Court mandates compliance with previous orders; demands detailed affidavits on cane dues and arrears
In a significant move, the Allahabad High Court has taken a firm stance on the issue of delayed payment of cane dues to sugarcane farmers in Uttar Pradesh. The court has directed the Cane Commissioner of Uttar Pradesh to correct recovery certificates to reflect a 15% interest rate on delayed payments, as mandated by a previous court order, instead of the 12% currently being charged.
The bench comprising Justices Rajan Roy and Manjive Shukla, while hearing the Public Interest Litigation (PIL) No. 7066 of 2006, filed by V.M. Singh, Convenor of Kisan Mazdoor Sangathan, emphasized the need for strict compliance with the court's earlier judgment dated 23rd December 2021. The judgment in question, led by the case of Shailendra Kumar v. State of U.P., had directed the Cane Commissioner to ensure that recovery certificates issued for delayed payments bore an interest rate of 15%.
During the proceedings, the Cane Commissioner candidly acknowledged the ongoing issuance of recovery certificates with a 12% interest rate, contrary to the court's directive. The court has ordered immediate rectification of these certificates to ensure that dues are recovered at the correct interest rate, thus safeguarding the financial interests of the cane growers.
In addition to rectifying the interest rate, the court has instructed the Cane Commissioner to submit a comprehensive affidavit. This document must disclose the cane dues for the last three years, the amount paid within the stipulated time, arrears, interest on delayed payments, and the status of unsatisfied recovery certificates. This requirement aims to bring transparency and accountability to the process, ensuring that the rightful dues of the cane growers are met without undue delay.
The court has also highlighted the need for digitalization of data related to delayed payments, thereby eliminating excuses pertaining to unavailability of data with cane cooperative societies. The Cane Commissioner assured the court that efforts are underway to digitalize the data from 2023-24 onwards, facilitating more efficient recovery processes.
The bench has scheduled the next hearing for 31st August 2026, during which the Cane Commissioner is expected to join the proceedings via video conferencing. Responses from both the petitioner and the Sugar Mill Association to the compliance affidavit served by the Cane Commissioner are anticipated in the next session.
This judgment reinforces the court's commitment to upholding the rights of cane growers in Uttar Pradesh, ensuring timely and fair compensation for their produce. It also serves as a stern reminder to the authorities to adhere to judicial orders and maintain transparency in their operations.
Bottom Line:
U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 - Cane Commissioner directed to ensure compliance with previous court orders regarding interest on delayed payment of cane dues, rectify recovery certificates, and provide detailed affidavits on arrears and recoveries.
Statutory provision(s): U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953, Section 17(3)
