Monday, June 27, 2022

    Allahabad High Court directs Bajaj Hindustan Sugar Limited to pay arrears to sugarcane growers

    Lucknow, Dec 24: The Allahabad High Court on Friday directed Bajaj Hindustan Sugar Limited to pay the arrears of sugarcane growers Gola Gokran Nath, Khambar Khera, Palia Kalan, Barkhera and Maksudapur of its five mill areas by March 31, 2022. With 15 percent interest. The Lucknow bench of the court warned the company that if the arrears were not paid by March 31, the sugarcane commissioner would proceed to issue a recovery certificate to the concerned collectors and district magistrates, forcing the said officials to recover. Arrears using all means permitted by law, including coercive measures against the company and its directors.

    “The Sugarcane Commissioner will be under an obligation to seriously consider the persistent defaults of the company in this regard as well as to assess the financial capacity to pay the arrears of sugarcane etc. and will give due consideration to this aspect before conserving or allocating sugarcane land. A division bench of Justices Rajan Roy and SK Gupta disposed of dozens of writ petitions filed by cane growers, ordering timely clearance of cane prices and immediate payment of arrears, the court said.

    “Considering the totality of the information and situation discussed above, it is in the interest of the farmers in particular that the sugar mills be run on the one hand and the farmers in the area be able to sell their sugar on the other. Harvesting its benefits and reaping its benefits, we are of the view that at this stage in the present circumstances any instruction to take coercive action against the company for recovery of arrears will not serve the interests of the petitioners, “the bench observed.

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