KRISHANA GYANODAY SUGAR LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) The Bihar Sugar Undertakings [Acquisition] Act, 1976 [Bihar Act XIII of 1977] [hereinafter referred to as the Act] was passed by the State Legislature and received the assent of the President on June 4, 1977 and was published in the Gazette on June 30, 1977. The Act was to provide for acquisition and transfer of certain sugar undertakings in the State of Bihar and for matters connected therewith or incidental thereto. Under S. 3 of the Act, the undertakings listed in the Schedule stood transferred to and vested in the Government of Bihar or a Corporation with all the assets, liabilities, rights, titles, interest and obligation including any mortgage, charge of other encumbrance or lien trust of similar obligations attaching to the undertaking. Under S. 2(h) of the Act schedule undertaking is defined to mean an undertaking engaged in the manufacture or production of sugar by means of vacuum pans and with the aid of mechanical power in a factory specified in the schedule and comprises of several items as set out therein.

(2.) The undertakings mentioned in the Schedule are eight in number. Under Section 17 of the Act, the State Government was authorised to add other sugar undertakings to be included in the Schedule by notification.

(3.) On 29-10-1978, a notification was issued under S. 17 of the Act to include 16 more sugar undertakings including the three sugar mills of the petitioners in the Schedule to the Act.