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1996 Supreme(SC) 1334

SUPREME COURT OF INDIA
B L Hansaria, K Ramaswamy, S B Majmudar
MAHABIR SUGAR MILLS LTD. AND OTHERS, APPELLANTS
VERSUS
STATE OF U.P. AND OTHERS, RESPONDENTS.
Civil Appeals Nos. 2576-77 of 1981 [From the Judgment and Order dated 8-5-1981 of the Allahabad High Court in W.Ps. Nos. 8135 and 4301 of 1990] with Nos. 347, 1292-94 of 1986, 2578 of 1981, Writ Petitions Nos. 7535-36 of 1985, 378 and 391 of 1986 and C.As. Nos. 11732-33 of 1996 and CMP No. 18628 of 1986 in C.A. No. 1292 of 1986, decided on August 27, 1996.

Headnote:

U.P. Sugar Undertakings Act - Section 10 - Claim as regards possession - Possession of property - These matters are disposed of together – Court need not elaborately mention facts leading to filing of these appeals and writ petitions - Suffice it to state that validity - Sugar Undertakings Acquisition Act1 was upheld by this Court in However proceedings before BIFR are pending to streamline working of sick industry namely - State Sugar Corporation - Senior Counsel appearing for appellants and writ petitioner in these cases submitted that he had discussion with his clients after case was last adjourned – Held, Within period of one year from today it shall be open to Government or Collector provisions - Abolition and Land Reforms to issue appropriate orders of attachment or restraints case may be falling upon respondent Banks to pay surplus interest amount to them - If such orders are issued Bank shall obey same subject of course to orders to contrary if any by any court or competent authority - Bank may consider and indeed it will be well advised in taking steps for recovering amounts paid by it or loan given by it as case may be to Respondents - That is however matter for Bank to decide - This order does not preclude petitioner Corporation from adopting such remedies as are open to it law including civil suits for establishing its claims and contentions - Similarly this order does not preclude Government Collector or any other authority from recovering amounts which they claim are due to them either from Respondents or from any other person liable in that behalf in accordance with procedure prescribed by law - If any proceedings are already initiated in that behalf they can also be continued according to law – Court are informed that both appellant as well as respondent have filed civil suits which are pending disposal - Circumstances court think that it is not necessary for us to go into question - It would be open to parties to agitate their rights in suits and decrees will be passed by civil court in accordance with law – Appeal dismissed

ORDER

In CAs Nos. 2576-77 of 1981, 347 of 1986, WPs Nos. 7535-36 of 1985 and CMP No. 18628 of 1986 in CA No. 1292 of 1986

1. These matters are disposed of together. We need not elaborately mention the facts leading to filing of these appeals and writ petitions. Suffice it to state that the validity of the U.P. Sugar Undertakings (Acquisition) Act, 1971 (23 of 1971) was upheld by this Court in Ishwari Khetan Sugar Mills (P) Ltd. v. State of U.P. [(1980) 4 SCC 136 : (1980) 3 SCR 331] However, proceedings before the BIFR are pending to streamline the working of sick industry, namely, U.P. State Sugar Corporation. Shri H.N. Salve, the learned Senior Counsel appearing for the appellants and writ petitioner in these cases, submitted that he had a discussion with his clients after the case was last adjourned. He suggested that the appellants are proposing to make a representation to the BIFR for consideration of their cases and so it was not necessary to argue the case on merits. In that view, we need not decide the case on merits. It would be open to the appellants to make representation to the BIFR and it would be open to the BIFR to entertain the representation and dispose it of.

2. The appeals and writ petitions are accordingly dismissed as withdrawn with the above observation. We make it clear that no issue of law or facts is left open in these cases.

3. Pending appeal, the appellant made an application in CMP No. 18628 of 1986 for directions as regards the possession of the bungalow occupied by the Director of the appellant-Company. When there was a conflicting claim as regards the possession, this Court had called for a report from the District Judge, Bulandshahr. In furtherance thereof, the District Judge submitted the report. On consideration of the report by proceedings dated 9-1-1990 this Court passed the order as under :

"In this case, a report has been received from the learned District Judge as to the persons who are in possession of the property as on May 9, 1986. These are clearly prima facie findings in order to enable this Court to pass an interim order. We direct that the status quo regarding the possession, as reported by the District Judge, will continue till the disposal of the case.

We may make it clear that we do not pronounce regarding the title to the property in question and also regarding any question of mesne profits which the appellants may be entitled to. The appellants, if they so desire, may take the appropriate proceeding in the matter."

4. In view of the fact that we are now dismissing the appeals as withdrawn we make it clear that the order and the status quo order stand discharged. Whoever seeks any positive directions as regards the possession of the bungalow, it would be open to the appropriate party to take such procedure as is available at law. We give eight weeks time from today to take such steps; until then the status quo order granted by this Court would be continued for eight weeks only and no further. As regards the vesting and other incidental issues, it would be open to the appropriate parties to lay proceedings under Section 10 of the U.P. Sugar Undertakings Act before the prescribed authority which would decide the matter in accordance with law. It would be open to the prescribed authority to consider the question independently on its own merit in accordance with law and it would be open to the parties to place such material as is available to them at law.

In CA No. 2578 of 1981

5. Appeal is dismissed as infructuous.

In CAs Nos. 1292-93 of 1986 and WP No. 378 of 1986

6. These matters are disposed of together. We need not elaborately mention the facts leading to file these appeals and writ petitions. Suffice it to state that the validity of the U.P. Sugar Undertakings (Acquisition) Act, 1971 was upheld by this Court in Ishwari Khetan Sugar Mills (P) Ltd. v. State of U.P. [(1980) 4 SCC 136 : (1980) 3 SCR 331] However, proceedings before the BIFR is pending to streamline the working of














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