SINGARENI COLLIERIES COMPANY LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) For the purpose of this appeal the rank of the parties is referred to as were in the writ petition.

(2.) The Union of India filed Writ Petition No. 7272 of 1982 before this court to quash the order passed by the District Judge, Warangal in C.M.A.No. 33 of 1980 dated 9-2-1982 allowing in part the claim made by the first respondent Singareni Collieries Company Limited, Kothagudem and set aside the order passed by the Assistant Commissioner of Payments, Coimbatore, Tamilnadu the fourth respondent who by his order dated 30-5-1980 allowed claim of the first respondent for Rs. 15,099-63 paise.

(3.) Azamjahi Mills Limited, Warangal is a Public Limited Company situated in State of Andhra Pradesh. The Singareni Collieries Company Limited, Kothagudem, is also a Public Limited Company which was supplying coal to the Azamjahi Mills as and when the Mill used to place orders for supply of coal on credit basis. Both the mill and the company were maintaining accounts. The Mill used to make payment to the company in lumpsum as and when it was able to mobilise funds. Many mills in the country like the mill in question became sick. The mill in question was taken over by the Union of India with effect from 31-3-1974 in view of coming into force of Industries (Development and Regulation) Act 1951 hereinafter referred to as Act of 1951. The mill in question was also nationalised in view of coming into force of Sick Textile Undertakings (Nationalisation) Act 1974 hereinafter referred to as Act 57 of 1974, and compensation of Rs. 93 lakhs and odd was fixed.