JUDGMENT

DUTT, J. :— In this writ petition the petitioner, Panipat Woollen & General Mills Co. Ltd., hereinafter referred to as the Company, has challenged the taking over of the management of its two textile mills under the Sick Textile, Undertakings (Taking Over of Management) Act, 1972 (for short Takeover Act) and also the constitutional validity of the Take-over Act and the Sick Textile Undertakings (Nationalisation) Act, 1974 (for short the Nationalisation Act).

2. It appears that the Company had fallen on evil days resulting in initiation of liquidation proceedings against the Company and the appointment of a provisional liquidator. The mills of the Company were closed sometime in May, 1972. On the application by the Industrial Finance Corporation of India, the Punjab & Haryana High Court directed the Board of Directors of the Company to hand over possession of the two mills to the Corporation to which the Company was indebted for a huge sum of money., The Corporation was also directed by the High Court to lease out the mills, and it appears that Padmashree Textile Industries Ltd. was granted the lease of the mills, that is to say, the textile undertakings of the Company.

3. At this stage, it may be mentioned that the lessee, the said Padmashree Textile Industries Ltd., also filed a writ petition before this Court, inter alia, challenging the Takeover Act and the Nationalisation Act. That writ petition has since been disposed of by this Court upon settlement between the parties.

4. Section 4(1) of the Take-over Act provides that on or before the appointed day, the management of the sick textile undertakings specified in the First Schedule shall vest in the Central Government. Under section 2(a) "appointed day" means 31st day of October, 1972. Section 2(d) defines "sick textile undertaking" as follows :

"S. 2(d). "sick textile undertaking" means the textile undertaking which falls within one or more of the following categories, namely :-

(i) which is owned by a textile company which is being wound up, whether voluntarily or by or under the supervision of any Court, or in respect of which a provisional liquidator has been appointed by a Court,

(ii) which had remained closed for a period of not less than three months immediately before the appointed day and the closure of which is prejudicial to the textile industry, and the condition of the undertaking is such that it may, with reasonable inputs, be restarted in the interests of the general public,

(iii) which has been leased to Government or any other person or the management of which has been taken over by Government or any other person under any leave or licence, granted by any Receiver or Liquidator by or under the orders of, or with the approval of, any Court,

(iv) the management of which was authorised by the Central Government, by a notified order made under section 18A, or in pursuance of an order made by the High Court under section 18FA, of the Industries (Development and Regulation) Act, 1951, to be taken over by a person or body of persons, but such management could not be taken over by such person or body of persons, before the appointed day,

(v) the management of which ought to be (according to the report made after investigation by any person or body of persons appointed after the 1st day of January, 1970, under section 15 or section 15A of the Industries (Development and Regulation) Act, 1951) taken over under section 18A of that Act, but in relation to which no notified order authorising any person or body of persons to take over the management of such undertaking was made before the appointed day,

(vi) in respect of which an investigation was caused to be made, before the appointed day, by the Central Government under section 15 or section 15A of the Industries (Development and Regulation) Act, 1951, and the report of such investigation was not received by the Central Government before. the appointed day;

and includes any textile undertaking which is deemed, under