RAMANUJULU NAIDU, J.

( 1 ) THIS writ appeal is preferred against the order dated 18-4-1988 passed by Anjaneyulu, J. allowing W. P. No. 577 of 1988 filed by the respondents for issue of a writ of certiorari quashing the order of the Government of andhra Pradesh, the first appellant herein, made in G. O. Rt. No. 1571 revenue (E) Department dated 30-11-1987 in so far as it levied a compounding fee of Rs 54,00,000/- on the first respondent.

( 2 ) REFERENCE to the parties in the Writ Appeal is made as they are arrayed in the writ petition.

( 3 ) THE fust petitioner-first respondent is a Company in corporated under the Companies Act on 11-3-1977 and the second petitioner-second respondent is its Managing Director. The first petitioner set up a distillery at Kodurupadu near Hanuman Junction for the manufacture of rectified spirit from molasses. Production of rectified spirit was commenced in the year 1981, The distillery is capable of distilling 186 Metric Tonnes of molasses. The affairs of the first petitioner-Company, hereinafter referred to as the distillery were conducted smoothly till 1986 when there was a change in the management resulting in removal of some of its Directors includ

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