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PETITIONER: AGAUTA SUGAR AND CHEMICALS

       Vs.

RESPONDENT: STATE OF U.P. & ORS.

DATE OF JUDGMENT:       01/05/1997

BENCH: K. RAMASWAMY, S. SAGHIR AHMAD, G.B. PATTANAIK

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted.      Application for impleadment allowed.      These appeals by special leave, arise from the judgment and orders  of the  Division Bench  of  the  Allahabad  High Court, made  on February  27, 1997 and March 2, 1997 in C.M. Application No.1255(w)/97  in Writ  Petition No.775(MB)  /97 and Writ Petition No.775/MB/97.      It is  not  necessary  to  reiterate  all  the  factual details. Sufficer  it to  state that  the appellant had used the sugarcane  supplied by  the cane growers individually or through the  societies. As  a consequence,  we are informed, around Rs.29  crores are in arrears for payment to the cane- growers. The  Collector exercising  the  power  of  recovery proceedings has  attached the  sugar stock-in-hand;  against that, the  appellant filed  a writ  petition.  Pending  writ petition, the  High Court  has granted  certain  directions, which ultimately  could not  be complied with. Consequently, the interim directions stood vacated. Thus, these appeals by special leave.      Having heard  the learned  counsel on  both  sides,  we think that the following order would meet the situation: (1)  The District  Collector, Bulandshahar  is  directed  to assess as  to what is the quantum of the Sugar stock-in-hand would be  sufficient to  meet the  payment of  price of  the sugarcane together  with interest  to all  the cane  growers towards the  sugarcane supplied by them for all the crushing seasons as  also the  Societies’ commission.  It would  be a first charge  and recordable  against the stock of sugar. On so assessing,  he would  permit the  appellant to  sell that quantum of  stock of  sugar. The sale proceeds thereof, when received from  the appellant, are directed to be credited to an account  to be  opened by the Collector in a nationalised Bank towards  this amount.  the  Collector  is  directed  to depute a  responsible officer  of  his  collectorate  to  be present at  the time  of sale. The officer would ensure that the sale  would be made only of the permitted stock and that the sale  proceeds are credited to the said account directed to be  opened in  that behalf.  On the amount directed to be opened in that behalf. On the amount being so deposited, the

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entire amount due shall Be paid to the cane growers. (2)  After the sale thus is effected and payment made to the cane growers,  it would  be open to the appellant to file an application before  the Collector  stating as to what amount it is liable to pay towards Excise Duty and arrears of wages to the employees etc. On the statement so made, the District Collector is directed to assess as to what quantity of sugar from  the  remaining  stock-in-hand  would  meet  the  above requirements; he would accordingly allow the release of that part  the  stock-in-hand  for  sale  by  the  appellant  for liquidation of Excise Duty, arrears of wages etc.      The above exercise would be done within a period of two months from  the date of receipt of this order. In the event of  the   appellant  succeeding   in  the   writ   petition, appropriate directions may be given by the High Court in the main writ  petition for  mutual  adjustment  of  any  amount repayable by the cane growers. The order of attachment would stand lifted  after compliance of these directions. If there is any  difficulty in  the  implementation  of  this  order, liberty is  given to  the appellant  to approach this Court. Pending implementation of this order, we hope and trust that no further coercive steps will be taken and no officers, who are members  of the appellant-company or shareholders of the company, would be detained.      Appeals are accordingly disposed of. No costs.