AMADALAVALASA COOPERATIVE AGRICULTURAL AND INDUSTRIAL SOCIETY LIMITED THE K C P LIMITED THE ANDHRA CEMENT CO LIMITED ANDHRA COOPERATIVE SPINNING MILLS SARVARAYA TEXTILES LIMITED UNION OF INDIA Vs. UNION OF INDIA

JUDGEMENT

(1.) We first take up for consideration Civil Appeals Nos. 506-510 of 1971.

(2.) The appellants in these appeals filed writ petitions before the Andhra Pradesh High Court questioning the validity of notices issued by the 2nd respondent therein under the Emergency Risks (Goods) Insurance Act (Act 62 of 1962) and the Emergency Risks (Factories) Insurance Act (Act 63 of 1962) (hereinafter referred to as 'the Acts' collectively and individually as 'the Goods Act' and 'the Factories Act' respectively). The impugned notices stated that the appellants had evaded payments of emergency risks insurance premiums in respect of goods or factories, as the case may be, by undervaluing the goods or factories for the purpose of insuring them under the Acts. A learned single Judge of the High Court allowed the writ petitions on the ground that, after the expiry of the Acts, there could be no authorized officer to determine the quantum of the evaded premia on the basis of the correct value of the goods or factories. Appeals were filed against the orders, and a Division Bench of the Court, by a common judgment, held that the liability to pay the evaded premiums arose during the currency of the Act and that the extent of the liability could be ascertained by an authorized officer even after the expiry of the Acts and allowed the appeals. These appeals are directed against the common judgment.

(3.) The President of India, after the Chinese aggression in October, 1962, proclaimed an Emergency under Article 352 of the Constitution on 26-10-1962. The proclamation was revoked by the President on 10-1-1968. The Acts came into force with effect from 1-1-1963.