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State of Bihar - Section

Section 43 in Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981

43. Payment of price of cane.

(1)The occupier of a factory shall make such agreements for the payment of price of cane as may prescribed.
(2)
(i)As soon as cane is supplied to a factory, the occupier of such factory shall be liable to pay the price of cane as supplied.
(ii)Where the occupier, liable under clause (i) makes default in payment of the price for a period exceeding fourteen days from the date of supply of cane to the factory, he shall be liable to pay interest thereon at rate specified in section 51 from the date of supply.
(iii)The price of sugarcane payable to cane growers by the factory will be paid by Account Payee Cheques/ Electronic transfer only. The Government shall have powers to relax it for a limited period.
(3)Deleted.
(4)The owner of the unit shall make payment of the price of cane supplied to it immediately after the supply and on failing to do shall be liable to pay interest at the rate prescribed.
(5)Notwithstanding anything contained in sub-section (2), sub-section (3) or sub-section (4), the occupier of the factory or the Secretary or the Treasurer of the Co-operative Society or any other person in charge of payment on behalf of such society or the owner of the unit shall be punishable under section 52 for failure to make payment of the price in time.
(6)Any arrears of the price of cane, with interest thereon, if any, shall be recoverable as public demand or arrears of land revenue.
(7)Subject to any claim of the Central Government in respect of a tax or duty of excise, the price of cane shall be the first charge on the properties of the factory other than sugar.
(8)Until the cane price payable as per the provisions in Section-42 and 43 of this Act, is paid to the cane growers concerned, the occupier of any factory or any person acting on his behalf or any other person shall not remove sugar or any other product made out of sugarcane from the factory.