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Mahaicony Rice Mills Limited has taken the Guyana Rice Development Board (GRDB) to court following the suspension of its milling and export licences last week.The group, which has four mills across Guyana, is asking for an order or Rule Nisi of Certiorari to be directed at GRDB to show cause why a Writ of Certiorari should not be granted to quash the decisions to suspend the licences on the grounds that they were arbitrary, unreasonable, unlawful, in breach of the principles of natural justices, null, void and of no effect.The matter comes up for a hearing on July 14.Last week, the GRDB said that it was suspending the licences of Mahaicony Rice Mills because of continued instances where farmers were being issued “bounced cheques”.Under the amended Factories Act, rice millers are not allowed to owe more than five percent of its farmers for paddies taken during the last crop.Farmers were complaining that they were paid with cheques but some of them were not accepted by the bank because there was no money in the account of Mahaicony Rice Mills.According to the court documents filed by attorney Rajendra Poonai, the group will also be asking for an Order or Rule Nisi of Prohibition against GRDB, who has to prove why the decision of June 25 to suspend the licences was not arbitrary, unreasonable, unlawful, in breach of natural justice, null, void and has no effect.Last week, Mahaicony Rice Mills’ officials claimed that they were unable to pay because, among other things, that they are owed $30 million in tax refund.But the Ministry of Agriculture warned the group that it could face prosecution.Last week Wednesday, the same day of the suspension,Wholesale NFL Jerseys, the group wrote Minister of Agriculture Robert Persaud claiming that the Guyana Revenue Authority owes $30 million in refund for remittances of the Value Added Tax.According to General Manager Brandon Barton, the “non-payment of these monies is greatly affecting our cash flow and does not allow us to meet our financial obligations.”Barton urged the minister to use his office to assist Mahaicony Rice to receive the payments from GRA so that farmers can be paid.However, the ministry was not buying the explanation of the group, and wrote them back advising that the matter has been referred to the Ministry of Finance for action.“In addition, I would like to advise your company that the withholding of your VAT refund ($30 million) does not relate to the issue of non-payment to rice farmers. Issuing “bounced” cheque is a criminal offence and should be prosecuted by the Guyana Police Force,” Minister Persaud wrote in a letter to the Mahaicony Rice Limited.Pointing out that the issue is that farmers’ paddy has been brought and should be paid for in accordance with agreement, the minister argued that the group could not defend its illegal action.“Also, you need to know that non-payment to rice farmers will lead to a reduction in the acreage cultivated for the next crop, thus affecting our anticipated production target. Further, your company’s action will result in some “lost opportunity” for rice farmers and Guyana, at a time when global demand for rice is high.”The ministry stressed that the issuing of bounced cheques has painted the company as “not being a good corporate citizen,” and he has since directed the Guyana Rice Development Board to take the necessary action for “this illegal and unfair action against our farmers”.Persaud demanded that the company immediately send him a schedule of payments to the rice farmers, stating clearly when payments will be paid and the amounts to be paid.According to the affidavit filed in support of the motion, Mahaicony Rice has four mills across Guyana — in Mahaicony; Johanna South, Black Bush Polder; Blairmont, Berbice; and Vilvoorden, Essequibo.Mahaicony Rice Mills claims it is the largest manufacturing and purchasing entity, and on average purchases 40 per cent of the rice produced in Guyana.On June 25, it received the letter from GRDB suspending its licences.The group said that on occasions it post-dated cheques for rice farmers, and it is understood and acknowledged in writing that the farmers should make contact with the group before encashing the cheques.Mahaicony Rice Mills further argued that it is understood by farmers issued with these cheques that payments will be made within three months.‘That it was inadvertence that the applicant’s account at the Demerara Bank had insufficient funds, and in no way whatsoever was the applicant aware that its account had insufficient funds at the material time when the cheques were issued.”After two cheques were dishonoured by the bank, two employees of Mahicony Rice Mills were arrested by Police, but were later released without being charged.The group claimed that the affected farmers have since been paid.“The Guyana Rice Development Board has not specified what conditions of the licence, if any at all, have been breached. The Guyana Rice Development Board has not specified what provisions of the Rice Factories Act, no. 8 of 1998, have been breached or the regulations made thereunder, if any at all.”According to the affidavit, GRDB took into account the “irrelevant consideration of issuing bounced cheques to suspend” their licences to manufacture as well as export rice.Mahaicony Rice Mills claimed that they were not given an opportunity to be heard before the decision was taken to suspend the licences — a requirement that is spelt out in the law.Mahaicony Rice Mills claimed that it will suffer financial ruination, since it has to meet large export commitments.