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Agri-Biz & Commodities - Sugar
Industry & Economy - Courts/Legal Issues
HC rejects sugar mills’ plea

The Lucknow bench of the Allahabad High Court has rejected an application by the UP Sugar Mills Association to implead itself as a party to the case involving discharge of cane arrears by mills.

A two judge bench of the court had, on September 25, issued a mandamus directing the State Government to initiate recovery proceedings against all mills if they failed to clear cane dues within three weeks.

The ruling came in response to a writ petition filed on August 10 by Mr V.M. Singh of the Kisan Mazdoor Sangathan.

Following the order, the Cane Commissioner’s office had issued recovery certificates (RC) to 63 private mills.

The RCs empower the authorities to seize control of the sugar stocks, plant and machinery, land and bank accounts of the defaulting mills and recover cane dues through arrears in land revenue.

In Tuesday’s hearing, the mills filed an application for impleadment in the case, which was, however, rejected by the bench.

The court further ordered the State Government to ensure liquidation of cane arrears by cooperative and Government-owned mills by November 15.

Related Stories:
Credit-starved UP sugar mills piling up payment arrears
UP sugar mills begin to pile up cane arrears

More Stories on : Sugar | Courts/Legal Issues

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