Case Note & Summary
The petitioners, eight sugarcane growers from Bramhani, Tal. Rahuri, Dist. Ahmednagar, filed a writ petition under Article 226 of the Constitution of India before the Bombay High Court (Bench at Aurangabad) seeking a direction to the respondent sugar factory, Karmaveer Shankarrao Kale Sahakari Sakhar Karkhana Ltd., to pay them the difference in Fair and Remunerative Price (FRP) for sugarcane supplied during the crushing season 2010-2011. The petitioners alleged that the factory paid FRP of Rs.2104/- per metric ton (PMT) to its members, while non-members like the petitioners were paid only Rs.1800/- PMT. For petitioner nos.1 to 4, an additional amount of Rs.50/- PMT was sanctioned later, reducing the claimed difference to Rs.254/- PMT, while petitioner nos.5 to 8 claimed Rs.304/- PMT. The claim was based on the judgment in Shrinath Maruti Reddy and others Vs. State of Maharashtra and others [2011 (2) Mh.L.J. 154], which held that the same price must be paid to all sugarcane growers whose cane is crushed in the factory. The Sugar Commissioner, Maharashtra, issued a circular on 06.06.2013 directing compliance. The court considered whether a sugar factory can discriminate between members and non-members in FRP payment. The petitioners argued that such discrimination violates the principle of equality and the circular. The respondent factory contended that it was entitled to treat members and non-members differently. The court analyzed the judgment in Shrinath Maruti Reddy and the circular, and held that the factory cannot discriminate. The court allowed the petition, directing the factory to pay the difference in FRP to the petitioners within a specified period.
Headnote
A) Constitutional Law - Right to Equality - Discrimination between members and non-members - Article 14 of the Constitution of India - Sugar factory cannot discriminate between its members and non-members in payment of FRP for sugarcane supplied during the same crushing season - Held that same price must be paid to all sugarcane growers whose cane is crushed in the factory (Paras 1-3).
B) Cooperative Law - Sugar Factory - Payment of FRP - Maharashtra Cooperative Societies Act, 1960 - Sections 60, 61 - A sugar factory is bound to pay equal FRP to all sugarcane growers, irrespective of membership, as per the circular of the Sugar Commissioner dated 06.06.2013 - Held that discrimination in payment of FRP is impermissible (Paras 3-4).
Issue of Consideration
Whether a sugar factory is entitled to discriminate between its members and non-members in the matter of payment of Fair and Remunerative Price (FRP) of sugarcane.
Final Decision
The court allowed the writ petition and directed the respondent sugar factory to pay the difference in Fair and Remunerative Price (FRP) to the petitioners as claimed, within a specified period.
Law Points
- Fair and Remunerative Price
- Discrimination between members and non-members
- Sugar factory
- Cooperative society
- Sugarcane growers
- Equal treatment
- Writ petition
- Money claim
Case Details
2022 LawText (BOM) (09) 13
WRIT PETITION NO.1869 OF 2021
Mangesh S. Patil, Sandeep V. Marne
Mr. A.B. Kale, Mr. Sambhaji B. Tarde, Mrs. Vaishali N. Patil Jadhav, Mr. R.N. Dhorde, Mr. P.S. Dighe, Mr. V.R. Dhorde
Sindhubai w/o. Ramdas Mokate and others
The State of Maharashtra and others
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India seeking a money claim for difference in Fair and Remunerative Price (FRP) of sugarcane.
Remedy Sought
Petitioners seek direction to respondent sugar factory to pay difference in FRP of Rs.254/- PMT for petitioner nos.1 to 4 and Rs.304/- PMT for petitioner nos.5 to 8 for sugarcane supplied during crushing season 2010-2011.
Filing Reason
The respondent factory paid lower FRP to non-member sugarcane growers compared to its members, allegedly in violation of the principle of equality and the judgment in Shrinath Maruti Reddy.
Previous Decisions
The judgment in Shrinath Maruti Reddy and others Vs. State of Maharashtra and others [2011 (2) Mh.L.J. 154] held that same price must be paid to all sugarcane growers. A circular dated 06.06.2013 was issued by the Sugar Commissioner, Maharashtra, directing compliance.
Issues
Whether a sugar factory can discriminate between its members and non-members in payment of Fair and Remunerative Price (FRP) of sugarcane.
Whether the petitioners are entitled to the difference in FRP as claimed.
Submissions/Arguments
Petitioners argued that the factory paid FRP of Rs.2104/- PMT to members and only Rs.1800/- PMT to non-members, violating the principle of equality and the judgment in Shrinath Maruti Reddy.
Respondent factory contended that it was entitled to treat members and non-members differently in payment of FRP.
Ratio Decidendi
A sugar factory cannot discriminate between its members and non-members in the matter of payment of Fair and Remunerative Price (FRP) of sugarcane. The same price must be paid to all sugarcane growers whose cane is crushed in the factory, as held in Shrinath Maruti Reddy and as directed by the Sugar Commissioner's circular dated 06.06.2013.
Judgment Excerpts
Whether a sugar factory is entitled to discriminate between its members and non-members in the matter of payment of Fair and Remunerative Price (hereinafter referred to as the ‘FRP’) of sugarcane is the issue raised in the present petition.
The claim of the petitioners is premised essentially on the judgment of this Court in Shrinath Maruti Reddy and others Vs. State of Maharashtra and others [2011 (2) Mh.L.J. 154], wherein this Court held that same price is required to be paid to each and every sugarcane grower whose cane is crushed in the factory.
Procedural History
The petitioners filed Writ Petition No.1869 of 2021 before the Bombay High Court (Bench at Aurangabad) on 22.09.2022, and the judgment was pronounced on 30.09.2022.
Acts & Sections
- Constitution of India: Article 14, Article 226
- Maharashtra Cooperative Societies Act, 1960: Sections 60, 61
