Case Note & Summary
The petitioners, three non-cooperative sugar factories, challenged para 3 of the Government Resolution dated 21.10.2011, claiming it created hostile discrimination between cooperative and non-cooperative sugar factories in violation of Article 14 of the Constitution of India. They sought a declaration that the para is ultra vires and prayed for compensation for recovery loss and transportation charges as per earlier Government Resolutions dated 14.11.2011 and 06.05.2011, ignoring para 3 of the subsequent resolution. The court examined the factual background, noting that the petitioners are limited companies carrying on sugar manufacturing, while cooperative factories are differently structured. The court found that the classification between cooperative and non-cooperative entities is reasonable and based on intelligible differentia, with a rational nexus to the object of the resolution. The court dismissed the petition, holding that para 3 of the Government Resolution dated 21.10.2011 is not ultra vires Article 14.
Headnote
A) Constitutional Law - Article 14 - Reasonable Classification - Government Resolution - The court considered whether para 3 of the Government Resolution dated 21.10.2011, which distinguishes between cooperative and non-cooperative sugar factories for payment of recovery loss and transportation charges, violates Article 14. The court held that the classification is based on intelligible differentia and has a rational nexus with the object sought to be achieved, thus not discriminatory. (Paras 2-4)
Issue of Consideration
Whether para 3 of the Government Resolution dated 21.10.2011 is ultra vires Article 14 of the Constitution of India as it creates hostile discrimination between similarly placed persons, specifically between cooperative and non-cooperative sugar factories.
Final Decision
The court dismissed the writ petition, holding that para 3 of the Government Resolution dated 21.10.2011 is not ultra vires Article 14 of the Constitution of India.
Law Points
- Article 14 of the Constitution of India
- Reasonable Classification
- Ultra Vires
- Discrimination
- Government Resolution
- Sugar Industry
- Compensation
Case Details
2017 LawText (BOM) (06) 113
Writ Petition No. 1602 of 2014
S.C. Dharmadhikari, Mangesh S. Patil
V.D. Hon (Senior Advocate) i/b A.V. Hon (Advocate) for petitioners, S.B. Yawalkar (AGP) for respondent-state
Natural Sugar and Allied Industries Ltd., Gangamai Industries and Construction Ltd., Chhatrapati Sambhajiraje Sahakar Udyog Ltd.
The State of Maharashtra, The Commissioner of Sugar, Maharashtra State, Pune
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India challenging the validity of para 3 of Government Resolution dated 21.10.2011 as ultra vires Article 14.
Remedy Sought
Declaration that para 3 of Government Resolution dated 21.10.2011 is ultra vires Article 14 and direction to pay compensation for recovery loss and transportation charges as per Government Resolutions dated 14.11.2011 and 06.05.2011 ignoring para 3.
Filing Reason
The petitioners, non-cooperative sugar factories, alleged that para 3 of the Government Resolution dated 21.10.2011 creates hostile discrimination between similarly placed cooperative and non-cooperative sugar factories.
Issues
Whether para 3 of the Government Resolution dated 21.10.2011 is ultra vires Article 14 of the Constitution of India.
Submissions/Arguments
Petitioners argued that para 3 of the Government Resolution dated 21.10.2011 creates hostile discrimination between similarly placed persons, violating Article 14.
Respondent-state argued that the classification is reasonable and based on intelligible differentia.
Ratio Decidendi
The classification between cooperative and non-cooperative sugar factories in para 3 of the Government Resolution dated 21.10.2011 is based on intelligible differentia and has a rational nexus with the object sought to be achieved, thus not violative of Article 14.
Judgment Excerpts
By this petition under Article 226 of the Constitution of India, the petitioners are seeking a declaration that para 3 of the Government Resolution dated 21.10.2011 is ultra vires Article 14 of the Constitution of India as it creates a hostile discrimination between similarly placed persons.
The above reliefs are sought in the following factual background. Each of the petitioners before us are limited companies but carrying on business of manufacturing sugar at their factories. Thus they are non co-operative sugar factories.
Procedural History
The petitioners filed Writ Petition No. 1602 of 2014 before the High Court of Judicature at Bombay Bench at Aurangabad under Article 226 of the Constitution of India challenging para 3 of Government Resolution dated 21.10.2011. The court heard the matter on 21.06.2017 and dismissed the petition.
Acts & Sections
- Constitution of India: Article 14, Article 226
