In Brief
The case concerns a dispute over whether two sugar factories in Karnataka comply with the statutory requirement of 15 km distance apart. The appellant obtained permission to establish a sugar factory in 2006 based on a certificate that no existing factory was within 15 km radius. The respondent later restarted a closed sugar factory (Raibagh) within the disputed radius. The High Court invalidated the appellant's factory. The Supreme Court held that Raibagh was not an 'existing factory' under law since it had not crushed sugarcane for five consecutive seasons before the appellant's application. The Court also permitted the appellant's continued operation on equitable grounds, considering substantial investment, job creation, and public interest, while reallocating certain sugarcane-supplying villages back to the respondent.
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