M/S. HYDERABAD PLYWOOD INDUSTRIES LTD, REP. BY ITS CHAIRMAN, SHRI CH. VENKATESHWARA RAO, HYDERABAD AND ANOTHER Vs. GOVT. OF A.P., REP. BY ITS SECRETARY, FORESTS AND RURAL DEVELOPMENT (FOR III) DEPARTMENT, HYDERABAD, AND OTHERS

JUDGEMENT

(1.) Hyderabad Plywood Industries Limited has filed this writ petition challenging the validity of G.O. Ms. No. 250, dated 11-6-1985, where under the Government has determined the rates of royalty in respect of Teak and other forest produce to be supplied to the petitioner for the 3-years period commencing from 1-1-1983 to 31-12-1985.

(2.) The petitioner-industry was established with the collaboration of the Andhra Pradesh Small Scale Industrial Development Corporation. With a view to encourage this industry, the Government agreed to supply the raw material required by it in a sustained manner and at a certain specified rate. G.O. Ms. No. 2038, dated 17-10-1970 contains the assurances held out by the Government to this industry. The Government agreed to supply certain types of teak and other forest produce for a period of 20 years. Clauses (iii) and (iv) in the said G.O. are relevant for the present purpose. They read :

(3.) Rates of royalty had to be fixed for the 3rd block, viz., the block commencing from 1-1-1983 and ending with 31-12-1985. This fixation was done under the impugned G.O. It is the validity of the said G.O. that is questioned in this writ petition.