Sell excess land of sugar mill, pay debts, Bombay HC tells state
The order was passed after the farmers and bank approached the court seeking a stay on the liquidation of the sugar factory, spread across 113 acres.Updated: Apr 05, 2019 06:57 IST
Hindustan Times, Mumbai
In an order that could solve the problems of ailing sugar factories in the state, the Bombay high court (HC) has directed the state government to consider selling excess land belonging to a sugar factory in Pune — which has gone into liquidation — to pay off dues of 122 farmers and a cooperative bank.
The order was passed after the farmers and bank approached the court seeking a stay on the liquidation of the sugar factory, spread across 113 acres.
The division bench of justices Indrajit Mohanty and AM Badar, while hearing the petition by sugarcane farmers, promoter of the mill, Yashwant Sahakari Sakhar Karkhana, Pune, and Maharashtra State Cooperative Bank, against the liquidation of the sugar mill, was informed that the mill had remained shut for a long time.
As a result, it had gone into liquidation under the Maharashtra Cooperative Societies Act. However, given the large dues, allowing the liquidation process to progress would result in losses for the farmers and the bank.
The petitioners, hence, sought appropriate direction to the state to revive the sugar mill and ensure that the debts of the farmers and the bank were paid.
After hearing all sides, the bench said, “We call upon the state to consider the extent of land which can be sold without affecting future operations, needs of the sugar factory, which shall also meet the outstanding dues of all concerned.”
First Published: Apr 05, 2019 06:57 IST