DIWAN SUGAR MILLS Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) The challenge in this appeal as well as in the connected writ petition is to the decision of the Tribunal constituted under the U.P. Sugar Undertakings (Acquisition) Ac, 1971 which had interpreted Section 7 of the said Act and had come to the conclusion that the claim of the appellant for payment of Rs. 12 lakhs could not be accepted.

(2.) Briefly stated, the facts are that M/s. Diwan Sugar Mills was a partnership firm which owned a sugar factory. On 1st July, 1951, this factory is stated to have been leased out to M/s. Diwan Sugar and General Mills (Pvt.) Ltd. This factory was first taken over by the Government of India under the Defence of India Rules on 4th December, 1965 and thereafter it was taken over by the U.P. Government under Section 15 of the Industrial Development and Regulation Act. Ultimately, the factory was acquired by the U.P. Government under the aforesaid Acquisition Act.

(3.) The owners, namely, the partnership firm filed a claim before the prescribed authority for payment of compensation.The case of the owners was that under sub-section (5) of Section 7 read with the Schedule to the said Act, a sum of Rs. 12 lakhs was payable in respect of the acquisition of the properties and assets and the said payment should be made without deducting any liabilities of the lessee. On the prescribed authority rejecting this contention, the owners then filed an appeal under Section 11 of the said Act before the Tribunal but without success. The appeal is by special leave from the said decision of the Tribunal.