SHC orders sugar mills to pay Rs172 per 40 kg to growers

KARACHI: The Sindh High Court on Friday directed sugar mills to pay Rs.172 per 40 kilogram to sugarcane growers and furnish security of the differential amount to the Nazir of the court.

The direction came on an application of sugarcane growers seeking court injunction with regard to payment to sugarcane growers in accordance to the government notified rate. The counsel for the sugarcane growers submitted that they were paid less price for sugarcane against the minimum price of Rs.182 per 40 kg fixed by the government. He submitted that the sugar mills also did not fulfill the obligations even in the previous crushing season and the fixation of price is pending before the Supreme Court, which covers the entire range of issue.

The counsel of sugar mills had assailed the government notification regarding fixation of price at Rs.182 per 40 kg and submitted they were not legally obliged to give effect to the same as the notified price was not viable and would result in losses to the sugar mills. Both the parties sought an interim relief accordingly.

The SHC division bench, headed by Justice Munib Akhtar, observed that as long as the government’s notification about the fixation of price is in the field the legal responsibility created by such notification ought to lie, where it falls under the law and be borne and applied accordingly.

Issuing interim orders, the court directed the sugar mills to pay Rs.172 per 40 kg to the sugarcane growers, while each sugar mill will give security related to the payment of balance to the satisfaction of the court’s Nazir by way of a suitable charge on any immoveable property within three weeks.

The SHC bench directed the sugar mill owners to file statement along with affidavit that they were paying Rs.172 per 40 kg to the growers and will continue to do so for the entire crushing season till otherwise permitted by the court.

The court observed that if the sugar mill owners did not file the statement within the due date or offered price less than Rs.172 per 40 kg to the growers, then contempt proceedings may be initiated against the chief executive or directors of the delinquent sugar mills.

The court further observed that in case of less payment, the complaint of a sugarcane grower would be sent to a sessions judge or cane commissioner to take cognizance, however, no compounding of any offence in respect of which a complaint is made under or pursuant to this order shall be permissible, without the approval of the court. The bench adjourned further hearing till January 10.