Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: October 5, 2026

Case Overview

  • Parties: State of Uttar Pradesh (appellant in one appeal) and Yadu Sugar Limited (respondent); Dhampur Sugar Mills Limited and others (appellants) vs. State of Uttar Pradesh and others (respondents).
  • Origin: Both appeals stem from a dispute over allocation of 100.8 lakh quintals of sugarcane for the 2025‑26 crushing season under the Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953.
  • Background: The Cane Commissioner failed to allocate the full quota to Yadu Sugar Ltd, leading to its closure for the season. The State cited delayed payments to farmers as the reason for non‑allocation. The High Court, on a writ petition filed by Yadu Sugar, directed the Cane Commissioner to allocate the full quota, stating that non‑allocation caused production loss and payment delays.
  • Legal Issue: Whether the High Court’s intervention was premature and usurped the statutory authority of the Cane Commissioner under Sections 14‑17 of the Sugarcane Act and Rule 22 of the 1954 Rules.
  • Arguments: Appellants argued that allocation power rests solely with the Cane Commissioner and that the High Court’s order pre‑empted that authority. Counsel for Yadu Sugar (Mr. Rohatgi) attempted to sustain the High Court order, acknowledging the lapse in the Commissioner’s action, but later agreed to disposal as proposed by the Court.

Final Outcome

  • The Supreme Court set aside the impugned High Court order.
  • The writ petition filed by Yadu Sugar Ltd is dismissed.
  • The Cane Commissioner is directed to pass an appropriate order regarding sugarcane allocation to Yadu Sugar Ltd, in accordance with law, within a fortnight from the date of this order, without being influenced by any observations of this Court or the High Court.
  • Once the Cane Commissioner’s order is issued, the parties may pursue their remedies as per law.
  • The appeals are allowed in part.
  • Any connected applications, if filed, are ordered to stand closed.

Topics: Sugarcane Allocation, Judicial Review