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IN THE HIGH COURT OF ALLAHABAD
Rajan Roy, Suresh Kumar Gupta, JJ.
Shailendra Kumar & Ors. – Petitioner
Versus
State of U.P. Thru. Addl. Chief Secy. Sugarcane Deptt. Lko. & Ors., - Respondents
Misc. Bench No. 11355, 11356, 10947, 10448, 10907, 10991, 11002, 11501, 11499, 11483, 11451, 11290, 11322, 11284, 11288, 10477, 11286, 11287, 11259, 11003, 11095, 11098, 11094, 10930, 11200, 11172, 11150, 11202, 11882, 11883, 11886, 11895, 11906, 11909, 11921, 11941, 11947, 11943, 12190, 12161, 11973, 12020, 12061, 12088, 12341, 12344, 12345, 12368, 11835, 11868, 11873, 10357, 11289, 11576, 11575, 11564, 11590, 11535, 11541, 11545, 11553, 11624, 11625, 11642, 11629, 12541, 12543, 12545, 12548, 12554, 12557, 12561, 12569, 12571, 12576, 12580, 12583, 12587, 12588, 12657, 12222, 12192, 12278, 12298, 10245, 10235, 10045, 10035, 12680, 12682, 12686, 12692, 12693, 12696, 12698, 12710, 12801, 12807, 12774, 12874, 12876, 12877, 12878, 12881, 12882, 12907, 12960, 12969, 12971, 12972, 12983, 12986, 13194, 13197, 13198, 13199, 13201, 13203, 13204, 13206, 13135, 13137, 13333, 13358, 12400, 12402, 12403, 12405, 12412, 12413, 12415, 12419, 12420, 12429, 12447, 12448, 13597, 13606, 13617, 13682, 13164, 11221, 13467, 13470, 13703, 13722, 13987, 14043, 14046, 13860, 13863, 14486, 14510, 14641, 14656, 14781, 14783, 14798, 14851, 15577, 15762, 15908, 15715, 15437, 15494, 15539, 15706, 16017, 15335, 13701, 15491, 16418, 15917, 15988, 16128, 16310, 15766, 15915, 16712, 16883, 16884, 16885, 16815, 16817, 16904, 16663, 16646, 16321, 16228, 17122, 17123, 17124, 17089, 14847, 15701, 15439, 16235, 17254, 17288, 17291, 17013, 17688, 17658, 17763, 17751, 17778, 17961, 14203, 14024, 14424, 14422, 14345, 14515, 14488, 14484, 14870, 14784, 14782, 18066, 18067, 18396, 18400, 18304, 18633, 18835, 17543, 19108, 20819, 21454, 21792 of 2021
Decided On : 23-12-2021
Constitution of India,1950 - Articles 14, 226, 254 (2) and 21 - State Act, 1953 - Sections 16, 17 (1) , 2(k) , Sub- Section (3) of Section 17 and 17 - Central Act, 1955 - Section 3 - Central Order, 1966 - Clause 3(3) and 3(3-A) - Regulation of Supply and Purchase - Parties to ensure that payment of entire cane price - Writ petitions filed by cane growers seeking their sugarcane dues which have not been paid by the opposite party - Nature of mandamus commanding thereby opposite parties to ensure - It is also contended that on failure to pay dues as aforesaid, interest - Delayed payment of dues of sugarcane growers by the Company and in fact, in all years, the dues have been paid belatedly - It has factory run by the Company is also not shut-down as if this happens then ultimately it is the sugarcane growers of the area who will suffer and they will have to take their sugarcane to a faroff factory incurring additional expenditure and consequent losses in sale consideration - Sugar Commissioner has opened an Escrow account and 85% of the sale proceeds from sale of sugar made by Company from the sugarcane supplied by farmers as also certain percentage of sale proceeds from sale of by-products.
Finding of the Court:
Affidavits filed by Sugarcane Commissioner and Company/Occupier, it is evident that financial condition of Company is not such that it could have paid sugarcane dues within the stipulated period of fourteen days, and same in fact are being paid on daily basis, in phases, from Escrow Account opened by order of Sugarcane Commissioner in which 85% of proceeds from sale of Sugarcane by Company and certain percentage of proceeds from sale of it by products are deposited thereby leaving 15 % of sale proceeds for Company to meet its expenses and remaining 85% are being utilized to pay dues of sugarcane growers and as per records almost everyday such payments are being made- Sugar mills may continue to run and on other hand, farmers of the area may be able to sell their crop to it and reap benefits - Court are of opinion that any direction for coercive measures for recovery of dues in present scenario at this stage will not serve the interest of petitioners – Court provide and direct that Company/Occupier should clear all dues of farmers/petitioners herein along with interest @ 15 per cent per annum on delayed payment.
Result: Writ petitions are disposed of
JUDGMENT :
Rajan Roy, J.
1. Heard Sri G.C. Verma, learned counsel for the petitioners, Sri H.P. Srivastava, learned Addl. Chief Standing Counsel for the State, Sri Satish Chandra Mishra, learned Senior Counsel along with Sri Paavan Awasthi, Sri Sanjeev Singh, Sri Sunil Kumar Chaudhary and Sri Kapil Mishra, learned counsel for opposite party no. 6, Sri Gaurav Mehrotra & Sri Parmanand Asthana, learned counsels appearing for respective Cane Growers' Co-operative Societies.
2. This is a bunch of writ petitions filed by cane growers seeking their sugarcane dues which have not been paid by the opposite party no.06 i.e. Bajaj Hindustan Sugar Limited (hereinafter referred to as ‘the Company’). The Company runs 14 sugar mills in the State of U.P. and the petitioners are sugarcane growers who sold their sugar cane to five of these mills situated at Gola Gokaran Nath, Khambhar Khera, Palia Kalan, Barkhera, and Maqsoodapur. This matter relates to these five mills only.
3. Writ Petition No.11355 (M/B) of 2021 has been treated as the leading writ petition. Relief prayed in the writ petition is as under :-
(ii) Issue a writ, order or direction in the nature of mandamus commanding thereby the opposite party no.2 to take action against the opposite party no.6 for ensuring that the payment of entire cane price is made immediately to the petitioners along with 15 %. compound interest from the date on which it becomes due and till it actually paid, in the light of the Departmental Rules i.e. Sections 17 & 22 of the Uttar Pradesh Sugar Cane (Regulation of Supply and Purchase) Act, 1953, Rule 45 of the Uttar Pradesh Sugar Cane (Regulation of Supply and Purchase) Rules, 1954 & Order 3 (3, 3A, 8, & 9) of the Sugarcane (Control) Order 1966 as mentioned in para 3 of the W.P. and also in the light of the an AFR judgment passed in the writ petition no. 13313 of 2020 (MB), as contained in Annexure no. 4 to the W.P., in the interest of justice.
(iii) Issue a writ, order or direction in the nature of mandamus commanding thereby the opposite party no. 6 to make payment of entire cane price to the petitioner along with 15 %. compound interest from the date on which it becomes due and till it actually paid as the mill is bound to pay in the light of the Departmental Sections 17 & 22 of the Uttar Pradesh Sugar Cane (Regulation of Supply and Purchase) Act, 1953, Rule 45 of the Uttar Pradesh Sugar Cane (Regulation of Supply and Purchase) Rules, 1954 & Order 3 (3, 3A, 8, & 9) of the Sugarcane (Control) Order, 1966 as mentioned in para 3 of the W.P. and also in the light of the an AFR judgment passed in the writ petition no. 13313 of 2020 (MB), as contained in Annexure no. 4 to the W.P., in the interest of justice.
(iv) Pass any other order or direction which this Hon'ble Court may deem fit, just and proper in the circumstances of the case, in favour of the petitioners.
(v) Allow the writ petition with cost."
4. This Court on 05.07.2021 passed a detailed interim order directing payment of sugarcane dues to the petitioners and other sugarcane growers on the principle of ‘first supply, first payment’ so that there is uniformity and fairness in payment of dues.
5. The provisions of law relevant in the case
Point of law: Escrow Account opened by the Sugarcane Commissioner in this case is not referable to Section 17(5) of the Act, 1953 read with Rule 48A of the Rules, 1954, we do not wish to interfere wi....
The statutory obligations under the U.P. Sugarcane Act protect cane growers' rights by establishing a first charge on dues, mandating compliance by sugar mills and prioritizing timely payments.
The transfer of title in goods is governed by the provisions of the Sale of Goods Act, and the intention of the parties is a key factor in determining when the title passes. A charge on property can ....
Point of law: position which emerges is that in terms of the provisions for under the Act, 1953 and the Rules, 1954 an elaborate mechanism is provided for reservation and assignment of cane areas to ....
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