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(2)In particular and without prejudice to the generality of the foregoing power, such rules may provide for; x x x x (u)the reference to the Cane Commissioner of disputes relating to the supply of cane for decision or if he so directs to arbitration, the mode of appointing an arbitrator or arbitrators, the procedure to...
Purchase of cane growing in a reserved area. (1) The occupier or manager of a factory shall estimate or cause to be estimated by 30th September, the quantity of sugarcane with each grower enrolled in the Growers ' Register and shall submit the estimates to the Collector. STA
The Collector may, after such enquiries as he considers necessary, modify the estimates and 769 cause them to be published in such manner as he may direct, In framing these estimates, sugarcane grown in more than one third of the area of land suitable for sugarcane cultivation in the holding of each grower may be exclu...
(2)A cane grower or a cane grower 's co operative society in a reserved area may offer in form 10, Appendix III, by the 15th October each year to supply during the crushing season to the occupier or manager of the factory for which the area has been reserved, cane not exceeding, in the case of a cane grower, the quanti...
(3)The occupier or manager of the factory for which the area is reserved shall enter into an agreement with the cane grower or the cane growers ' co operative society as the case may be, in forms 15 and 18 respectively or in any other form approved by the Cane Commissioner within a month of the offer mentioned in sub. ...
rule (2). STA
(4)The occupier or manager of a factory shall spread the purchase made in the reserved area in an equitable manner and shall in the case of cane grower of the reserved area make purchase of cane only after issuing requisition slips. STA
In order to comply with this rule the occupier or manager shall 'cause identification cards to be distributed to all cane growers of the reserved area to whom requisition slips have been issued and shall maintain a record of the same. STA
He will also keep a record of the requisition slips issued and distributed to the growers and returned by them. STA
770 (5)Cane grown in a reserved area shall not except with the permission of the Cane Commissioner be purchased by any person with out the previous issue at convenient centres in the reserved area of requisition slips and identification cards to the growers, by the occupier or manager of the factory for which the area ...
(6)Requisition slips and identification cards to members of a "can growers ' co operative society shall not be issued except by such society. STA
(7)In case of a dispute whether a particular system adopted for the purchase of cane grown in the reserved area is equitable or not, the dispute may be 'referred to the Cane Commissioner whose decision shall be final "23. STA
Arbitration (1) Any dispute touching an agreement referred to in section 18 (2) or section 19 (2) of the Act shall be referred to the Cane Commissioner for decision, or if he so directs to arbitration. STA
No suit shall lie in a civil or revenue court in respect of any such dispute. STA
(2)If the Cane Commissioner directs the reference of a suit to arbitration, it shall be referred to a sole arbitrator acceptable to the parties concerned. STA
In case no sole arbitrator is acceptable to both parties, the dispute in question shall be referred to a Board of Arbitration, consisting of one representative of each party and an umpire acceptable to both representatives. STA
If the representatives or the parties are unable to elect such an umpire within a fortnight, the Cane Commissioner shall either himself act as umpire or nominate one. STA
The umpire shall be the President of the Board of 771 Arbitration and shall have a vote in case of disagreement between the representatives. STA
(3)The sole arbitrator or the President of the Board, of Arbitration shall have the full power of a court in respect of summoning the parties, witnessess and records. STA
(4) The decision of the sole arbitrator or Board of Arbitration shall be final and binding on both parties and shall not be called in question in any civil or revenue court. STA
(5) The sole arbitrator or the Board of Arbitration shall give an award within the time fixed by the Cane, Commissioner, failing which the Cane Commissioner may decide the dispute himself or appoint another arbitrator or arbitrators for the purpose. STA
(6)Any party considering himself aggrieved by an award may appeal to the Commissioner of the Division in which the factory is situated within one month of the date of the communication of the award and the Commi ssioner shall pass such order as he deems fit. STA
(7)The Commissioner 's order in appeal shall be final. STA
(8)On application to the Civil Court having jurisdiction over the subject matter of the decision or award, the decision of the Cane Commissioner, or the award of the arbitrator or arbitrators, or the Commissioner 's order in a peal against an award, shall be enforced by the Court as if such decision, award, or order in...
" " 25.Penalties (1) Any person contravening any of the provisions of these rules for which no 772 penalty has been provided in the Act or not obeying a lawful order or direction conveyed to him in writing which the Cane Commissioner or a Collector or an Inspector is authorised to pass or issue shall be punishable with...
In these two years, the Cane Marketing Society offered sugar cane by Form 10. Ratio
According to the appellant, the Society should have offered 85% of its net estimated crop but it made an offer in both the years which was less than 85% and actually supplied a quantity which was still less. Ratio
The relevant figures or the two years, according to the appellant, were as follows: 1949 50 1950 51 (In Lacs of Maunds) Net estimated Crop 45.82 55.20 Less 15% 6.82 8.28 85% which should have been offered 39.00 46.92 Opposite party No 2 offered to sell finally 32.00 32.00 Shortage in offer 7.00 14.92 Actually supplied ...
This was preceded by a long correspondence 773 which began in June 1950. FAC
Of this correspondence a few of the letters have been printed in the record of the case. FAC
The first letter is by the appellant to the Cane Marketing Society Ltd., Bijnor, in which a claim for Rs. 1,02,116 13 0, as compensation on account of short supplies in the season 1949 50 was made. FAC
The next letter in August, 1950, showed that the Society was claiming a sum of Rs. 1,64,094 4 6 as commission for the years 1948 49 and 1949 50 and that the appellant was setting up a counterclaim for Rs. 1,04,890 2 9 as compensation for short supply. FAC
On November 4,1950, the appellant wrote a final letter giving the accounts and sending a cheque for Rs. 22628 13 0 in full satisfaction of the claim. FAC
This cheque was accepted by the Society but under protest. FAC
The real dispute was about the compensation for short supplies which the Society did not admit. FAC
According to the Society they had a claim for Rs. 2,63,624 2 6 and they also moved the Cane Commissioner under Rule 23 (1) of the U. P. Sugar Control Act and Rules, 1938, for arbitration. FAC
The Cane Commissioner, who had not acted on the letter of the appellant, then passed an order on July 26, 1951, calling upon the parties to be present before him on August 18, 1951, for the decision of the dispute. FAC
On September 3, 1951, the appellant filed a petition under article 226 of the Constitution for a Writ of Certiorari to quash the proceedings pending before the Cane Commissioner, for a Writ of Prohibition for restraining the Cane Commissioner from continuing the proceedings and for a writ of quo warranto for a declarat...
In support of the petition the appellant contended that there could be no arbitration in this dispute because the agreement was not a proper agreement as the Society had omitted to complete the prescribed form XII by leaving the Schedule, the area of cultivation and the estimated yield, blank and as the agreements were...
In the alternative, it was contended that Rule 23 offended against article 14 of the Constitution because it provided two different methods of decision of the disputes one by the Cane Commissioner and the other by arbitration leaving it to the arbitrary will of the Cane Commissioner to choose which it should be in a pa...
It was further contended that the provision in sub Rule (6) of Rule 23, which provided for an appeal went beyond the rule making power of the Provincial Government as no such power was conferred on it by section 30 of the Act and sub Rule (6) being unseverable, the whole of Rule 23 must fail and that, there could be no...
The petition was heard by Chaturvedi, J., and was dismissed. FAC
A special appeal under the Letters Patent was heard by Mootham, C. J., and C. B. Agarwala, J. FAC
Both of them concurred in dismissing the appeal but there was a difference as to sub Rule (6) between the learned judges. FAC
According to the learned Chief justice, in making sub Rule (6) of Rule 23 the Provincial Government had exceeded its power and the Rule was invalid but the sub Rule was severable and the rest of the Rule was validly framed. RLC
According to Agarwala, J,, the sub Rule was properly framed and there was a right of appeal both against the order of the Cane Commissioner as well as the award of the arbitra tors to the Commissioner of the Division. RLC
Both the learned judge held that the provisions of Rule 23 were not discriminatory and thus not void under article 14. RLC
In this appeal the same points, which were urged before the High Court, have been urged before us. Ratio
The scheme of the Act and the Rules analysed above shows that the purchase of suger cane was 775 regulated. Ratio
There were reserved areas, assigned areas and other areas. Ratio
Supplies from a reserved area were meant for a factory for which the area was reserved and forms were prescribed for offer, agreements etc.so that the scheme might not be defeated by parties contracting out of the scheme. Ratio
We are not concerned with the merits of the rival contentions about short supply or unpaid commission. Ratio
Those are matters for adjudication elsewhere. Ratio
We are only con cerned with the. legality of the proceedings before the Cane Commissioner. Ratio
This dispute has been referred to him under Rule 23 not only by the Society but earlier also by the appellant. Ratio
The appellant now says that he had made a mistake arid seeks to avoid a decision by the Cane Commissioner or by arbitrator and has set up two contentions. ARG
The first is that by reason of three defects in the agreement of 1949 50 season and two in the agreement of 1950 51 season there is no binding contract as is contemplated by section 18(2) and the agreement not having come into force the Commissioner has no power to act under Rule 23. ARG
The defects are : (a) Absence of signature for the mills in both agreements, (b) Schedule left blank in both agreements, (c) Two blanks left in the agreement for 1949 50 season where an area and a quantity had to be mentioned. Ratio
The second contention is that Rule 23 enjoining arbitration is void under articles 13 and 14 of 'the Constitution as, on its face it allows discrimination and sub Rule (6) of Rule 23 making provision for an appeal is beyond the rule making power conferred by section 30 of the Act and that sub Rule being unseverable Rul...
We shall deal with the first contention separately and the other two points in the second contention together. Ratio
776 The first question thus to consider is whether there is a binding contract between the parties or not. Ratio
Clause No. 10 of the agreement which is in the prescribed form, says that "all disputes touching the agreement shall be decided by arbitration as provided for in the rules and no suit shall lie in a civil or revenue court in respect of any such dispute". Ratio
The exclusion of the jurisdiction of 'courts is also provided in Rule 23(1). Ratio
If the agreement were binding the matter would have to be referred to arbitration as laid down in Rule 23. Ratio
The agreement was challenged in the petition under Article 226 on four grounds. Ratio
Three of them deal with the facts in dispute with which we are not concerned. Ratio
The last was that "no agreement was entered into at all between the parties as contemplated under section 18(2) of the U.P. Sugar Factories Control Act and in the form No. 12 as prescribed under the Rules made thereunder." Ratio
The defects that are pointed out now, it is said, make out that there was no agreement at all. Ratio
To begin with the agreement was accepted on both sides and was acted upon. Ratio
The appellant himself moved the Cane Commissioner for the enforcement of the agreement on October 31, 1950. Ratio
He now says that this was under the erroneous belief that even without a written agreement Rule 23 app lied. Ratio
Even in the proceedings before the Cane Commissioner the appellant caused an appearance to be made and asked for time. Ratio
No objection that there was no valid agreement, was taken. Ratio
In his letters to the Society the appellant relied upon the agreements and calculated his compensation and the commission of the Society on its basis. Ratio
The appellant sent requisitions for supplies for sugar cane in accordance with Rule 15(5) and (6) and the agreement. Ratio
He accepted bills and paid for them. Ratio
The appellant had the signed form 10 and also form 12 with him. Ratio
He could have got the blanks filled in and also signed the agreement but evaded doing this. Ratio
By his conduct 777 the appellant appears prima facie to have accepted the agreement though now he is relying on his own default and petty omissions in the form. Ratio
Now it must be remembered that this form was prescribed so that the scheme of the Act and Rules should work smoothly, and the purchase and sale of sugar cane should follow a particular pattern. Ratio
The failure to enter into an agreement in the prescribed form was made an offence to compel the factories to keep to the scheme. Ratio
Here the form in fact has been used. Ratio
All the terms are included and none has been altered or new terms added. Ratio
The agreement has also been acted upon. Ratio
The question is whether the want of signature of the complaining party and the existence of the blanks render the contract void and non existing. Ratio
There is no doubt that in the agreement for the season 1949 50 the area of the crop in one place and the approximate yield from that area in another have not been filled in the blank space provided for that purpose. Ratio
The form in 1950 51 has no such blanks. Ratio
The agreement was preceded by from No. 10 which showed these particulars. Ratio
That form was with the appellant and it supplied these two details, namely, the area under cultivation and the estimated yield. 'Indeed, the two forms between them contained all the particulars which are required to be entered in the body of the agreement. Ratio
As regards the schedule to the agreement the headings read as follows: Village Area under sugar Approximate Remarks cane Deal: Ra yield in Mds.toon: Plant If the appellant required this information it could have been furnished. Ratio
The Schedule merely gives details village by village of the area under cultivation mentioned in form No. 10 and the body of the agreement and also shows the quality grown 778 in each village. Ratio
This is obviously to facilitate re quisitions being sent and the appellant if he has any complaint on this score can raise it in the proceedings. Ratio
The banks in the body of the agreement for 1949 50 thus are insignificant. Ratio
Those details were already mentioned in form 10. Ratio
They do not bear upon the terms which are quite unaffected by the omissions. Ratio
The form for 1949 50 season was therefore not invalid because of the omissions in the body of the agreement. Ratio
The schedule was intended to record the details of the crop grown but those details were not an integral part of the agreement or its terms. Ratio
The agreements for 1949 50 and 1950 51 season were therefore not invalid for this reason also. Ratio
This leaves over the absence of the signature of the party who had the custody of the document and who is now complaining of its absence. Ratio
It is somewhat odd that he should complain of the lack of his own signature because it is tantamount to his making a virtue of his own lapse. Ratio