Case Note & Summary
The dispute involved the West U.P. Sugar Mills Association and others, who were engaged in sugar production and sale, challenging the society commission rates imposed by the State of Uttar Pradesh under the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953. The appellants owned sugar factories and purchased sugarcane from cooperative societies, which were entitled to a commission regulated by the Act. In 1985, the commission rate was raised to 50 paise per quintal, and later in 1991, it was increased to 5% of the minimum statutory cane price. The appellants contested this increase, leading to a temporary reduction to 2.69% in 1992. After the substituted rule expired, the Cane Commissioner insisted on reverting to the 5% rate, prompting the appellants to file a writ petition. The High Court ruled that the old rule revived under Section 6-C of the U.P. General Clauses Act, leading to the present appeal. The Supreme Court analyzed whether the old rule could revive after the new rule was rendered inoperative. Citing precedents, the court concluded that once a rule is repealed and replaced, it does not revive upon the cessation of the new rule. The court set aside the High Court's decision, allowing the appeal and the writ petition without costs, and noted that the appellants would not seek a refund of the commission already paid.
Headnote
A) Administrative Law - Revival of Repealed Rules - Old rule does not revive after substitution - U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953, Section 28 - The court held that once a rule is repealed and substituted, the old rule does not revive upon the cessation of the new rule's operation. The court referenced previous judgments to support this interpretation, concluding that the old rule remained deleted and did not come back into effect (Paras 1-5).
Issue of Consideration
Whether the old rule regarding society commission revives after the substituted rule ceases to be operative.
Final Decision
The Supreme Court set aside the High Court's judgment, allowing the appeal and the writ petition. The court ruled that the old rule did not revive after the substituted rule ceased to be operative, affirming the principle established in previous judgments.
Law Points
- Statutory interpretation
- revival of repealed rules
- U.P. General Clauses Act
- society commission
- sugarcane regulation
