JUDGMENT

FATHIMA BEEVI, J.:- Assam Sillimanite Limited is a public limited company mainly carrying on the business of mining and export of Natural Khasi Sillimanite. The Company in pursuance of the condition in the lease deed dated 10-4-1963 established a Refractory Plant for manufacturing sillimanite corrundum and other associate minerals at Ramgarh in the State of Bihar. The initial investment was Rs. 1.75 crores. The Refractory Plant went into operation in the year 1964 and was closed down in July 1972.

2. The Undertaking was take over by the Central Government under Section 18AA of the Industries (Development & Regulation) Act for a period of three years which was extended for a further period of one year with effect from 1-11-1972. Later, by the Assam Sillimanite Limited (Acquisition & Transfer of Refractory Plant) Act, 1976 (in short the Act), the plant was acquired by the Government. The Act received assent of the President on February 11, 1976.

3. The Act provides for the acquisition and transfer of the right, title and interest of the Assam Sillimanite Limited in respect of its Refractory Plant and-for matters connected therewith or incidental thereto. The Preamble of the Act reads:-

"WHEREAS it is urgently necessary to augment the supplies of refractories to meet the essential requirements of the iron and steel industry;

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AND WHEREAS special type of refractories, including high alumina refractories, needed by the iron and steel industry may be manufactured at the Refractory Plant of the Assam Sillimanite Limited and such manufacture will enable the country to progressively reduce the import of such special type of refractories;

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AND WHEREAS for the purpose of augmenting the supplies of refractories to meet the essential requirements of the iron and steel industry, it is necessary to acquire the right, title and interest of the Assam Sillimanite Limited in respect of its Refractory Plant;

Be it enacted by Parliament in the Twenty-sixth year of the Republic of India as follows." 940

4. Sections 3, 9 and 10 relevant for the purpose of the present case are as follows :-

"3. Refractory Plant to vest in the Central Government.- On the appointed day, the Refractory Plant shall, by virtue of this Act, stand transferred to, and the right, title and interest of the Company in relation to its Refractory Plant shall vest absolutely in, the Central Government."

"9. Amount to be paid for transfer and vesting of Refractory Plant-

(1) The Company shall be given by the Central Government in cash and in the manner specified in Chapter VI, an amount of one crore seven lakhs and seventeen thousand rupees for the transfer to, and vesting in, it, under Section 3 of the Refractory Plant.

(2) The amount payable under sub-section (1) shall carry simple interest at the rate of four per cent. per annum for the period commencing on the appointed day and ending on the date on which payment of such amount is made by the Central Government to the Commissioner.

(3) For the removal of doubts; it is hereby declared that the liabilities of the Company in relation to the Refractory Plant, other than those referred to in sub-section (2) of Section. 8, shall be met. from the amount referred to in sub-section (1), in accordance with the rights and interests of the creditors of the Company.

"10. Payment of other amount.- (1) In All addition to the amounts specified in Section 9, there shall also be given to the Company, in cash, by the Central Government an amount computed at the rate of rupees two thousand and five hundred per mensem for the deprivation of the Company of the management of its Refractory Plant during the period commencing on the 2nd day of November, 1972, and ending on the appointed day.

(2) In addition to the amount referred to in sub-section (1), there shall be given by the Central Government, in cash, to the Company, simple interest at the rate of four per cent.