ISPAT INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal has been directed against the judgment of a learned single Judge dated 5th August, 1999. The appellant prayed that the impugned order dated 5th August, 1999 be set aside and the respondents be restrained from converting the outstanding loans granted out of the Steel Development Fund, into equity shares and steps be taken for recovery of loan advanced out of the Steel Development Fund and case of the petitioner/appellant should be considered for loan.

(2.) The petitioner company is engaged in the manufacture of steel on large scale and for that purpose it has set up a latest available plant. In this connection appellant company has invested huge capital running into thousand crores of rupees. The second petitioner is a director and a shareholder of the first petitioner and is a citizen of India.

(3.) The iron and steel at one point of time, were essential commodities and were governed and controlled under the provisions of the Essential Commodities Act. In exercise of the powers conferred by section 3 of the said Act, the Central Government has framed and issued the Iron and Steel (Control) Order, 1956 for the purpose of regulating and improving the operations of the iron and steel industry. Paragraph 17-B of the Iron and Steel (Control) Order 1956 empowers the Central Government to set up the committee etc. Under that power the Central Government has set up the committee for the purpose of giving effect to the provisions of this order, with respect to any category of iron or steel, whether such category is subject to or exempt from the operation of all for any such provision. This committee specially was set up to carry out the function, as may be specified in the notification, under which the committee has been set up.