STATE OF BIHAR Vs. RAM NARESH SINGH

JUDGEMENT

(1.) WE heard the Additional Advocate General and perused the order dated 25.7.2006.

(2.) IN the order dated 25.7.2006 the matter has been considered thus: - "On consideration of the submissions made by the counsel for the parties and the materials available on the record this much is obvious that the Union of India granted soft term loan as one time financial assistance at a concessional rate of interest to mitigate the hardships of the cane growers whose arrears were not paid by the State Government. It has been stated in the writ petition that because of nonpayment of the arrears many people died in the State of Bihar. It has been admitted by the State of Bihar that loan was sanctioned and it was received but it was not disbursed on the ground that earlier 19.44 crores was disbursed amongst the cane growers but nowhere it has been stated that entire dues/arrears of the cane growers has been paid. However, request has been made by the State Government to the Union of India for adjustment of the financial assistance i.e. soft loan amount towards the payment of Rs. 19.44 crores to the cane growers. As yet request has not been accepted by the Union of India nor any provision has been shown that such soft loan can be adjusted against the arrears already paid. Furthermore, there is specific terms and conditions for sanction of the soft loan i.e. only for payment of arrears of sugarcane growers. The financial assistance/loan was sanctioned in the year 2004 but as yet it has not been disbursed. In such a situation keeping the matter pending for such a long time specially when there is no specific averment that all the arrears of the sugarcane growers have been cleared, the action of the Government cannot be said to be justified. It is further obvious that one time financial assistance was granted only to mitigate the hardships of the sugarcane growers and in spite of the request the utilization report has not been submitted by the State of Bihar and as such, in our opinion, non -utilization of the amount for which it was sanctioned and putting the sugarcane growers in hardships is against the interest of the sugarcane growers who are suffering because of non -payment of arrears. In the circumstances, the writ petition is disposed of directing the respondent concerned to consider the grievance of the petitioner in the light of the observations indicated above and also the hardships of the sugarcane growers and pass necessary order to mitigate their hardships within seven weeks from the date of receipt/production of a copy of this order." On 26.3.2008, the Court passed e following order: - "The Government of India in the Ministry of Agriculture by its letter dated 29th January, 2004 addressed to the State Government conveyed the decision of the Union of India of grant of one time assistance as soft - loan to mitigate the hardships of the sugarcane farmers, who had not been paid their cane arrears for 2002 - 03. season. The aforesaid soft loan assistance was to be utilized and was limited to the cane arrears arising out of the difference between the State Advised Price and Statutory Minimum Price with regard to sugar factories in private sector only. It is not in dispute that the Statutory Minimum Price of the cane for financial year 2002 -03 was fixed at Rs. 64,50 per quintal and later on an increase of Rs. 5/ - per quintal was announced by the Prime Minister of the country. It is further an admitted position that the State Government sanctioned a support price of Rs. 4/ - per quintal. The Government of Bihar has paid to the cane growers an amount of Rs. 4/ - per quintal i.e. the support price decided by it, which is worh Rs. 19.44 crores. It is relevant here to state that a proposal was placed before the Secretary to the Government of Bihar that total dues of the cane growers can be paid through the District Magistrates, in case the fund is released by the Union Government. The Secretary to the State Government in the Department of Cane Development by its D.O. letter dated 24.12.2003 wrote to the Joint Secretary to the Government of India in the Department of Agriculture, inter alia, stating that a sum of Rs. 3093.85 lacs is due to the cane growers and was to be paid by the industries. A request was made that if the aforesaid sum is made available to the State Government by the Union Government to be given as loan to these industries, the State Government may decide to make payment directly to the farmers through the District Magistrates. The Secretary to the Government of Bihar by its letter dated 10th May, 2004 also wrote to the Government of India for revalidation of the sanctioned amount for the year 2004 -05. The Government of India by its letter dated 4.6.2004 permitted utilization of the loan of Rs. 1885.88 lacs sanctioned in 2003 -04 for clearing the dues of sugarcane growers for the financial year 2004 -05. In response to the another communication the Joint Secretary to the Government of India by its D.O. letter dated 11.7.2005 addressed to the Industrial Development Commissioner declined to sanction a further sum of Rs. 58.12 lacs and in fact asked the State Government to furnish the Utility Certificate of the amount of Rs. 1885.88 lacs already made available. It was made clear that it should contain the difference between State Advised Price and Statutory Minimum Price. It is the stand of the writ petitioner that the Union of India had permitted the State Government to utilize the fund of Rs. 1885.88 lacs for payment of the dues of the cane growers. Prima facie, we are of the opinion that no conscious or specific decision in this regard has been taken. Let Union of India take decision in this regard within four weeks from today and file affidavit in this regard duly sworn by a responsible Officer. List these cases after four weeks at the top of the list. Let a copy of this order be served on Dr. Ravi Ranjan, the Assistant Solicitor General of India."

(3.) PURSUANT thereto an affidavit has been filed by the Union of India on 12.5.2008 and along therewith, a communication dated 29th January, 2001 has been placed elaborating the approval of the President towards release of Rs. 1885.88 lakhs as one time assistance to the Government of Bihar to mitigate the hardships of the sugarcane farmers who have not been paid their cane arrears for 2002 -03 season. The conditions for utilization of assistance were set out in the said communication.