JAGIR SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) M/s. Suraj Textile Mills Ltd. , Malout Mandi, District Faridkot (hereinafter referred to as "the mills"), a public limited company, was established in the new industrial area of Malout Mandi in June, 1960, and it went into production in the year 1962. The mills had an authorised capital of rupees three hundred lakhs. It started with about 6,000 spindles and later on the capacity of the mills was raised to 12,000 spindles. According to the petitioner, the mills was set up for the economic benefit of the growers of the area of Malout, which is well known for producing quality cotton.

(2.) IT has been averred in the writ petition that the mills were functioning properly till when the Pakistan aggression took place, in the year 1965. It has been stated that during the aggression, many bombs fell close to the labour colony of the mills, which created panic amongst the labour staying there and started running away from the area. It was because of this extraordinary situation that was created that the mills suffered a setback. It has also been stated that during that period there was a general recession in the textile industry. There was a great disparity of prices between the raw material, i. e. , cotton and the finished products. There was substantial deterioration in the supply of electricity to the industry, which prevented the mills from reaching the point of optimum production.

(3.) THE further stand of the petitioner in the writ petition is that after the 1965 aggression, the mills was picking up its production and was on the way to make up the setback which it had suffered but unfortunately certain disputes regarding purchase tax arose between the excise and taxation department of the State of Punjab and the mills, and in view of the circumstances mentioned above, the purchase tax assessed on the mills could not be paid. In the year 1969, the excise and taxation department attached the mills for the recovery of the purchase tax and according to the petitioner, in fact, the excise and taxation department sealed the mills. On account of the attachment of the office of the mills and the sealing thereof, it was not possible for anybody to lay hands on the past record of the mills.