1996 (8) TMI 560 - SC - Indian Laws

Summary

Issues:
1. Validity of U.P. Sugar Undertakings (Acquisition) Act, 1971
2. Representation to the BIFR for consideration of cases
3. Possession of property occupied by Director of the company
4. Dismissal of appeals and Writ Petitions
5. Directions against the bank for realization of dues
6. Orders passed by the High Court in Writ Petition No. 9690/1990

Analysis:

Issue 1: Validity of U.P. Sugar Undertakings (Acquisition) Act, 1971
The Supreme Court upheld the validity of the U.P. Sugar Undertakings (Acquisition) Act, 1971 in a previous case. However, proceedings before the BIFR were pending to streamline the working of the sick industry, specifically the U.P. State Sugar Corporation. The appellants proposed to make a representation to the BIFR for consideration of their cases, leading to the dismissal of appeals and Writ Petitions without deciding on the merits.

Issue 2: Representation to the BIFR for consideration of cases
The appellants, through their senior counsel, suggested making a representation to the BIFR for the consideration of their cases. The Court allowed this and dismissed the appeals and Writ Petitions as withdrawn, emphasizing that no issue of law or fact was left open in these cases.

Issue 3: Possession of property occupied by Director of the company
In a specific case regarding possession of a bungalow occupied by the Director of the appellant company, the Court maintained the status quo regarding possession until the disposal of the case. The Court did not decide on the title to the property or any question of mesne profits, leaving it open for the appellants to take appropriate proceedings if desired.

Issue 4: Dismissal of appeals and Writ Petitions
The appeals and Writ Petitions were dismissed as withdrawn, with a clear statement that no issues of law or fact were left open in these cases. The Court discharged the order and status quo, allowing parties to seek positive directions regarding possession through appropriate legal procedures within a specified timeframe.

Issue 5: Directions against the bank for realization of dues
In response to appeals arising from a High Court order, the Supreme Court provided specific directions regarding the realization of dues belonging to the undertakings. The Court outlined conditions for the payment of deposits and bank guarantees, subject to the outcome of pending appeals and other legal provisions under the U.P. Zamindari Abolition and Land Reforms Act.

Issue 6: Orders passed by the High Court in Writ Petition No. 9690/1990
The High Court passed directions related to the recovery of amounts due to the petitioner Corporation and other authorities, emphasizing the continuation of civil suits and legal remedies available to the parties. The Supreme Court dismissed the appeals, allowing parties to pursue their rights through ongoing civil suits, with decrees to be passed by the Civil Court in accordance with the law.