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        2023 (10) TMI 1500 - HC - Indian Laws

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        Prospective effect of statutory omission preserves accrued sugarcane price rights under the earlier control order The omission of Clause 5A and the Second Schedule from the Sugarcane (Control) Order, 1966 by the 2009 amendment was treated as prospective because no ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Prospective effect of statutory omission preserves accrued sugarcane price rights under the earlier control order

                          The omission of Clause 5A and the Second Schedule from the Sugarcane (Control) Order, 1966 by the 2009 amendment was treated as prospective because no clear legislative intention appeared to extinguish rights already accrued under the earlier regime. The Court applied the principle that omission, repeal and deletion are functionally equivalent for interpretation, but held that vested statutory entitlements arising on supply of sugarcane could not be destroyed after they had crystallized. The absence of a saving clause did not defeat those accrued claims, so the growers' entitlement under the pre-amendment price mechanism remained preserved for the relevant period.




                          Issues: Whether the omission of Clause 5A and the Second Schedule in the Sugarcane (Control) Order, 1966 by the 2009 amendment operated retrospectively so as to extinguish the additional price claims already accrued to cane growers, and whether the accrued rights could be defeated on the ground that the amendment was made without a saving clause.

                          Analysis: The right to additional price under the pre-amendment control order was treated as a statutory right that accrued on supply of sugarcane. The amendment substituting fair and remunerative price for statutory minimum price did not express any intention to destroy rights and liabilities that had already arisen under the earlier regime. The Court applied the principle that omission, repeal and deletion are functionally equivalent for interpretive purposes, but held that such amendment operates prospectively where vested rights have already crystallized. The absence of a savings clause did not help the appellant, because the accrued entitlement of cane growers could not be obliterated by the later amendment.

                          Conclusion: The omission of Clause 5A did not retrospectively extinguish claims that had accrued prior to 22.10.2009, and the challenge to the demand based on the earlier regime failed.

                          Final Conclusion: The amended control order was held to operate prospectively, and the vested rights of cane growers under the earlier price mechanism were preserved for the relevant period.

                          Ratio Decidendi: An amendment omitting a provision does not retrospectively destroy rights that had already accrued under the earlier statutory regime unless the legislation clearly indicates such an intention.


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                          ActsIncome Tax
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