‘State is competent to pass Act for acquiring sick sugar undertakings’

The Allahabad High Court on Thursday ruled that it was within the powers of Uttar Pradesh government to pass an Act and introduce amendments therein, for acquisition of private sugar mills in the state.

Allahabad: The Allahabad High Court on Thursday
ruled that it was within the powers of Uttar Pradesh
government to pass an Act and introduce amendments therein,
for acquisition of private sugar mills in the state which were
in bad shape.

The order was passed by a Division Bench comprising
Justice Ashok Bhusan and Justice Vineet Saran on a writ
petition filed by Chini Mill Karmachari Sangh challenging the
UP Sugar Undertakings (Acquisition) (Amendment) Act, 2009.

The petitioners had contended that the state legislature
had passed the Act without having any legislative competence
to the effect.

The court, however, partly allowed the petition and
struck down two sections of the Act as "lacking legislative
competence, "to the extent it provides closure of the
scheduled undertakings or sugar mills of the UP Sugar Mills
Corporation and its subsidiaries".

PTI

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