Judgment

SHAH, J.:- The Padrauna Raj Krishna Sugar Works Ltd.- hereinafter called the Company -carried on the business of manufacture and sale of sugar and supply of electricity. The Company was in financial difficulties in 1954 and was unable to meet its obligations. The principal liabilities of the Company in July 1955 were Rs. 81,821-2-0 due as income-tax provisionally assessed for the assessment year 1952-53 in respect of which an order for recovery was made under Section 46 (2) of the Income-tax Act, 1922; Rs. 5,64,301-14-9 due as sugarcane cess under Section 20 of the Sugar Factories control Act, 1938 for the years 1952-53 to 1954-55; and Rs. 1,92,053-12-3 due by the Company to the Co-operative Development Union Ltd., as arrears of cane price for the year 1954-55.

2. By order dated July 14, 1954, issued under the Essential Supplies (Temporary Powers) Act, the Government of U. P. appointed the Collector, Deoria as the Authorised Controller of the Company. On August 8, 1955 the Land Reforms Commissioner sanctioned the proposal submitted by the Collector, Deoria, to sell the holdings and the property of the Company for realizing Rs. 8,38,176-13-0. Sardar Jagjit Singh, Chief Engi