Judgment

HEGDE, J. (For himself and Sikri J.):- The only question that arises for decision in these appeals by special leave, is whether the order made by the Central Government in No. 2(4)CL.I/63, Government of India, Ministry of Commerce and Industry Department of Company Law Administration on April 11, 1968 is liable to be struck down as not having been made in accordance with law.

2. The appellant in these appeals is a company incorporated under the Indian Companies Act 1913 having its registered office at Dalmia Nagar, Shahbad District Bihar State. It is manufacturing paper, cement, sugar, vanaspati and other articles. Its authorised capital is rupees 15 crores and the paid up capital little more than six crores. It was incorporated in the year 1933.

The impugned order reads:

"No. 2(4)-CL. 1/63 Government of India, Ministry of Commerce and Industry, Department of Company Law Administration.

ORDER

Whereas the Central Government is of the opinion that there are circumstances suggesting that the business of Rohtas Industries Limited a company having its registered office at Dalmianagar, Bihar hereinafter referred to as the said company) is being conducted with intent to defraud its cr