ORDER

1. RESPONDENTS 2 TO 6 WERE THE LESSEES OF TWO COAL MINES, ONE AT DAMUA AND THE OTHER AT KALICHHAPAR, BOTH IN THE STATE OF MADHYA PRADESH. THESE RESPONDENTS HAD OBTAINED OVERDRAFT FACILITIES FROM RESPONDENT 1 IN 1969. IN CONSIDERATION FOR THE GRANT OF SUCH FACILITIES, THESE RESPONDENTS HAD EXECUTED PROMISSORY NOTES AS WELL AS AN AGREEMENT OF HYPOTHECATION AND PERSONAL GUARANTEES OF RESPONDENT 6 AND ANOTHER. THE HYPOTHECATION AGREEMENT A COVERED THE TANGIBLE MOVABLE PROPERTY OF RESPONDENT 2 WHICH INCLUDED MACHINERY AND PLANT UTILIZED FOR THE PURPOSE OF THE MINING OPERATIONS. THESE RESPONDENTS FAILED TO PAY THE ROYALTY IN RESPECT OF THEIR MINING ACTIVITIES TO THE STATE GOVERNMENT. AS A RESULT, THE LEASES WERE CANCELLED. THESE RESPONDENTS IMPUGNED THE SAID CANCELLATION BY WAY OF WRIT PROCEEDINGS. THE WRIT PETITIONS BEING DISMISSED, THE MATTER ULTIMATELY CAME UP FOR HEARING B BEFORE THIS COURT.

2. DURING THESE PROCEEDINGS, PURSUANT TO THE COAL MINES (TAKING OVER OF MANAGEMENT) ACT, 1973 THE MANAGEMENT OF DAMUA AND KALICHHAPAR COLLIERIES WAS TAKEN OVER BY THE PREDECESSOR-IN-INTEREST OF THE APPELLANTS. THIS WAS FOLLOWED BY THE COAL MINES (NATIONALISATION) ACT, 1973. THE RESPONDENTS