Judgment

B. K. MUKHERJEA, J. : This is a petition under Art. 32 of the Constitution presented by one Seth Shanti Sarup, a partner of the firm of Messrs, Lallamal Hardeodas Cotton Spinning Mills Company, Hathras praying for appropriate writs to set aside and quash two orders, one dated 21-10-1952, made by respondent 1, the Government of India, under S. 3(4), Essential Supplies (Temporary Powers) Act of 1946, and the other an earlier one passed by the second respondent on the 21-7-1949, under S. 3(f), U. P. Industrial Disputes Act, 1947.

There is a further prayer for consequential relief in the shape of restoration of possession of the properties from which the petitioner and his co-partners are alleged to have been dispossessed in pursuance of the impugned orders and recovery of damages for the loss sustained in consequence thereof.

2. To appreciate the contentions that have been raised before us it would be necessary to narrate briefly the material facts in chronological order. The partnership firm known as Lallamal Hardeodas Cotton Spinning Mills Company, of which the petitioner is a partner, was started some time in the year 1921 at Hathras within the State of U. P. and it carried on, since then, the business of production and supply of cotton yarn.

The partners numbering 16 in all were members of the same family and the capital supplied by them amounted to about 24 lakhs of rupees. The business was a fairly profitable one since its inception; but in 1944 differences arose between the partners and one of them named Raghunath Pershad instituted a suit, being suit No. 67 of 1944, for dissolution of the partnership, in the Court of the Civil Judge, Agra.

That suit was dismissed on the preliminary ground that it was not maintainable by reason of there being an arbitration clause in the partnership agreement. Against this judgment an appeal was taken to the High Court at Allahabad and this appeal, being Appeal No. 121 of 1952, is still pending hearing. During the pendency of the suit and the appeal Receivers were appointed by the trial Judge and at a late stage by the High Court also who worked the mills under the directions of the Court and the business did vield some profits up to the year 1948.

In February, 1949, the Receiver reported that the mills could thenceforth be run only at a loss and thereupon on 19-3-1949, the Court ordered the mills to be closed. It appears that on 23-4-1949, a letter was received by the Court from the Deputy Secretary, Labour Department of the, U. P. Government wherein the Government expressed their desire of taking over these mills and running the same themselves under the Industrial Disputes Act.

This fact was recorded by the Court in its order dated 2-6-1949, and the learned Judge expressed his opinion that although Government was entitled to take over the mills if they so desired, yet as the parties raised objections to Government management the Government should keep in view the objections of the parties before they made any final decision in the matter.

On 21-7-1949, the Government of U. P. which figures as respondents 2 in the petition, passed an order purporting to be made under S. 3 (f), U. P. Industrial Disputes Act, 1947 by which they appointed respondent 3 one of the partners of the firm, as "authorised controller" of the undertaking apparently in terms of the provision of that sub-section.

The order directed the said respondent to take over possession of the mills to the exclusion of the other partners, the Receiver and the managers and run the undertaking himself subject to the general supervision of the District Magistrate, Aligarh. He was allowed a pay of Rs. 1,000 per month and a commission of 12 annas per cent. on the sale of goods produced and was given the the power to dispose of the funds and assets, both movable and immovable.

It may be mentioned here that this order of appointment was assented to by 9 out of the remaining 15 partners and the consenting partners admittedly owned betw