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2006 DIGILAW 632 (PAT)

Ram Naresh Singh v. State of Bihar

2006-07-25

body2006
ORDER The petitioner is Secretary of Cane Growers Association of Mill Kshetra Ganna Udpadak Sangh, Motihari. He has approached this Court for issuance of direction commanding the respondent nos. 1 to 4 to take immediate steps for disbursement of financial assistance received from the respondent-Union of India to the tune of Rs. 1885-88 lacs amongst the cane growing farmers of the State towards clearance of their arrears of sugarcane price pending for payment. 2. The Union of India took a policy decision for providing financial assistance to the different States including the State of Bihar by way of soft loan for mitigating the hardships of the sugarcane farmers who were not paid their arrears of sugarcane price by the Sugar Factories Owners. The scheme was approved by the President of India and vide letter dated 29.1.2004, the Cane Commissioner and Finance Secretary, Government of Bihar was informed that proposal to release Rs. 1885.88 lacs as one time assistance to the Government of Bihar has been approved by the President of India to mitigate the hardships of the sugarcane farmers who had not been paid their arrears for the period 2002-2003, Annexure-3. The Commissioner-cum-Secretary, Government of Bihar vide letter dated 10.5.2004 addressed to the respondent no. 6, the Desk Officer, referring to the package of Rs. 1885.88 lacs granted by the Union of India, informed that the said amount could not be withdrawn by the State and hence the same be revalidated for the next financial year so that amount may be with-drawn in Financial year 2004-2005 in the interest of sugarcane farmers. The Central Government permitted the Government of Bihar to utilise the said loan amount in the financial year 2004-2005 for clearing the dues of sugarcane growers subject to the terms and conditions mentioned therein. However, the amount was not disbursed amongst the farmers. Representations were also filed by the farmers to the Chief Secretary for disbursement of the money which has been received from the Central Government by way of financial package for payment of arrears of sugarcane price to the farmers but nothing was done and as such, the petitioner has been compelled to file the writ petition for issue of direction as indicated above. 3. A counter affidavit has been filed the grant of financial package for payment of arrears to the sugarcane growers has been admitted. 3. A counter affidavit has been filed the grant of financial package for payment of arrears to the sugarcane growers has been admitted. However, stand has been taken that the State Government has already paid Rs. 19.44 crores to farmers for the crushing season 2002-2003 and hence the State Government has requested the Union of India to adjust the amount paid by the State Government to the farmers against the financial package granted by, the Union of India and release the difference amount i.e. Rs. 19.44 crores minus 18.86 crores vide letter no. 1605 dated 10.11.2004. 4. A stand has been taken on behalf of respondent nos. 5 and 6 that decision was taken to provide one time assistance to the State Government to mitigate the hardship of the sugarcane farmers who have not been paid arrears of sugarcane price for 2002-2003 season. The assistance was subject to the conditions that it is one time assistance limited to payment of arrears of the sugarcane price to the farmers. The assistance will be in the nature of soft loan at a concessional interest at the rate of 4 per cent per annum with an initial moratorium of three years and payable three years thereafter. The assistance was contingent upon the State Governments undertaking not to declare SAP for sugarcane in the State in future either formally or informally. The funds released to State Government under the assistance will be placed at the disposal of concerned District Magistrate/Collector in a separate account and shall be paid to the farmer by the District Magistrate on verification. However, on request it was revalidated for utilization in the year 2004-2005 as per the proposal submitted by the Cane Commissioner. The Cane Commissioner vide letter dated 12.1.2004, gave proposal to Government of Bihar that amount be utilized as per the terms given thereunder but the State Government requested for adjustment and for additional funds of Rs. 58.12 lakh which was not agreed as the soft loan of Rs. 1885.88 lakh was one time assistance and the State Government has been requested to submit fund utilization certificate as per the approved terms. 5. 58.12 lakh which was not agreed as the soft loan of Rs. 1885.88 lakh was one time assistance and the State Government has been requested to submit fund utilization certificate as per the approved terms. 5. The submission of the counsel for the petitioner is that the amount was sanctioned by the Union of India for payment of arrears to the cane growers and as such, the claim of the respondent-State of Bihar for adjustment of the said loan amount towards payment made to the sugarcane growers is not at all justified. 6. On consideration of the submissions made by the counsel for the parties and the materials available on the record this much is obvious that the Union of India granted soft term loan as one time financial assistance at a concessional rate of interest to mitigate the hardships of the cane growers whose arrears were not paid by the State Government. It has been stated in the writ petition that because of non-payment of the arrears many people died in the State of Bihar. It has been admitted by the State of Bihar that loan was sanctioned and it was received but it was not disbursed on the ground that earlier 19.44 crores was disbursed amongst the cane growers but nowhere it has been stated that entire dues/arrears of the cane growers has been paid. However, request has been made by the State Government to the Union of India for adjustment of the financial assistance i.e. soft loan amount towards the payment of Rs. 19.44 crores to the cane growers. As yet request has not been accepted by the Union of India nor any provision has been shown that such soft loan can be adjusted against the arrears already paid. Furthermore, there is specific terms and conditions for sanction of the soft loan i.e. only for payment of arrears of sugarcane growers. The financial assistance/loan was sanctioned in the year 2004 but as yet it has not been disbursed. In such a situation keeping the matter pending for such a long time specially when there is no specific averment that all the arrears of the sugarcane growers have been cleared, the action of the Government cannot be said to be justified. The financial assistance/loan was sanctioned in the year 2004 but as yet it has not been disbursed. In such a situation keeping the matter pending for such a long time specially when there is no specific averment that all the arrears of the sugarcane growers have been cleared, the action of the Government cannot be said to be justified. It is further obvious that one time financial assistance was granted only to mitigate the hardships of the sugarcane growers and in spite of the request the utilization report has not been submitted by the State of Bihar and as such, in our opinion, non-utilization of the amount for which it was sanctioned and putting the sugarcane growers in hardships is against the interest of the sugarcane growers who are suffering because of non-payment of arrears. 7. In the circumstances, the writ petition is disposed of directing the respondent concerned to consider the grievance of the petitioner in the light of the observations indicated above and also the hardships of the sugarcane growers and pass necessary order to mitigate their hardships within seven weeks from the date of receipt/production of a copy of this order.