The Tamil Nadu Sugar Factories Control Act, 1949

(1) This Act may be called the Tamil Nadu Sugar Factories Control Act, 1949. (2) It extends to the whole of the State of Tamil Nadu. (3) This section shall come into force at once, and the Government may, from time to time, by notification, apply all or any of the remaining provisions of this Act to the whole or any portion of the State of Tamil Nadu from such date or dates as may be specified in the notification.

In this Act, unless there is anything repugnant in the subject or context- (a) 'Advisory Committee' means the Committee constituted under section 3 ; (b) 'crushing season' means the period beginning on the 1st November in any year and ending on the 30th June next following : Provided that the Government may, either generally or in respect of any particular factory, by notification, extend the period aforesaid beyond the 30th June ; (c) 'factory' means any premises, including the precincts thereof, wherein ten 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 by means of vacuum pans is being carried on or is ordinarily carried on with the aid of power ; (d) 'Government' means the State Government; (e) 'Inspector' means a person appointed to be an Inspector under section 5 ; (f) 'notification' means a notification in the Tamil Nadu Government Gazette ; (g) 'occupier of a factory' includes the managing agent or any other person responsible for the management of the factory; (gg) 'planting season' means, in relation to any area, such period or periods as may from time to time be notified by the Government in respect of such area; (h) 'Sugarcane Commissioner' means the officer appointed to be Sugarcane Commissioner under section 4.

The Government shall, by notification, constitute in such manner as may be prescribed an Advisory Committee which shall be representative as far as possible of growers of sugarcane and occupiers of factories for the purpose of advising the Government in all matters in which consultation with the Advisory Committee is required under this Act or the rules and for such other matters as the Government may refer to it.

The Government may appoint one of their officers by name, or the holder for the time being of any office subject to their administrative control to be Sugarcane Commissioner and he shall exercise the powers and perform the duties conferred or imposed on the Sugarcane Commissioner by or under this Act.

(1) The Government may appoint as many persons as they may consider necessary by name or by virtue of their office to be Inspectors for the purposes of this Act, within such local limits as they may specify. (2) The Inspectors shall be subordinate to the Sugarcane Commissioner and exercise such powers and perform such duties as are conferred or imposed on them by or under this Act.

(1) On and after such date as the Government may, by notification, specify in this behalf, no sugarcane shall be crushed in any factory unless a licence for that purpose has been obtained in respect of that factory from the Government. (2) Every application for a licence under sub-section (1) shall be made to the Government in such form as may be prescribed and shall be accompanied by such fee not exceeding Rs. 500 as may be prescribed. (3) The Government shall grant the licence applied for, if the factory was in existence on the date of the publication of the notification under sub-section (1) or its construction had been commenced or it had been ordered before that date ; in other cases the Government may either grant the licence or, for reasons to be communicated in writing, refuse to grant it : Provided that no licence shall be refused unless the applicant has been given an opportunity to show cause against such refusal and the Advisory Committee shall be consulted in regard thereto. (4) A licence granted under this section shall be valid for a period of ten years, but may, subject to the provisions of sub-section (5), be renewed by the Government from time to time, during the last year of its currency for a period of ten years on each occasion. (5) The Government may, for reasons to be communicated in writing, refuse to renew a licence on the ground that the licensee has been guilty of a breach of any of the conditions of his licence or of contravening any of the provisions of this Act : Provided that the licensee shall be given an opportunity to show cause against such refusal and the Advisory Committee shall be consulted in regard thereto.

(1) A licence granted or renewed under section 6 shall be subject to such conditions as the Government may, after consulting the Advisory Committee, impose at the time of its grant or renewal or at any time during its currency, in respect of all or any of the following matters:— (a) the minimum quantity of the sugarcane that shall be crushed during the crushing season in each factory; (b) the manner in which sugar produced in the factory shall be graded, marked, packed or stored for sale. (2) Where the Government are satisfied in respect of a licence granted or renewed under section 6 that there has been a breach of any of the conditions to which the licence was subject, they may, without prejudice to any penalty which may be imposed on the occupier of the factory in respect of such breach under section 13, suspend or cancel the licence for reasons to be recorded in writing: Provided that the licensee shall be given an opportunity to show cause against such suspension or cancellation and the Advisory Committee shall be consulted in regard thereto. (3) Where a licence is suspended or cancelled under sub-section (2), no person shall be entitled to any compensation from the Government on the ground of any loss or damage arising from such suspension or cancellation or to the refund of any fee paid to the Government in respect of such licence.

The occupier of every factory shall submit to the Sugarcane Commissioner on or before a date specified by him in this behalf, an estimate, in the prescribed form and manner of the quantity of sugarcane which would be required by that factory during the crushing season immediately following.

(1) The Sugarcane Commissioner may, after taking into consideration the estimate, if any, submitted to him in accordance with section 8 and any other circumstance which he may consider material by notification, declare any area to be a reserved area for such factory and for such crushing season or seasons, as may be specified in the notification. (2) The Sugarcane Commissioner may, at any time by notification, modify or cancel any notification issued under sub-section (1) : Provided that before doing so, he shall give a reasonable opportunity to the occupier of the factory and the growers of sugarcane concerned, for making their representations, if any, in regard thereto. (3) Any person aggrieved by an order of the Sugarcane Commissioner under sub-section (1) or sub-section (2) may within the prescribed time, appeal to the Government and the Government may pass such orders as they deem fit on such appeal.

(1) (a) Any grower in a reserved area may, before the close of each planting season, offer to sell to the occupier of the factory for which the area has been reserved, for the purpose of crushing in the crushing season immediately following, such quantity of the sugarcane grown by him (or where the grower is a co-operative society, such quantity of the sugarcane grown by all its members) as the grower may specify, but not exceeding the quantity, if any, specified for such grower in respect of such season by the Sugarcane Commissioner or by an Inspector authorized by him in this behalf. (b) The offer shall be made in such form and on or before such date as may be prescribed. (2) The occupier of such factory shall enter into an agreement with the grower for the purchase of the sugarcane offered by him in accordance with sub-section (1) and the agreement shall be in such form, shall be made on or before such date, and shall contain such conditions as may be prescribed : Provided that the occupier may refuse to enter into such an agreement where the sugarcane is intended for delivery during a period in respect of which he has already entered into agreements with other growers for the purchase of a quantity of sugarcane equal to the maximum crushing capacity of the factory. (3) An appeal shall lie to the Sugarcane Commissioner against any refusal of the occupier to enter into such an agreement under the proviso to sub-section (2), and the decision of the Sugarcane Commissioner shall be final. (4) The occupier of the factory shall maintain (i) a register in the prescribed form and manner of all growers who offered to sell sugarcane under sub-section (1), and (ii) the manner in which the offers were dealt with.

(1) So long as the notification as issued under sub-section (1) of section 9, or as modified under sub-section (2) of that section remains in force, except with the previous permission in writing of the Inspector- (a) no one shall sell any sugarcane grown in any area declared by such notification to be a reserved area, to any person other than the occupier of the factory specified in it unless such occupier has refused to buy the sugarcane under the proviso to sub-section (2) of section 10, such refusal not having been set aside on appeal under sub-section (3) of that section ; (b) the occupier of the factory shall not refuse to purchase any sugarcane offered to him under sub-section (1) of section 10, except in the case referred to in the proviso to sub-section (2) of that section ; (c) no one shall export any sugarcane out of the reserved area except where the sale of the sugarcane to a person other than the occupier of the factory is permissible under clause (a) ; (d) no one shall import any sugarcane into the reserved area except in cases where export of the sugarcane from some other reserved area is permissible under clause (c) as applied to such other area. (2) Against any order of the Inspector refusing the permission referred to in sub-section (1), an appeal shall lie within the prescribed time to the Sugarcane Commissioner who may pass such order as he deems fit on such appeal. (3) The Government may, either suo motu or on application, call for and examine the record of any order passed by, or any proceeding recorded by, the Sugarcane Commissioner under sub-section (2) for the purpose of satisfying themselves as to the legality or the propriety of such order or as to the regularity of such proceeding and may pass such order in reference thereto as they think fit.

Notwithstanding anything contained in this Act, it shall be open to any grower (other than a co-operative society) who owns within a reserved area not more than five acres of land growing sugarcane, either himself to crush the sugarcane grown by him for the purpose of making gur within the same reserved area or to sell the sugarcane grown by him for that purpose.

(1) The Government may, before the commencement of a crushing season, after consulting the Advisory Committee, by notification, fix the price to be paid, in or in respect of any factory, for sugar cane purchased by him during the season or the method of calculating such price : Provided that the Government may specify different prices or different methods of calculating the prices of different varieties of sugarcane. (2) The Government may at any time, after consulting the Advisory Committee, by notification, vary any price or method of calculation specified under sub-section (1) : Provided that no such notification shall apply to any sugarcane purchased by the occupier of a factory before the publication of such notification. (3) The Government may, after consulting the Advisory Committee, by notification, permit the occupier of a factory to pay the price payable by him under this section in such number of instalments as may be specified in such notification. (4) The occupier of a factory shall not make any deductions from the price payable by him in accordance with this section, except such as may be prescribed.

(1) If sugarcane is crushed without a licence under section 6 or in contravention of any condition to which such licence has been granted in respect of the factory or if there is a breach of any of the conditions to which the licence was subject, the occupier of the factory shall be punishable with fine which may extend to two thousand rupees for each day on which sugarcane is crushed or on which the breach continues. (2) If the occupier of a factory- (a) in contravention of section 11 purchases any sugarcane, or (b) refuses to pay for any sugarcane purchased by him the price payable in accordance with section 12 or makes any deduction from such price in contravention of that section, he shall be punishable with imprisonment which may extend to six months or with fine which may extend to two thousand rupees or with both. (3) If any person imports or exports or sells any sugarcane in contravention of section 11 [or crushes or sells sugarcane grown or bought by him, in contravention of section 11-A] he shall be punishable with imprisonment which may extend to six months or with fine which may extend to two thousand rupees or with both. (4) Any person contravening any of the provisions of this Act for which no penalty is provided in sub-sections (1), (2) or (3), shall be punishable with fine which may extend to two thousand rupees.

(1) The Government may, after consulting the Advisory Committee, by notification, levy a cess not exceeding one anna per standard maund as defined in the Standards of Weight Act, 1939, on sugarcane brought into any local area specified in such notification, for consumption, use or sale therein. (2) Subject to the maximum aforesaid, the Government may, from time to time, after consulting the Advisory Committee, by notification, alter the rate of levy. (3) The Government may, by order, remit in whole or in part any cess paid or payable under this section in respect of any sugarcane specified in such order. (4) The Government may, after consulting the Advisory Committee, make rules, specifying the authorities by which, the persons from whom, and the manner in which, the cess levied under this section shall be collected.

Where a person committing any offence punishable under this Act is a company or an association of persons, whether incorporated or not, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company or association for the conduct of the business of the company or association, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

(1) No suit, prosecution, or other legal proceeding shall lie against the Government or against any authority, officer or person for anything which is in good faith done or intended to be done under this Act or the rules made thereunder. (2) No decision of the Government or Sugarcane Commissioner or any Inspector in the exercise of any discretion or authority conferred by or under this Act shall be liable to be questioned in any Court of Law.

(1) The Government may make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for- (b) the form of application for the grant or renewal of a licence under section 6 and the fee which should accompany each such application, (c) the time within which appeals under section 9 (3) or section 11 (2) may be filed,