Case: S.K.G. Sugar Limited Vs. State of Bihar and Others

The admitted position is that the appellant factory had a reserved area under Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 (for short, the Supply Act) and had the sugarcane supplied by the growers. The Central Government, exercising the power under Clause 3 of the Sugarcane (Control) Order, 1986 (for short, the Order) determined the minimum price for sugarcane at Rs. 13.9 2 per quintal. The State Government announced on March 31, 1983 the Price of Sugarcane at Rs. 20.50 per quintal. The cane growers supplied the sugarcane to the appellant, but the appellant admittedly had paid the minimum price determined under the Order but the difference between the price fixed under the order and the price announced the State Government was not paid. As a consequence, the Collector gave a certificate of dues for realisation under the Revenue Recovery Act. Cal ling those proceedings in question, the writ petition came to be filed.

Reasoning: By order dated February 29, 1996 passed by this Court, the State Government was directed to work out the amount due and payable to the cane growers in terms of the undertaking given to this court at the time of passing the interim order. Pursuanat thereto, it appears and it is not in dispute that the Government has worked out the dues at Rs. 62, 90, 398.72 and made a demand on March 22, 1996 and in furtherance thereof, the appellant has deposited the amount on April 3, 1996. In view of the above, if there is any other demand than what was directed, the respondents are at liberty to proceed in accordance with law and if there is no demand and the demand has already been satisfied, than it is needless to mention that the respondents may not take any further steps in that behalf.