The Supreme Court has dismissed the pleas of State Bank of India and Punjab National Bank which had challenged an Allahabad high court order directing sugar mills in Uttar Pradesh to sell the sugar stock for making payment of dues to sugarcane farmers.
Expressing concern over suicides by farmers, a bench headed by Chief Justice H L Dattu observed that the sugarcane cultivators' right to life was more important than the banks' right to carry on business.
"In view of the suicides among farmers, let us put a quietus to this," the bench said before dismissing the appeals yesterday.
Sugar mills had taken loans in crores of rupees from SBI and PNB by hypothecating their sugar stocks.
The apex court was informed that the mills were now disposing of sugar stock, which was a security against loans.
