Thursday, 23, Apr, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Tanajirao Tatyasaheb Kokare And ... vs The State Of Maharashtra Through ...
2017 Latest Caselaw 7601 Bom

Citation : 2017 Latest Caselaw 7601 Bom
Judgement Date : 27 September, 2017

Bombay High Court
Tanajirao Tatyasaheb Kokare And ... vs The State Of Maharashtra Through ... on 27 September, 2017
Bench: R.M. Savant
                                                       wp-9185-17(reserved)


              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                      CIVIL APPELLATE JURISDICTION
                     WRIT PETITION NO.9185 OF 2017

1 Tanajirao Tatyasaheb Kokare            )
Adult, Occupation-Agriculturist          )
R/at: Pandare, 413110, Taluka-Baramati   )
District Pune                            )

2 Balasaheb Patil Taware                 )
Adult, Occupation-Agriculturist          )
R/at: At post Shivnagar,                 )
Dtaluka Baramati, District Pune          )

3 Shivajirao Nanasaheb Jagtap            )
Adult, Occupation-Agriculturist          )
R/at: Pandare, 413110, Taluka-Baramati   )
District Pune                            )

4 Sangita Balasaheb Kokare               )
Adult, Occupation-Agriculturist          )
R/at: Pandare, 413110, Taluka-Baramati   )
District Pune                            )

5 Ramchandra Narayanrao Deokate          )
Adult, Occupation-Agriculturist          )
R/at: Nirwagaj, Taluka Baramati          )
District Pune                            )

6 Vilas Rishikant Deokate                )
Adult, Occupation-Agriculturist          )
R/at: Mekhali, Taluka-Baramati           )
District Pune                            )

7 Madanrao Tanajirao Deokate             )
Adult, Occupation-Agriculturist          )
R/at Post Nira Wagaj Taluka Baramati     )
District Pune                            )

8 Anil Nanasaheb Jagtap                  )
Adult, Occupation-Agriculturist          )
R/at: Pandare, 413110, Taluka-Baramati   )
District Pune                            )

mmj                                                                         1 of 21




      ::: Uploaded on - 27/09/2017           ::: Downloaded on - 28/09/2017 01:45:55 :::
                                                        wp-9185-17(reserved)

9 Bhagatsinh Hanumantrao Jagtap          )
Adult, Occupation-Agriculturist          )
R/at: Pandare, 413110, Taluka-Baramati   )
District Pune                            )

10 Madhavrao Shankarrao Dhawan           )
Adult, Occupation-Agriculturist          )
R/at: Malegaon Colony, 24, Phata         )
Taluka Baramati, District Pune           )

11 Vasantrao Baburao Taware              )
Adult, Occupation-Agriculturist          )
R/at: Malegaon, Taluka-Baramati          )
District Pune                            )

12 Prakashrao Bhikoba Taware             )
Adult, Occupation-Agriculturist          )
R/at: Sangavi, Taluka-Baramati           )
District Pune                            )

13 Karan Sambhajirao Khalate             )
Adult, Occupation-Agriculturist          )
R/at: Kambaleshwar, Taluka-Baramati      )
District Pune                            )

14 Dattatray Ganpatrao Gaware            )
Adult, Occupation-Agriculturist          )
R/at: 24 Phata,  Gaware Vasti,           )
Taluka-Baramati, District Pune           )

15 Satish Harishchandra Taware           )
Adult, Occupation-Agriculturist          )
R/at: Pavane Wadi, Malegaon              )
Taluka-Baramati District Pune            )

16 Govindrao Ramchandra Deokate          )
Adult, Occupation-Agriculturist          )
R/at: Nira Wagaj, Taluka-Baramati        )
District Pune                            )

17 Ramdas Tukaram Atole                )
Adult, Occupation-Agriculturist        )
R/at: 22 Phata, Khandaj Taluka-Baramati)
District Pune                          )

mmj                                                                         2 of 21




      ::: Uploaded on - 27/09/2017           ::: Downloaded on - 28/09/2017 01:45:55 :::
                                                          wp-9185-17(reserved)


18 Rajendra Sakharam Burungale            )
Adult, Occupation-Agriculturist           )
R/at: 22 Phata, Shivnagar 413116,         ) 
Taluka-Baramati District Pune             )

19 Vitthalrao Ramchandra Deokate          )
Adult, Occupation-Agriculturist           )
R/at: Mekhali, Taluka-Baramati            )
District Pune                             )          ..Petitioners


      Versus


1 The State of Maharashtra                )
through its Secretary to the Department   )
of Cooperation, Textile & Marketing       )
having his office at Mantralaya, Mumbai   )

2 The Commissioner of Sugar               )
having office at Sakhar Sankul,           )
Agricultural College Compound Shivaji     )
Nagar Pune 411 005                        )

3 The Regional Joint Director (Sugar)     )
Pune Division, having office at Sakhar    )
Sankul, Shivaji Nagar, Pune 411005        )

4 Malegaon Sahakari Sakhar Karkhana       )
Limited                                   )
A Cooperative Society registered under    )
the Cooperative Societies Act, 1960       )
having office at Shivnagar, Taluka        )
Baramati, District Pune, through its      )
Managing Director                         )                    

5 Vasantdada Sugar Institute,             )
A Sugar Industry Research Institute &     )
Consultant, preparing DPRs &              )
Feasibility Appraisal Reports,            )
through its Director General having       )
Office at Manjari Bk., Pune 412 307.      )                   ...Respondents 


mmj                                                                           3 of 21




      ::: Uploaded on - 27/09/2017             ::: Downloaded on - 28/09/2017 01:45:55 :::
                                                                          wp-9185-17(reserved)


Mr.   Y.   S.   Jahagirdar,   Senior   Advocate   a/w   Mr.   S.   S.   Kanetkar   for   the 
Petitioners
Mr. A. V. Anturkar Senior Advocate a/w Ms Manisha Jagtap i/b J. Shekhar 
& Co. for the Respondent  No.4
Ms Kavita Solunke AGP for the Respondent State 

                                     CORAM :R. M. SAVANT, &
                                                    SANDEEP K. SHINDE, JJ 
                                 RESERVED ON: 8th September, 2017
                                 PRONOUNCED ON : 27th September 2017   


JUDGMENT (PER R. M. SAVANT J.) 

1 Rule, considering the challenge raised heard forthwith.

2 The above Writ Petition takes exception to the orders dated 13-6-

2017 and 17-6-2017 passed by the Director of Sugar granting financial and

administrative approval for the modernization of the sugar factory and

distillery respectively, in so far as the Respondent No.4 sugar factory is

concerned. The Respondent No.5 is a formal party as no reliefs are claimed

against the said Respondent.

3 The Respondent No.4 is a co-operative sugar factory (sakhar

karkhana) registered under the provisions of the Maharashtra Co-operative

Societies Act, 1960 (for short the MCS Act). The Respondent No.4 has

approximately 14,000 members on its roll. The above Petition has been filed

by the Petitioners who claim to be "A" class members out of which 6 Petitioners

mmj 4 of 21

wp-9185-17(reserved)

are the Directors of the Respondent No.4 and therefore the members of the

board of the Respondent No.4. The genesis of the impugned orders passed by

the Director of Sugar lies in the order dated 11-4-2017 of a Division Bench of

this Court in PIL No.20 of 2006. The said PIL had arisen out of the letter dated

15-6-2005 addressed by one Shri Ashok Kulkarni who had worked as Project

Consultant and Co-ordinator for various sugar factories to the Hon'ble the

Chief Justice of this Court regarding the conditions of the sugar factories in the

State of Maharashtra. The said letter came to be treated as a PIL wherein the

said Shri Ashok Kulkarni was shown as the Petitioner. This Court in the said

PIL has passed orders from time to time including one directing the

Commissioner of Co-operation not to issue any permission for the

establishment of any new sugar factories. On 14-3-2011 a Division Bench of

this Court directed the State Government and the Commissioner of Co-

operation not to give any permission to any sugar factory for expansion,

modernization, alteration without the leave of this Court.

4 It is pursuant to the said order dated 14-3-2011 passed in the said

PIL, the Respondent No.4 filed a Civil Application being No.139 of 2016

seeking a direction to be issued to the Respondent No.2 to grant permission to

the Respondent No.4 for modernization of its sugar factory and distillery and

expansion of co-generation capacity from 21MW per day to 36MW per day.

The Petitioners herein had filed Civil Applications being Nos.145 of 2016 and

mmj 5 of 21

wp-9185-17(reserved)

12 of 2017, opposing the relief sought by the Respondent No.4. Along with the

Respondent No.4 some other co-operative sugar factories had also filed Civil

Applications for the same relief.

A Division Bench of this Court (V. M. Kanade and C. V. Bhadang

JJ.) after considering the said Civil Applications by order dated 11-4-2017

observed that it was not possible for it to entertain the Civil Applications

seeking expansion, modernization and repairing and therefore directed the

Commissioner of Sugar to consider such Applications on their own merits and

in accordance with law. It was observed by the Division Bench that while

examining the said Applications, the Commissioner of Sugar shall keep in

mind the parameters which are laid down in various orders passed by this

Court in the said PIL. In the context of the challenge raised in the instant

Petition, paragraph 4 of the said order assumes some importance and is

therefore reproduced hereinunder for the sake of ready reference :

"4. We are of the view that it will not be possible for this Court to entertain the application for expansion/ modernisation/ alteration/ addition programme. It is therefore, clarified that the Commissioner of Sugar shall examine each application to its aforesaid extent on merits and in accordance with law and it is no longer necessary to seek leave of this Court for that purpose. In view of this, all civil applications are disposed of. It is clarified that while examining the applications which are received, the Commissioner of Sugar shall keep in mind the parameters, which are laid down in various orders passed by this Court from time to time."

5 The State Government has issued circulars for streamlining the

mmj 6 of 21

wp-9185-17(reserved)

procedure for consideration of the applications filed by the sugar factories for

various permissions. In the circular dated 9-4-2009 the State Government has

provided that such applications should be routed through the Regional Director

of Sugar. It is further made clear that applications not rooted through the

Regional Director of Sugar would not be considered. By a further circular

dated 23-12-2009 the Regional Directors of Sugar have been informed that

they are to ensure that the proposals are accompanied by the documents

mentioned in the said circular. The said circular enumerates the documents

which are to accompany the applications for such permissions, amongst the

documents are the "Health Certificate" and the Detailed Project Report (DPR

for short). The said circular provides that the proposal should be submitted by

the Regional Director of Sugar after all the defects are removed so that

approval to the proposal can be granted expeditiously. Then there is a circular

dated 30-8-2003 which makes out suggestions as regards the preparation of

the DPR.

6 The Respondent No.4 herein applied for financial and

administrative approval for modernization of the distillery to the Commissioner

of Sugar on 3-5-2017. The Respondent No.4 also applied for the financial and

administrative approval for the modernization of the sugar factory on 5-6-

2017. It seems that the Respondent No.4 had simultaneously applied to the

Vasantdada Institute of Sugar, Pune (VIS for short), for preparing the DPR.

mmj                                                                                          7 of 21





                                                                     wp-9185-17(reserved)

The VIS had submitted its report in May 2017 to the Respondent No.4 which

was accordingly forwarded to the office of the Commissioner of Sugar by the

Respondent No.4. The Respondent No.4 had also as per the requirement

submitted a Health Certificate. The Commissioner of Sugar by the impugned

orders dated 13-6-2017 and 17-6-2017 accorded financial and administrative

approval to the modernization of the distillery and the sugar factory

respectively. The Commissioner of Sugar has in the impugned orders referred

to the gist of the DPR and the balance sheet of the Respondent No.4 Karkhana

which was submitted by it and accorded approval to the expenditure of

Rs.3200.64 lakhs for the modernization of the distillery and for the

expenditure of Rs.3843.66 lakhs for the modernization of the sugar factory. As

indicated above it is the said two orders dated 13-6-2017 and 17-6-2017 which

are taken exception to by way of the above Petition.

7 On behalf of the Respondent No.4, the Learned Senior Counsel Mr.

A. V. Anturkar took a preliminary objection to the maintainability of the above

Petition on the ground of the availability of an alternate remedy by way of the

Revision under Section 154 of the MCS Act. According to the Learned Senior

Counsel, the impugned orders are passed in a "proceeding" and would

therefore be covered by Section 154 of the MCS Act. Reliance is placed by the

Learned Senior Counsel on the Full Bench Judgment of this Court in the matter

of Shireen Sami Gadiali & Anr Vs. Spenta Co-op Hsg Soc Ltd, 1 in support of 1 2011(3) Mh. L.J. 486

mmj 8 of 21

wp-9185-17(reserved)

the said contention.

8 Per contra, the Learned Senior Counsel appearing for the

Petitioners Mr. Y. S. Jahagirdar would contend that the orders passed by the

Commissioner of Sugar are not under any of the provisions of the MCS Act and

therefore the remedy by way of an Revision under Section 154 is not available.

The Learned Senior Counsel would further contend that since the Petitioners

are alleging breach of the principles of natural justice in as much as the

Petitioners not being heard, they are entitled to invoke the Writ Jurisdiction of

this Court. The Learned Senior Counsel would further contend that the

impugned orders have been passed by the Commissioner of Sugar by not

following the mandate of the orders passed by this Court in the said PIL No.

20 of 2006. In so far as the preliminary objection is concerned, the Learned

Senior Counsel would contend that in view of the endorsement made by the

Hon'ble Minister for Co-operation on the applications made by the Respondent

No.4 to the effect that the said applications be considered, it would be an

exercise in futility to approach the State Government in Revision.

9 On merits it was the submission of the Learned Senior Counsel Mr.

Jahagirdar that the orders passed by the Commissioner of Sugar are not

speaking orders and do not reflect the consideration by the Commissioner of

the Health Certificate and the DPR. It was the submission of the Learned

mmj 9 of 21

wp-9185-17(reserved)

Senior Counsel that the circulars issued by the State Government have not

been followed. It was also the submission of the Learned Senior Counsel that

the Respondent No.4 has projected its financial position by reflecting the

pledged amount which is lying with it. The Learned Senior Counsel would

contend that inspite of there being a shortage of molasses to the extent of

10,000 tonnes, the financial and administrative approval has been granted by

the Commissioner of Sugar. The Learned Senior Counsel would therefore

contend that the impugned orders are required to be interfered with in the

Writ Jurisdiction of this Court.

10 Per contra it was the submission of Mr. Anturkar the Learned

Senior Counsel appearing for the Respondent No.4, that the Respondent No.4

has followed the procedure prescribed for submission of its proposal for

modernization of its distillery and sugar factory. The Learned Senior Counsel

drew this courts attentions to the fact that the proposal was routed by the

Respondent No.4 through the Regional Director of Sugar. It was the

submission of the Learned Senior Counsel that whilst considering the

applications filed by the Respondent No.4 for according financial and

administrative approval, it was not necessary to hear the Petitioners as what

was contemplated by the order passed by the Division Bench dated 11-4-2017

was to consider the applications filed by the sugar factories for permissions

and not the applications filed by other parties objecting to the applications.

mmj                                                                                        10 of 21





                                                                        wp-9185-17(reserved)

The Learned Senior Counsel would submit that assuming that the circulars

issued by the State Government were not followed in letter and spirit, the

interference of this Court in its Writ Jurisdiction is not warranted. Reliance is

placed on the following judgments of the Apex Court in the matter of R.

Abdulla Rowther Vs. The State Transport Appellate Tribunal, Madras &

Ors.2 and in the matter of Kumari Regina Vs. St. Aloysius Higher

Elementary School & Anr.3

11 The Learned Senior Counsel would next contend that there is a

close proximity between the filing of the application and the submission of the

DPR by the VIS as the Respondent No.4 had after making the application had

concurrently started the process for obtaining the DPR from the VIS. The

Learned Senior Counsel would contend that the apprehension of the

Petitioners are misfounded as the Respondent No.4 has not applied for any

Government assistance but has arranged finance from the NCDC. The Learned

Senior Counsel would lastly contend that the Respondent No.4 has already

dismantled the old machinery for facilitating the modernization and has

placed orders for machinery worth Rs.21.62 crores and also paid an amount of

Rs.17 crores for harvesting and transportation of the sugarcane for the ensuing

crushing season. It is therefore imperative that the work of modernization is

completed before the crushing season commences towards the end of the year.


2   AIR 1959 Supreme Court 896(V 46 C 125)
3   (1972) 4 Supreme Court Cases 188


mmj                                                                                       11 of 21





                                                                           wp-9185-17(reserved)




12              Having heard the Learned Senior Counsel for the parties, the issue 

which is required to be addressed at the outset, is the issue of whether the

Petitioners are required to be relegated to the remedy by way of a Revision

under Section 154 of the MCS Act. The impugned orders dated 13-6-2017 and

17-6-2017 as indicated above passed by the Commissioner of Sugar accord

financial and administrative approval submitted by the Respondent No.4 for

modernization of the distillery and sugar factory. The said orders have been

passed by the Commissioner of Sugar as the application filed by the

Respondent No.4 was relegated to him by the order dated 11-4-2017 passed

by the Division Bench of this Court in the said PIL No.20 of 2006. The

application filed for modernization of a sugar factory is not referable to any

provision of the MCS Act. In so far as the proceeding under Section 154 is

concerned, it can be filed against an order passed in any proceeding under the

MCS Act. We are unable to accept the contention of the Learned Senior

Counsel Mr. Anturkar that the application made by the Respondent No.4 for

modernization would be a proceeding within the meaning of Section 154. The

word proceeding would have to take its colour from the word inquiry

appearing in the said provision by applying the principal of ejusdem generis.

13 In so far as the exercise of power by the State Government under

the said provision i.e. Section 154 is concerned an exception is carved out

mmj 12 of 21

wp-9185-17(reserved)

namely that the inquiry or proceeding referred to in sub Section (9) of Section

149 are excluded from the provision of Section 149. Implicit in the said fact is

the fact that the inquiry or proceeding contemplated in Section 154 has to be

under the said MCS Act. In the instant case the application filed by the

Respondent No.4 for modernization is not ascribable to any provision of the

said MCS Act.

14 Though there can be said to be a thin line separating a quasi

judicial order from an administrative order, in our view since in passing the

order granting financial and administrative approval, no lis is decided by the

Commissioner of Sugar, the impugned orders partakes the character of

administrative order and therefore the remedy by way of a Revision under

Section 154 cannot be resorted to. Having reached the aforesaid conclusion

and though it is not necessary for us to deal with the other contentions urged

by the Learned Senior Counsel in support of the maintainability of the above

Petition, we deem it appropriate to deal with the said contentions also. In so

far as the contention of the breach of the principles of natural justice are

concerned. As indicated above, the Division Bench by its order dated 11-4-

2017 directed the consideration of the application filed by the Respondent

No.4 for modernization though Civil Applications filed by the Petitioners

objecting to the Civil Application filed by the Respondent No.4 were also listed

before the Division Bench, the order of the Division Bench cannot be construed

mmj 13 of 21

wp-9185-17(reserved)

to mean that the Petitioners were required to be heard by the Commissioner of

Sugar. Hence apart from the fact that the orders passed on the application

filed by the Respondent No.4 are administrative orders and no lis between the

parties was to be decided, the contention of the Petitioners if accepted, would

give rise to a new jurisprudence were even in respect of administrative orders

the objections would have to be considered and dealt with by the concerned

Authority. Hence we do not find any infirmity in the orders on the grounds of

violation of principles of natural justice. In so far as the endorsement on the

application made by the Hon'ble Minister for Co-operation is concerned, as

indicated above the said endorsement directs the proposal to be put up

expeditiously. In our view, the said endorsement has the effect of creating a

reasonable apprehension in the Petitioners that approaching the State

Government would be futile when the Hon'ble Minister for Co-operation who

is in charge of the Department concerned has made an endorsement. Having

regard to the dictum that justice should not only be done but should also be

seen to have been done, we hold that the above Petition is maintainable.

The judgment of the Full Bench in Spenta Co-operative Societies

case (supra) holds that after the amendment in the year 1974 to Section 154 a

remedy by way of a revision is available to an aggrieved party as a matter of

right. However, the Full Bench has observed that no general rule where it will

always operate as an alternate remedy can be laid down. The question will

have to be considered in the facts of each case. As indicated above having

mmj 14 of 21

wp-9185-17(reserved)

regard to the facts of the present case, the remedy by way of a Revision cannot

be an alternate remedy to which the Petitioners can be relegated.

15 Now coming to the aspect of the violation of the circulars issued

by the State Government. In so far as the said circulars are concerned, the

circular dated 30-8-2003 provides for the manner in which the DPR is required

to be prepared. In so far as the circular dated 9-4-2009 is concerned, it

provides for the proposal seeking various permissions by the sugar factories to

be routed through the Regional Director of Sugar and in so far as circular

dated 23-12-2009 is concerned, it provides for the documents which are to be

annexed to the proposals. Based on the circular dated 23-12-2009 it was the

submission of the Learned Senior Counsel appearing for the Petitioners that

the said circular stipulates the priorities in which the documents mentioned

therein are to be obtained and it is only after obtaining all the documents that

the proposal can be submitted. We are unable to accept the said submission of

the Learned Senior Counsel appearing on behalf of the Petitioners, the said

circular dated 23-12-2009 only provides for the documents which are required

to be submitted along with the proposal, reading of the circular in the manner

suggested by the Learned Senior Counsel would be a misreading of the said

circular. As indicated above, it is the case of the Respondent No.4 that whilst it

submitted its proposal for modernization, it simultaneously applied for the

DPR to the VIS and the DPR was before the Commissioner of Sugar before he

mmj 15 of 21

wp-9185-17(reserved)

took a decision on the proposal of the Respondent No.4. It is not the case of

the Petitioners that the Respondent No.4 did not submit the documents as

contemplated in the circular dated 23-12-2009. If that be so, the order cannot

be said to be vitiated on the ground that the proposal was not submitted after

obtaining the Health Certificate and the DPR. There can also be no dispute

about the fact that the proposal was routed through the Regional Director of

Sugar who forwarded the same to the Commissioner of Sugar with his

remarks. The Learned Senior Counsel appearing for the Respondent No.4 had

brought for our perusal the proposal submitted through the Regional Director

of Sugar. In our view, therefore, the orders do not suffer from any infirmity or

illegality on account of the alleged non compliance of the circulars.

16 At this stage, a useful reference could be made to the judgments

cited by the Learned Senior Counsel appearing for the Respondent No.4 in R.

Abdulla Rowther's case (supra) the facts were that Section 43A of the Motor

Vehicles Act entitled the State Government to issue administrative or executive

orders which were not required to be published and not even to be made

known to the persons applying for permissions. The said administrative

instructions were issued for the information and guidance of the authorities

issuing the permits. The said instructions are not in the nature of statutory

rules having the force of law. The Apex Court held in the said case that their

breach even if patent could not justify the issue of Writ of Certiorari.

mmj                                                                                     16 of 21





                                                                             wp-9185-17(reserved)




17              In Kumari Regina's case (supra) the Government had framed rules 

for the grant of recognition and aid to the schools under the Madras

Elementary Education Act, 1920. The said rules were in the form of

administrative instructions. If such rules were to laid down the Government

can insist that satisfaction of such conditions would entail the denial of

withdrawal of recognition or aid. The rule thus governing the terms which the

Government would grant recognition and aid the Government can therefore

enforce those rules upon the management. The Apex Court held that the

enforcement of such rules is a matter between the Government and the

management and a third party, such as a teacher aggrieved by some order of

the management cannot derive from the rules any enforceable right against

the management on the ground of breach or not compliance of any of the

rules.

18 In our view, the judgments supra support the case of the

Respondent No.4 that even if there is some infraction of the circulars, the same

does not create any enforceable right in favour of the Petitioners for the Writ

Jurisdiction of this court to be exercised.

19 As regards the aspect of the violation of the principles of natural

justice on the ground that the Petitioners were not heard, we have already

mmj 17 of 21

wp-9185-17(reserved)

dealt with the said issue whilst dealing with the preliminary objection. To

further elaborate on the said issue, the right to a hearing is claimed on the

basis of the order dated 11-4-2017 passed by the Division Bench in the said PIL

No.20 of 2006. It is required to be noted that the Civil Application filed by

the Respondent No.4 was seeking permission from this Court for

modernization of its distillery and sugar factory. The said Civil Application

filed by the Petitioners as indicated above was listed along with the Civil

Applications filed by the other sugar factories. The Civil Applications filed by

the Petitioners were objecting to such permission being granted by the Division

Bench. The Division bench did not deem it appropriate to consider the Civil

Applications for modernization and directed the Commissioner of Sugar to do

so who is undoubtedly the authority vested with the said power. Hence what

was to be considered by the Commissioner of Sugar was the application of the

Respondent No.4 for modernization. The said order passed by the Division

Bench therefore cannot be interpreted to mean that all the parties were

required to be heard and thereafter the Commissioner of Sugar was to pass a

reasoned order. It would have to be borne in mind that the approval to be

granted by the Commissioner of Sugar is the financial and administrative

approval to the modernization of the Respondent No.4. The Commissioner of

Sugar was therefore was not deciding any lis between the parties. The order

passed by the Commissioner of Sugar therefore partakes the character of an

administrative order and therefore though there is a thin line separating an

mmj 18 of 21

wp-9185-17(reserved)

administrative order from a quasi judicial order in the facts of the present case

where the orders passed by the Commissioner of Sugar are not ascribable to

any provision of the MCS Act, we are of the view that the necessity to hear the

Petitioners was obviated.

The issue has to be looked at from one more perspective, the

Respondent No.4 has in its General Body meeting dated 26-9-2016 passed a

Resolution for modernization of its sugar factory and distillery. The Petitioners

have challenged the said Resolution by filing a Dispute under Section 91 being

Dispute Application No.46 of 2017. Hence the Petitioners have invoked the

jurisdiction of a forum where they can ventilate their grievance as regards the

decision taken by the General Body of the Respondent No.4 in respect of

modernization. In our view therefore it is in the said proceedings that the

legality or otherwise of the Resolution passed by the General Body of the

Respondent No.4 would be gone into. The Petitioners therefore cannot be

heard to say that they ought to have been heard by the Commissioner before

granting financial and administrative approval for modernization. We

therefore do not find that there is any violation of the principles of natural

justice in so far as the orders passed by the Commissioner of Sugar are

concerned.



20              It   is   required   to   be   noted   that   in   the   Dispute   filed   by   the 


mmj                                                                                         19 of 21





                                                                        wp-9185-17(reserved)

Petitioners being No.46 of 2017, the Petitioners had filed an application for

interim reliefs i.e. to stay the effect and implementation of the said

Resolution. The said Application filed by the Petitioners was rejected by the

Co-operative Court. It is thereafter that the instant Petition has been moved by

the Petitioners. The Respondent No.4 has placed on affidavit the events which

have taken place after the financial and administrative approval was granted

by the Commissioner of Sugar. It has been averred in the said affidavit that an

amount of Rs.17 crores for harvesting and transportation of sugarcane for the

ensuing crushing season has been expended. The factum that the old

machinery upto 80% being dismantled and an amount of Rs.21.62 crores

being disbursed upto 30th August 2017 towards the purchase of machinery has

come on record. The said purchase has been made by calling for tenders. The

tenders received were submitted to the State Level Purchase Committee which

has approved the purchase. The crushing season for the year 2017 would

begin towards the year end and hence it is imperative that the work of

modernization is completed at the earliest. It is also required to be noted that

the Respondent No.4 has not taken any financial assistance from the State

Government and has taken loan from the NCDC. Hence the apprehension of

the Petitioners on the ground that the finance is being taken from the State

Government is assuaged. The fact that the Resolution was passed by the

General Body unanimously and the Managing Committee by a majority is also

to be taken into consideration whilst adjudicating upon the above Petition. It

mmj 20 of 21

wp-9185-17(reserved)

is also required to be borne in mind that the Petitioners appear to be a

minority group which is opposing the modernization of the sugar factory and

distillery.

21 Hence for the reasons aforestated, we do not deem it appropriate

to interdict with the decision taken by the Commissioner of Sugar vide the

impugned orders dated 13-6-2017 and 17-6-2017, in our Writ Jurisdiction

under Article 226 of the Constitution of India, the Writ Petition is accordingly

dismissed. Rule discharged, with parties to bear their respective costs.

[SANDEEP K. SHINDE, J]                                                 [R.M.SAVANT, J]



            




mmj                                                                                          21 of 21





 

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IDRC

 

LatestLaws Partner Event : IJJ

 
 
Latestlaws Newsletter