Judgment

JAGANMOHAN REDDY, J. :- This is a second round of litigation because on the first occasion this Court allowed Appeal No. 324 of 1965 on 20-9-1966 (reported in AIR 1967 SC 477) and remanded the case for being reheard and dealt with in accordance with the directions given in that judgment. After the matter went back a Division Bench of the Kerala High Court Raghavan, J. (as he then was) and Isasc, J. heard the matter but as there was a difference of opinion between the learned Judges the case was placed before Mathew, J. (as he then was) who agreed with the judgment of Raghavan, J. This is an appeal against that judgment by certificate. Inasmuch as this Court had earlier considered the case we may take the facts as stated in the following passage in that judgment.

"The appellant is a limited company incorporated under the Travancore Companies Regulation and is carrying on business, in the State of Kerala of manufacturing sugar, running a distillery and also a tincture factory. The appellant-company was floated with a view to taking over the business assets of a company called "Travancore Sugars Ltd." (which was being wound up and in which the State Government held the largest