CHAND BIHARI PATODIA Vs. STATE OF U P

JUDGEMENT

(1.) Petitioners, who are three in number, have approached this Court with the following relief;

(2.) Brief background of the case as is reflected from the pleadings set-out in the writ petition is that the petitioner no.1 is the Director of The Oudh Sugar Mills Ltd., Hargaon, District Sitapur and the petitioner no. 2 is the Executive President of New India Sugar Mills, which is a unit of the Oudh Sugar Mills Limited, Hargaon District Sitapur and the petitioner no.3 is Vice President (Finance) of New India Sugar Mills which is a unit of the Oudh Sugar Mills Limited, Hargaon, District Sitapur. The New India Sugar Mills is a Unit of the Oudh Sugar Mills Ltd., Hargaon, District Sitapur. The petitioner submit that the New India Sugar Mills is a new sugar factory and is engaged in manufacturing of sugar through vacuum pan process and is also having a co-generation plant of 25 MW in its factory situated at village Dhadha Bujurg, Tehsil and police station Hata, District Kushi Nagar. The New India Sugar Mill has started its full-fledged crushing operation in crushing season 2008-2009.

(3.) It has been contended that the first information report has been lodged mentioning therein that the New India Sugar Mills started its crushing operation for the crushing season 2013-2014 on 6.12.2013 and completed its crushing on 6.3.2014 and has crushed a cane quantity of 70.44 Lac Quintals. The cane price at the rate of Rs. 280/- per quintal of the crushed quantity of sugar case comes to Rs.19505.88 lacs and at the rate of Rs. 260/- per quintal comes to Rs.18096.44 Lacs. As against the aforesaid figure the sugar mill has made the payment of Rs.11534.64 Lacs as on 29.5.2014 despite the fact that 53 days have elapsed from the date of closing of sugar mill in the crushing season 2013-2014 and still an amount of Rs.7971.24 Lacs is outstanding. According to the First Information Report due to outstanding cane dues there is an annoyance amongst the cane growers. It is alleged that there is a provision in the Uttar Pradesh Sugarcane (Regulation of supply and purchase) Act 1953, Uttar Pradesh Sugarcane (Regulation of supply and purchase) Rules 1954 and in Sugarcane Control Order 1966 for making full payment of cane price immediately after 14 days from the date of supply of sugarcane. It is further alleged that the Sugar Mill is manufacturing sugar through vacuum pan process and as per condition no.4 of the License granted it is mandatory upon the sugar mill to comply the provisions of Uttar Pradesh Sugarcane (Regulation of supply and purchase) Act 1953, Uttar Pradesh Sugarcane (Regulation of supply and purchase) Rules 1954 and Sugarcane Control Order 1966 and since the Sugar Mill has violated the provisions of the aforesaid provisions therefore the petitioners are responsible for the offence of Section-3/7 of the Essential Commodities Act 1955 as per Clause-8(4) of Uttar Pradesh Vacuum Pan Sugar Factories Licensing Order 1969.