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On 20 February, 1964 in exercise of the powers conferred by clause 6 of the Sugarcane (Control) Order, 1955, the Central Government directed that the powers conferred on the Central Government by clause 4 of the said Order, shall be exercisable by the State Governments of Andhra Pradesh, Assam, Bihar, Gujarat, Kerala, Madhya Pradesh, Madras, Maharashtra, Mysore, Orissa, Punjab, Rajasthan, Uttar Pradesh and West Bengal and the Chief Commissioner of Pondicherry.

On 15 January, 1965 the Mysore Government in exercise of the Powers conferred by clause 4 of the Sugarcane Control Order, 1955 as amended and read with the notification dated 20 February, 1964 made the Mysore Sugarcane (Regulation of Supply) (Munirabad) Order, 1965. The Mysore Sugarcane (Munirabad) Order of 1965 in clause 2(c) defined factory to mean the premises of the appellant Salar Jung Sugar Mills Ltd. at Munirabad. In Schedule I of the Mysore Sugarcane (Regulation of Supply) (Munira-