SBEC SUGAR LIMITED Vs. STATE OF U.P.

JUDGEMENT

(1.) The petitioner is a Company incorporated under the Companies Act, 1956 and is engaged in the business of manufacture of crystal sugar by vacuum pan process. The basic raw material for the petitioner's product is sugar cane, which it purchases from the farmers through the Cane Cooperative Societies. For the crushing season 2012-13, the petitioner could not pay the cane price as well as society commission, as a result of which a recovery certificate dated 21.2.2014 for a sum of Rs.112.87 Crores was issued towards the cane price, society commission and interest accrued thereon. Subsequently a citation dated 24.2.2014 was issued by the Tehsildar. In furtherance of the recovery, the revenue authority issued an attachment order dated 8.5.2014 seizing two lac quintals of sugar. The same was put to auction, but, however, no sale could be made as the minimum reserve price was not given by any bidder.

(2.) However, between the period 24.2.2014 to 16.6.2014, the petitioner alleges that it had paid the cane price and society commission directly to the Cane Cooperative Society. Inspite of this payment, it transpires that the Sub Divisional Magistrate issued a notice on 18.6.2014 for attachment of the three bank accounts of the petitioner in Punjab National Bank and in pursuance thereto, an amount of Rs.84,80,000/- was withdrawn on 24.6.2014. The petitioner made a representation dated 19.9.2014 to the District Magistrate praying that the amount so recovered from the bank account should be transferred to the Cane Cooperative Society towards the payment of the cane price for the crushing season 2013-14 as, in their opinion, the cane price for the crushing season 2012-13 had already been paid. To their utter surprise the petitioner was informed that the amount so recovered has been adjusted towards 10% collection charges pursuant to the recovery certificate dated 21.2.2014. The petitioner, being aggrieved by the action of the respondent, has filed the present writ petition praying that the recovery of 10% charges pursuant to the recovery certificate dated 21.2.2014 should be quashed and a mandamus should be issued directing the Sub Divisional Magistrate, Baraut, Baghpat, respondent No.4, to transfer the amount of Rs.84,80,000/- to the Cane Cooperative Society for payment of the cane price for the crushing season 2013-14.

(3.) The State authorities has filed a counter affidavit. In paragraph 4 of the counter affidavit, the respondents admit that the amount realised from the bank account of the petitioner has been adjusted towards the collection charges. In paragraphs 10 and 16 of the counter affidavit, the respondents admit that no amount could be recovered pursuant to the recovery certificate and the sugar so attached could not be sold but the amount recovered from the bank account has been adjusted towards the collection charges. The respondents have justified the adjustment, on the ground, that the recovery certificate has been issued and the efforts were made by them to recover the amount.