Authority: Supreme Court of India

Order Date: 16-06-2026

Case Overview

  • Parties: Nirani Sugars Limited (Petitioner) vs. The Regional Joint Director (Sugar) & others (Respondents).
  • Proceedings: Special Leave Petition (Civil) Diary No. 36652/2026 arising from the impugned final judgment and order dated 10-06-2026 passed by the High Court of Judicature at Bombay (IA No. 3876/2026).
  • Bench: Hon'ble Mr. Justice Joymalya Bagchi and Hon'ble Mr. Justice Vipul M. Pancholi (Partial Court Working Days Bench).
  • Counsel: For petitioner – Senior Advocate Mr. Dama Sheshadri Naidu and team; for respondents – Mr. Tushar Mehta (Solicitor General), Mr. Shrirang B. Varma, Mr. Siddharth Dharmadhikari, Mr. Aaditya Aniruddha Pande.
  • Background: The petitioner, represented by Mr. D.S. Naidu, is a lessee of a sugar mill owned by a Cooperative Society. The Court noted that the lessee was not a party to the earlier proceedings and was not heard before an order directing the lessee to deposit Rs 40,11,745 (Rs Forty Lakh Eleven Thousand Seven Hundred and Forty‑Five only) for conducting elections of the Cooperative Society was passed.
  • Legal Points Raised: Mr. Naidu argued that the lessee cannot be forced to pay election funds, that the Cooperative Society was a defaulter, and that a consortium of banks led by Maharashtra Cooperative Bank had taken possession of the mill under Section 14 of the SARFAESI Act, subsequently executing a lease in favour of his client.

Final Outcome

1. Permission to file the Special Leave Petition is granted.

2. The Court stays the direction to deposit Rs 40,11,745, effective for a period of two weeks, to enable the petitioner to approach the High Court.

3. The petitioner is directed to approach the High Court within 7 days (by 23‑06‑2026) and pray for recall or modification of the deposit direction, which was originally to be complied with by 17‑06‑2026.

4. If the petitioner fails to approach the High Court within the stipulated time, the stay will lapse and the original direction to deposit the amount will automatically revive.

5. The Special Leave Petition is disposed of with the above directions, and any pending applications, if any, are also disposed of.

Topics: Legal Procedure, Sugar Industry