JUDGMENT

SUJATA V. MANOHAR, J.— These appeals arise from a common judgment of the Andhra Pradesh High Court dated 3-2-1976 in OS Appeals Nos. 5, 7 and 9 of 1974. Some of the relevant facts for the purposes of these appeals are as follows.

2. The appellant K.C.P. Limited has a cement factory situated at Macherla in Guntur District, Andhra Pradesh. Prior to 1956 the Government of the composite State of Madras was considering establishment of a cement factory in Kurnool District of Rayalaseema, by a private enterprise. Mr V. Ramakrishna, Chairman of the appellant-Company offered to start such a factory and applied for a licence to start the factory, to the Government of India through the Government of Madras. At this time there was a proposal to construct a dam over River Krishna near Nandikonda. This project which was initially named Nandikonda Dam Project later came to be known as the Nagarjunasagar Project. It was proposed that the appellant would establish a cement factory at Macherla near the project site and would supply cement to the said project. The Chairman of the appellant-Company offered to supply cement to the Nagarjunasagar Project at the rate of Rs 48 per ton loose from