Judgment

SHAH, J.: This appeal is filed with special leave against the judgment of the High Court of Mysore setting aside the order dated January 20, 1969, of the Director of Food & Civil Supplies of the State of Mysore under the Rice Milling Industry (Regulation) Act 21 of 1958.

2. The appellants established a rice mill many years ago in village Madugoppa, District Shimoga, in the former Indian State of Mysore and carried on milling operations. The respondents-N. Teekappa Godwa & Bros-established in 1963 a rice mill in village Kelandur at a distance of about 11/4 miles from the site of the appellant s mill. A notification under the Land Acquisition Act, 1894 was issued in March 1966 for compulsory acquisition of the land and buildings on the site of the appellants rice mill for use in the Sharavathi Hydro-Electric Project. In October 1967 an award acquiring the land and buildings was made. The award expressly recited that the appellants were entitled to remove the machinery of the rice mill.

3. The appellants in the meanwhile applied to the special Officer for Rehabilitation of the State of Mysore to allot them a suitable new site in which their rice mill may be located. The Special