JUDGMENT

PATHAK, J.:— This appeal by special leave is directed against the judgment and order of the Allahabad High Court allowing a writ petition and quashing an order made by the Central Government under cl. (b) of sub-para. (2) of para 3 of the Sugar Undertakings (Taking Over of Management) Ordinance, 1978 and a consequential order issued under subpara. (4) of para. 4 of the Ordinance.

2. The respondent company manufactures sugar from sugar cane. On November 18 1978 the Central Government issued a notice under sub-para. (1) of para 3 of the Sugar Undertakings (Taking Over of Management) Ordinance, 1978 (hereinafter referred to as the "Ordinance") stating that as on November 15, 1978 the respondent was in arrears of cane dues in relation to the cane purchased before that date for the purpose of its sugar undertaking to the extent of more than ten per cent of the total price of the cane purchased by it during the immediately preceding "sugar year", the total arrears being 475.99 lacs, and that as the Central Government was satisfied that the effective functioning of the sugar undertaking was necessary for the purposes of the said Ordinance, the Central Government called upon the re