Ramasare and 27 Others vs State of U.P. Thru. Prin. Secy. Cane Deptt. Lko and 5 Others — Allahabad HC (2025) — LawSathi Research

Ramasare and 27 Others vs State of U.P. Thru. Prin. Secy. Cane Deptt. Lko and 5 Others — Allahabad HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Interlocutory directions: Additional Cane Commissioner indicated Rs. 273 Crores outstanding for 2024-25 with a 10-day window before coercive steps; opposite party no. 2 to file fresh affidavit at next listing (14.05.2025) on dues paid and steps taken; petitioners may respond to counter affidavit; liberty for out-of-turn mention; attending officer need not join again unless called.

Issue for consideration

Whether cane dues for the crushing season 2024-25 owed by opposite party no. 4 to the growers are being paid and how payment/enforcement is to proceed. +3 more

Ratio / Principle

The plea of outstanding State Government dues under the incentive policy cannot be a ground for non-payment of dues to the cane growers for the season 2024-25.

Key takeaways

Reiterated directive that payment to the cane growers shall be made strictly on the 'first supply, first pay' basis as mentioned in the judgment dated 23.12.2021, to be followed strictly by the opposite parties subject to the two exceptions mentioned therein.ratio¶10

Detailed headnote1 paragraphs

Interlocutory order, WRIT - C No. 2463 of 2025, High Court of Judicature at Allahabad, Lucknow Bench, 15.4.2025 (Rajan Roy and Om Prakash Shukla, JJ.). Petition by cane growers aggrieved by non-payment of crushing-season 2024-25 dues by opposite party no. 4. Court held that the counsel-for-opposite-party-no.-4 plea of Rs. 2000 Crores-and-odd State Government incentive-policy dues (subject of judgment dated 17.09.2014 with contempt proceedings ongoing) cannot be a ground for non-payment of growers' dues, having been considered in the Court's judgment dated 23.12.2021 (leading W.P. 11355 (M/B) of 2021). Reiterated that payment shall be strictly on 'first supply, first pay' basis per the 23.12.2021 judgment, subject to its two exceptions. Additional Cane Commissioner (Shri Pranay Singh) reported total 2024-25 dues of about Rs. 327 Crores, 18% paid, Rs. 273 Crores outstanding, with a 10-day payment window failing which coercive steps; 2023-24 dues reported paid, interest for 2023-24 and earlier seasons to be verified. Fresh affidavit by opposite party no. 2 due at next hearing on 14.05.2025.

Court No. - 2

Case :- WRIT - C No. - 2463 of 2025

Petitioner :- Ramasare And 27 Others Respondent :- State Of U.P. Thru. Prin. Secy. Cane Deptt. Lko And 5 Others Counsel for Petitioner :- Shubham Chaurasiya,Himanshu Nag,Mohd Hatim Counsel for Respondent :- C.S.C.,Gaurav Mehrotra,Jaiyesh Bhoosreddy,Paavan Awasthi

Hon'ble Rajan Roy,J. Hon'ble Om Prakash Shukla,J.

Heard.

These petitions have been filed by cane growers being aggrieved by non-payment of cane dues for the crushing season 2024-25 by the opposite party no. 4.

The Additional Cane Commissioner, Shri Pranay Singh, who is Incharge Cane Commissioner today has joined the proceedings through video conferencing. He informed that the total dues of the opposite party no. 4 for season 2024-25 was about Rs. 327 Crores, out of which 18% has been paid to the cane growers, and now, Rs. 273 Crores remain to be paid, for which the Cane Commissioner has written to the opposite party no. 4, and if, the payments are not made within 10 days, then, coercive steps would be taken.

Learned Counsel for the opposite party no. 4 says that there are dues payable by the State Government to the opposite party no. 4 amounting to Rs. 2000 Crores and odd based on the incentive policy, regarding which, there is already an adjudication by this Court vide judgment dated 17.09.2014 for non-compliance of which, contempt proceedings are going on. This plea has already been considered by us in our judgment dated 23.12.2021 rendered in a bunch of writ petitions, leading writ petition being 11355 (M/B) of 2021, therefore, this cannot be a ground for non-payment of dues to the cane growers for the season 2024-25.

Shri Pranay Singh also informed us that the cane dues for the season 2023-24 have been paid. However, on being asked as to whether the interest for the said season and the earlier seasons has been paid, keeping in mind the judgment dated 23.12.2021 referred hereinabove, he stated that he was not aware of it as of now, but will look into it and shall do the needful.

We, once again reiterate, that the payment to the cane growers shall be made strictly on the basis of ‘first supply, first pay’ basis, as mentioned in our judgment dated 23.12.2021. This principle shall be followed strictly by the opposite parties, subject to the two exceptions mentioned therein.

The matter shall now come up before this Court on 14.05.2025 when the opposite party no. 2 shall file a fresh affidavit mentioning the dues paid by the opposite party no. 4 to the cane growers, and the steps, if any, taken by the opposite party no. 2 for ensuring the same.

The petitioner may respond to the counter affidavit already filed by the opposite parties.

Liberty is granted to the petitioners to make a mention for taking up the case out of turn on the next date.

The Officer who has joined the proceedings today need not join again unless specifically called for.

Order Date :- 15.4.2025 Lokesh Kumar

[Om Prakash Shukla, J.] [Rajan Roy, J.]

Digitally signed by :- LOKESH KUMAR High Court of Judicature at Allahabad, Lucknow Bench