The

Sugar Factories Control

Rules, 1950
1. Short title, extent and commencement:--(l) These rules may be called the
Sugar Factories Control Rules, 1950.
(2) They shall come into force at once.
2. Definitions:--1n these rules unless there is anything repugnant in the subject
or context:--
(i) "Act" means the Sugar Factories Control Act, 1950 (XXII) of 1950).
(I-a) "Sugarcane (Development) Cess means the Sugarcane
(Development) Cess levied under section 12 of the Finance Act, 1964.
(ii) "Inspector" means any person appointed under section 7 of the Act to
perform the duties of an Inspector.
(iii) "Occupier of a factory” means the person who has ultimate control
over the affairs of a factory.
(iv) "Notification" means a Notification published in the official Gazette.
(v) “Purchasing Agent" includes any person, not being the grower or has
authorised representative or Cane-Growers' Co-operative Society or a
paid employee of the occupier of the factory not employed on
commission basis, who purchases, supplies, delivers, weighs or pays for
cane.
(vi) "Purchasing Centre" means_ any place at which cane is purchased,
supplied, delivered or paid for and includes such portion of the
premises of the factory at which any of the co-operations to take place
(vii) "Weigh bridged" means any mechanism used to weigh cane and
includes any weighbridge maintained or used by the occupier, or
purchasing agent or by any person acting on his behalf.
(viii) "Year" means the agricultural year commencing on the 1st day of July
and ending on. the 30th day of June next following.
3. Sugarcane Control Boar: -- (l) The Board shall consist of the following
Members namely:
(i) The Director of Agriculture;
(ii) The Director of Industries;
(iii) The Cane Commissioner;
(iv) One representative of each Sugar Factory in the Province concerned;
and
(v) One person nominated by Government from among the growers
of sugarcane of each area, where a sugar factory is located.
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(2) The Board shall in addition to the powers and duties conferred or imposed
upon it by the provisions of the Act, advise the Provincial Government on all matters,
connected with the sugar industry of the Province concerned that may be referred to it
by the Provincial Government.
(3) The meetings of the Board shall be held at such places and on such dates as
the Chairman may fix.
(4) Notice in writing of all meetings shall be circulated by the Chairman to
all members not less than one week before the date fixed for meeting, except in
urgent cases.
(5) The term of appointment of the Board and its members excepting the first
Board which may come into existence any time shall normally be one year, from the
1st July till 30th June next year, unless otherwise the Provincial Government directs.
(6) When the place of a member nominated to the Board becomes vacant by
resignation or death of such member or by an order of Provincial Government such
member ceases to be a member. The Provincial Government shall nominate a new
member to fill the vacancy, subject to the provisions of sub-rule (2), and such new
member shall hold office for the unexpired period of term of office of the member in
whose place he has been nominated.
(7) The procedure in Appendix I to these rules shall be followed at meetings
of the Board.

4. (l) The following Officers shall be ex-officio Inspectors within the

limits of their respective jurisdiction:-
(i) The Director Food.
(ii) The Cane Commissioner.
(iii) All Additional Cane Commissioners.
(iv) All Deputy Directors Food.
(v) All Assistant Cane Commissioners.
(vi) Section Officer (Sugar), Government of Province concerned,
Food Department. .
(2) An Inspector may, with such assistance, as he deems necessary:--

(i) enter any factory or any other place appurtenant therewith which is or
which he has reasons to believe, is used as purchasing centr7 of sugarcane;
(ii) examine the weighbridges or scales or weights used, kept or possessed for
weighment Or purchase of cane at ·any such place;
(iii) cause any vehicles carrying cane to be weighed or reweighed in . his own
presence;

(iv) examine the registers maintained at any factory or purchasing

centre or at any place appurtenant thereto in respect of
purchases/carriage of cane; payments made to the growers and
Sugarcane (Development) Cess due from the mills or deposited
into the Government Treasury;
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(v) examine any person or record statement of any person for the proper
checking of collections and payments of the Sugarcane (Development)
Cess by a factory;
(vi) examine and check accounts pertaining to the manufacturer of sugar and
recovery percentages of sugar;
(vii) issue from time to time such instructions as may be necessary to ensure
equitable purchase or cane ; provided that such instructions shall only be
issued for reasons to be recorded in writing and if they have not been
previously approved by the Cane' Commissioner, they shall be submitted
to him f9ithwith for confirmation;
(viii) issue from tithe to time instructions to ensure timely payment of the
Sugarcane (Development) Cess due to Government, and
(ix) exercise in good faith such other powers as may be conferred on him
under any law for the time being in force or as may be necessary for
carrying out the purpose of the Actor these rules.

5. Intimation regarding starting of crushing: -- The occupier of the factory

will send a notice of starting crushing one clear month in advance to Cane
Commissioner in Form 2 Appendix II.

6. Estimate of quantity of cane required by factories:-- (1) The occupier of

a factory shall submit to the Cane Commissioner on or bet ore 1st May each year, ,in
Form 3, Appendix II, an estimate of the quantity of cane which will ,be required by the
factory during the crushing season next following the ensuing crushing season.

(2). The Cane Commissioner shall, after consulting the Board, publish the
same with such modification as may be necessary within a month of receipt of the
estimate, in the official Gazette arid at the office of the District in which the factory is
situated.
(3). The Provincial .Government may on its own motion or on any
application for revision' file within a month· of the publication' of the estimate, revise
it.
7. Declaration. of reserved areas:--(l) In declaring reserved areas under
section 10 (1) of the Act the Cane Commissioner may take into considerations:-

(a) the distance of the factory from the area proposed ~o be reserved;
(b) facilities for transport to the factory from the area proposed to be reserved;
(c) whether the area has previously supplied cane to the said factory;
(d) previously existing zoning arrangements among the factories; and
(e) the estimated quantity of cane required by the factory.
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(2) An order of the Cane Commissioner declaring any area to be reserved for
any particular factory or altering the boundaries of an already reserved or canceling
any previous order declaring an area to be reserved shall be communicated to the
occupier of the factory concerned and shall be published in the official Gazette and at
the office of the Collector of the district in which the area is situated and also at the
gate. of the factory.
8. Survey of reserved area and grower's registers: -- (1) When an area has
been reserved, the Cane Commissioner may cause a survey of the sugarcane in it to be
made in Form 4, Appendix II and may deliver a copy of the survey report to the
occupier of the factory concerned.
(2) The cost of the survey may be assessed at one rupee for every 20 acres of
sugarcane surveyed and shall be payable by the occupier of the factory within a
month of the delivery of the form referred to in sub-rule (1).
(3) The occupier of a factory shall, after such local verification as he considers,
necessary, prepare a register in Form 3, Appendix II, as required under section 12 of
the Act to be called the Grower's Register, and it shall be open to inspection by every
cane grower of a reserved area.
(4) Any grower having or claiming to have, grown sugarcane in reserved areas,
may apply to the occupier of the factory for the correction of entry in or in the addition
of a new entry to the Grower's Register. The occupier shall keep a record of these
applications.
(5) The occupier of the factory shall, after such enquiry as he considers
necessary, pass orders on the application within a fortnight of its receipt and a true copy
of such orders shall be supplied to the applicant. An appeal from the order of the
occupier sha11 lie to the Revenue Extra Assistant Commissioner within whose
jurisdiction the land in question is situated and his decision shall be final.
(6) The occupier of a factory shall give a copy of the entries in the grower's
register on application made before the 15th December in any year to any person.
(7) The Grower's Register shall be preserved by the occupier of a factory for a
period of two years following the crushing season to which it refers.
9. Purchase of cane grown in a reserved area:--(1) The occupier of a factory
shall estimate or cause to be estimated, by thirtieth September, the quantity of
sugarcane with each grower enrolled in the Grower's Register and shall submit the
estimate to the Cane Commissioner who may, after such enquiries as he considers
necessary, modify the estimates and cause them to be published in such manner as he
may direct.
(2) A Cane Grower or a Cane-Growers' Co-operative Society in a reserved
area may offer in Form 6, Appendix II, by the first October each year to supply during
the crushing season to the occupier for the factory for which the area has been
reserved, cane not exceeding in the case of cane growers the quantity estimated in
accordance with sub-rule (1).
(3) The occupier of the factory for which the area is reserved shall enter into
an agreement with the Cane Grower or the Cane-Growers' Cooperative Society, as the
case may be, in Forms 7 and 8, respectively, or in any other form approved by the
Cane Commissioner, within a month of the offer mentioned in sub-rule (2).
(4) The occupier of a factory shall spread the purchases made in the reserved
area in an equitable manner, and shall in the case of cane growers of the reserved area
make purchases of cane only after issuing requisition slips. In order to comply with
this rule, the occupier shall cause identification cards to be distributed to all cane
growers of the reserved area to whom requisition slips will be issued, and shall
maintain a record of the same.
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(5) Requisition slips and identification cards to members of a Cane
Growers' Co-operative Society shall be issued by the Society.
(6) In case of a dispute whether a particular system adopted for the purchase
of one grower in the reserved area is equitable or not the dispute may be referred to
the Cane Commissioner whose decision shall be final.

10. Declaration of an assigned area and purchases of cane in an assigned

area:- (1) An order of the Cane Commissioner declaring an area to be assigned for
a factory or prescribing the quantities of cane to be purchased by its occupier in the
assigned area, modifying or canceling any previous orders, shall be communicated
to the occupier of the factory and shall be published at the office of the District in
which the area is situated, and at such centers in assigned areas as the Cane
Commissioner may direct.
(2) An appeal against an order of the Cane Commissioner under section 14
of the Act may be made to the Provincial Government within one month of the
publication of such order at the Office of the Deputy Commissioner.
(3) The occupier of a factory for which an area has been assigned shall by
the 16th October each year for any crushing season enter into agreement of Forms 7,
8 or 9 of Appendix II, as the case may be, with cane growers or Cane Growers' Co-
operative Societies or purchasing agents for the purchase in the assigned area of
such quantity of cane as may be fixed by the Cane Commissioner.
(4) If such an agreement is entered into with a purchasing agent, the latter
shall enter into similar agreements, in Form 10, Appendix II, with cane growers or
Cane-Growers' Cooperative Societies in the assigned area in respect of all the cane
which he has undertaken to supply to the occupier of the factory.
(5) Purchase of cane from growers in the assigned area shall be spread in
an equitable manner and shall be made only after the issue of requisition slips. The
purchaser shall cause identification cards to be distributed to the cane grower's of the
assigned area who have entered into the agreements, and he will keep a record of the
requisition slips and identification cards issued to the cane growers.
(6) The Cane Commissioner will lay down the system of purchase to be
adopted by the occupier of a factory, or his employees or the purchasing agents in
the assigned area.

11. General provision regarding purchases of cane:--- (l) No person shall

transfer or abet the transfer of a requisition slip for the cane grower to another
person, with the object of enabling cane other than that belonging to the grower for
whom the requisition slip has been issued to be sold to a factory.

(2) No person shall accept or obtain, or agree to accept or attempt to obtain,

from any person for himself as gratification or consideration, bonus, set-off, luck
money, or any other such payment whatever, other than legal remuneration, as a
motive or reward for weighing or purchasing cane, or making payment therefore, or
for issuing requisition slips or for showing or for bearing to show in connection with
the weighment or purchase of supply of or payment for cane in favour or disfavour to
any person
(3) No person shall falsely represent himself as a grower of cane, or as
authorised by such grower to deliver cane on his behalf for as a person duly
authorised by the grower to receive payment on his behalf.
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(4) The occupier of factory or a purchasing agent shall alter the location
of, or establish a purchasing centre at a particular place for the supply of cane to
the factory, if so directed by the Cane Commissioner after consultation with the
Board.
(5) Except with the precious approval of the. Cane Commissioner no
occupier or purchasing agent shall purchase cane consigned to them by a cane
grower from the place where a purchasing centre has been or has been ordered to
be established under sub-rule (4).
(6) An occupier or a purchasing agent who opens a purchasing centre
shall send intimation thereof within 24 hours of the start of operations to the
Collector and to the Inspector within whose jurisdiction such purchasing centre is
situated.
(7) If a purchasing centre is opened with the intention of purchasing
cane for a period of less than 14 days, the occupier or purchasing agent concerned
shall (i) affix a notice at the purchasing centre at the time of opening, showing the
probable duration of the period during which the purchasing centre is to remain
open, and (ii) send intimation of such duration at the same time to the Collector
and to the Inspector within whose jurisdiction the purchasing centre is situated.

(8) If a purchasing centre is opened with" the intention of purchasing

cane for a period of 14 days or more, or if it remains open for a period of 14
days or more, the occupier, or purchasing agent shall, at least three days before
he closes the purchasing centre either permanently, or except, as provided in
sub-rule (9) temporarily:--

(i) affix a notice to that effect at the purchasing centre specifying

clearly the date on which the centre is to be closed; and
(ii) sending intimation of the' date of the proposed closure to the
Collector and to the Inspector within whose jurisdiction the purchasing centre is
situated.

(9) If a purchasing centre has to be closed owing to break-down of

machinery or other causes necessitating an abrupt but temporary suspension of
operation, the occupier or purchasing agent concerned shall:-
(i) cause to be posted immediately at the purchasing centre
concerned notices indicating the probable duration of the suspension;
(ii) cause the suspension of purchase to be otherwise advertised
as widely as possible;
(iii) send intimation thereof immediately to the-Cane
Commissioner and to the Inspector within whose jurisdiction the purchasing
centre is situated; and
(iv) purchase all requisitioned cane brought within 12 hours of
posting of notices under clause (i). In such cases the Collector may at his
discretion, and if he is satisfied that the closure - was unavoidable, grant
exemption from the three days' period referred to in sub-rule (8).

(10) An occupier and a purchasing agent shall:--

(i) cause a list to be put up at each purchasing centre showing
the names of the persons employed by him for making weighments, purchases
and payments; and for arranging the cane purchases at that centre;
(ii) cause such lists to be maintained up-to-date;
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(iii) send a copy of the names, and of full particulars about the
persons whose names are entered in these lists within 24 hours of their
employment, to the Collector and to the Inspector within whose jurisdiction
such purchasing centre is situated;
(iv) give each person employed for making weighments, purchases
and payments a written authority to that effect; and
(v) not knowingly employ any person who has been previously
convicted for breach of any of the provisions of the Act or these Rules, or has been
sentenced to imprisonment for a period exceeding six months, without the
permission of the Cane Commissioner, for making weighment, purchases or
payments.

(11) No person who is not authorised in accordance with sub-rule (10)

shall make or supervise weighments, purchases or payments at any purchasing
centre on behalf of an occupier or purchasing agent.
(12) A purchasing agent shall actively participate in, and if possible
personally supervise the work of purchase of cane at least at one of the purchasing
centres where purchases are made by him or on his behalf.
(13) A purchasing agent shall produce his licence, and a person
employed by an occupier or a purchasing agent for making weighments, purchases
or payments shall produce the written authority given to him under sub-rule 10 (iv)
of this rule of demand by the Inspector.

12. Licensing of purchasing agents:---(l) An application for a licence

to act as a purchasing agent under the Act shall be made in Form II, Appendix II,
to the Cane Commissioner stating the district in which he wishes to purchase cane.
(2) Such application shall be duly stamped and accompanied by (a) a
treasury receipt showing that licence fee of Rs. 50 has been deposited in the local
Government Treasury (b) a nomination from the occupier of the factory
concerned in Form 12, Appendix II, and (c) a declaration that the applicant does
not hold a licence for any other district.
(3) The applicant shall deposit with the factory for which he desires to
act as purchasing agent, as security, a sum of rupees one thousand in cash or
Government securities of the face value of rupees one thousand or Post Office
Cash Certificates of the present encashment value of rupees one thousand, or a
bond of hypothecation of landed property worth rupees two thousand, and such
security shall be maintained through the period such works as a purchasing agent
and for six months thereafter.
Government will have the first charge on such or property for the
recovery of any fine or compensation due from the purchasing agent or his
employees under the Act or under these Rules, provided that, for reasons to be
recorded in writing, and with the consent of the occupiers concerned, the Cane
Commissioner may dispense with the deposit of security or permit the deposit of
such smaller security as he thinks proper. In such cases, the occupier shall execute
a bond holding himself liable for any sums recoverable from the Purchasing agent
by way of fine under the Act, or under these rules, or otherwise, up to a limit of
Rs. l, 000.
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(4) On receipt of application the Cane Commissioner may

issue a licence in Form 13, Appendix 11, if he is satisfied that the
applicant:--
(i) is not a minor, or a purdahnashin lady, or an undischarged
insolvent, or a person of unsound mind, (ii) has not been convicted within
the previous two years of an offence under the Act or these Rules, other
than one which is in the opinion of the Cane Commissioner of a technical
nature and not such as to justify refusal of the licence, (iii) has not been
sentenced to imprisonment for a term exceeding six months for an offence
involving moral turpitude, and (iv) is not a company, firm or other
association of persons:

Provided that the Cane Commissioner may call upon the

applicant and the occupier of the factory concerned to show cause why a
licence should not be refused and may, thereafter, for reasons to be recorded
in writing, refuse to grant a licence to such applicant.

(5) A licence shall remain in force only till the 30th June next
following. It shall be renewed for the year following the said 30th June
and for each subsequent year; on application being made to that effect by
the purchasing agent in writing to the Cane Commissioner granting the
licence, in the same manner and on the same condition as if it were an
application for a new licence. On the expiry of a licence it shall if not
renewed, be returned to the Cane Commissioner who issued it.
(6) A licence will ordinarily permit purchases at only one
purchasing centre, but the Cane Commissioner may at his discretion
permit purchases to be made at not more than three purchasing centres.
Separate security will not be necessary, for the additional centres.
(7) A licence shall be valid only within the local limits of the
district in which it has been granted. If a purchasing agent desires to
purchase cane in a district other than that covered by the licence, an
application to that effect shall be made to the Cane Commissioner for an
endorsement on the licence making it available for such district. Unless
there are valid reasons to the contrary such endorsement shall be made and
no extra payment shall be made therefor.
(8) A licence shall be valid for making purchases on behalf of
only one factory. If a purchasing agent desires to purchase cane for more
than one factory, he shall be required to obtain a separate licence for each
factory. Such licence shall be granted if (i) the Cane Commissioner is
satisfied that the issue of another licence will not contravene the provision
of sub-rule (7), and (ii) the consent in writing of the occupiers of all
factories on whose behalf he already holds licences is produced before the
Cane Commissioner.
(9) A licence of a purchasing agent shall be cancelled by the
Cane Commissioner who issued the licence if (i) he receives an
application to that effect from the occupier of the factory concerned, or
(ii) the purchasing agent is adjudged insolvent or becomes of unsound
mind.
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(10) A licence of a purchasing agent· may be cancelled, or an

entry of warning made thereon by the Cane Commissioner who issued the
licence. An endorsement on a licence of a purchasing agent may be
cancelled or an entry of warning made on the licence by a Cane
Commissioner who endorses the licence, in such cases, such Cane
Commissioner shall send intimation of the orders passed by him to the Cane
Commissioner who granted the licence for such action as he may deem fit.
No order for the cancellation of a licence, or of an endorsement thereon, or
for the making of an entry of warning of the licence shall be issued, except
for reasons to be recorded in writing after giving an opportunity of
explanation to the purchasing agent, and reasonable notice to the occupier of
the factory concerned. Pending inquiry under this rule, the Cane
Commissioner may suspend a licence, or endorsement thereon, but such
suspension shall not take effect until after the expiry of 72 hours from the
giving of notice thereof to the occupier of the factory concerned.
(11) An appeal shall lie to the Provincial Government from order
of the Cane Commissioner refusing grant of a licence or canceling or
suspending a licence. Such appeal shall be filed within one month of the
date of the Cane Commissioner's order. The order of the Cane
Commissioner, if no appeal is filed within the prescribed period, shall be
final.
13. Minimum price and weighments:-- (l) An occupier or a
purchasing agent for any person employed by them shall not purchase cane
for a factory or pay for it at a price below the minimum price fixed under
these rule in accordance with section 16 of the Act.
(2) The occupier of a factory or a purchasing agent shall not make
any deduction from the amount due for cane sold to him by a Cane Grower
or a Cane Growers' Co-operative Society except such deduction as may be
prescribed or as the Provincial Government may, by notification, from time
to time allow.
(3) The minimum price payable for cane shall be fixed per
standard maund of 822/7 lb. or as may be notified by Government from
time to time.
(4) All transactions in connection with the purchase and supply of
cane shall be made according to the maund of 82, 2/7 lb. or as may be
notified by Government from time to time, and it shall be lawful to use any
other weight in relation to any such transaction.

(5) No cane shall be purchased without actual weighment.

(6) The net weight of cane of cane shall be correctly recorded to

the nearest weighth of a maund

(7) The occupier of a factory or purchasing agent shall permit a

representative of a Cane-Growers' Co-operative Society; or any other person
duly authorised by the Cane Commissioner for the purpose, to watch or
check weighments and to examine the parch is in which weights are
recorded.
(8) No scales or weighs shall be used, kept or possessed for the
weighment of cane by or on behalf of, an occupier or a purchasing
agent:-
(i) which are incorrect, provided that a weighbridge shall not be
deemed to be incorrect which weights correct to within two
per cent of the correct weight of the consignment actually
being weighed, and cannot be adjusted more accurately, or
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(ii) the scale arms of which are not clearly marked on both
sides whenever possible, and are either not accessible to
the vendors of cane and their authorised agent, or are not
legible to persons standing near the carts which are being
weighed; or
(iii) which have been disapproved by an Inspector, provided
that the Inspector shall not disapprove scales or weights
which comply with the rules unless after a weighbridge is
not adjusted and unless it is persistently found to be.

(9) All weights used, kept or possessed for the purchase of cane
shall be made of iron, brass or other suitable metal, and be clearly
stamped or marked to indicate the denomination.
(10) The part of the mechanism of a weighbridge by which its
adjustment is controlled shall, wherever possible, be kept suitably
sealed or locked.
(11) All scales and weights used, kept or possessed for the
purchase of cane shall be open to inspection, examination and test by
an Inspector at all times without notice, and shall be made available for
inspection, examination and test when required by the Inspector.
(12) An occupier or purchasing agent shall cause all
weighbridges or scales used, kept, or possessed by him for the purchase
of cane to be tested at least twice a week, and maintain a record of such
tests which shall on demand be shown to the Inspector.
(13) At every purchasing centre adequate facilities for
weighing, and at heavier purchasing centres and at the main gates of
each factory weighbridges with ticket printing device shall be provided
to the satisfaction of the Cane Commissioner by the occupier. Carts
and Lorries shall not be kept waiting unduly for weighment
Explanation:-- A cart or lorry shall not be deemed to have
kept waiting unduly if the supplier of cane, having received
!instructions in writing to deliver cane on a certain day, ignores those
instructions, or where the practices or issuing written instruc1ions is in
force, brings cane, without receiving such instructions.
(14) An occupier shall:--
(i) provide metalled approaches to and exists from all
weighbridges at the factory premises to such distance as
may be in each case reasonable and feasible and up to a
distance of one furlong, when required to do so by the
Cane Commissioner;
(ii) kept the same in a proper state of repair;
(iii) provide reasonable space' for parking of carts 'and
lorries· waiting their turn for approach to the
weighbridges; and
(iv) provide sheds and cattle troughs at the factory gates to
the satisfaction of the Cane Commissioner.
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(l5) Weighments of the cane shall not be made more than half an hour
after sunset, unless lighting arrangements approved by the Cane Commissioner
as sufficient for the easy reading of the scales arms by both the purchaser and the
vendor; or his authorised agent, are made and maintained.
(16) No deduction shall be made from the weight of cane on the ground
that the cane is improperly stripped or on any other ground whatever, unless
approved by cane Commissioner:

Provided that where cane is brought in bundles and weighed in

bundles a deduction not exceeding 1 seer for every 4 maunds of cane may be
made on account of the weight of the binding material
14. Payment: -- (l) The occupier or purchasing agent shall provide
adequate facilities to the satisfaction of the Cane Commissioner for the payment
of price of cane.
(2) The occupier or purchasing agent shall make all payments for cane
at the purchasing centre within one week of demand:
Provided further that when a purchasing centre is closed all
payments must be made at the centres within a week of the closing of the centre
and, if any growers do not appear to receive payments within a week of the
closing of the centre, payments to them should thereafter be made at the factory
within 24 hours of demand.
(3) Payments shall be made on the basis of the recorded weight of
cane at the purchasing centre.
(4) Payments for cane purchased for a factory shall not be made to a
representative of the grower (or to a representative of the person representing
him self to be such grower) un1ess he is duly authorised by him in writing to
receive such payment:
Provided that no person who purchased the cane from the grower, or
who is employed by an occupier or a purchasing agent and no person who bas
lent money to the grower, and no agent such person, shall take such payment.
(5) An occupier and purchasing agent shall be liable for all payments
due for cane supplied to him or on his behalf. If a purchasing agent fails to
make payment for cane purchased by him for a factory, the occupier of such
factory shall be responsible for making such payments:
Provided that notice or complaint of non-payment is given, or made in
writing, to the occupier of the factory concerned, within three months of the
date on the purchasing centre at which the cane was supplied is closed.
(6) Except as provided in sub-rules (7), (8), (9) and (10) no deduction
shall be made by way of fine or otherwise from the price of the cane purchased
which would reduce such price to a figure below that calculated at the
prescribed minimum rate.
Recoveries of dues of Cane-Growers' Co-operative Society may be
made by deduction from the price payable for cane.
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(7) When transport is provided by the occupier of the factory he may deduct
the cost of' transport according to the rate fixed by the Cane Commissioner:--
(i) Deduction may be made, if cane is definitely below the average of
standard cane for the area on account of delay in transport or natural
causes, e.g., serious waterlogging, intensive insect attack, disease, or
severe frost the Cane Commissioner will issue general instructions for
the guidance of the occupier in regard to the extent to which such
deductions are to be made and in cases of dispute the decision of the
Cane Commissioner will be final.

(8) The Provincial Government, if satisfied that in any local area a

substantial quantity of cane will remain standing and unsold on the 1st June, and is
not likely to be purchased at the prescribed minimum price may by notification in the
Official Gazette direct in such area deduction as may be specified in the notification
may be made from the price of the cane purchased after that date.
(9) If any loan has been advanced by an occupier or a purchasing agent for
meeting the expenses of cultivation to the persons from whom cane has been
purchased, the amount of such loan, together with simple interest thereon at a rate
not exceeding one rupee per month for the period the loan has been outstanding may,
subject to the terms of the agreements between the lender and the borrower, be
deducted from the amount paid for the cane:
Provided that the amount of the loan is not disproportionate to the area to be
sown, or the assistance necessary to sow it, or the value of the cane to be delivered,
and that no deduction is made in respect of a loan given more than three years
previous to the date of purchase of cane.
Explanation:-- A loan for the purpose of this rule shall mean only an
advance made in pursuance of an agreement to sow a definite area of sugarcane, and
for enabling or assisting such area to be sown, or in pursuance of an agreement to
deliver a certain amount of cane. The Cane Commissioner will decide on application
from the occupier or purchasing agent concerned, whether a loan is proportionate to
the area to be sown, or the assistance necessary to sow it, or the value of the cane to
be delivered.
I5. Notices: --(1) An occupier or a purchasing agent shall cause to be put up
at each purchasing centre from the date it is started till the date it is closed:--

(i) a copy of an abstract of the rules when received from Government;

(ii) notice of suitable size in clear bold letters showing the minimum price
fixed by Government and.
(iii) the rates at which cane is being purchased at the Centre.

(2) such notices shall be put up:--

(a) at each entrance to the factory;

(b) at the place at which weighments of cane are made for the factory;
and
(c) at such other conspicuous places near the place mentioned in (a)
and (g) as the Collector of the District or the Inspector may direct.

(3) Entries of such notices shall be made legibly in Urdu, Pushto and
English scripts, and shall be on one side of the paper only,
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16. Registers and records:-- (1) The occupier or a purchasing agent shall
prepare or cause to be prepared, at each purchasing centre a parcha in triplicate
showing correctly:--

(a) the serial number of the parcha;

(b) the date of purchase;
(c) the, name of the person from whom the cane is purchased with his
parentage and full ,address, together with similar particulars about the
person authorised by the vendor to deliver cane on his behalf;
(d) the number of the requisition or purzi assigned to the vendor, if any;
(e) the weight of the cane, including the weight of the cart, lorry, or
wagon, as the case may be;
(£) the weight tax of the cart, lorry or wagon, as the case may be;
(g) the weight of the binding material to be deducted;
(h) the net weight of the cane purchased;
(i) the rate at which the cane is purchased; and
(j) the price that has to be paid for the cane at that rate after making
Deduction on account of the Development Fund.

The entries of items (e) and (f) shall be made and announced in the
presence of the person who actually deliver the cane while the cart, lorry or wagon
still standing on a weighbridge, and in the case of the weighment on beam scales,
Immediately on completion of the weighment.

Entries as regards items (a) and (e) shall be made as soon as weighment
takes place; and entries as regards items (f) to (j) as soon as the empty cart is
weighed.

(2) The parcha referred to in sub-rule (1) shall be handed over in duplicate
to the person from whom cane is purchased, or to his authorised agent; before he
leaves the purchasing centre. The triplicate copy of counterfoil shall be kept at the
purchasing centre concerned.

(3) When payment is made for cane purchased, the receipt of the payee
shall' be taken on one of the counterfoils of the parcha handed over to him in
accordance with the provision of sub-rule (2).
 -:14:-

(4) An occupier and a purchasing agent shall maintain or record showing

correctly:--

(a) the serial number of the parcha;

(b) the date of the purchase;
(c) the name of the person from whom the cane is purchased, with his
parentage, caste and full address, together with similar particulars
about the person, if any, authorised by the vendor to deliver the cane
on his behalf,
(d) the number of the requisition slip or purzi assigned to the vendor,
If any;
(e) the weight of the cane including the weight of the lorry or cart or
wagon; as the case may be;
(f) the weight of the binding material to be deducted; .
(g) deduction on account of bad cane;
(h) the net weight of the cane purchased;
(i) the rate of which the cane is purchased;
(j) the price that has to be paid for the cane at that rate;
(k) the amount of loan, if any, advanced to the person from whom the
cane is purchased;
(l) the amount of interest up to the date of recovery of the same;
(m) the amount deducted on account of the Development Fund;
(n) the amount actually paid on account of the cane purchased; and
(o) the date of payment:

Provided that where no loans are advanced the columns giving the
particulars by (k) and (1) above may be omitted from the register or record.

(5) A separate register or record shall be maintained for each factory on

behalf of which purchases are made.

(6) An occupier and. purchasing agent shall maintain or cause to be

maintained, at each purchasing centre an inspection book in which Inspectors may
record their remark and instructions.

(7) The registers and records maintained, and copies of counterfoils or

parcha issued, including the. copies or counterfoils of the parchas containing the
receipts of the payees shall be kept at the purchasing centre until it is finally closed
for the year. They shall be opened to. inspection and checked by an Inspector; Or
such other public servant as may be appointed by him for the purpose in this behalf:
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Provided that the registers and records may be taken for check to the factory
once in a calendar month and retained there for a period not exceeding 24 hours, at
time when no purchases of cane are being made at the purchasing centre.

(8) The registers, records, parchas, etc., referred to in sub-rule (7), shall be
preserved by the occupier concerned for two years from the date of last transaction
entered thereon.
(9) The Cane Commissioner may sanction the use of such other registers,
records and forms in place of those specified in sub-rules (l), (3) and (4) as in his
opinion substantially fulfill the object of those sub-rules.
(10) The occupier of a factory shall submit correct returns relating to the
production and sale of sugar and purchase of cane in such form, by such date and to
such authority as may be directed by the Cane Commissioner.

17. Arbitration:--(I) Any dispute touching an agreement, referred to in these

rules, shall, be referred to the Cane Commissioner for decision, or if he so directs, to
arbitration. No suit shall lie in a Civil or Revenue Court in respect of any such
dispute.
(2) If the Cane Commissioner directs the reference of suit to arbitration, it
shall be referred to sole arbitrator acceptable to the parties concerned. In case no
sole arbitrator is acceptable to both parties, the dispute in question shall be referred
to a Board of Arbitration, consisting of one representative of each party and an
umpire acceptable to both representatives. If the representatives of the parties are
unable to elect such an umpire within a fortnight, the Cane Commissioner shall
either himself act as umpire or nominate one. The umpire shall be the President of
the Board of Arbitration, and shall have a vote in case of
disagreement, between the representatives.
(3) The sole arbitrator the President of the Board of Arbitration shall have
the full power of a Court in respect of summoning the parties, witnesses and records.
(4) The decision of the sole arbitrator or Board of Arbitration shall be final
and binding on both parties, and shall not be called in question in any Civil or
Revenue Court.
(5) The sole arbitrator or the Board of Arbitration shall give an award within
the time fixed by the Cane Commissioner failing which the Cane Commissioner
may decide the dispute himself, or appoint another arbitrator or arbitrators for the
purpose.
(6) Any party considering himself aggrieved by an award may appeal to the
Provincial Government within one month of the date of the communication of the
award and the Government shall pass such orders as they deem fit.
(7) The Provincial Government's order in appeal shall be final.
(8) On application to the Civil Court having jurisdiction over the subject
matter of the decision or award, the decision of the Cane Commissioner or the
award of the arbitrator or arbitrators, or the Provincial Government's orders in
appeal against award, shall be enforced by the Court as if such decision, award,
orders in appeal were a decree of that Court.
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18. Penalties:-- (l) Any person contravening any of the provisions of

these rules for which no penalty has been provided in the Act, or not obeying
a lawful order or direction conveyed to him in writing by the Cane
Commissioner, if he is authorised by the Provincial Government to pass or
issue such order, shall be punishable with fine which may extend to Rs.
1,000.00.
Provided that for a breach of the provisions of these rules committed
by a purchasing agent or an employee of the occupier of a factory, under the
orders in writing of the occupier or with his connivance and for his benefit,
such occupier shall also be liable to punishment under this rule.
(2) Where an occupier of a purchasing agent is charged with an
offence against these rules, he shall be entitled, subject to the direction of the
Court, upon complaint duly made by him, to have any other person whom he
charges as the actual offender brought before the Court at the time appointed
for hearing the charge, the trial of the case shall thereupon proceed as if such
other person were also an accused person and is, after the commission of the
offence has been proved, the occupier or the purchasing agent as the case may
be, proves to the satisfaction of the Court:-
(a) that has used due diligence to enforce the execution of these
rules; and
(b) that the said person committed the offence in question without
his knowledge, consent or connivance, that other persons shall
be convicted of the offence and shall be liable to the like fine
as if he were the occupier or the purchasing agent, as the case
may be, and the occupier shall be discharged from all liability
in respect thereof under these rules.

(3) When it is made to appear to the satisfaction of the Inspector at

any time prior to the initiation of prosecution:--
(a) that an occupier or a purchasing agent has used all due diligence
to enforce the execution of these rules; and
(b) that the offence has been committed without the knowledge,
consent or connivance of the occupier or the purchasing agent,
or in contravention of his orders as the case may be, the
Inspector shall proceed against the person whom he believes to
be the actual offender without first proceeding against the
occupier or the purchasing agent and such person shall, if found
guilty, be liable to get the punishment to which the occupier or
the purchasing agent would otherwise have been liable.

(4) No prosecution shall ordinarily be instituted under these rules

unless the party complained against has been given an opportunity to show
cause why he should not be prosecuted.

(5) No Court shall take cognizance of any offence under these rules
except upon complaint made within one year of the date on which the offence
is alleged to have committed.
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(6) In case of a first offence the Court may, instead of

passing a sentence e of fine, discharge the offender after administering
a warning. Such warning in the case of a purchasing agent shall be
endorsed on his licence.

(7) On pronouncement of judgment in a case instituted

under these rules the Court shall send copies thereof to the Cane
Commissioner, the occupier of the factory concerned, the Collector of
the District in which the factory is situated.

19. Protection to persons acting under these rules:--- No

suit, prosecution or other legal proceedings shall lie against any person
for anything which is in good faith done or intended to be done under
these rules.

20. Powers to exempt from rules:--- The Provincial

Government may for special reasons, by notification, exempt any
factory or class of factories from all or any of the previous rules
framed under the Act.

21. Interpretation of rules:--- All matters connected with

the interpretation of these rules shall be referred to the Cane
Commissioner, whose decision shall be final.

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