Sugar and Chemicals Vs. State of U.P. & Ors  INSC 489 (1 May 1997)
RAMASWAMY, S. SAGHIR AHMAD, G.B. PATTANAIK
O R D
E R Leave granted.
for impleadment allowed.
appeals by special leave, arise from the judgment and orders of the Division
Bench of the Allahabad High Court, made on February 27, 1997 and March 2, 1997 in C.M.
No.1255(w)/97 in Writ Petition No.775(MB) /97 and Writ Petition No.775/MB/97.
not necessary to reiterate all the factual details. Sufficer it to state that
the appellant had used the sugarcane supplied by the cane growers individually
or through the societies. As a consequence, we are informed, around Rs.29 crores
are in arrears for payment to the cane- growers. The Collector exercising the
power of recovery proceedings has attached the sugar stock-in-hand; against
that, the appellant filed a writ petition. Pending writ petition, the High
Court has granted certain directions, which ultimately could not be complied
with. Consequently, the interim directions stood vacated. Thus, these appeals
by special leave.
heard the learned counsel on both sides, we think that the following order
would meet the situation:
The District Collector, Bulandshahar is directed to assess as to what is the
quantum of the Sugar stock-in-hand would be sufficient to meet the payment of
price of the sugarcane together with interest to all the cane growers towards
the sugarcane supplied by them for all the crushing seasons as also the Societies'
commission. It would be a first charge and recordable against the stock of
sugar. On so assessing, he would permit the appellant to sell that quantum of
stock of sugar. The sale proceeds thereof, when received from the appellant,
are directed to be credited to an account to be opened by the Collector in a nationalised
Bank towards this amount. the Collector is directed to depute a responsible
officer of his collectorate to be present at the time of sale. The officer
would ensure that the sale would be made only of the permitted stock and that
the sale proceeds are credited to the said account directed to be opened in
that behalf. On the amount directed to be opened in that behalf. On the amount
being so deposited, the entire amount due shall Be paid to the cane growers.
After the sale thus is effected and payment made to the cane growers, it would
be open to the appellant to file an application before the Collector stating as
to what amount it is liable to pay towards Excise Duty and arrears of wages to
the employees etc. On the statement so made, the District Collector is directed
to assess as to what quantity of sugar from the remaining stock-in-hand would
meet the above requirements; he would accordingly allow the release of that
part the stock-in-hand for sale by the appellant for liquidation of Excise
Duty, arrears of wages etc.
above exercise would be done within a period of two months from the date of
receipt of this order. In the event of the appellant succeeding in the writ
petition, appropriate directions may be given by the High Court in the main
writ petition for mutual adjustment of any amount repayable by the cane
growers. The order of attachment would stand lifted after compliance of these
directions. If there is any difficulty in the implementation of this order,
liberty is given to the appellant to approach this Court.
implementation of this order, we hope and trust that no further coercive steps
will be taken and no officers, who are members of the appellant-company or
shareholders of the company, would be detained.
are accordingly disposed of. No costs.