IEL LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this writ petition under Article 226 of the Constitution is to the order 7th April, 1986 passed by the Specified Authority, Government of India, Ministry of Industries, Department of Industrial Development, under section 72-A of the Income-tax Act, 1961 (in short the Act), whereby it did not recommend to the Central Government to make declaration under that section.

(2.) This writ petition will dispose of Civil Writ No. 1644 of 1986 and Civil Writ No.485 of 1989.

(3.) Briefly stated, the facts are that a company known as M/s. Alkali & Chemicls Corporation of India Ltd. (hereinafter referred to as 'ACCI') was carrying on business or manufacture and sale of polythene, rubber chemicals, paints etc. The said ACCI was incurring losses especially in the financial years 1980-8). and 1981-82. Both the companies, namely, the petitioner and ACCI decided to amalgamate. Accordingly, on 30th September, 1982 the petitioner and ACCI passed resolutions in their respective Board meetings approving the scheme of amalgamation subject to the obtaining of necessary permission from various authorities. The scheme of amalgamation, inter alia, postulated that the transfer of ACCI will be with effect from 1st October, 1982. This scheme was conditional upon certain approvals being obtained from different authorities, namely, M.R.T.P. and FERA and it was further provided that the scheme shall be deemed to be effective on the date on which the last of such approvals was obtained. The scheme also postulated issuance of shares of the petitioner company to the erstwhile shareholders of ACCI.