Delhi High Court - Orders
M/S. Sree Rayalseema Sugar And Energy P ... vs Union Of India & Ors on 19 March, 2025
Author: Sachin Datta
Bench: Sachin Datta
$~89
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 3427/2025 and CM APPL.16119/2025 (Stay)
M/S. SREE RAYALSEEMA
SUGAR AND ENERGY P LIMITED .....Petitioner
Through: Mr. Sudhir Nagar, Adv.
versus
UNION OF INDIA & ORS. .....Respondents
Through: Mr. Kameshwar Nath Mishra, Sr.
Panel Counsel, Mr. Shubhashish Roy
and Ms. Vidya Mishra, Advs. for R-1
and 2.
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
ORDER
% 19.03.2025 CM APPL.16120/2025 (Exemption)
1. Allowed, subject to all just exceptions.
2. Application stands disposed of.
W.P.(C) 3427/2025
3. The present petition has been filed by the petitioner in the backdrop of the "One Time Settlement (OTS) Scheme" forming part of the 'Guidelines for Restructuring of Loans' dated 28.02.2024, issued by the Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution (respondent no.1) under Rule 26 of SDF Rules, 1983 for restructuring of Sugar Development Fund (SDF) loans.
4. Attention has been drawn to the two communications / administrative approvals dated 26.09.2024 issued by the Director, SDF (respondent no.2) wherein the respective OTS proposals for one time settlement of the two SDF loans availed by the petitioner have been approved. In the aforesaid This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/03/2025 at 22:24:28 communications, it has been stated as under:-
"3. Now. after careful consideration of facts submitted by the Sugar Mill along with the application and taking into account the relevant guidelines issued by the Central Government in this regard it is hereby conveyed that under Rule 26 of the SDF Rules. 1983 (as amended). the Central Government has agreed to the OTS of SDF Cane Development Short Term Loan as mentioned in Para 2 above availed by Mis. Sree Rayalseema Sugar & Energy (P) Ltd. Anantpur District, Andhra Pradesh by waiver of additional interest in full as on the date of issuance of this AA. subject to the condition that the company shall make payment of Principal and Interest in full as per terms and conditions of this AA."
5. According to the petitioner, the aggregate amount payable by the petitioner for both the loans, in terms of the OTS Scheme, is to the tune of Rs. 11,56,66,979/- (Rupees eleven crores fifty six lakhs sixty six thousand nine hundred and seventy nine rupees only). However, as per the communication issued by the Director, SDF, the aggregate amount payable by the petitioner, in terms of the administrative approval granted under the OTS Scheme, is to the tune of Rs.12,73,67,434/- (Rupees twelve crores seventy three lakhs sixty seven thousand four hundred and thirty four rupees only).
6. It is noticed that the administrative approval of the amount payable by the petitioner in terms of the OTS Scheme vide the two communications dated 26.09.2024 is subject to the condition that the same is made within a period of six months from the grant of the said approval. The relevant condition in the aforesaid communications reads as under -
"e. The payment of the OTS amount along with interest thereon shall be made by the company within 06 months from the date of AA."
7. During the course of hearing, in view of the imminent deadline for remitting the amount approved under the OTS Scheme, learned counsel for This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/03/2025 at 22:24:28 the petitioner submits that the petitioner be permitted to pay an amount of Rs. 11,56,66,979/- (Rupees eleven crores fifty six lakhs sixty six thousand nine hundred and seventy nine rupees only) immediately and for the balance amount, an unconditional bank guarantee in favour of the respondent no.2 shall be furnished, which may be encashed subject to the outcome of the representations of the petitioner, including the representation dated 07.12.2024 of the petitioner to the Member, Standing Committee for SDF / respondent no.1 wherein the petitioner has sought to highlight the discrepancy in the calculation of the amount payable, as one time settlement of the SDF loans, made by the respondent.
8. Learned counsel for the respondent no.1 and 2 seeks some time to take instructions.
9. List on 20.03.2025.
10. Dasti.
SACHIN DATTA, J MARCH 19, 2025/at This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/03/2025 at 22:24:28