{"id":225763,"date":"1996-08-27T00:00:00","date_gmt":"1996-08-26T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/mahabir-sugar-mills-ltd-ors-etc-vs-state-of-u-p-ors-etc-on-27-august-1996"},"modified":"2017-03-28T09:17:45","modified_gmt":"2017-03-28T03:47:45","slug":"mahabir-sugar-mills-ltd-ors-etc-vs-state-of-u-p-ors-etc-on-27-august-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/mahabir-sugar-mills-ltd-ors-etc-vs-state-of-u-p-ors-etc-on-27-august-1996","title":{"rendered":"Mahabir Sugar Mills Ltd. &amp; Ors. Etc vs State Of U.P. &amp; Ors. Etc on 27 August, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Mahabir Sugar Mills Ltd. &amp; Ors. Etc vs State Of U.P. &amp; Ors. Etc on 27 August, 1996<\/div>\n<div class=\"doc_author\">Author: K Ramaswamy<\/div>\n<div class=\"doc_bench\">Bench: Ramaswamy, K.<\/div>\n<pre>           PETITIONER:\nMAHABIR SUGAR MILLS LTD. &amp; ORS. ETC.\n\n\tVs.\n\nRESPONDENT:\nSTATE OF U.P. &amp; ORS. ETC.\n\nDATE OF JUDGMENT:\t27\/08\/1996\n\nBENCH:\nRAMASWAMY, K.\nBENCH:\nRAMASWAMY, K.\nHANSARIA B.L. (J)\nMAJMUDAR S.B. (J)\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t\t    WITH<br \/>\n      CIVIL APPEAL NOS. 347, 1292-94\/86,2578\/81, WRIT<br \/>\n\t  PETITION NOS. 7535-36\/85, 378 AND 391\/86<br \/>\n\t\t\t    AND<br \/>\n\t     CIVIL APPEAL NOS. 11732-33 OF 1996<br \/>\n\t(Arising out of SLP (C) No. 9931-32 of 1991)<br \/>\n\t\t\t    AND<br \/>\n\t   CAMP NO. 18628-86 IN C.A. NO. 1292\/86<br \/>\n\t\t\t O R D E R<br \/>\n     IN C.A. Nos. 2576-77\/81, 347\/86, W.P. No. 7535-36\/85<br \/>\nAND CMP NO. 18628\/86 IN C.A. NO. 1292\/86<br \/>\n     These matters  are disposed  of together.\tWe need\t not<br \/>\nelaborately mention  the fact  leading to  filling of  these<br \/>\nappeals and  writ Petitions.  Suffice it  to state  that the<br \/>\nvalidity of  U.P. Sugar\t Undertaking (Acquisition) Act, 1971<br \/>\nwas upheld  by this  Court in The Ishwari Khetan Sugar Mills<br \/>\n(P) Ltd.  &amp; Anr.  etc. vs. The State of Utter Pradesh &amp; Ors.<br \/>\netc. [(1980)  3 SCR  331]. However,  proceedings before\t the<br \/>\nBIFR are pending to streamline the working of sick industry,<br \/>\nnamely, U.P.  State Sugar  Corporation. Shri H.N. Salve, the<br \/>\nlearned senior counsel appearing for the appellants and Writ<br \/>\nPetitioner in  these cases, submitted that he had discussion<br \/>\nwith his  clients after\t the case  was\tlast  adjourned.  He<br \/>\nsuggested that\tthe  appellants\t are  proposing\t to  make  a<br \/>\nrepresentation to  the BIFR for consideration of their cases<br \/>\nand so\tit was not necessary to argue the case on merits. In<br \/>\nthat view,  we need  not decide the case on merits. It would<br \/>\nbe open to the appellants to make representation to the BIFR<br \/>\nand  it\t  would\t be  open  to  the  BIFR  to  entertain\t the<br \/>\nrepresentation and dispose it of.\n<\/p>\n<p>     The  appeals   and\t Writ\tPetitions  are\t accordingly<br \/>\ndismissed as  withdrawn with  the above observation. We make<br \/>\nit clear  that no issue of law or fact is left open in these<br \/>\ncases.\n<\/p>\n<p>     Pending appeal,  the appellant  mede an  application in<br \/>\nCMP No. 18628\/86 for directions as regards the possession of<br \/>\nthe bungalow  occupied by  the\tDirector  of  the  appellant<br \/>\nCompany. When  there was  conflicting claim  as regards\t the<br \/>\npossession, this  court had  called for\t a report  from\t the<br \/>\nDistrict Judge,\t Bulandshehar. In  furtherance thereof,\t the<br \/>\nDistrict Judge submitted the report. Or consideration of the<br \/>\nreport by  prcceedings\tdated  January\tO9,199O\t this  Court<br \/>\npassed the order as under :\n<\/p>\n<blockquote><p>     &#8220;In, this\tcase, a\t report has been<br \/>\n     received from  the learned District<br \/>\n     Judge as  to the persons who are in<br \/>\n     possession of  the property  as  on<br \/>\n     May  9,  l936.  These  are\t clearly<br \/>\n     prima facie  Findings in  order  to<br \/>\n     enable  this   Court  to\tpass  an<br \/>\n     interim order.  We direct\tthat the<br \/>\n     status    quo     regarding     the<br \/>\n     possession,  as   reported\t by  the<br \/>\n     District Judge  will continue  till<br \/>\n     the disposal of the case.<br \/>\n     We may make it clear that we do not<br \/>\n     pronounce regarding  the  title  to<br \/>\n     the property  in question\tand also<br \/>\n     regarding\tany  question  of  mense<br \/>\n     profits which the appellants may be<br \/>\n     entitled  to.  The\t appellants,  if<br \/>\n     they   so\t desire,   may\t takethe<br \/>\n     appropriate   proceeding\tin   the<br \/>\n     matter.&#8221;<\/p><\/blockquote>\n<p>     In view  of the  fact that\t we are\t now dismissing\t the<br \/>\nappeals as withdrawn we make it clear that the order and the<br \/>\nstatus\tquo   order  stand  discharged.\t Whoever  seeks\t any<br \/>\npositive  direction.   as  regards  the\t possession  of\t the<br \/>\nbungalow, it  would be open to the appropriate party to take<br \/>\nsuch procedure\tas is available at law. We give eight weeks&#8217;<br \/>\ntime from  today to  take such steps; untill then the status<br \/>\nquo order  granted by this Court would be continue for eight<br \/>\nweeks only  and no further. As regards the vesting and other<br \/>\nincidental issues,  it would  be  open\tto  the\t appropriate<br \/>\nparties to  lay proceedings  under Section  10 of U.P. Sugar<br \/>\nIndustry Undertakings  Act before  the prescribed  Authority<br \/>\nwhich would  decide the\t matter in  accordance with  law. It<br \/>\nwould be  open to  the prescribed  authority to consider the<br \/>\nquestion independently\ton its\town merit in accordance with<br \/>\nlaw and\t it would  be open  to the  parties  to\t place\tsuch<br \/>\nmaterial as is available to them at law.\n<\/p>\n<p>     IN C.A. No. 2578\/1981<br \/>\n     Appeal is dismissed as infructuous.\n<\/p>\n<p>     IN C.A. NO 1292-93\/86 AND W.P. NO. 378\/86<br \/>\n     These matters  are disposed  of together.\tWe need\t not<br \/>\nelaborately mention  the facts leading to file these appeals<br \/>\nand Writ Petitions. Suffice it to state that the validity of<br \/>\nU.P. Sugar  Undertakings (Acquisition)\tAct, 1971 was upheld<br \/>\nby this\t Court in  The Ishwari Khetan Sugar Mills (P) Ltd. &amp;<br \/>\nAnr. etc. vs. The State of Utter Pradesh &amp; Ors. etc. [(1980)<br \/>\n3 SCR 331)]. However, proceedings before the BIFR is pending<br \/>\nto streamline  the working  of sick  industry.\tnamely,\t U.P<br \/>\nState Sugar Corporation. Shri H.N. Salve, the learned senior<br \/>\ncounsel appearing for the appellants and Write Petitioner in<br \/>\nthese cases submitted that he had discussion with his cilent<br \/>\nafter the  case was  last adjourned.  He suggested  that the<br \/>\nappellants are\tproposing to  make a  representation to\t the<br \/>\nBIFR for  consideration of  their cases and so not necessary<br \/>\nto argue the case on merits. In that view we need uot decide<br \/>\nthe case  on merit.  It would  be open\tto the appellants to<br \/>\nmake representation  to the BIFR and it would be open to the<br \/>\nBIFR to\t entertain the representation and dispose it of. The<br \/>\nappeals and  Writ Petitions  are  accordingly  dismissed  as<br \/>\nwiththdrawn with  the above  observation. We  make it  clear<br \/>\nthat no issue of law or fact is left open in these cases.\n<\/p>\n<p>     IN C.A. 1294\/86 AND W.P. NO. 391\/86<br \/>\n     These matters  are disposed  of together.\tWe need\t not<br \/>\nelaborately mention  the facts leading to file these appeals<br \/>\nand Writ Petitions. Suffice it to state that the validity of<br \/>\nU.P. Sugar  Undertakings (Acquisition)\tAct, 1991 was upheld<br \/>\nby this\t Court in  The Iswari  Khetan Sugar  Mill (P) Ltd. &amp;<br \/>\nAnr. etc. vs. The State of Utter Pradesh &amp; Ors. etc. [(1980)<br \/>\n3 SCR  331]. However, proceedings before the BIFR is pending<br \/>\nto streamline  the working  of sick  indutry sick  industry,<br \/>\nnamely, U.P.  State Sugar  Corporation. Shri H.N. Salve, the<br \/>\nlearned senior counsel appearing for the appellants and Writ<br \/>\nPetitioner in  these cases, submitted that he had discussion<br \/>\nwith his  clients after\t the case  was\tlast  adjourned.  He<br \/>\nsuggested that\tthe  appellants\t are  proposing\t to  make  a<br \/>\nrepresentation to  the BIFR for consideration of their cases<br \/>\nand so\tnot necessary  to argue\t the case on merits. In that<br \/>\nview we\t need not decide the case on merit. It would be open<br \/>\nto the\tappellants to make representation to the BIFR and it<br \/>\nwould be  open to  the BIFR  lo entertain the representation<br \/>\nand dispose it of.\n<\/p>\n<p>     The  appeals   and\t Writ\tPetitions  are\t accordingly<br \/>\ndismissed as  withdrawn with  the above observation. He make<br \/>\nit clear  that no issue of law or fact is left open in these<br \/>\ncases.\n<\/p>\n<p>     SLP(C) Nos. 9931-32\/1991<br \/>\n     Leave granted.\n<\/p>\n<p>     We have heard the learned counsel on both sides.<br \/>\n     The appeals arise from order if High Court made in Writ<br \/>\nPetition No.9690\/1990  dated January 24,1991. The appellants<br \/>\nhave  sought   for  directions\tagainst\t the  bank  for\t the<br \/>\nrealisation of\tthe dues  belonging to the undertakings. The<br \/>\nHigh Court in the impugned order passed as under :\n<\/p>\n<blockquote><p>     &#8220;For  the\t above\treasons\t  having<br \/>\n     regard to\tthe circumstance  of the<br \/>\n     case, while we cannot grant all the<br \/>\n     reliefs prayed  for in  these  writ<br \/>\n     petitions,\t they  are  disposed  of<br \/>\n     with the following directions:-\n<\/p><\/blockquote>\n<blockquote><p>     (i) Neither  the  Central\tBank  of<br \/>\n     India nor\tthe State  Bank of India<br \/>\n     (respondents 1  and 2  respectively<br \/>\n     in W.P.  No. 9690\tof 1990 and sole<br \/>\n     respondents in  W.P. No.  19630 and<br \/>\n     19629 respectively)  shall pay  any<br \/>\n     further amounts  to  respondents  3<br \/>\n     and 4  or any  other person  out of<br \/>\n     the principal  of the said deposits<br \/>\n     or interest  accruing thereon.  The<br \/>\n     said deposits  and Bank  Guarantees<br \/>\n     shall be subject to the orders that<br \/>\n     may ultimately  be\t passed\t by  the<br \/>\n     Supreme  Court   in   appeals   now<br \/>\n     pending  before  it,  namely  civil<br \/>\n     appeals Nos.  712 and  713 of 1977.<br \/>\n     If the  said appeals are dismissed,<br \/>\n     it\t is   abvious  that  the  amount<br \/>\n     covered by\t the Bank Guarantees has<br \/>\n     to be  paid  over\tto  the\t Central<br \/>\n     Bank\\Food Corporation of India. If,<br \/>\n     however,  the   said  appeals   are<br \/>\n     allowed, the  amount will go to the<br \/>\n     scheduled undertaking,  which would<br \/>\n     go towards the discharge of arrears<br \/>\n     which accrued prior to 2.3.1970. In<br \/>\n     that  event,   any\t surplus  amount<br \/>\n     accruing\ton    account\tof   the<br \/>\n     difference\t  in   interest\t  should<br \/>\n     firstly\tbe     available     for<br \/>\n     dischargint the  said  arrears  for<br \/>\n     recovering which  the Receiver  was<br \/>\n     appointed.\t   Of\t course,    this<br \/>\n     direction. shall  be subject to any<br \/>\n     directions to the contrary given by<br \/>\n     the Supreme  Court\t in  the    said<br \/>\n     appeals.\n<\/p><\/blockquote>\n<blockquote><p>     (ii) Within  a period  of one  year<br \/>\n     from today\t it shall be open to the<br \/>\n     Government or  the Collector  under<br \/>\n     the   provisions\t of   the   U.P.\n<\/p><\/blockquote>\n<blockquote><p>     Zamindari\t Abolition    and   Land<br \/>\n     Reforms Act  to  issue  appropriate<br \/>\n     unders of\tattachment or restraint,<br \/>\n     as the  case may  be, calling  upon<br \/>\n     the respondent  Banks  to\tpay  the<br \/>\n     surplus interest amount to them. It<br \/>\n     such orders  are issued,  the  Bank<br \/>\n     shall obey\t the  same  subject,  of<br \/>\n     course, to\t orders to  the contrary<br \/>\n     if any  by any  court or  competent<br \/>\n     authority.\n<\/p><\/blockquote>\n<blockquote><p>     (iii) The\tbank may  consider,  and<br \/>\n     indeed it\twill be\t well advised in<br \/>\n     taking  steps  for\t recovering  the<br \/>\n     amounts paid by it or loan given by<br \/>\n     it,  as   the  case   may\tbe,   to<br \/>\n     respondents  3   and  4.  That  is,<br \/>\n     however, a\t matter for  the bank to<br \/>\n     decide.<\/p><\/blockquote>\n<blockquote><p>     This order\t does not  preclude  the<br \/>\n     petitioner\t    Corporation\t    from<br \/>\n     adopting such  remedies as are open<br \/>\n     to it  under law,\tincluding  civil<br \/>\n     suits, for\t establishing its claims<br \/>\n     and  contentions.\tSimilarly,  this<br \/>\n     order   does   not\t  preclude   the<br \/>\n     Government, Collector  or any other<br \/>\n     authority\t from\trecovering   the<br \/>\n     amounts which they claim are due to<br \/>\n     them either  from respondents 3 and<br \/>\n     4 or  from any  other person liable<br \/>\n     in that  behalf in\t accordance with<br \/>\n     the procedure prescribed by law. If<br \/>\n     any   proceedings\t  are\t already<br \/>\n     initiated in  that behalf\tthey can<br \/>\n     also  be\tcontinued  according  to<br \/>\n     law.&#8221;<\/p><\/blockquote>\n<p>     We are  informed that  both the  appellant as  well  as<br \/>\nrespondent  have   filed  civil\t  suits\t which\tare  pending<br \/>\ndisposals under these circumstances, we think that it is not<br \/>\nnecessary for  us to  go into the question. It would be open<br \/>\nto their  rights in  the suits and decrees will be passed by<br \/>\nthe Civil Court in accordance with law.\n<\/p>\n<p>     The appeals are accordingly dismissed. No. costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Mahabir Sugar Mills Ltd. &amp; Ors. Etc vs State Of U.P. &amp; Ors. Etc on 27 August, 1996 Author: K Ramaswamy Bench: Ramaswamy, K. PETITIONER: MAHABIR SUGAR MILLS LTD. &amp; ORS. ETC. Vs. RESPONDENT: STATE OF U.P. &amp; ORS. ETC. DATE OF JUDGMENT: 27\/08\/1996 BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. HANSARIA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-225763","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mahabir Sugar Mills Ltd. &amp; Ors. Etc vs State Of U.P. &amp; Ors. 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