The Supreme Court has disposed of three special leave petitions challenging orders passed by the Allahabad High Court in a pending Public Interest Litigation concerning the recovery of long-pending sugarcane dues owed to farmers in Uttar Pradesh, while leaving it open to the State Government and the U.P. Mills Association to seek reconsideration of the 15% interest direction in accordance with law.
A Bench of Justice Dipankar Datta and Justice Sheel Nagu noted that the Allahabad High Court’s order dated December 23, 2021, had referred to Section 17(3) of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953, which permits waiver or reduction of interest in appropriate cases. The Supreme Court did not itself grant any waiver or set aside the 15% interest direction. Instead, it granted liberty to the State and the Mills Association to bring the statutory provision and the earlier High Court order to the High Court’s notice and seek reconsideration. The High Court was directed to consider such a plea and pass appropriate orders.
In its order dated August 31, 2026, passed in the pending PIL, the Allahabad High Court recorded that approximately ₹1,936 crore remained to be recovered under the relevant recovery certificates, including around ₹849.5 crore in interest calculated at 15%. The order further noted that approximately ₹1,087 crore in principal cane dues remained outstanding.
The Allahabad High Court had directed the authorities to make necessary efforts to recover the outstanding amounts from sugar mills. The Supreme Court leaves the question of any waiver or reduction of interest to be considered by the High Court, if a plea is made in accordance with law.
The special leave petitions were accordingly disposed of.
