Section 12 in Telangana Oil Palm (Regulation of Production and Processing) Act, 1993
12. Failure to buy.
(1)In the event of failure on the part of the occupier of a factory to buy all the fresh fruit bunches from the growers in the Factory Zone declared in relation to a factory, without any valid reason, the occupier of factory shall be liable to compensate the loss that may have been caused to the grower on account of non-purchase of the Oil Palm FFBs by the factory in addition to the penalty specified in section 15.(2)Where an occupier of a factory refuses to buy particular consignment or consignments of Oil Palm FFBs from a grower he shall assign reasons therefor in writing:Provided that damage, inefficient running, breakdown of plant, machinery failure, to use capacities, and any other operational problems shall not be valid reasons for refusal of the consignment of Oil Palm FFBs and shall be treased as the failure on the part of the factory to buy the Oil Palm FFBs or purposes of sub-section (1):Provided further that the Oil Palm Commissioner shall be the authority to decide whether there are valid reasons for the failure to buy Oil Palm FFBs and his decision thereon shall be final.
