Anil Dev Singh, J.

( 1 ) THE first petitioner is a Company set-up for the purposes of manufacturing industrial explosives. Dr. S. K. Garg is the Chairman-cum-Managing Director of the first peti- tioner. At the request of the first petitioner, the second respondent - the State of Uttar Pradesh, decided to hand over 50 acres of land to the former on lease and 656 acres on licence basis in Villages Prithvipura, Nayakhera, and Koti, Pargana and Tehsil Jhansi, Distt. Jhansi, in the State of Uttar Pradesh. While 50 acres of land was required for set- ting up of the factory for manufacture of explosives, the remaining land was required to fulfil the requirements of Indian Explosives Act, 1884 and the rules framed thereunder for the purposes of a safety zone of 760 metres radius around the factory. The first petitioner in the project was to be assisted by Pradeshiya Industrial and Investment Corporation of Uttar Pradesh (for short picup ) and the first respondent - Uttar Pradesh State Industrial Development Corporation (for short upsidc ). The terms and conditions on which the sec- ond respondent accorded permission to the first petitioner to set up the industrial unit were as follows :-

" (A) Industrial Unit of petitioner No. 1 should be established only on 50 acres of land out of total land of 706 acres.

(B) Respondent No. 1 shall fix the market value of 50 acres of land in consultation with the Col- lector, Jhansi.

(C) Dr. S. K. Garg was made responsible to pay the full amount of the market value so fixed.

(D) Respondent No. 1 shall also realise from Dr. S. K. Garg, the economic rent for the aforesaid 50 acres of land from the date of commencement of the production in the factory.

(E) The economic rent shall be fixed by respondent No. 1 after getting it approved by respondent No. 2.

(F) The rate of annual licence fee for remaining 656 acres would be rupee one per acre per year for safety zone.

(G) 50 acres of land on which Industrial Unit is established will be held on lease. "

( 2 ) AS is evident from above, the first respondent was authorised to fix the market value of 50 acres of land in consultation with the Collector Jhansi. The first respondent was also required to fix the economic rent of the said land with the approval of the second respondent. Pursuant to the abovesaid terms and conditions, the first respondent on Sep- tember 21, 1984 provisionally determined the market value of the abovesaid 50 acres of land at Rs. 3,04,332. 00 as against Rs. 1,80,581. 53 evaluated by the Collector, Jhansi, on August 23, 1984. It needs to be noted that since the first peti- tioner after the evaluation made by the Collector had paid a sum of Rs. 1,80,581. 53 to the first respondent on August 28, 1984, the first respondent requested the first petitioner to pay the balance amount of Rs. 1,23,749. 59. The first peti- tioner, however, requested the first respondent to withdraw the demand. On February 27, 1996, the first respondent asked the petitioners to pay a sum of Rs. 84,81,022. 83 (Rs. 53,00,639. 90 as economic rent due upto January 1, 1996 and Rs. 31,80,383. 64 as interest due on economic rent @ 15% in respect of the above said 50 acres of land ). The first peti- tioner on receipt of the demand protested against the same, but the first respondent by communication dated July 22, 1996 asked the petitioner to make the payment of the outstanding dues of Rs. 84,81,022. 83 within 30 days failing which it threatened to re-enter the said plot. The petitioners being aggrieved by the said communications dated February 27, 1996 and July 22, 1996 filed the instant writ petition.

( 3 ) IT is noteworthy that the land in question is situate in the State of Uttar Pradesh. The agreement dated December 17, 1984 in regard to the allotment of land was executed by and between the first respondent and the first petitioner in the State of U. P. The order dated May 26, 1984 by virtue of which the second respondent accorded permission to the first petitioner to

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