The Sugar Factories
Control Act, 1950
(N.W.F.P. Act XXII of 1950)
1. Short title and
3. Sugarcane Control
4. Constitution of the
5. Powers and duties
of the Board.
6. Appointment of Cane
6-A. Appointment of
Additional Cane Commissioner.
7. Appointment of
8. Notice of crushing.
9. Estimate of
quantity of cane required by factory.
10. Declaration of
11. Survey of reserved
12. Maintenance of
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
18. Distribution of seed
cane by factories.
19. Determination of
"occupier" for purposes of this Act.
20. Appointment and
removal of factory staff.
22. Institution of
23. Power to make rules.
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
Short title and extent.— (1) This Act may be
called the Sugar Factories Control Act, 1950.
(2) It extends to the whole
of the Province
of West Pakistan,
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,
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
(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
(l) “Prescribed” means prescribed by
(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
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
Land Revenue Act, 1887, and the Punjab Tenancy Act, 1887
any other enactment relating to land revenue and tenancy in force in any
part of the Province.]
Appointment of Additional Cane Commissioners.—
The Provincial Government may, by notification, appoint the
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
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.
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
to Government of the Punjab, Food
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
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.
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
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’
(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
to Government of the Punjab, Food Department].
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
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.
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
(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.
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
declared that such variety of seed cane is unsuitable for distribution to
(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
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.
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.
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:
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
(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
(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.