SUBBA RAO, BHIMASANKARAM
State of Madras (now Andhra) – Appellant
Versus
Andhra Paper Mills Co. Ltd. – Respondent
SUBBA RAO, C.J. :- These are appeals against the decree and judgment of Panchapakesa Ayyar, J., in C. S. No. 197 of 1951 on the file of the Original Side of the High Court of Judicature at Madras.
2. The plaintiffs, the Andhra Paper Mills Co. Ltd., situate at Rajahmundry, were a limited company incorporated under the Indian Companies Act 7 of 1913. By an order dated 23-9-1947 in O. P. No. 235 of 1947 on the file of the High Court, Madras, the said company was directed to be wound up and an Official Liquidator was appointed. The Official Liquidator called for offers in December 1947 and January 1948 to purchase the Andhra Paper Mills as a going concern.
As there was paper shortage and labour unrest, the Government of Madras, after due inspection, made an offer to purchase it for an amount not exceeding Rs. 25,00,000/-. With the permission of the Court, that offer was accepted by the Official Liquidator. As there was delay in executing the sale deed, at the request of the plaintiffs, the defendants commenced taking possession of the mills at Rajahmundry on or about 3-5-1948 and had completely taken possession of the whole of the property by 17-5-1948.
After the defendants took
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