Summary
The 2015–2016 Uttar Pradesh molasses policy reserved twenty-five percent of production, subject to adjustment against the defined balance stock; it did not reserve merely twenty-five percent of that balance in every case. The High Court incorrectly applied Dhampur Sugar Mills, which interpreted a materially different earlier policy. The Court restored implementation of the policy on its own terms.
Issues
- Whether reservation under the 2015–2016 policy was calculated on production or only on the post-consumption balance.
Held
- The policy initially required reservation of twenty-five percent of production. If the defined balance exceeded that quantity, full reservation applied; if smaller, reservation was limited to the balance; with no balance, no reservation applied. (¶ 20–25)
- The balance calculation incorporated opening unreserved stock and production less captive consumption measured as prescribed by the policy. Reference to Dhampur did not import the different earlier policy’s percentage-of-balance formula. (¶ 24–28)
- Neither the Act’s authority nor the policy’s validity was challenged. The dispute concerned interpretation, and use of the previous year’s consumption as the prescribed measure could not be faulted absent compelling contrary material. (¶¶ 14, 28–30)
Result
State appeal allowed without costs; High Court judgment and operative directions annulled. Authorities directed to implement the policy and respondent to comply.