Patna High Court
M/s. Tirupati Sugars Limited (Bagaha Chini Mill)versusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- AJIT KUMAR
Holding
The High Court set aside both the original reservation order and the appellate order and directed the Cane Commissioner to reconsider the reservation of the ten villages in accordance with Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 and the parameters laid down in Vishnu Sugar Mills Ltd. case.
Summary
M/s Tirupati Sugars Ltd filed a writ petition challenging an appellate order that dismissed its appeal against a reservation order allocating ten villages to H.P.C.L. Biofuel Ltd under Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981. The petitioner argued that the reservation was made arbitrarily, violating statutory procedure and directions issued by this Court in the Vishnu Sugar Mills case. The Court examined whether the appellate and reservation orders were legally sound and whether the Cane Commissioner had complied with the required hearing, calendar, and parameters for reserving traditional villages. Finding that the authorities ignored the statutory provisions and the earlier Court‑directed guidelines, the Court set aside both the original reservation order and the appellate order. It directed the Cane Commissioner to conduct a proper hearing within four weeks and to pass a new reservation order in conformity with the Act and the Vishnu Sugar Mills parameters. The writ petition was consequently disposed of.
Issues considered
- Whether the appellate order dated 11.12.2025 dismissing the petitioner's appeal is liable to be quashed.
- Whether the reservation order under Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 allocating ten villages to H.P.C.L. Biofuel Ltd is illegal and violative of statutory procedure.
- Whether the Cane Commissioner complied with the procedural directions laid down in M/s Vishnu Sugar Mills Ltd. v. State of Bihar (2005) 2 PLJR 495.
- Whether the petitioner is entitled to reservation of the ten villages in question.
Legislation cited
Subjects
- sugarcane regulation
- reservation of villages
- Section 31
- writ petition
- administrative law
- Bihar Sugarcane Act
- traditional villages
- appeal order
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.1373 of 2026
======================================================
M/s. Tirupati Sugars Limited (Bagaha Chini Mill) P.O.-Naraipur, P.S. Bagaha,
District West Champaran (Bihar) through its General Manager Arun Kumar
aged about 62 yeas old Son of Late R.K. Maldahiyar, resident of Tirupati
Sugars Limited premises, Bagaha, P.S. Bagaha, District West Champaran.
... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary, Sugarcane Industries
Department, Government of Bihar, Patna.
2. The Principal Secretary, Sugarcane Industries Department, Government of
Bihar, Patna.
3. The Cane Commissioner, Sugarcane Industries Department, Government of
Bihar, Patna.
4. The District Magistrate, West Champaran cum Chairman Zonal Develoment
Council, Bagha.
5. The Cane Officer, Ramnagar Circle, Bettiah cum Secretary Zonal
Development Council, Bagaha.
6. M/s. H.P.C.L. Biofuel Limited, Lauriya (Lauriya Sugar Factory), West
Champaran.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Y. V. Giri, Sr. Advocate
Mr. Ramesh Kumar Agrawal, Advocate
Mr. Sanjeev Kumar, Advocate
For the Respondent No.6 : Mr. Vikas Ratan Bharti, Advocate
Mr. Kumar Abhishek, Advocate
For the Intervenor No.2 : Mr. Ankit Kumar, Advocate
For the Intervenor No.1 : Mr. Pranaw Kumar, Advocate
Ms. Shrishti Singh, Advocate
For the Respondent/s : Mr. Government Pleader 18
======================================================
CORAM: HONOURABLE MR. JUSTICE AJIT KUMAR
ORAL ORDER
3 15-04-2026 Heard learned counsel for the parties.
2. The writ petition has been filed for the following
reliefs :-
(i) For quashing the appellate order dated
11.12.2025 (Annexure- P/6) passed in Appeal Case
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no. 04/2025 by the Principal Secretary, Sugarcane
Industries Department, Government of Bihar
whereby the appeal preferred by the Petitioner
against the aforesaid order dt. 26.09.2025 was
dismissed.
(ii). For quashing the part of the reservation
order bearing No.- 02/Regu-2-800-07/2020-
1782/E.Ka/Patna, dated 26.09.2025 (Annexure-
P/5) passed by the respondent Cane Commissioner
under Section 31 of the Bihar Sugarcane
(Regulation of Supply and Purchase) Act, 1981
(hereinafter referred to as "the Sugarcane Act" only)
by which 10 (Ten) Pada Blati villages as mentioned
below has been arbitrarily and illegally reserved in
favour of the respondent M/s. H.P.C.L. Biofuel
Limited, Lauriya, West Champaran for the crushing
season 2025-26 to 2029-30 (For five years) as
traditional villages instead of reserving in favour of
the Petitioner.
District Block Name of the Village Revenue
Thana No.
1. Dihi 361
2. Kaulapur 357
3. Bhawanipur 401
West Yogapatti 4. Hariharpur 358
Champaran
5. Semari 404
Bhawanipur
6. Semari 415
7. Nimueya 417
8. Chandaul 418
9. Chaumukha 36
10. Barharwa 44
(iii). For staying the aforesaid impugned appellate
order dated 11.12.2025 (Annexure-P/6)
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(iv). For reserving the aforesaid 10 villages
in question in favour of the petitioner.
(v) For granting such other reliefs to do
complete justice in the present matter.
3. Learned Senior Counsel for the petitioner, Sri Y.V.
Giri duly assisted by Sri Ramesh Kumar Agarwal, Advocate,
submits that the sugarcane in Bihar is completely regulated by
the provision of the Bihar Sugarcane (Regulation of Supply and
Purchase) Act, 1981 and the Rules framed thereunder and the
object of the said Act is to regulate the production, supply and
distribution of sugarcane intended for use in sugar factories.
4. It has next been submitted that while passing the
impugned order, the authorities overlooked the provisions of
Section 31(1) of Sugarcane Act, which issues have already been
dealt by a Coordinate Bench of this Court in the case of M/s
Vishnu Sugar Mills Limited and Another v. The State of Bihar
and Others reported in (2005) 2 PLJR 495, and the Hon’ble
Court while dealing with the writ petition was pleased to issue
directions to the State Government with regard to parameters laid
for reservation of area to the sugar factories which are as
follows :-
a. The Cane Commissioner must follow the
statutory calendar strictly and must ask for and
received the reservation proposal as provided under
the statutory calendar.
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b. After holding meeting(s) and after hearing
the parties on their respective proposals and after
consulting the Zonal Development Council, the
Cane Commissioner must pass a speaking order of
reservation taking into account the proposals of the
respective sugar factories, his reasons for accepting
or not accepting or partly accepting the proposals
of any sugar factories and finally his direction
regarding reservation of villages in favour of
different sugar factories.
c. Reservation of traditional villages in
favour of different sugar factories must be made at
least for 5 years. In case during the period of 5
years, any of the sugar factories is closed down, it
will be open to the Cane Commissioner to pass a
supplementary order for one crushing season or for
the remaining period of the reservation dealing with
reallocation of the traditional villages of the sugar
factory (ies) to other sugar factories after observing
the requirement of notice and hearing as provided
under Section 31 of the Act.
d. The reservation of villages other than the
traditional villages shall be for a period of not less
than 3 years. The provision for making a
supplementary order in case the sugar factory
closes down shall apply also in the case of these
villages.
e. The order must be sent to Gulzarbagh
Printing Press well in advance so that it is
published at least a fortnight before the start of the
crushing operation.
5. It has next been submitted that while passing the
impugned order, the official respondents have ignored
aforementioned directions and passed an order being Order
No.1782 dated 26.09.2025, annexed as Annexure-P/5, which has
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been affirmed by the Appellate Authority vide its order dated
11.12.2025, Annexure-P/6 to the writ petition.
6. At this stage, on being confronted with the legal
issues raised by the learned Senior Counsel for the petitioner, in
reference to impugned order and as also the stand taken by the
State in the counter affidavit, learned counsel for the State seeks
permission to withdraw the counter affidavit for filing an
appropriate affidavit for consideration meeting with the legal
issues raised in the instant case, which has already been given
quietus by the Hon’ble Coordinate Bench of this Court, as
referred hereinabove.
7. Learned counsel for the State, on further being
confronted with the manner in which the disputed issues have
been dealt with by the Original Authority as well as by the
Appellate Authority, the learned counsel for the State fairly
submits that the same does not find consideration.
8. Considering the stand taken by the authorities and
there being no adherence of the statutory provisions, which
aspect has already been considered by the Co-ordinate Bench of
this Court in the case of M/s Vishnu Sugar Mills Limited and
Another (supra ), and such consideration being apparently absent
in the impugned orders, this Court finds it appropriate to set aside
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the original order as well as the appellate order, which is annexed
in the writ petition as Annexure-P/5 and Annexure-P/6
respectively.
9. Accordingly, in view of the impugned orders having
been set aside, the Respondent No.3, The Cane Commissioner,
Sugarcane Industries Development, Government of Bihar, Patna,
is directed to undertake the process of consideration of settlement
of disputed 10 villages by providing proper hearing to all the
parties concerned within a period of four weeks and necessary
orders shall be passed strictly in light of the statutory provisions
and also the parameters fixed by a Co-ordinate Bench of this
Court in the case referred hereinabove, to avert further litigation
in the matter.
10. Accordingly, the writ petition is disposed of.
11. Interlocutory applications, if any, is accordingly
disposed of in above terms.
(Ajit Kumar, J)
sharun/-
U
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