K N OIL INDUSTRIES STATE OF MADHYA PRADESH Vs. SECRETARY TO THE MINISTRY OF FOREST BHOPAL:SAL UDYOG PRIVATE LIMITED

JUDGEMENT

(1.) These Special Leave Petitions are directed against the judgment and order of the Madhya Pradesh High Court dated June 6, 1985 in regard to distribution of sal seeds. The operative part of the judgment of the High Court in paragraph 54 contains a direction to the effect :

(2.) It would be seen that the first part of the direction keeps intact the right of the new units viz. Messrs Bastar Oil Mills Industries Limited, Messrs Sal Udyog Limited, Messrs Allied Oil Industries Limited and Messrs Madhya Pradesh Glychem to allotment of sal seeds to the extent of 10,000 tons per year at a concessional rate guaranteed in terms of the contracts entered into by them with the State Government of Madhya Pradesh. But there is obviously a mistake as to the period of five years mentioned therein as we shall presently show.

(3.) The second part of the direction relates to the remaining sal seeds available every year and this, according to the High Court, could only be fairly distributed as between the old units viz. Messrs M.P. Oil Extraction Pvt. Ltd., Messrs K. N. Oil Industries and Messrs General Food Pvt. Ltd. on the basis of their capacity. As regards the distribution of the remaining sal seeds available every year, the High Court has held that there was no justification of any concessional rate of supply of these units which could only be allotted the quantity available at the market rate. There is some controversy as to the basis upon which distribution of sal seeds is to be made to these units i.e. whether upon the basis of their capacity or on the basis of their utilisation.