Bombay High Court
Sant Muktai Sugar And Energy Ltd vs Union Of India And Ors on 21 February, 2023
Author: Neela Gokhale
Bench: G.S. Patel, Neela Gokhale
902-ASWP-11514-2022.DOC
Shivgan
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Digitally
signed by
SHAMBHAVI
SHAMBHAVI NILESH
NILESH SHIVGAN
CIVIL APPELLATE JURISDICTION
SHIVGAN Date:
2023.02.22
17:01:52
+0530
WRIT PETITION NO.11514 OF 2022
Sant Muktai Sugar & Energy Ltd ...Petitioner
Versus
Union of India & Ors ...Respondents
WITH
WRIT PETITION NO.12825 OF 2022
Baliraja Sakhar Karkhana Ltd ...Petitioner
Versus
Union of India
Thr its Ministry of Consumer Affair & Ors ...Respondents
WITH
WRIT PETITION NO.12826 OF 2022
Shraddha Energy and Infra Projects Pvt Ltd ...Petitioner
Versus
Union of India & Ors ...Respondents
Mr AA Kumbhakoni, Senior Advocate, with Vinsha Acharya, i/by
Ranjit Agashe for the Petitioner in WP 12826/2022.
Mr Girish Godbole, Senior Advocate, with A.K.Sheikh, Vinsha
Acharya, i/by Ranjit Agashe for the Petitioner in WP
11514/2022.
Mr Dashrath Dube, with Parag Vyas for the Respondent-UOI-
Respondent No.1 in WP 11514/2022.
Mrs SS Bhende, AGP for the Respondent-State.
Mr Sachin Rawal, Joint Director (Sugar) present.
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21st February 2023
902-ASWP-11514-2022.DOC
Mr DP Singh, for the Respondent No.1-UOI in WP Nos.12825/2022
and 12826/2022.
CORAM G.S. Patel &
Neela Gokhale, JJ.
DATED: 21st February 2023 PC:-
1. The Petitions are all by sister concerns. They are affected by a Government Resolution ("GR") dated 21st February 2022, a copy of which is at Exhibit 'B' at Page 34 of Writ Petition No.11514 of 2022. The issue relates to the Fair and Remunerative Price ("FRP") to be paid to sugarcane growers by entities such as the Petitioners, who are engaged in sugarcane crushing. Typically, the crushing season is between the October of one year to September of the next. But for all practical purposes, the season usually ends around April of the next year. One of the factors that goes into the computation of the FRP is what is called the Sugar Recovery Rate. We have understood this to mean a measure of actual extraction of sugar from the sugarcane. This is necessarily variable and dependent on many factors. It varies from season to season. It may vary within a season. It will vary from crop to crop, farmer to farmer and area to area. The typical yield of sugar in Kolhapur region is not comparable to that in other regions such as Vidharbha. Kolhapur typically yields a higher sugar recovery rate. This may be affected by climatic and soil conditions as well.
Page 2 of 421st February 2023 902-ASWP-11514-2022.DOC
2. The complaint by Mr Kumbhakoni and Mr Godbole is that the impugned circular purports to introduce an element of estimation or guess work in the midst of the current crushing season. The Petitioners say that, computed on the old regime, they have already paid out the entire FRP for the crushing season that ended in April 2022. What is now being demanded is an additional payment based on a percentage or an estimation with effect from February 2022, i.e., for the remainder of the period from February 2022 until the end of the 2022 crushing season.
3. The difference in the amount is quite significant - about Rs.27 crores across all three Petitions.
4. Obviously, the provisions of the impugned GR and some clarificatory circulars will need to be more fully analysed than is possible today. There are some Affidavits-in-Reply. Mrs Bhende is instructed by the Joint Director, Sugar. She states on instructions that a more detailed affidavit is necessary. We will permit that.
5. The Petitioners' immediate anxiety is the non-renewal or non-issuance of their crushing licence for the current season. The reason given by the Joint Director is that the additional demand has not been paid and hence there is no renewal.
6. On instructions, Mr Kumbhakoni and Mr Godbole state that if the petition is heard at an early date, the Petitioners are willing to undertake that they will, if required, and within such reasonable time as the Court may direct pay the balance found due. But in the Page 3 of 4 21st February 2023 902-ASWP-11514-2022.DOC meantime, their crushing licence should be ordered to be renewed or issued.
7. We accept this as an undertaking to the Court. We direct the Respondents to issue, renew, or re-validate (as the case may be) the crushing licence/s for the Petitioners subject to this condition and undertaking for the present crushing season ending in 2023.
8. Mr Godbole clarifies that the Petitioners have already started their crushing season and started accepting sugarcane. The Statement is noted.
9. We also note that until the next date, there will be no coercive action demand against the Petitioners in recovery of the impugned demand.
10. The further Affidavit-in-Reply is to be filed by 10th March 2023. We permit a rejoinder by 21st March 2023. List the matter on 5th April 2023 at 2.30 p.m. We will endeavour to dispose of the Petition finally on that day.
( Neela Gokhale, J) (G. S. Patel, J)
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21st February 2023