas Sugar Mills, Bijnor; Petitioner: Seth Munnalal; Respondent: Union of India; Respondent: Indian Sugar Mills Association (Export Agency Division), Calcutta
Jurisdiction
India
Judgment Date
06 May 1959
Procedural Posture
Writ Petitions Under Article 32 of the Constitution of India / Final Judgment of the Supreme Court
Outcome
Petitions dismissed (majority); appeal dismissed in related matter.
Legal Topics
Reasonableness of Restrictions on Fundamental Rights, Equality Before Law (article 14), Right to Property and Business (article 19)
Constitutional Law Administrative Law Reasonableness of Restrictions on Fundamental Rights Equality Before Law (article 14) Right to Property and Business (article 19)

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Parties

The Lord Krishna Sugar Mills Ltd.

Petitioner

Shri Sushil Kumar

Petitioner

Shiva Prasad Banarsidas Sugar Mills, Bijnor

Petitioner

Seth Munnalal

Petitioner

Union of India

Respondent

Indian Sugar Mills Association (Export Agency Division), Calcutta

Respondent

Procedural Posture

Writ Petitions Under Article 32 of the Constitution of India / Final Judgment of the Supreme Court

Legal Issues

  1. 1 Whether the restrictions imposed by the Sugar Export Promotion Act, 1958 on sugar manufacturers are reasonable within Articles 14 and 19 of the Constitution
  2. 2 Whether the notification under another statute increasing the price of sugar for internal sale can be considered in judging reasonableness
  3. 3 Whether the Act discriminates by selecting only vacuum pan sugar for export

Ratio Decidendi

The majority held that the restrictions imposed by the Sugar Export Promotion Act, 1958, were not unreasonable under Articles 14 or 19 of the Constitution, as arrangements were made to allow sugar manufacturers to recoup export losses through increased internal prices. The measure served the national interest by earning foreign exchange and establishing foreign markets. The classification limiting the Act to vacuum pan sugar was reasonable and related to the object of the legislation.

Court Disposition

Petitions dismissed (majority); appeal dismissed in related matter.

Orders

  • The petitions are dismissed with costs.
  • Compensation to the petitioner is limited to Rs. 11,125 already deposited in Court; no further amounts due.