Case: Karmayogi Ankushrao Tope Samarth Sahakari Sakhar Karkhana Ltd. and Other Petitioners vs. Government of India through the Secretary and Others
Date: February 22, 2024
Judges: R.M. Joshi and Ravindra V. Ghuge (In the High Court of Judicature at Bombay Bench at Aurangabad)
Background:
The petitioner, a sugar factory, and other similar companies filed writ petitions challenging a government order dated December 7, 2023, which reduced the quantity of ethanol they were required to supply to Oil Marketing Companies (OMCs).
The petitioners argued that they had invested in expanding their distilleries based on a previous agreement with the government and that the OMCs were obligated to purchase at least 75% of their ethanol production under that agreement.
Court’s Observations:
The court acknowledged the contractual agreements between the petitioners and OMCs and the presence of arbitration clauses within those contracts.
However, the court also noted the following:
The OMCs were acting under instructions from the government to reduce ethanol intake.
The petitioners had manufactured ethanol based on the original contracted quantities and now faced challenges with storing the surplus.
The ethanol, being flammable, posed a potential safety hazard if not properly stored.
Court’s order:
The court directed the OMCs to receive the following:
Having duly considered the submissions of the litigating parties and taking into account the factors placed before us, we direct that until the date when the revised quantity was conveyed by the OMCs to the manufacturing companies, 75% of the originally contracted quantity shall be received by the OMCs’. From the date the revised quantity norms were communicated, the Petitioners are at liberty to supply 100% of the revised quantity and the OMCs would receive the same the revised quantity, even today, is almost 40% to 50% more than the actual quantity supplied by these Petitioners to the OMCs prior to the impugned order dated 07.12.2023.
Additional Points:
The earlier direction of this Court, by which the Petitioners were under a mandate to maintain date-wise inventory of the ethanol manufactured, would continue and they would have to file their returns in this Court as per the directions of this Court, as well as deliver copies to the OMCs.
With the above directions, the Civil Application No.1725/2024 stands disposed off. These directions would apply to all the Petitioners who have filed such similar Writ Petitions before us and including those who have not filed Civil Applications
Note: This is a summarized version of the court order and may not capture all the details. It is recommended to consult the official court order for complete information.
Click here to read the court order
Disclaimer: The views and opinions expressed in the article by Dilip Patil, Managing Director of Samarth SSK Ltd., are solely his own.
