THE SUGAR FACTORIES CONTROL ACT, 1950
(Act XXII of 1950)
C O N T E N T S
Section Heading
1. Short title and extent.
2. Definitions.
3. Sugarcane Control Board.
4. Constitution of the Board.
5. Powers and duties of the Board.
6. Appointment of Cane Commissioner.
6-A. Appointment of Additional Cane Commissioner.
7. Appointment of Inspectors.
8. Crushing.
9. Estimate of quantity of cane required by factory.
10. Declaration of reserved area.
11. Survey of reserved area.
12. Maintenance of register.
13. Purchase of cane in a reserved area.
13-A Powers of the Cane Commissioner to determine the liability of an occupier of a factory.
14. Declaration of assigned areas and purchase of cane therein.
14-A. Power of Cane Commissioner to prohibit cultivation of unsuitable varieties of sugar-cane.
15. Purchase of cane outside reserved area.
16. Power of Provincial Government to fix minimum price.
17. Licensing of purchasing agents.
18. Distribution of seed cane by factories.
19. Determination of "occupier" for purposes of this Act.
20. Appointment and removal of factory staff.
21. Penalties.
22. Institution of proceedings.
23. Power to make rules.
[1]THE SUGAR FACTORIES CONTROL ACT, 1950
(Act
XXII of 1950)
[
An Act to provide for the regulated supply of sugarcane to the sugar factories.
Preamble.– WHEREAS it is expedient to provide for regulating the supply of sugarcane intended for use in such factories and the price at which it may be purchased and for such other matters as may be incidental thereto;
It is here by enacted as follows:-
[2][1. Short title and extent.– (1) This Act may be called the Sugar Factories Control Act, 1950.
(2) It
extends to the whole of the
2. Definitions.– In this Act, unless there is anything repugnant in the subject or context:-
(a) “assigned area” means an area assigned to a factory under sub-section (1) of section 14;
(b) “Board” means the Sugarcane Control Board established under section 3;
(c) “Cane” means sugarcane intended for use in a factory;
(d) “Cane Commissioner” means the officer appointed to be Cane Commissioner under section 6;
(e) “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;
(f) “Cane Growers Co-operative Society” means a society registered under the Co-operative Societies Act, 1912[4] [5][or the Sind Co-operative Societies Act, 1925], one of the objects of which is to sell cane grown by its members;
[6][(ff) “Cane Purchase Receipt (CPR)” means receipt of cane purchased by an occupier of a factory or a purchasing agent mentioning weight and price for cane purchased from 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;]
(g) “Collector” in any provision of this Act includes any officer whom the governor may, by notification, appoint to exercise and perform the powers and duties of a collector under that provision;
(h) “Crushing season” means the period beginning on the 1st October in any year and ending on the 30th June, next following;
(i) “Factory” means any premises, including the precincts thereof, wherein twenty or more workers are working or were working on any one 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;
(j) “Inspector” means an Inspector appointed under section 7 of the Act and includes an ex-officio or additional Inspector;
(k) “Occupier of a factory” means the person who has ultimate control over the affairs of a factory; provided that where the affairs of a factory are entrusted to a managing agent, or a Managing Director or a Director incharge, such managing agent, Managing Director or Director incharge shall be deemed to be the occupier of the factory;
(l) “Prescribed” means prescribed by rules;
(m) “Purchasing agent” means a person licensed under this Act to act as a purchasing agent;
(n) “Reserved area” means an area specified in an order issued under section 10; and
(o) “Rule” means a rule under this Act.
3. Sugarcane Control Board.– The Provincial Government may, by notification, establish a Sugarcane Control Board of the Province.
4. Constitution of the Board.– The Board shall consist of a Sugarcane Commissioner, who shall be the Chairman of the Board and such and so many members from the cane growers, factory owners and servants of the State, as may be prescribed.
5. Powers and duties of the Board.– The Board shall exercise and perform such powers and duties as may be prescribed, and its business shall be conducted in such manner and in accordance with such procedure as may be prescribed.
6. Appointment of Cane Commissioner.– (1) The Provincial government may, by notification appoint any officer, not below the status of a Collector, to be the Cane Commissioner to exercise and perform, in addition to the powers and duties conferred and imposed on him by this Act such powers and duties as may be prescribed from time to time.
(2) The Cane Commissioner shall be deemed to have powers of a Collector under the [7]Punjab Land Revenue Act, 1887, and the Punjab Tenancy Act, 1887 [8][or any other enactment relating to land revenue and tenancy in force in any part of the Province.]
[9][6-A. Appointment of Additional Cane Commissioners.– The Provincial Government may, by notification, appoint the [10][District Coordination Officer] to be an Additional Cane Commissioner to exercise such powers and perform such duties and functions of the Cane Commissioner, within the district or any part thereof as may be specified.]
7. Appointment of Inspectors.– (1) The Provincial Government may, by notification, appoint such persons as it thinks fit, to be Inspectors for the purposes of this Act within such local limits as it may assign to them respectively.
(2) No person shall be appointed to be an Inspector under sub-section (1) or, having been so appointed, shall continue to hold office, who is or becomes directly or indirectly interested in factory or in any process or business carried on therein or in any patent or machinery connected therewith.
(3) Every Inspector, who shall be deemed to be public servant within the meaning of the Pakistan Penal Code, shall be officially subordinate to such authority as the Provincial Government may specify in this behalf, and shall exercise such powers and duties as may be prescribed from time to time.
[11][8. Crushing.– The occupier of a factory shall
start crushing of cane not later than a date specified by the Government which
shall not be later than 30th November.]
9. Estimate of quantity of cane required by factory.– (1) The Cane Commissioner may, by order, require the occupier of any factory to submit to him on or before a date to be fixed by him, an estimate in the prescribed form and manner of the quantity of the cane, which will be required during such crushing season, as may be specified in the order.
(2) The Cane Commissioner shall examine every such estimate and shall publish the same in the prescribed manner with such modifications, if any, as he may think fit to make therein after consultation with the Board.
(3) The Cane Commissioner may revise an estimate published under sub-section (2) at any time without consulting the Board.
10. Declaration of reserved area.– (1) The Cane Commissioner may, after consulting the Board, issue an order declaring any area to be reserved area for the purposes of the supply of cane to a particular factory during a particular crushing season or seasons, and may likewise, at any time, cancel such order or alter the boundaries of an area so reserved.
(2) An
appeal shall lie against the order of the Cane Commissioner under sub-section
(1) to the [12][Secretary to Government of the
11. Survey of reserved area.– (1) The Provincial Government may order a survey to be made of the area proposed to be reserved for or assigned to a factory and may recover the cost of such survey from the occupier of such factory.
(2) Every survey mentioned in sub-section (1) shall be made by an officer appointed by the Provincial Government for the purpose, and the said officer shall exercise and perform such powers and duties in making such survey as may be prescribed, and the survey shall be made in accordance with the prescribed procedure.
(3) Every person owning or occupying land in any area in respect of which a survey is being made under sub-section (2) shall afford to the officer making the said survey such assistance and facilities for taking the said survey as may be prescribed.
(4) Any amount due from the occupier of a factory under sub-section (1) shall be recoverable from such occupier as an arrear of land revenue.
12. Maintenance of register.– The occupier of a factory for the purposes of which an area has been reserved, shall maintain a register in the prescribed form and manner of all cane growers and Cane Growers’ Co-operative Societies in such area.
13. Purchase of cane in a reserved area.– (1) A cane grower or a Cane Growers’ Co-operative society in a reserved area may, if required to do so by the Cane Commissioner shall, offer in the form and by the date prescribed, and supply to the occupier of the factory, for which the area is reserved, such quantity of cane grown by the cane grower or the members of such Cane Growers’ Co-operative Society, as the case may, as is generally prescribed for, or specially directed by the Cane Commissioner, for such cane grower or Cane Growers’ co-operative Society.
[13][(2) The occupier of a factory shall purchase
cane from a cane grower or a Cane Growers Co-operative Society, as the case may
be, against Cane Purchase Receipt (CPR) at the rate notified under section 16
of the Act, and shall make payment to the cane grower [14][through a bank
directly into the bank account of the cane grower within fifteen days of supply
of sugar cane]:
provided that the occupier of a factory shall not purchase cane from a person who is a member of a Cane Growers Co-operative Society.]
(3) Unless the Provincial Government otherwise
directs, cane grown in a reserved area shall not be purchased by a purchasing
agent or by any person other than the occupier of the factory for which such
area has been reserved except by another grower for the bona fide purpose of seed.
(4) Cane grown in a reserved area shall not be sold by any person other than a cane grower or a Cane Growers’ Co-operative Society; provided that a cane grower or a Cane Growers’ Co-operative Society may deliver cane intended for a factory through another cane grower of that area, or through a carrier.
[15][(5) * * * * * *]
[16][13-A. Powers of the Cane
Commissioner to determine the liability of an occupier of a factory:– (1) The Cane Commissioner shall determine the
liability of the occupier of a factory for payment of cane price to a
cane-grower or the cane-growers, as the case may be, not later than
forty five days of the end of the crushing season.
(2) When the Cane Commissioner
makes a determination under sub-section (1) and the amount so determined is not
paid within the stipulated time period of fifteen days, the amount shall be
recoverable as arrears of land revenue under the Punjab Land Revenue Act, 1967
(XVII of 1967).
(3) An amount recoverable as
arrears of land revenue under sub-section (2) shall be recovered by the
Additional Cane Commissioner of the concerned District from an occupier of the
factory and the recovered amount shall be paid to the cane-grower in question.
(4) The powers granted under
subsections (1), (2) and (3) shall be deemed to have always been vested in the
Cane Commissioner and the Additional Cane Commissioner, as the case may be.
(5) An appeal shall lie to the Secretary Food against an order passed by the Cane Commissioner or Additional Cane Commissioner under this Section.]
14. Declaration of assigned areas and purchase of cane therein.– (i) The Cane commissioner may, after consulting the Board, issue an order declaring an area to be an assigned area for the purposes of the supply of cane to a particular factory.
[17][(ii) The occupier of a factory shall
purchase cane from a cane grower or a Cane Growers Co-operative Society or a
purchasing agent, duly authorized by the Cane Commissioner, and shall issue
Cane Purchase Receipt (CPR) to the cane grower or the Cane Growers Co-operative
Society, as the case may be:
provided
that the purchasing agent nominated by the occupier of a factory shall also
issue Cane Purchase Receipt (CPR) of the sugar factory for purchase of cane
from the cane grower as may be prescribed.]
[18][(iii) If the occupier of a factory enters into an agreement with a purchasing agent for purchase of cane, the purchasing agent shall issue Cane Purchase Receipt (CPR) of the sugar factory for purchase of cane from cane grower and shall be liable to pay to the cane grower for the cane purchased from him through a bank as may be prescribed.]
[19][(iv) * * * * * * *]
(v) In the event of failure to supply the requisite quantity of cane, the occupier of the factory or the purchasing agent, may, after giving the prescribed notice to the Cane commissioner, purchase the balance of the cane required from outside the assigned area, unless otherwise directed by him.
(vi) An appeal shall lie against the order of the Cane Commissioner under sub-section (i) or sub-section (ii) and (iv) to the [20][Secretary to Government of the Punjab, Food Department].
[21][14-A. Power of Cane commissioner to prohibit cultivation of unsuitable varieties of sugarcane.– The Cane Commissioner may, by an order in writing prohibit the cultivation, in any reserved area by cane growers or Cane Growers’ Co-operative Societies of any variety of sugarcane declared by the Provincial Government under section 18 to be unsuitable for distribution.]
15. Purchase of cane outside reserved area.– In any area, other than a reserved area, no person shall purchase cane except (a) the occupier of a factory or a person employed by him for the propose of making such purchases; (b) a purchasing agent or a person employed by him for the purpose of making such purchases; (c) a Cane Growers’ Co-operative Society; (d) cane grower for bona fide seed purpose: provided that a person entitled to purchase cane, may take delivery thereof through cane grower or through a carrier.
16. Power of Provincial Government to fix minimum price.– (i) The Provincial Government, after consultation with the Board, may by notification, determine in respect of any area the minimum price to be paid by occupiers of factories or purchasing agents for cane purchased in that area either generally or related to the sugar contents of the cane or direct that such minimum price shall be calculated in the manner prescribed.
(ii) The Provincial Government may, from time to time, vary, by notification, the price fixed under sub-section (i).
(iii) The occupier of a factory or a purchasing agent shall not make any deduction from the amount due for the cane sold to him by a cane grower or a Cane Growers’ Co-operative Society, except such deductions as may be prescribed or as the Provincial Government may, by notification, from time to time allow.
(iv) The Provincial Government may, after consultation with the Board, by notification, direct that in addition to the minimum price to be paid for cane, the occupier of a factory shall pay for special varieties of cane to be specified in the notification and which the cane grower or Cane Growers’ Co-operative Society has agreed to supply such additional price as the Provincial Government may direct.
[22][16-A. Quality premium.– The Provincial Government may direct the factories to pay quality premium at the end of the crushing season at such rate as may be specified by the Provincial Government in proportion to the sucrose recovery of each factory in excess of base level sucrose contents determined by the Provincial Government, from time to time.]
17. Licensing of purchasing agents.– No person or class of persons shall be employed by an occupier of a factory or by a purchasing agent to do any work or class of work in connection with any transaction for the purchase of cane, and no person shall exercise any of the powers conferred by or under this Act on a purchasing agent, unless he is licensed in the prescribed manner.
18. Distribution of seed cane by factories.– (i) The occupier of a factory or any other person acting on his behalf shall not distribute cane of any variety to any person to be used by cane growers or the members of cane Growers’ Co-operative Societies if the Provincial Government after consulting the Board, has by an order published in the [23]Gazette, declared that such variety of seed cane is unsuitable for distribution to cultivators.
(ii) The Provincial Government may, on the recommendations of the Board, require the occupier of a factory to distribute in an area reserved for the factory such variety of seed cane on such conditions and in such manner as it may prescribe in every case.
19. Determination of “occupier” for purposes of this Act.– (1) Where the occupier of a factory is a firm or other association of individuals, any one of the individual partners or members thereof may be prosecuted and punished under this Act for any offence for which the occupier of the factory is punishable:
Provided that the firm or association may give notice to the Collector that it has nominated one of its members to be the occupier for the purpose of this Act until further notice cancelling his nomination is received by the Collector or until he ceases to be a partner or member of the firm or association.
(2) Where occupier of a factory is a company, any one of the directors thereof, or, in the case of a private company, any one of the share-holders thereof, may be prosecuted and punished under this Act for any offence for which the occupier of the factory is punishable:
Provided
that the company may give notice to the Collector that it has nominated a
director, or, in the case of a private company, a share-holder, to be the
occupier of the factory for the purposes of this Act and such director or
share-holder shall be deemed to be the occupier of the factory for the purposes
of this Act until further notice cancelling his nomination is received by the
Collector or until he ceases to be a director or share-holder.
20. Appointment and removal of factory staff.– The occupier of a factory shall have to employ a Cane Superintendent and such staff as may be prescribed by the Provincial Government, on the recommendations of the Cane Commissioner to regulate, arrange and supervise the purchase of cane for the factory. The appointment and the award of punishment including removal from service of Cane Superintendent and other staff shall be subject to the approval of the Cane Commissioner.
21. Penalties.– [24][(a)
Subject to clause (aa), any person contravening the provisions of this Act or
any order or rule made thereunder shall be punishable with imprisonment for a
term which may extend to three years or with fine which may extend to five million rupees [25][per day] but shall not be less than
one million rupees [26][per day] or with both:
provided that the fine shall not be less than five million rupees [27][per day] in case of a repeated offence.]
[28][(aa) Any person who fails to comply with the provisions of section 16 or 16-A, or any directions issued thereunder, shall be punished with imprisonment for a term which may extend to two years or with fine which may extent twice the price of the sugarcane or twice the amount of quality premium due, as the case may be.]
[29][(b) Offences under the Act shall be cognizable upon a report by the Cane Commissioner or the Additional Cane Commissioner or their nominee and shall be bailable.]
22. Institution of proceedings.–
[30][(i) * * * * * * * *
(ii) * * * * * * *]
(iii) No Court inferior to that of a [31][Magistrate Section 30], shall try any offence under this Act or any order or rule made thereunder.
(iv) (a) No suit, prosecution or other legal proceeding shall lie against the Provincial Government or any of its servants for anything which is, in good faith, done or intended to be done under this Act, or the rules framed thereunder.
(b) The exercise of any discretion or authority
conferred on the Provincial Government or the Board or the Cane Commissioner by
this Act shall not be questioned in any
(c) The Provincial Government may delegate all or any of its powers under this Act to any officer not below the status of a Collector.
23. Power to make rules.– (1) The Provincial Government may make rules to carry out the provisions of this Act.
(2) In particular and without prejudice to the
generality of the foregoing powers, such rules may provide for the
constitution, powers, duties and procedure of the appointment of the Cane
Commissioner and Inspectors, and the powers and duties to be exercised and
performed by them.
(3) The authority by which any functions under this Act or the rules made thereunder are to be performed.
(4) The form in which the notices required by [32][section] 14 (v) should be given.
(5) The form, manner and date for the submission of estimates mentioned in section 9, and the manner in which and the places at which such estimates should be published.
(6) The procedure to be followed for making a survey under section 11, the powers to be exercised by Survey Officers, and the assistance to be afforded by owners and occupiers of land to the officers making such survey.
(7) Records, registers and accounts and the
submission of returns, the supply of copies of entries therein and the fees to
be charged for the same.
[1]This Act, having
been passed by the N.W.F.P. Legislative Assembly, was assented to by the
Governor of that province on
[2]Section 1,
substituted by the North-West Frontier Province Sugar Factories Control
(Amendment) Ordinance, 1961 (III of 1961).
[3]Substituted by the
West Pakistan Laws (Extension to
[4]Act II of 1912.
[5]Inserted by the
[6]Inserted by the
Sugar Factories (Control) (Amendment) Act 2021 (V of 2021).
[7]Repealed by the
[8]Substituted by the
[9]Inserted by the Sugar
Factories Control (
[10]Substituted for the
word “Collector” by the Sugar Factories Control (Amendment) Ordinance, 2001
(LVIII of 2001).
[11] Substituted first by
the Sugar Factories (Control) (Amendment) Act 2021 (V of 2021) for the
following:
“8.
Notice of crushing.– The
occupier of a factory shall send a notice to the Cane Commissioner in the
prescribed form intimating him of his intention to start crushing one clear
month before the crushing starts:
Provided that the occupier shall start
crushing by a date not later than 30th November each year.”
Substituted again by the Sugar Factories
(Control) (Amendment) Act 2021 (XV of 2021) for the following:
“8. Crushing.– The occupier of a
factory shall start crushing of cane not later than 30th November each year.”
[12]Substituted for the
words “Commissioner of the Division” by the Sugar Factories Control (Amendment)
Ordinance, 2001 (LVIII of 2001).
[13]Substituted by the
Sugar Factories (Control) (Amendment) Act 2021 (V of 2021), for the following:
“(2) The occupier of a factory, for which an area
is reserved, shall enter into an agreement in such form, by such date and on
such terms and conditions as may be prescribed to purchase the cane offered in
accordance with sub-section (1), provided that he shall not purchase or enter
into an agreement to purchase cane from a person who is a member of a Cane
Growers’ Co-operative Society.”
[14]Inserted by the Sugar
Factories (Control) (Amendment) Act 2021 (XV of 2021).
[15] The following sub-section
was omitted by the Sugar Factories (Control) (Amendment) Act 2021 (V of 2021):
“(5) During the crushing season, the Provincial
Government may, if it is satisfied that there is likely to be in the area
reserved for a factory any quantity of cane available for sale to the occupier
of the factory in excess of the quantity for which he is required to enter into
an agreement, direct that cane shall not be purchased outside the reserved area
until the occupier of the factory enters into agreements to purchase all the
cane offered to him in the reserved area.”
[16] This section was inserted
by the Sugar Factories (Control) (Amendment) Act 2021 (V of 2021); and, then, was
substituted by the Sugar Factories (Control) (Amendment) Act 2021 (XV of 2021),
for the following:
“13-A.
Liability of the occupier of a factory.– (1) The occupier of sugar
factories shall clear the cane payment before 30th of June, following the
crushing season.
(2) An appeal
shall lie to the Secretary Food against any order passed by the Cane
Commissioner or Additional Cane Commissioner.”
[17]Substituted by the
Sugar Factories (Control) (Amendment) Act 2021 (V of 2021); for the following:
“(ii) The
occupier of a factory, for which an area has been assigned, shall enter into an
agreement with cane growers in the assigned area or Cane Growers’ Co-operative
Society or purchasing agents for the propose in the assigned area of such
quantity of cane by such date and in such form and on such terms and conditions
as may be prescribed by the Cane Commissioner; provided that such agreement
shall not be entered into with a person who is a member of Cane Growers’
Co-operative Society.”
[18]Substituted by the
Sugar Factories (Control) (Amendment) Act 2021 (V of 2021), for the following:
“(iii) If such an agreement is entered into with the
purchasing agent, he shall enter into agreement with cane growers in the
assigned area or Cane Growers’ Societies in respect of all the cane which he
has undertaken to supply.”
[19] The following clause
omitted by the Sugar Factories (Control) (Amendment) Act 2021 (V of 2021):
“(iv) If
the cane growers or Cane Growers’ Co-operative Societies in the assigned area
are not willing to enter into agreement to supply, the Cane Commissioner may,
by an order in writing, require them to do so on such terms and conditions as
may be prescribed by him, which order shall be legally binding on the cane
growers or the Cane Growers’ Co-operative Societies, as the case may be.”
[20]Substituted for the
words “Commissioner of the Division” by the Sugar Factories Control (Amendment)
Ordinance, 2001 (LVIII of 2001).
[21]Added by the
[22]Added by the Sugar
Factories Control (
[23]Now refers to
official Gazette, see the
[24] Substituted first by
the Sugar Factories Control (Punjab Amendment) Act, 1991 (II of 1991); and then,
by the Sugar Factories (Control) (Amendment) Act 2021 (V of 2021), for the
following:
“(a) Subject to
subsection (aa), any person contravening the
provisions of this Act or any order or rule made thereunder shall be punishable
with imprisonment for a term which may extend to one year or with fine which
may extend to fifty thousand rupees or with both.”
[25]Inserted by the Sugar
Factories (Control) (Amendment) Act 2021 (XV of 2021).
[26]Inserted by the Sugar
Factories (Control) (Amendment) Act 2021 (XV of 2021).
[27]Inserted by the Sugar
Factories (Control) (Amendment) Act 2021 (XV of 2021).
[28]Substituted by the
Sugar Factories Control (Punjab Amendment) Act 1991 (II of 1991).
[29]Substituted first by
the Sugar Factories (Control) (Amendment) Act 2021 (V of 2021), for the
following:
“(b) Offences under the Act shall be bailable and non-cognizable.”;
Substituted again by the Sugar Factories
(Control) (Amendment) Act 2021 (XV of 2021), for the following:
“(b) Offences under the Act shall be
non-cognizable and bailable.”
[30] The following
clauses omitted by the Sugar Factories (Control) (Amendment) Act 2021 (V of
2021):
“(i) No prosecution shall be instituted under
this Act except upon a complaint made by or under the authority from the
Collector or Cane Commissioner:
Provided
that an aggrieved person may make a complaint to the court of competent
jurisdiction if on an application made by him, the Collector or the Cane
Commissioner fails to decide within sixty days whether or not the prosecution
is to be instituted.
(ii) On
the application of a person accused of an offence under this Act, the Cane
Commissioner or the Collector may, with the previous approval of the Provincial
Government, compound such offence by levying a composition fine not exceeding
two times the fine which could be imposed for such offence at any stage before
conviction.”
[31]Substituted for the
expression “Magistrate of the 1st Class” by the Sugar Factories
(Control) (Amendment) Act 2021 (V of 2021).
[32]Substituted for the
expression “sections 8 and” by the Sugar
Factories (Control) (Amendment) Act 2021 (V of 2021).