IMPORTANT POINTS
Competent authority can always seek recovery or adjustment of dues of the Company.
High Court cannot adjudicate on an order which is not under challenge.

JUDGMENT

Sudhansu Jyoti Mukhopadhaya, J.

Sudhansu Jyoti Mukhopadhaya, J.

1. In these appeals the dispute relates to payment of compensation pursuant to acquisition of land of respondent-M/s. Jaswant Sugar Mills Ltd. (hereinafter referred to as the "Company") and auction of part of the land of the Company. There being cross-claims, all of these appeals were heard together for determination by a common judgment.

2. The Company preferred two writ petitions challenging the orders passed by the District Magistrate/Collector, Meerut and Board of Revenue dated 18th December, 1995 and 3rd August, 1996 respectively. The aforesaid orders were also challenged by the State Government. The writ petitions were disposed of by the learned Single Judge of Allahabad High Court by a common judgment dated 1st March, 2011. By the said judgment, the High Court directed the State Government to pay the Company the compensation on the basis of the compromise reached between the State Government and the tenure holder Company for acquisition of their land by Meerut Development Authority.

It is also directed that out of compensation paid by the Meerut Development Authority (about Rs.4.33 crores) an amount of Rs.1.62 crores shall be deducted and the remaining amount shall be paid to the Company. The State has been given liberty to realize the said amount from those authorities to whom it was wrongly paid by the previous Collector, Tulsi Gaur, under his order dated 20th February, 1992. The impugned judgment dated 1st March, 2011 has been challenged by the State of U.P. in C.A. Nos.6169-6171 of 2013 (State of U.P. & ors. Vs. M/s. Jaswant Sugar Mills Ltd. & Ors.etc.), as also by M/s. Jaswant Sugar Mills Ltd. in C.A. Nos. 6172-6174 of 2013 & Ors. (M/s. Jaswant Sugar Mills Ltd. vs The Colletor/District Magistrate & Ors.).

3. A piece of land of the Company was put to auction for recovery of dues of the Company. It was challenged by the Company by filing a writ petition. The High Court by impugned judgment dated 27th April, 2001 cancelled the auction sale and allowed the writ petition. In a review application preferred by auction purchaser, the High Court by order dated 3rd September, 2001 directed the respondents to refund the amount to the auction purchasers. The aforesaid judgment and orders are under challenge in C.A. Nos.7122 of 2003, 7123-7124 of 2003, 7125 of 2003 and 7126-7129 of 2003. C.A.Nos.6169-6171 of 2013 and C.A.Nos.6172-6174 of 2013.

4. For determination of the issue involved in C.A. Nos.6169-6171 of 2013 and C.A. Nos. 6172-6174 of 2013, it is desirable to refer the relevant factual matrix of the case which is as follows: The proprietors of respondent Company, namely M/s. Jaswant Sugar Mills Ltd. had six business units as under: M/s. Jaswant Sugar Mills. Meerut Straw Board Mills. Pootha Farm. Northern India Paper Mills. Bindal Vanaspati Ghee Mills. Meduwala Open Pan Sugar, Bijnor. The Company was in heavy arrears as on 3rd January, 1977 to the extent of Rs.1.14 crores. Accordingly, the District Collector, Meerut appointed a Receiver under Section 286-A of U.P. Zamindari Abolition and Land Reforms Act,(hereinafter referred to as the "Zamindari Abolition Act").

5. Subsequently, the Company was acquired by the State on 28th October, 1984 as per provisions of the U.P. State Sugar Undertakings Acquisition Act, 1971 (hereinafter referred to as the "Acquisition Act, 1971"), as amended in the year 1984, free from all encumbrances and the said Unit was vested with the U.P. State Sugar Corporation (hereinafter referred to as the "Corporation").

6. Since, the Company was in arrears to the extent of Rs.1.29 crores, the District Collector, Meerut by order dated 28th November, 1984, attached all the remaining five constituent units except the Sugar Mill. The General Manger of the aforesaid Sugar unit was appointed as a Receiver with reference to all the aforesaid remain