No coercive steps against Chadha Sugar Mill, rules HC - ECAS Punjab

No coercive steps against Chadha Sugar Mill, rules HC

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Tribune News Service

Chandigarh, August 5

The Punjab and Haryana High Court has ordered that coercive steps would not be initiated by the state and its functionaries against Chadha Sugars and Industries Private Limited, pursuant to decision dated July 15 on the recovery of dues.

Justice Lalit Batra of the High Court also issued notice of motion to the state and other respondents on the petition filed by Chadha Sugars through senior advocate Chetan Mittal, Kunal Mulwani and Aditya Sanghi.

Recovery was stayed

The petitioner approached the High Court, where the recovery was stayed. The Bench later directed the Chief Secretary to constitute a high-powered committee to take a fresh decision after affording an opportunity of hearing

The petitioners contended that the state agreed price was much more than the fair remunerative price fixed by the Central Government. When all private mills refused to mill the sugarcane crop for 2015-16 season, a conscious decision by the government was conveyed through a letter dated November 23, 2015, that all private mills in the state would disburse Rs 245 per quintal and balance of Rs 50 would be disbursed by the government.

In view of the decision, sugarcane crop was lifted as payment of Rs 245 per quintal was to be made to farmers by sugar mill and balance amount of Rs 50 per quintal was also released in terms of the decision. After the season was over, a reserve decision was taken unilaterally and behind their back, following which notice was issued for recovery.

The petitioner approached the High Court, where the recovery was stayed. The Bench later directed the Chief Secretary to constitute a high-powered committee to take a fresh decision after affording an opportunity of hearing.

The petitioners and others were assured that action would not be taken and matter would be resolved. But after lapse of about three years, the respondent "purportedly decided to recover the dues" without complying with the previous order.



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