Sugar cane dues: HC grants interim stay on notice

Sugar cane dues: HC grants interim stay on notice

The Dharwad bench of the High Court on Monday stayed till June 30, the government’s notice to a sugar factory on recovery of dues to farmers by auctioning the sugar stock at the factory.

India Sugars and Refineries Limited, Hosapete, had approached the Court challenging the notice issued by the deputy commissioner (who is also the sugar cane commissioner) asking the factory to clear the dues for 2014-15. It was stated in the notice that the sugar stock at the factory would be auctioned to recover the dues.

Senior counsel Uday Holla, who appeared for the sugar factory, submitted that the company had paid excess amount to the farmers during the last sugar cane crushing season.
 He  said that a dispute over payment of dues had been pending before a division bench of the High Court.

Adjourned to June 30
Justice B Veerappa granted the interim say,  observing that the government should protect the interest of both the sugar factory and farmers.

The court suggested both the parties to make efforts for resolving the issue amicably. The matter was adjourned to June 30. In an another petition, the court gave one-month time to Shiraguppi sugar factory of Kagawad in Belagavi district for paying farmers’ dues.
The company too had approached the Court challenging the recovery notice issued by the government.

The counsel for the company submitted that of the balance of Rs 40 crore, it had already paid Rs 19.73 crore and sought time to pay the balance.
The court noted that the factory had already cleared 50 pc of the dues and directed it to pay the balance in a month.

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