LAHORE: In a first major relief to sugarcane growers from wrongdoings of powerful sugar mills owners after passing of revised Punjab Sugar Factories Control Act, 1950, the cane commissioner has initiated action against a sugar mill for not clearing sugarcane dues.
The Punjab cane commissioner has issued an order to attach the stock of M/S GB Private Limited (ex-Pasrur Sugar Mills) while initiating proceedings for not making payments to sugarcane growers under the provisions of Punjab Sugar Factories Control Act, 1950.
According to the order issued on July 09, 2021, the cane commissioner stated that the Sugar Factories (Control) Act, 1950, saddles the office of cane commissioner, Punjab, with the responsibility of safeguarding the rights of the sugarcane growers, including the right of sugarcane price, within the time period stipulated in Section 13 (2) of the said Act and in case of non-payment, recovering the same along with interest, as arrears of land revenue under The Land Revenue Act 1967.
Moreover, the Supreme Court of Pakistan, in civil petition No.1057/2019 titled JS Bank Limited Karachi, etc. Vs Province of the Punjab through Secretary Food, Lahore & others has held "The cane commissioner is under statutory obligation to calculate the entire sum of liability owed to the cane grower, including purchase price and interest and exercise the powers conferred under S.6(2) of the Punjab Sugar Factories Act 1950 to recover such amount."
Furthermore, the Supreme Court of Pakistan held in the said civil petition that sugarcane price was the Statutory First Charge on the sugar produced from the sugarcane supplied by the sugarcane growers.
The cane commissioner added that M/S GB Private Limited (ex-Pasrur Sugar Mills) purchased sugarcane from the growers during the cane crushing season 2020-21. However, it did not pay the price to some of the growers out of which 27 filed applications - mostly in the months of April and May, 2021, for recovery of sugarcane price approximately Rs.38.67 million (exact amount to be determined).
On the other hand, M/S GB Private (Limited) on March 31, 2021, stated that it had paid 100 per cent sugarcane price to the growers.
The cane commissioner, after hearing the applicants, is of the considered opinion and firm belief that the said certificate of clearance of dues is fraudulent and the occupier of sugar mill is disposing of sugar stocks without paying the price of sugarcane and satisfying the Statutory First Charge, as ordained by the Supreme Court of Pakistan.
He quoted the decision of Lahore High Court, in W.P No. 59541 /2020 titled Shahtaj Sugar Mills Limited & Others Vs Province of Punjab & another in which it was held that in any civilized society, the administration cannot be a silent spectator to crime or violation of law. In fact, it is an inherent power of any public office or authority to take all possible steps to check malpractice and implement the law in its letter and spirit.
Therefore, he added, in order to safeguard the right of sugarcane growers of getting price of sugarcane, which has already been delayed by the said sugar mill for more than three months, it is obligatory upon him to proceed to enforce the Statutory First Charge of sugarcane price on the sugar produced from the sugarcane supplied by the sugarcane growers.
Hence, Cane Commissioner Muhaamd Zaman Wattoohereby proceed to determine the liability of the occupier of M/S G.B Private (Limited) Pasrur and direct him to appear before the undersigned, either by himself or through his authorised counsel, on July 17, 2021 and produce the record connected with purchase of sugarcane.
Since, the occupier has, prima facie, fraudulently provided a clearance certificate in the form of SCR-II and is disposing of sugar, on which exists the Statutory First Charge of sugarcane price, as held by Supreme Court of Pakistan in the aforementioned civil petition, the cane commissioner restrained the occupier of M/S G.B Private Limited from selling/disposing of sugar.
The deputy commissioner/additional cane commissioner, Sialkot, has been directed to strictly enforce the restraining order.
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