By consent the writ petition itself was taken up for final disposal.

2. Prayer in the writ petition is to quash the order of the first respondent (BIFR) made in BIFR Case No. 327 of 2000 dated 27.7.2005, confirmed by the second respondent (AIFR) in appeal No. 107 of 2005, dated 12.10.2006 and for consequential directions.

3. The facts necessary for disposal of the writ petition are as follows:

(a) The petitioner is a State Level Institution, fully owned by the Government of Tamil Nadu, incorporated on 21.5.1965 as a Company, under the Companies Act, 1956, with a purpose of development and growth of the Industrial Undertakings in Tamil Nadu (hereinafter called as ‘TIDCO‘).

(b) Petitioner on 31.12.1992, entered with an agreement to the promoter viz., K. Jagadeesh Reddy, for setting up 100% export oriented unit for the manufacture of 40.50 lakh metres per annum of Coarse Cotton gray fabric at Mugalapalli village, Hosur Taluk, as a result, the third respondent herein was incorporated in March, 1993, which commenced its operations in April, 1995.

(c) In June, 1996, the third respondent Company undertook an expansion of its weaving capacity to 80.25 lakh metres per annum to manufacture g