Judgment

Kirpal, J.—The validity of the decision of the Union of India to disinvest and transfer 51 shares of M/s Bharat Aluminium Company Limited (hereinafter referred to as ‘BALCO’) is the primary issue in these cases.

2. BALCO was incorporated in 1965 as a Government of India Undertaking under the Companies Act, 1956. Prior to it disinvestment it had a paid-up share capital of Rs. 488.85 crores which was owned and controlled by the Government of India. The company is engaged in the manufacture of aluminium and had plants at Korba in the State of Chhattisgarh and Bidhanbag in the State of West Bengal. The Company has integrated aluminium manufacturing plant for the manufacture and sale of aluminium metal including wire rods and semi-fabricated products.

3. The Government of Madhya Pradesh vide its letter dated 18th March, 1968 wrote to BALCO stating that it proposed that land be granted to it on a 99 years lease subject to the terms and conditions contained therein. The letter envisaged giving on lease Government land on payment of premium of Rs. 200/- per acre and, in addition thereto also to provide tenure land which was to be acquired and transferred on lease to BALCO on paymen