By means of this petition filed under Article 226 of the constitution of India, the petitioner has prayed for the following relief:-
"issue a writ, order or direction or an appropriate writ allowing the Reference, annexed as Annexure No. 1, preferred by the petitioner company after setting aside the order postponing the hearing of the Reference and further permit the petitioner company to sale an additional 2.4 Mt. Of free sale sugar over and above the normal release order for the sugar season 2011-2012 including the stock of sugar season 2010-1011."
It is submitted that in order to run business of his seven units, the petitioner has incurred several expanses including payment to the sugar cane growers. In the last 5-6 years the petitioner company has established four new sugar mills and there is huge liability on the petitioner. It is further submitted that the petitioner has made a reference dated 19.12.2011(Annexure-1) in which he has made prayer for the release of 3 lac qtls of sugar for sale over and above normal released quota for the period of six months to enable petitioner's company to fulfill its statutory and contractual obligations but in complete dis-regard to the aforesaid reference and keeping in view the actual production of about 8.01lac qtls in the month of December2011, the respondents have issued a quota of only 2,40,559 qtls free sale sugar for the month of January, 2012 which is unrealistic and un reasonable. It is submitted that in the similar mater this court has passed order directing the competent authority to take decision on the reference of the petitioners. The attention of this court was drawn to the order dated 20.1.2012 passed in writ petition No. 471 (MS) of 2012M/s Dhanpur Sugar Mills Ltd vs. The Chief Director, Ministry of Consumer Affairs & Public Distribution and prayer has been made that the benefit granted to petitioners by the aforesaid order be also extended to the petitioner. In the aforementioned writ petition No. 471 of 2012 (MS) this court had issued notices to the opposite parties and passed the following order, "Hon'ble Rajiv Sharma,J.
It has been informed at the Bar that Advocates are abstaining from judicial work.
However, an officer of petitioner's sugar mill appeared in person and submits that as the matter is very urgent and as such, it may be heard.
It has been stated that due to excessive and arbitrary fixation of State Advised Cane Price along with low sugar realisation, the financial condition of the petitioner's company has deteriorated and has resulted in serious liquidity crunch. The sugar release order dated 29.12.2011 passed by the respondent was inadequate as in the said release order, the petitioner has prayed for release of 25,000 MT of sugar per month in addition to the normal release, but the opposite parties while passing the release order dated 29.12.2011 has only allowed release of 5316.1 MT of sugar for the entire units of the petitioner's company, which is inadequate.
It has further been stated that a reference was made by the petitioner's company to the opposite party, who is designated as Prescribed Authority under the Essential Commodities Act, 1955 but the opposite parties are sitting tight over the reference and is imposing the restriction from selling the free sale sugar, despite the fact that this Court in the case of Shakumbari Sugar & Allied Industries Ltd. Vs. Union of India & others held that the restriction placed on the producer of sugar to sell free-sale sugar beyond the quota is illegal and violative of Article 19 (1) (g).
It has also been pointed out that in Civil Appeal No. 7508 of 2005 [West U.P. Sugar Mills Association & others Versus State of Uttar Pradesh and others] along with connected appeals, Hon'ble Apex Court, vide order and judgment dated 17.1.2012, has directed the sugar factories to pay the balance outstanding principal amount to the cane growers or to the co-operative societies according to SAP of the relevant crushing seasons and as such, on account of non-availability of the funds, petitioner is not in a position to pay the outstanding amount to the cane growers. Therefore, petitioner preferred a representation with reference to Section 3 (e) of the Essential Commodities Act, 1955 read with Sugarcane (Control) Order, 1966, praying therein to allow the petitioner to sell 25000 MT per month of sugar from the current year's production apart from the general sugar release order.
It has also been pointed out that in Civil Appeal No. 7508 of 2005 [West U.P. Sugar Mills Association & others Versus State of Uttar Pradesh and others] along with connected appeals, Hon'ble Apex Court, vide order and judgment dated 17.1.2012, has directed the sugar factories to pay the balance outstanding principal amount to the cane growers or to the co-operative societies according to SAP of the relevant crushing seasons and as such, on account of non-availability of the funds, petitioner is not in a position to pay the outstanding amount to the cane growers. Therefore, petitioner preferred a representation with reference to Section 3 (e) of the Essential Commodities Act, 1955 read with Sugarcane (Control) Order, 1966, praying therein to allow the petitioner to sell 25000 MT per month of sugar from the current year's production apart from the general sugar release order.
It has also been pointed out that in Civil Appeal No. 7508 of 2005 [West U.P. Sugar Mills Association & others Versus State of Uttar Pradesh and others] along with connected appeals, Hon'ble Apex Court, vide order and judgment dated 17.1.2012, has directed the sugar factories to pay the balance outstanding principal amount to the cane growers or to the co-operative societies according to SAP of the relevant crushing seasons and as such, on account of non-availability of the funds, petitioner is not in a position to pay the outstanding amount to the cane growers. Therefore, petitioner preferred a representation with reference to Section 3 (e) of the Essential Commodities Act, 1955 read with Sugarcane (Control) Order, 1966, praying therein to allow the petitioner to sell 25000 MT per month of sugar from the current year's production apart from the general sugar release order.
Considering the peculiar facts and circumstances of the case, prima facie, a case for interim relief is made out.
Admit.
Issue notice to opposite party returnable at an early date.
List after service.
In the meantime, it is provided that the petitioner shall be permitted to sale 2.5 lakhs M.T. sugar including the stock of sugar season 2010-2011 as also current sugar season over and above the normal release order. The Central Government shall issue release order accordingly in respect of free sale sugar within a period of 10 days from the date of receipt of a certified copy of this order, failing which the petitioner shall be at liberty to sale the above quantity of free sale sugar in the open market on his own because of non issuance of the release order, the petitioner shall intimate about the sale and place of sale to the concerned District Magistrate.
Officer of the petitioner's sugar mill, who is present today, undertakes that the amount so received from the sale of the aforesaid quantity of sugar, the same shall be paid to the cane growers being arrears of sugarcane dues within one week from the date of sale and the petitioner will inform about the same to the concerned District Magistrate. In case the petitioner fails to clear cane dues out of the aforesaid amount so received, it will be open for the District Magistrate to recover the same and make payment to the sugarcane growers towards the sugarcane dues.
The petitioner is directed not to divert the aforesaid amount towards any other dues except the cane dues to be payable to the cane growers. It is clarified that the amount out of the sale of sugar shall be utilized for clearing the dues of the farmers and it is only after clearing the dues of the farmers, if the excess amount is available then it should be utilized towards the payment of statutory liabilities."
In the light of above,in the meantime, it is provided that the petitioner shall be permitted to sale 3lac qtls of sugar including the stock of sugar season 2010-2011 as also current sugar season over and above the normal release order.Since the counsel for petitioner also given the undertaking as given by the officer of the petitioner's sugar mill in the above writ petition No. 471 (MS) of 2012, the petitioner is also entitled to the benefit granted in the aforementioned writ petition No. 471 (MS) of 2012 by this court on the same terms and condition.
Order Date :- 1.2.2012 R.P/