Full Judgment Text
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PETITIONER:
AGAUTA SUGAR AND CHEMICALS
Vs.
RESPONDENT:
STATE OF U.P. & ORS.
DATE OF JUDGMENT: 01/05/1997
BENCH:
K. RAMASWAMY, S. SAGHIR AHMAD, G.B. PATTANAIK
ACT:
HEADNOTE:
JUDGMENT:
O R D E R
Leave granted.
Application for impleadment allowed.
These 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.
Application No.1255(w)/97 in Writ Petition No.775(MB) /97
and Writ Petition No.775/MB/97.
It is 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.
Having heard the learned counsel on both sides, we
think that the following order would meet the situation:
(1) 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
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entire amount due shall Be paid to the cane growers.
(2) 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.
The 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.
Pending 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.
Appeals are accordingly disposed of. No costs.