Ganna Sangh and the State Govt has approached Supreme Court against Allahabad High Court Decision on Sugar Cane Price issue

Hearing is likely to take place on Sept 1st 2008

U P Cooperative cane union Fed Luck now through its M.D. Dr. B .N . Singh and the State of U.P. has preferred the Special Leave Petition before the Apex Court against the Allahabad High Court judgment passed on August,18. 08, by which the High Court has directed the payment of sugarcane price for the season 2007-08 at the rate of Statutory Minimum Price (SMP) fixed by the Central Government, contrary to the State Advised Price (SAP) of Rs. 125/- per quintal fixed by the State Government in exercise of its powers under the provisions of U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953, SLP alleges that the above order is contrary to the well considered Co-Ordinate bench judgment passed by the Luck now Bench in the identical matter on 07.July.2008 by which SAP determined by the state has been found to be reasonable and justified. It has been further submitted that the High Court had erred in directing Basti and Bajaj sugar mill's to pay the SMP fixed by the Central Government, thereby High Court has completely ignored the order of Apex Court passed earlier, in compliance where of the respondents Sugar Mill's have already paid the sugarcane price @110/- per quintal to the Farmer's.

The SLP further alleges that the High Court has wrongly opined that the SAP is illegal because of non compliance of the directions issued by the High Court last year in Basti Sugar Mill case on Dec,19 th,07, thereby High Court has completely ignored that the SAP was determined by the State Government on 31.Oct 07, much prior to the Judgment of the Hon'ble High Court, together with the fact that the Judgment of High Court was inoperative in view of the stay order passed by the Apex Court. The High Court has also arbitrarily assumed that the last year Judgment was applicable for ensuing season 2007-2008 also , where as, as per the Judgment itself the same was confined to the season 2006-2007 alone. All the SLP'S either preferred against decision of the Lucknow Bench or against Allahabad high Court all are likely to be heard on Sept,1st 2008.

Ganna Sangh has pointed out to the Court that this Court vide its interim order passed on May,15,08 and June 30th08 has directed all the manufacturers to pay the sugar cane price as per the order of the Luck now Bench i,e @ 110/ and the above interim order's were placed by the petitioner's herein before the Division Bench of Allahabad High Court, but despite of the same the High Court has directed the Basti and Bajaj to pay sugarcane price payment @ of SMP fixed by the central government much less than the@ of SAP fixed by the state government. It has been submitted in the SLP that the sugar factories have been given various incentives to the tune of Rs.3800 crores for the payment of cane price arrears for the years 2006-07 and 2007-08 by creating a buffer stock of 50 lakhs tons, assistance of 300 crores from Sugar Development Fund as well as Notional Central Excise duty (interest free loan) payable on total production of sugar during 2006-07 and 2007-08. for the payment of cane price to the cane growers. Ganna Sangh has further alleges that the price of sugar has gone up to Rs.2000/-presently and therefore, the question of suffering and loss to the Sugar Factories does not arise at all.

Source : Equity Bulls

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