- (1.) These proceedings in the public interest seeking a direction to the State Government for ensuring the realisation of cane dues payable by sugar mills in the State of Uttar Pradesh to cane growers, comprising of the cane price and interest for crushing season 2013-14, were entertained by this Court on 30 May 2014 when interim directions were issued for the first time.
(2.) The legal basis of the petition was an alleged : (i) breach by the sugar mills of the statutory obligation under the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (the Act) of paying over sugarcane dues to the cane growers; and (ii) failure of the State Government to initiate steps for recovery of the dues in accordance with law. The petition is founded on a breach of a legal duty cast upon the State by the state legislation to ensure the payment of the cane price and interest to farmers and upon the corresponding obligation which is cast upon the sugar mills which entered into statutory agreements under the U.P. Sugarcane Supply and Purchase Order, 1954 (the 1954 Order) for the purchase of sugarcane from assigned areas. This legal basis in the proceedings is compounded by the human misery of the sugarcane growers who, on the one hand have statutorily an obligation to sell sugarcane only to sugar mills as stipulated by the Cane Commissioner, while on the other hand being at the mercy of the sugar mills for the re-payment of their dues. This Court has noted the incidents of suicides by farmers in the State and invoked Article 21 of the Constitution which assures, as an intrinsic part of the right to life, the right to live with dignity. At the outset, therefore, it is necessary for the Court to set out the parameters for intervention, confined as it must be to the application of statutory and constitutional norms.
(3.) The Court was informed by the State, on affidavit, that for the crushing season 2013-14, a total amount of Rs.8754.52 crores was due to be paid as on 29 May 2014. At that stage, the Court was apprised of the fact that 21 First Information Reports had been lodged against the sugar mills. This Court held that the mere filing of FIRs was a statement of platitudes since this did not reflect any serious attempt on the part of the State to ensure compliance of law. This Court emphasised that a situation where nearly 40% of the sugarcane dues of the farmers had not been paid even though the crushing season was virtually at an end, was a serious issue which required urgent remedial action. The attention of the State was drawn to a recent judgment of the Supreme Court rendered on 24 January 2014 in Anand Agro Chem India Ltd. Vs. Suresh Chandra & Ors. Civil Appeal No.897 of 2014 which refers to the enforcement power of the State under Section 17 of the Act. Section 17(4) empowers the Cane Commissioner to forward to the Collector a certificate specifying the amount of arrears on account of the price of cane plus interest, which the Collector has to proceed to recover from the occupier of the factory as if it were an arrear of land revenue. Taking due note of what appeared, prima facie, to be a breach of legal obligation by the sugar mills, a breach of legal duty by the State and a violation of the fundamental and statutory rights of the cane growers, this Court directed the State to have a serious re-look in the matter, having due regard to the fact that a large segment of the agricultural population had been subjected to great hardship.;