IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF DECEMBER, 2019 BEFORE THE HON’BLE MR. JUSTICE B. VEERAPPA WRIT PETITION No.52611/2016(GM-RES) BETWEEN:
THE INDIA SUGARS & REFINERIES LTD HAVING ITS OFFICE AT: 108, MIDFORD HOUSE, M.G. ROAD, BENGALURU 560001, REP BY ITS MANAGER FINANCE, SRI. P.S. KRISHNA MURTHY, S/O. LATE. P K SOUNDARRAJAN, AGED ABOUT 57 YEARS ...PETITIONER (BY SRI ABHIJIT ATUR, ADVOCATE FOR SRI KASHYAP N. NAIK, ADVOCATE) AND:
1 . THE COMMISSIONER FOR CANE DEVELOPMENT & DIRECTOR OF SUGAR IN KARNATAKA, KHB BUILDING, CBAB COMPLEX, F-BLOCK, 5TH FLOOR, CAVERY BHAVAN, K.G. ROAD, BANGALORE 560009 2 . A PARASAPPA SON OF LATE A. THIPPANNA AGED ABOUT 53 YEARS, RESIDENT OF 32ND WARD, AGASARA PETE, HOSAPETE 583201, BELLARI DISTRICT.
3 . G. K. HANUMANTHAPPA S/O LATE G . HANUMAPPA AGED ABOUT 75 YEARS, RESIDENT OF 34TH WARD, UKKADKERI, HOSAPETE BELLARI DISTRICT-583201.
4. STATE BANK OF INDIA CENTRAL OFFICE, MADAM CAMA ROAD, NARIMAN POINT, MUMBAI-400001.
BRANCH OFFICE AT: STRESSED ASSETS MANAGEMENT GROUP BRANCH, 2ND FLOOR, OFFICE COMPLEX BUILDING, LHO CAMPUS, No.65, ST. MARK’S ROAD, BANGALORE-560001.
5 . SUGAR DEVELOPMENT FUND THROUGH THE CHARIMAN AND M.D., DEPARTMENT OF FOOD & PUBLIC DISTRIBUTION, DTE OF SUGAR, KRISHI BHAVAN, NEW DELHI-110001.
…RESPONDENTS (BY SRI M. VINOD KUMAR, AGA FOR R1;
SRI ARUN SHYAM, M., ADVOCATE FOR R2 & R3; SRI ADIT SHAH, ADVOCATE FOR SRI CHINTAN CHINNAPPA, ADVOCATE FOR R4; SRI K.N., SUBRAMANI, ADVOCATE FOR R5) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 2.9.2016 PASSED BY THE RESPONDENT VIDE ANNEXURE-A AND DIRECT THE RESPONDENT TO CO-OPERATE WITH THE PETITIONER IN THE MATTER OF MA No.95 OF 2016 AND ALSO THE MA DATED 15.7.2016 FILED VIDE DIARY No.4914 2016 VIDE ANNEXURE-E AND F RESPECTIVELY ETC.
THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R Learned counsel for the petitioner has filed memo for withdrawal stating that in view of the order passed by the Division Bench of this Court in Writ Appeal Nos.100807- 100809 of 2014 disposed off on 3.12.2019 (Dharwad Bench), the prayer would not survive for consideration.
2. Learned counsel for respondent Nos.2 and 3 submits that the petitioner shall furnish the list of farmers who are entitled for payment for the sugarcane, to the respondent - Commissioner forthwith.
3. The said submission is placed on record.
4. This Court while disposing of the Writ Appeal Writ Appeal Nos.100807-100809 of 2014 stated supra, issued the following directions:
i) The amount of Rs.9,86,25,000 along with interest accrued thereon, deposited by the appellant shall stand transferred to the Cane Commissioner forthwith. On receipt of the aforesaid amount, the Cane Commissioner shall keep the same by way of FDR with Nationalised Bank. The aforesaid amount shall be paid to the farmers who have supplied sugarcane to the appellant for the year 2013- 14, 2014-2015 and 2015-2016 after proper verification and scrutiny, by the Cane Commissioner.
ii) The Cane Commissioner shall adjudicate the claims of the individual farmers for shortfall in the payment of prices of sugarcane for the sugar season 2002-03, 2003-04 as well as 2006-07 expeditiously.
iii) The Cane Commissioner shall also adjudicate the issue whether it has jurisdiction to entertain the claim on behalf of the Association under the provisions of the Sugarcane (Control) Order, 1966. While deciding the lis between the parties, the Cane Commissioner shall bear in mind the orders dated 29.07.2013 passed in W.P. No.7169 of 2008 and W.P. Nos.76567-568/2013.
iv) The Cane Commissioner shall advert to the evidence adduced by the parties and shall pass a speaking order after analyzing the evidence adduced by the parties.
v) The Cane Commissioner shall determine the stand taken by the appellant in the replies dated 11.09.2013, 25.09.2013, 05.10.2013, 10.10.2013 and 15.05.2013 and shall adjudicate the claim of the appellant with regard to payment of arrears for the sugar season 2002-03 and 2003-04 and subsequently in the years 2004-05 and 2005-
06. The Cane Commissioner shall also ascertain the fact whether the farmers, who have supplied sugarcane to the appellant, have received the amount in excess of the minimum statutory price for the years 2004-05 and 2005-06.
vi) Since the company has already been wound up and the process of adjudication of the claims of the farmers may take some time, we deem it appropriate to protect the interests of the farmers, who have supplied sugarcane to the appellant, in the event of their success before the Cane Commissioner. It is pertinent to mention here that by an order dated 26.10.2013, the Cane Commissioner had directed the appellant to pay a sum of rupees Nine Crores along with interest at the rate of 15% per annum. Therefore, in the fact situation of the case and with a view, to secure the interest of the farmers, in the event of their success before the Cane Commissioner, we deem it appropriate to direct the appellant herein to deposit a sum of rupees Three Crores before the Cane Commissioner within a period of two months from the date of receipt of a certified copy of the order passed today. The aforesaid amount shall be kept by the Cane Commissioner by way of FDR with a Nationalised Bank and shall be subject to adjudication of the claims of the farmers who have supplied sugarcane to the appellant. Needless to state that in case, the farmers/Association are found entitled to any payment, the aforesaid payment shall be made to them by the Cane Commissioner expeditiously along with statutory interest as admissible under the 1966 Order.
vii) The Cane Commissioner shall also ensure that in the event of success of the claim of the farmers, who have supplied the sugarcane to the appellant or the Association, the amount due to them is paid in terms of Clause 3(8) of the Sugar Cane (Control) Order, 1966. Needless to state that, if any amount is left after adjudication of the claims of the farmers, who have supplied sugarcane to the appellant, the same shall be refunded to the appellant by the Cane Commissioner.
In view of the above, the writ petition is disposed off as having become infructuous. The petitioner is directed to furnish the list of farmers who are entitled for payment for sugarcane, to the respondent – Commissioner within a period of four weeks.
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