- (1.) By filing this writ petition on 2nd September, 1999, the petitioners, who claim to have small agricultural holdings in which they grow sugar cane and supply sugar canes to Sugar Factories/Mills in Kushi Nagar reserved area, have come up with following prayers : (i) to quash the Government Order No. 788 C. D./46 - 1996 dated 26-2-1996 issued by the Chief Secretary of the U. P, Government, as contained in Annexure 2, taking a decision to make payment of the price of the sugarcane supplied by the farmers through Banks directing them to open their Accounts in the Banks from the next crushing season and the consequential letters/orders dated 26-9-1996, 16-10-1996. 18-1-1997 and 17- 10-1997 issued by the Cane Commissioner. U. P. (Respondent No. 3) as contained in Annexures 3, 4, 5 and 8 respectively directing payment of cane price to the cane growers and suppliers through Bank only. (ii) to direct the respondents to pay to the petitioners and other cane growers of the District Kushi Nagar price of the cane forthwith upon receipt of the cane price from the Sugar Factory and in any case within a period of seven days. (iii) to direct the respondents to make orders for payment of cane price for such farmers who supply sugarcane to the extent of 1 to 5 bullock cart; (iv) to direct respondents Nos. 7 to 9 The Punjab National Bank, Deoria Kasia Zila Sahkari Bank Limited and The Central Bank to operate Extension Counters at the office of the Cane Unions to make payment through out the week during the season and to provide additional steps and arrangement to make payment forthwith and in any case within a period not more than 7 days, and (v) to award cost. The Pleadings
(2.) In short the petitioners assert to this effect : (i) They and other case growers of the District Kushi Nagar are receiving payments through Banks under the scheme initiated by the impugned Government order after considerable delay ranging between 25 to 72 days from the receipt of the payment advice by the Banks which are causing great hardship and inconvenience which resulting in reduction of growing of cane; (ii) In the District of Kushi Nagar there are nine Sugar Mills and about 2,05,000 sugarcane growers out of which 1,55,000 are small cane growers who are having agricultural holdings comprising less than one acre who supply about 1 to 5 bullock cart of sugarcane in a crushing season and thereby constitute 74 per cent of the total cane growers. (iii) Section 17 of the U. P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (hereinafter referred to as the Act) provides for payment of cane price; (iv) Under Section 28 of the Act Sugarcane (Regulation of Supply and Purchase) Rules, 1954 (hereinafter referred to as the Rules) have been made; Rules 44 to 48A provides a scheme for payment to be made to the cane growers, namely, that the payment of price of the sugarcane shall be made on the basis of recorded weight of sugarcane at the purchasing centres only to the cane growers or their representatives duly authorised by him in writing or to a cane grower or to a Cane Growers Co-operative Society, payment will be made by the factory with mutual agreement with the factory and the Society and the remuneration to the factory for the payment to the members of the Society shall be determined by the Cane Commissioner; arrears of cane price shall be remitted to the Society concerned within 15 days of the close of the factory: it also provides for settlement of a dispute; it also restricts any deduction from the price and regulates any loan with the previous permission of the Cane Commissioner; (v) As compared to the small farmers of the Eastern U. P. the farmers of the Western U. P. have large agricultural holdings and their payment is also big; (vi) At the beginning of the crushing year reserved area of Sugar Factories is determined by the Cane Commissioner: the Central Government fixes statutory price of the sugarcane; in a reserved area there arc Unions of cane growers registered as a Co-operative Society; on the recommendation of the Society and the cane growers the Cane Commissioner fixes the number of places purchasing centres; the Society estimates production of the sugarcane in the area gives offer to the Sugar Factories after acceptance of which an agreement is entered between the Society and the Sugar Factory for purchase of the offered quantity of the sugarcane; the farmers bring their sugarcane to the purchasing centres where it is weighed and they are issued Parchas by the Factories on which the Sugar Factory has to pay the price within a statutory period of 15 days to the Society through Bank which distributes the sum to its members; the Society never caused any delay and that immediately on receipt of the payment advice in the Bank the amount is disbursed to the farmers; (vii) In the year 1992, the State Government received some complaints about the sale and purchase of Supply Tickets and Parchas: after consideration the State Government issued a policy decision under which payment was to be marie by the Sugar Factories to the farmers through Banks; this scheme, however, could not succeed and was thus withdrawn by the Cane Commissioner vide his Circular Letter No. 143/C/Sale- Cane Price dated 1-12-1992 as contained in Annexure 1 : (viii) In the year 1995-96 again there were some complaints, but only from the Western U. P., the Government once again after considering representations issued the impugned Government Order (Annexure 2) the object of which appears to check mal practices; the Cane Commissioner vide his letter dated 26-9-1996 (Annexure 3) circulated the aforementioned policy decision; vide Circular dated 16-10-1996, as contained in Annexure 4, however, the aforesaid policy was modified by the Cane Commissioner; as the system started causing considerable delay in payment of the cane price it was brought to the notice of the then Governor of the State Sri Moti Lal Bora, who intervened in the matter on which by a Circular dated 18-1-1997 (Annexure 5) of the Cane Commissioner the policy of payment of sugarcane price through Bank was made optional at the option of the cane growers; the policy of payment through Bank made optional was again altered with the change of the Government in power in the State by the new Cane Commissioner through his Circular letter dated 11-7-1997 (Annexure 6) without taking into account the direction made by the then Governor; in the beginning of the year 1997-98 season the Chief Secretary of the Government through his letter dated 27-5-1995 (Annexure 7) gave instructions to all the District Magistrates to take steps for opening Bank Accounts of the cane growers, pursuant to the aforementioned decision, the Cane Commissioner also wrote a letter dated 17-10-1997 (Annexure 8) to all the occupiers of the sugar factories for implementation of the scheme aforementioned; (ix) Great hardships were faced by the small farmers of Eastern U. P. who had to open 2,05,000 Bank Accounts in Rural Branches of the Banks who were having staff comprising three or four persons only for a few hundred Accounts; there were agitations, demonstrations and Dharnas by them but no step was taken in improving the payment which continued to be made between 40 to 90 days after receipt of the payment advice; various representations were made to the Cane Commissioner but he could not take any remedial measure who also wrote letter dated 9-1-1998 to (Annexure-9) to all the District Magistrates; the Co-operative Societies having foreseen the difficulties also resolved vide resolution dated 9-7-1997 (Annexure-10) against the Scheme aforementioned and made representations to the State Government; the Secretaries of the Societies also faced difficulties in the implementation of scheme of payment through Banks who also represented to the District Cane Officers vide Annexures 11A. to HE; (xxx) Even representations made through M.L.A.s having failed. (x) Some of the difficulties which are being faced by the small cane growers are as follows : (1) The banks take long time in opening the accounts of cane growers and insist upon formalities which causes great hardship to the farmers. (2) The rural branches of the Banks have an operating staff of only 2 or employees namely Branch Manager, Cashier, Clerk and Peon. This staff was hardly sufficient to manage to 2 to 3 hundred accounts. With the implementation of the scheme each of the rural branch and to open about 3000 accounts which was not possible to be managed by the staff of one cashier and one clerk and therefore each business transaction with the Bank is delayed by weeks. (3) The Rural Branches have forfeited for making payment for only 4 days in the week namely from Monday to Thursday. Most of these banks can made payments to only 50 account holders and thus one rural branch can make payment to only 200 account holders in a week. During season period between October to April when the payment advises after credited all the accounts holders want to take payment without any delay which cause a great rush to the Banks and long queues. Some times the farmers have to wait for several days all together to take his payment. (4) The banks deduct bank commission from the payment advise received from the cane union which receives the payment from the factory. Firstly the delay is caused by two banking transactions one between factory and union and thereafter from Union to the Bank. The Bank deducts Bank commission on both the banking transactions which is to be ultimately borne by the cane growers. (xi) Due to the aforementioned difficulties hardships, inconveniences and delays to the cane growers the growth of the sugarcane in the District Kushi Nagar in the year 1999-2000 came down to 13833 Hectares which in the year 1988-89 was 14801.593 Hectares as it would appear from the certificate granted by Senior Cane Development Inspector dated 17-8-1999 (Annexure 15), besides large quantities of sugarcane were exported to the Sugar Factories situated in the neighbouring Districts of State of Bihar which do not have the payment system through Banks which fact stands acknowledged by the Cane Commissioner in his letter dated 27-10-1998 (Annexure -16) sent to its counterpart of the State of Bihar.
(3.) In the counter Affidavit filed on behalf of Respondent Nos. 1 to 3 which has been sworn by Deputy Cane Commissioner, Deoria by ranging the salient features of the policy date th July 1996 along with other relevant Circulars and letters as contained in Annexure-C.A. 1, it has been stated, interalia, as follows : (i) The policy decision for payments to the cane growers through Bank Accounts is being implemented with utmost success for the last two years Inasmuch as it is now ensured that instead of exploitation by the big cane growers and/ or by the Mafias by mlsutilizing Parchis of the small cane growers, the small cane growers in fact are getting their payments; (ii) As a matter of fact the money Instead of going to the real cane growers went to the unauthorised persons who some how managed to utilise the Parchis /Slips and faced with this situation and for ensuring that payment is made to the real cane growers the policy of payment through Bank Account of each of the supplier of sugarcane was adopted and the misuse of the Parchis/Slips stand eradicated which is apparent from the fact that out of 205363 cane growers 1,93,000 have already opened their Bank Accounts in the respective Banks who are getting their payments through Banks without facing any sort of exploitation/problem; (iii) It is also visualised that a huge sum of about Rs. 10.7. Crores have been mlsutllised by the different Societies of Deoria Region by diverting the cane price funds in different Heads which by introduction of the scheme of payment through Bank Account has been prevented; (iv) It has also been visualised that big cane growers of the neighbouring State of Bihar used to purchase sugarcane at much less price from the small cane growers of the District and thereby badly exploiting them which with the introduction of the new scheme has been eradicated; (v) The small cane growers are getting their supply ticket within the stipulated period of time through the Banks; (vi) From a bare perusal of letter dated 1-12-1992 it would be clear that the scheme for payment of cane price through Banks was never withdrawn; (vii) Those cane growers who had not opened their Bank Accounts in the Bank had felt hardships in the year 1996-97 when the District of Kushi Nagar was under severe flood and to facilitate the cane growers of that area only some relaxation was and it is not a fact that the policy itself was withdrawn; (viii) In regard to the request made by the Chairman of the Cane Society, Seorahi to exempt the small cane growers is not possible to be accepted as the scheme has been implemented in interest of such small farmers; (ix) In the beginning some problems were raised by the Bankers but presently the cane price is being paid through Banks within 10-15 days time and in making payments no local collection charges are being made by the Banks; the writ petition is devoid of merit and is liable to be dismissed with cost.;