JUDGMENT

S. C. AGRAWAL, J. :—This appeal, by special leave, is directed against the judgment of the Allahabad High Court dated December 9, 1994 in Civil Miscellaneous Writ Petition NO. 27998 of 1994 filed by respondents Nos. 1, 2 and 3 whereby it has been held that the U.P. State Sugar Corporation Ltd., appellant herein, (hereinafter referred to as the Corporation") was not entitled to alienate its assets in view of the pendency of the proceedings before the Board of Industrial and Financial Reconstruction (hereinafter referred to as the Board) under the provisions of the Sick Industrial Companies ( Special Provisions) Act, 1985 (hereinafter referred to as the Act).

2. The Corporation is a company registered under the Companies Act, 1956. The State of U.P. holds 99.9 shares in the Corporation. The Corporation was incorporated with the object of taking over and running the private sugar mills which had been acquired by the State of U.P. under the U.P. Sugar Undertakings (Acquisition) Act, 1971. 29 such sugar mills had been acquired and the Corporation has established 6 more units and at present it is holding 35 sugar units spread over the State of U.P. The 29 sugar mills which had b