| Case ID |
de56ca17-663c-4b1a-8e5c-3f786d9f1323 |
| Body |
View case body. Login to View |
| Case Number |
C.A. Nos. 334 to 344 of 2004 |
| Decision Date |
Mar 05, 2018 |
| Hearing Date |
Dec 05, 2017 |
| Decision |
The Supreme Court dismissed the appeals regarding the payment of quality premium to sugarcane growers, affirming the legality of the base sucrose recovery level at 8.7% as stipulated in the Sugar Factories Control Act, 1950. The court emphasized that the quality premium was a just compensation for growers, linked to the sucrose recovery exceeding this base level. The court ordered that future notifications for quality premium should accompany the fixation of minimum procurement prices, ensuring timely payment to growers post-crushing season. |
| Summary |
In the case of Army Welfare Sugar Mills and Others vs. Government of Sindh, the Supreme Court of Pakistan addressed the legality of the quality premium payment to sugarcane growers as per the Sugar Factories Control Act, 1950. The court upheld the base sucrose recovery level of 8.7%, which is critical for determining the sugarcane procurement price. The ruling clarified that the quality premium is not a discretionary payment but a statutory requirement that compensates growers for their contribution to higher sucrose recovery levels. The court emphasized the collaborative efforts of growers and mills in achieving these levels, and the need for timely payment of the quality premium to support the agricultural sector. This case is significant for stakeholders in the sugar industry, as it reinforces the legal framework governing sugarcane pricing and growers' rights, while also highlighting the importance of statutory compliance in agricultural economics. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Government of Sindh,
Army Welfare Sugar Mills
|
| Judges |
Faisal Arab, Justice,
Sajjad Ali Shah, Justice
|
| Lawyers |
Khalid Anwar, Senior Advocate Supreme Court,
Muhammad Shaiq Usmani, Senior Advocate Supreme Court,
N.C. Motiani, Advocate-on-Record
|
| Petitioners |
Army Welfare Sugar Mills and Others
|
| Respondents |
Government of Sindh through Secretary Agricultural and Others
|
| Citations |
2018 SLD 703,
2018 SCMR 727
|
| Other Citations |
Not available
|
| Laws Involved |
Sugar Factories Control Act, 1950
|
| Sections |
16(v)
|