Judgment

KULDIP SINGH, J.:- The validity of the Uttar Pradesh State Cement Corporation Limited (Acquisition of Shares) Ordinance 1991 (the Ordinance) was challenged before the Allahabad High Court by way of a writ petition under Art. 226 of the Constitution of India. The High Court by its judgment dated January 24, 1992 upheld the validity of the Ordinance and dismissed the writ petition. This appeal by way of special leave is directed against the Judgment of the High Court.

2. The Uttar Pradesh State Cement Corporation Limited (the Corporation) was a government company wherein all the shares were owned by the State Government. The Corporation was operating three cement factories situated at Churk, Dalla and Chunar. Since the Corporation was running into huge losses from the year 1972 onwards except during the year 1982-83, the State Government in April 1990, took a decision to privatise the Corporation. A cabinet decision was taken oil April 29, 1990 to convert the corporation - a wholly public sector undertaking - into a joint sector corporation. The decision was conveyed to the leading cement manufacturers in the country in a meeting held on May 19, 1990 at the office of the Princ