Authority: Supreme Court of India
Order Date: 06-10-2026
Case Overview
- Petitions for Special Leave to Appeal (C) Nos.33933‑33934/2026, arising from the impugned final judgment and order dated 03‑08‑2026 in WPIL No. 7066/2006 passed by the Allahabad High Court, Lucknow Bench, were listed for hearing.
- Parties: State of Uttar Pradesh & Anr. (Petitioner) versus V.M. Singh (Respondent).
- The petitioners challenged interim orders of the High Court that directed the Cane Commissioner to recover arrears of sugarcane dues from companies/occupiers with interest at 15% per annum, subject to possible waiver/reduction under Section 17(3) of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953.
- The High Court’s order dated 23 December 2021 required clearance of farmers’ dues, with interest @ 15% per annum, to be effected by 31 March 2022, failing which a recovery certificate would be issued to the Collector for coercive recovery.
- A subsequent order dated 3 August 2026 recorded the Cane Commissioner’s assurance that arrears would be recovered with the same 15% interest and directed correction of recovery certificates on 30 July 2026.
- The Supreme Court observed that the 23 December 2021 judgment correctly referenced Section 17(3), which permits waiver or reduction of interest in appropriate cases.
Final Outcome
- The Court granted liberty to the State of Uttar Pradesh and the U.P. Sugar Mills Association to remind the High Court of the statutory mandate under Section 17(3) and to argue against a flat 15% interest rate.
- The special leave petitions were disposed of.
- All points and contentions on the merits were kept open for further consideration.
- Any pending applications, if existent, were also disposed of.
Topics: Sugarcane Dues, Interest Waiver, Judicial Review