ORDER:— These Special Leave Petitions are directed against the judgment and order of the Madhya Pradesh High Court dated June 6, 1985 in regard to distribution of sal seeds. The operative part of the judgment of the High Court in paragraph 54 contains a direction to the effect :

"In the light of the discussion above, therefore, these petitions are disposed of with the direction that the allotment which has been maintained by this Court to the new units and the allotment made to the Mandala Unit at the rate of 10,000 tons per year, could not be altered at the concessional rate for 5 years from the beginning and the remaining sal seeds available every year could only be fairly distributed to all the old units on the basis of their capacity and there appears to be no justification for any concessional rate to these units which could only be allotted the quantity available at the market rate as there is no justification for any concessional rate to the old units."

2. It would be seen that the first part of the direction keeps intact the right of the new units viz. Messrs Bastar Oil Mills Industries Limited, Messrs Sal Udyog Limited, Messrs Allied Oil Industries Limited and Messrs Madhya Pradesh Glychem to allotment of sal seeds to the extent of 10,000 tons per year at a concessional rate guaranteed in terms of the contracts entered into by them with the State Government of Madhya Pradesh. But there is obviously a mistake as to the period of five years mentioned therein as we shall presently show.

3. The second part of the direction relates to the remaining sal seeds available every year and this, according to the High Court, could only be fairly distributed as between the old units viz. Messrs M.P. Oil Extraction Pvt. Ltd., Messrs K. N. Oil Industries and Messrs General Food Pvt. Ltd. on the basis of their capacity. As regards the distribution of the remaining sal seeds available every year, the High Court has held that there was no justification of any concessional rate of supply of these units which could only be allotted the quantity available at the market rate. There is some controversy as to the basis upon which distribution of sal seeds is to be made to these units i.e. whether upon the basis of their capacity or on the basis of their utilisation.

4. After hearing learned counsel for the parties at considerable length and having given the matter our anxious consideration, we are satisfied that the High Court was justified in making the first part of the direction as regards the guaranteed supply of 10,000 tons per year of sal seeds to the new units as per the terms of the contract entered into with them by the State Government, and there could be no alteration of the concessional rate as stipulated for in their contracts. The reason for this is obvious. The appeals preferred by Messrs M.P. Oil Extraction Pvt. Ltd. and by Messrs K. N. Oil Industries being Civil Appeals Nos. 2941-95/81 having been withdrawn on January 5, 1984, the result was that the judgment of the High Court reported in AIR 1982 Madh Pra 1, M.P. Oil Extraction Pvt. Ltd., Raipur v. State of Madhya Pradesh became final. No doubt, the said appeals were, withdrawn by the petitioners because they had arrived at a settlement dated November 16, 1983 with the State Government. Admittedly, the aforementioned new units were not parties to the settlement, nor were their representatives present at the meeting held on June 20, 1983 when the terms of the settlement were reached. It is undisputed that the new units had no notice of the aforesaid meeting nor were they apprised that the State Government contemplated any change in the quantity of sal seeds to be supplied or as to the area of supply. The first part of the direction must therefore be upheld, subject to a modification as to the period mentioned therein.

5. There is an obvious error in the judgment of the High Court which has to be rectified. The High Court has throughout proceeded on a wrongful assumption that the n