In Brief
The State of Uttar Pradesh appealed against a High Court order directing Mawana Sugars Limited to reserve only 25% of its balance molasses stock (after captive consumption) for country liquor distilleries. The core dispute concerned interpretation of the 2015-16 Molasses Policy: whether 25% reservation applied to total production or only to surplus stock. The Supreme Court held that the Policy mandates 25% reservation of total molasses produced, with the reservation amount adjusted based on available balance stock through tiered provisions. The Court distinguished the 2015-16 policy from an earlier policy in Dhampur Sugar Mills, finding them textually and substantively different. The High Court's reliance on Dhampur was misplaced. The appeal was allowed and the High Court's order set aside.
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