The Chhattisgarh Sugarcane (Regulation of supply and Purchase) Act, 1958

(a) "Cane" means sugarcane intended for use in a factory; (b) "Cane-grower" means a person who cultivates cane either by himself or by members of his family or by hired labour and who is not a member of a Cane-growers' Co-operative Society, registered under such Co-operative Societies Act, as may be prescribed, and includes a group of such cane-growers and such societies, registered under such Co-operative Societies Act, as may be prescribed to act as a representative of such members; (c) "Council" means the Cane Development Council established under section 5; (d) "Factory" means any premises, including the precincts thereof, wherein twenty or more workers are working or were working on any day of the preceding twelve months and in any part of which any manufacturing process connected with the production of sugar is being carried on or is ordinarily carried on with the aid of power or mechanized power; (e) "Member" means the company as defined in the Indian Companies Act, 1956 (I of 1956); (f) "Occupier of a factory" means the person who has ultimate control over the affairs of the factory, and where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory; (g) "Purchasing agent" means a person licensed under this Act to act as a purchasing agent; (h) "Reserved Area" means an area specified in an order issued under this Act. In this Act, unless there is anything repugnant in the subject or context,— (a) "assessment year" means the period of twelve months commencing on the first day of April; (b) "crusher" means a crusher as defined in the rules; (c) "factory" means any premises including the precincts thereof in any part of which any manufacturing process connected with the production of sugar by means of vacuum pans is being carried on or is ordinarily carried on; (d) "gur" means the product ordinarily known as gur, gul, jaggery, shakkar, gul shakkar, prepared by pan boiling or open pan boiling of sugarcane juice or rab; (e) "khandsari sugar" means sugar produced by open pan process; (f) "occupier of a factory" means the person who has ultimate control over the affairs of a factory, and where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory; (g) "prescribed" means prescribed by rules made under this Act; (h) "purchase" means a purchase of sugarcane for use in a factory or gur, rab or khandsari sugar manufacturing unit; (i) "rab" means massecuite prepared by concentrating sugarcane juice in open pans; (j) "State Government" means the Government of Chhattisgarh; (k) "sugarcane" means sugarcane intended for use in a factory or in a gur, rab or khandsari sugar manufacturing unit; (l) "cane grower" means a person who cultivates sugarcane either by himself or by hired labour or otherwise and who is not a member of a co-operative society; (m) "cane growers' co-operative society" means a society registered under the Co-operative Societies Act, for the time being in force, one of whose objects is to sell sugarcane grown by its members; (n) "cane commissioner" means an officer appointed by the State Government as Cane Commissioner and includes any officer empowered by the State Government to exercise all or any of the powers of the Cane Commissioner; (o) "price" means the price of sugarcane; (p) "sugar" means any form of sugar containing more than ninety per cent of sucrose;

(1) There shall be established by the State Government, by notification, a Sugarcane Board for Madhya Pradesh. (2) The Board shall consist of— (a) the Minister-in-charge of Agriculture; (b) the Minister-in-charge of Industries; (c) the Secretary to the State Government in the Agriculture Department or such other officer as may be nominated by the State Government. (3) The Minister-in-charge of Agriculture shall be the Chairman of the Board and the officer nominated under clause (c) of sub-section (2) shall be the Secretary of the Board. (4) The term of office of a member appointed under clause (c) of sub-section (2) shall be three years from the date of the publication of the name of such member in the Gazette. (5) The Chairman shall, if present, preside at all meetings of the Board and in his absence the Minister-in-charge of Industries. If the Chairman and the Minister-in-charge of Industries are both absent at a meeting of the Board, then the members present shall elect a Chairman for the meeting. The State Government may appoint a Cane Commissioner and such other officers and staff as it may think fit for the purposes of this Act.

The Board shall advise the State Government on the following matters— (a) matters pertaining to the regulation of supply and purchase of cane for sugar factories; (b) the varieties of cane which are suitable or unsuitable for use in sugar factories; (c) the maintenance of healthy relations between occupiers or managers of factories, cane-growers, Cane-growers' Co-operative Societies and purchasing agents; and (d) such other matters as may be prescribed. (1) The Cane Commissioner may, after consultation with the factory concerned, reserve any area (hereinafter called the reserved area) for the purposes of the supply of sugarcane to a factory in accordance with the provisions of section 16 and in such manner as may be prescribed. (2) The Cane Commissioner may also direct that sugarcane shall not be purchased or sold in any area other than the reserved area except under and in accordance with the provisions of a permit issued in that behalf.

(1) There shall be established, by notification, for the area of a factory a Cane Development Council which shall be known by the name of such area or such other name as the State Government may notify in this behalf, having perpetual succession, common seal or qualifications as may be imposed under this Act or any other enactment, residing in the capacity of suing and being sued in its corporate name of acquiring, holding, administering and transferring property, movable and immovable, and of entering into contracts. Provided that, if the Cane Commissioner so directs, the Council may be established for two or more factories, the reserved area of a factory. (2) The area for which a Council is established shall be called the zone.

(a) to consider and approve the programme of development for the zone; (b) to devise ways and means for the execution of the development programmes; (c) to take necessary steps for the development of cane and other agricultural work; (d) to check pests and diseases. The Cane Commissioner, if he is satisfied that it is necessary so to do for the purpose of ensuring that sugarcane is supplied to the factories in accordance with the provisions of this Act and the rules made thereunder, may by order— (a) prohibit or restrict the supply of sugarcane in any area to any person other than the factory or its agent or other person as may be specified in the order; (b) prohibit or restrict the purchase of sugarcane in any area by any person other than the factory or its agent or other person as may be specified in the order; (c) restrict or regulate the movement of sugarcane in any area; (d) direct that the supply and purchase of sugarcane in any area shall be made in accordance with the provisions of this Act and the rules made thereunder.

A casual vacancy in the Council shall be filled up in the manner stated in section 5 and the person so nominated to fill the casual vacancy shall hold office for the unexpired term of his predecessor. (1) The Government may, after consultation with the Factory Board, if any, or where there is no Factory Board, after such consultation as it thinks fit, by order, reserve any area (hereinafter called the reserved area) for the purposes of the supply of sugarcane to a factory for such period as may be specified in the order. (2) The Government may, by order, direct that in a reserved area, no person other than the factory for which such area is reserved shall purchase sugarcane except with the permission of the Cane Commissioner. (3) The Government may, if it is satisfied that the supply of sugarcane to a factory is not sufficient or that it is necessary to do so in the interest of the factory or of agriculture, by order, declare any area to be an assigned area and may regulate the supply of sugarcane from such area to the factory. (4) The Government may, by order, direct that the factory for which an area has been reserved or assigned shall purchase such quantity of sugarcane as may be specified in the order, and at such price as may be fixed by the Government. (5) In a reserved or assigned area, the factory for which such area is reserved or assigned shall purchase such quantity of sugarcane as may be offered by the cane-growers or their co-operative societies. (6) The Government may, by order, direct that if a factory fails to purchase the sugarcane offered to it in accordance with the provisions of this section, it shall be liable to pay such compensation as may be determined by the Cane Commissioner, not exceeding such amount as may be prescribed. (7) Every order made under this section shall be published in the Official Gazette and shall come into force from the date of such publication.

(1) The Government may, after consultation with the Advisory Committee, by order, fix the minimum price of sugarcane to be paid by the factories. (2) No person shall purchase or offer to purchase sugarcane at a price less than the minimum price fixed under sub-section (1). (3) The Government may, by order, direct that the minimum price so fixed shall be paid by the factory to the cane-grower at such time and in such manner as may be specified in the order. (4) If a factory fails to pay the price of sugarcane in accordance with the provisions of this section, it shall be liable to pay such interest on the amount due as may be prescribed by the Government.

(1) The Government may, for the purpose of ensuring the supply of sugarcane to factories, make rules providing for— (a) the regulation of the purchase and sale of sugarcane; (b) the registration of cane-growers and their co-operative societies; (c) the regulation of the weighment of sugarcane; (d) the maintenance of records and the submission of returns; (e) the inspection of factories and sugarcane fields; (f) the manner of payment of the price of sugarcane; (g) the procedure for the settlement of disputes; (h) the powers and duties of the Cane Commissioner and other officers; (i) any other matter which is necessary for the purposes of this Act. (2) Without prejudice to the generality of the foregoing power, the rules may provide for— (i) the appointment of cane inspectors; (ii) the establishment of weighbridges; (iii) the licensing of purchasing agents; (iv) the regulation of the price of sugarcane in case of dispute; (v) the form and manner of applications for registration; (vi) the fees to be charged for any services rendered under this Act; (vii) the penalties for the contravention of the rules.

An appeal shall lie to the State Government against the order of the cane commissioner passed under sections 15, 16 or 17 before the expiry of thirty days from the date of the order. Provided that the State Government may for sufficient cause admit any appeal after the expiry of such period.

(1) The State Government may, for maintaining supplies, by order, regulate— (a) the distribution, sale or purchase of cane in any reserved or assigned area; and (b) purchase of cane in any area other than reserved or assigned area. (2) Without prejudice to the generality of the foregoing powers such order may provide for— (a) the quantity of cane to be supplied by each cane-grower or cane-growers' co-operative Society in such area to the factory for which the area has been so reserved or assigned; (b) the manner in which cane grown in the reserved area or the assigned area shall be purchased by the factory for which the area has been so reserved or assigned and the circumstance in which the cane grown by a cane-grower shall not be purchased except through a Cane-growers' Co-operative Society; (c) the form and terms and conditions of the agreement to be executed by the occupier of the factory for which in area is reserved or assigned for the purchase of cane offered for sale; (d) the circumstances under which permission may be granted:— (i) for the purchase of cane grown in reserved or assigned area by a purchasing agent or any person other than the factory for which area has been reserved or assigned; and (ii) for the sale of cane grown in the reserved or assigned area to any other person or factory other than the factory for which the area is reserved or assigned; (e) such incidental and consequential matters as may appear to be necessary or desirable for this purpose.

(1) Where cane or ratoon cane of any variety has been declared under sub-section (1) to be unsuitable for use in a factory, the occupier or any other person acting on his behalf or a cane-grower or a Cane-growers' Co-operative Society shall not plant cane of any variety or keep ratoon cane of any such variety. (2) Without prejudice to the generality of the power conferred by sub-section (1) to any person, to the use of cane-growers or the members of Cane-growers' Co-operative Societies in any area.

(1) The State Government may, by notification, impose a cess not exceeding 25 paise a maund, on the entry of cane into an area, specified in such notification, for consumption, use or sale therein: Provided that no cess under this sub-section shall be leviable on the entry of any cane into an area for consumption or use in or into a factory unless the quantity of such cane exceeds ten lakhs maunds in a crushing season: Provided further that the State Government may, by notification, remit in whole or in part such cess in respect of cane used or intended to be used in a factory for any purpose specified in such notification. (2) The State Government shall make rules specifying the authority empowered to assesses and collect cess and the manner in which the cess shall be collected. (3) Notwithstanding the terms of any contract or agreement for the sale of cane whether entered into before or after the imposition of the cess under this section the buyer of the cane shall be liable to pay the amount of the cess in addition to and as part of the contracted price of such cane. (4) Where any person is in default in making the payment of the cess, the authority empowered to collect the cess may direct that in addition to the amount of the arrears a sum not exceeding 10 per cent thereof shall be recovered from the person liable to pay the cess, by way of penalty. (5) The authority empowered to collect the cess may forward to the Collector a certificate under his signature specifying the amount of arrears due from the person concerned and the Collector, on receipt of such certificate shall proceed to recover from such person the amount specified therein as if it were an arrear of land revenue. (6) Any sum imposed by way of penalty under sub-section (4) shall be recoverable in the manner provided in sub-section (5) for the recovery of the arrear of the cess.

The Board and the Council may make by-laws— (a) relating to the business of the Council.

(1) Every occupier of a factory shall furnish to the Collector a notice that he is an occupier of the factory. (2) Where the occupier is a company or other association, the manager of the company or association shall be deemed to be the occupier for the purposes of this Act: Provided that where the occupier is a company or other association, the manager of the company or association shall be deemed to be the occupier for the purposes of this Act.

If any person contravenes the provisions of this Act or any rule or order made thereunder, he shall be punishable with fine which may extend to rupees one thousand and in the case of a continuing contravention with a further fine not exceeding rupees five thousand per day during which the contravention continues.

(1) No prosecution shall be instituted against any person for any offence against this Act or any rule or order made thereunder except upon complaint made by or under the authority from the State Government or the Cane Commissioner. (2) On the application of the accused, the Court may, if it thinks fit, shall adjourn the hearing of the case.

(1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of any order or rule under this Act. (2) No suit or other legal proceeding shall lie against the State Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of any order or rule under this Act.

(1) The State Government may make rules for the purpose of carrying into effect the provisions of this Act. (2) Without prejudice to the generality of foregoing powers, such rules may provide for— (a) the conduct of business by the Board and Council; (b) the business to be conducted at meetings convened under the Act; (c) the manner and form in which the fund placed at the disposal of the council under section 9 shall be maintained and the application and payment from such fund; (d) the duties, powers and functions of the cane commissioner; (e) the matters relating to the appointment and other conditions of service of inspectors to be appointed under section 11 and their duties, powers and functions; (f) the fees to be paid in respect of applications and appeals under this Act; (g) the appointment and licensing of purchasing agents, and other persons to be employed by the purchasing agents and the sugar factories for the purchase of cane, remuneration and duties and the securities to be deposited and the conditions under which these securities may be forfeited; (h) the form of the agreement to be entered into by or under the provisions of this Act and the penalty to be paid for breach of conditions of agreement; (i) the constitution, operation, management, supervision and audit of cane-growers' co-operative societies and regulation and conditions relating to recognition of such societies or federation for purposes of this Act and rules and mode of their staff and finances; (j) the duties of any officer or authority under this Act; (k) the matters which are to or may be prescribed.