Updated: Thursday April 25, 2013/AlKhamis
Jamada El Thaniah 15, 1434/Bruhaspathivara
Vaisakha 05, 1935, at 08:38:32 PM
The Sugar Factories Control Act, 1950
(N.W.F.P. Act XXII of 1950)
C O N T E N T S
Sections
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. Notice of 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.
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][1]The Sugar Factories Control Act, 1950
(N.W.F.P.
Act XXII of 1950)
[11 April 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][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][4] [5][5][or the Sind Co-operative Societies Act,
1925], one of the objects of which is to sell cane grown by its members;
(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 [6][6]Punjab Land Revenue Act, 1887, and the Punjab
Tenancy Act, 1887 [7][7][or any other enactment relating to land
revenue and tenancy in force in any part of the Province.]
[8][8][6-A. Appointment of Additional Cane
Commissioners.— The Provincial Government may, by notification, appoint the [9][9][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.
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 [10][10][:]
[11][11][Provided that the occupier shall start
crushing by a date not later than 30th November each year.]
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][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.
(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.
(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.
(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.
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.
(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.
(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.
(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.
(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 [13][13][Secretary to Government of the Punjab, Food
Department].
[14][14][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.
[15][15][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 [16][16]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.— [17][17][(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.
(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.]
(b) Offences under the Act shall be bailable
and non-cognizable.
22. Institution of proceedings.— (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:
[18][18][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.
(iii) No Court inferior to that of a Magistrate of
the 1st Class, 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 sections 8 and 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][1]This Act, having been passed
by the N.W.F.P. Legislative Assembly, was assented to by the Governor of that
province on 5th April, 1950: and, published in the N.W.F.P. Gazette
(Extraordinary), dated: 11th April, 1950. It was adopted for
[2][2]Section 1, substituted by the
North-West Frontier Province Sugar Factories Control (Amendment) Ordinance,
1961 (III of 1961).
[3][3]Substituted by the West
Pakistan Laws (Extension to
[4][4]Act II of 1912.
[5][5]Inserted by the
[6][6]Repealed by the
[7][7]Substituted by the
[8][8]Inserted
by the Sugar Factories Control (
[9][9]Substituted for the word “Collector” by the Sugar Factories Control (Amendment) Ordinance, 2001 (LVIII of 2001), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan
[10][10]Substituted for a full-stop,
by the North-West Frontier Province Sugar Factories Control (Amendment)
Ordinance, 1961 (III of 1961).
[11][11]Inserted ibid.
[12][12]Substituted
for the words “Commissioner of the Division” by the Sugar Factories Control
(Amendment) Ordinance, 2001 (LVIII of 2001), which will remain in force under
the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4,
notwithstanding the maximum limit of three months prescribed under Article 128
of the Constitution of the Islamic Republic of Pakistan.
[13][13]Substituted
for the words “Commissioner of the Division” by the Sugar Factories Control
(Amendment) Ordinance, 2001 (LVIII of 2001), which will remain in force under
the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4,
notwithstanding the maximum limit of three months prescribed under Article 128
of the Constitution of the Islamic Republic of Pakistan.
[14][14]Added by
the
[15][15]Added by the Sugar Factories
Control (
[16][16]Now refers to official
Gazette, see the
[17][17]Substituted by the Sugar
Factories Control (
[18][18]Added by the Sugar Factories
Control (
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