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Patna High Court

M/s. Tirupati Sugars Limited (Bagaha Chini Mill)versusThe State of Bihar

Decided
Disposal
DISPOSED

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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