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TMI Blog2004 (2) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... were situate. The only solution of these problems was for the State Government to take immediate steps to acquire with a view to renovating those and rehabilitating mills or carry out improvement therein. 2. Accordingly, a legislation was prepared to acquire such mills, which provided for acquisition of properties and assets pertaining to those mills and for payment of compensation for the same and for the replacement of the dues of cane-growers, labourers and of the Government out of the amount or compensation and for other connected and incidental matters. 3. To prepare the mills for crushing before the next crushing season, the usual annual repairs (which are carried out during off season) had to be carried out well in time and since the time available was short, immediate action was called for. As both the Houses of the State Legislature were not in session, the Governor promulgated the Uttar Pradesh Sugar Undertakings (Acquisition) Ordinance, 1971 on July 3, 1971. 4. The State Government have since decide that the dues of canegrowers and labourers should be given higher priority than the State Government's taxes and other unsecured dues. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sting of the mill in the corporation. It was averred in the writ petition that the Receiver had handed over possession of the following properties illegally to the appellant. 1. Registered office at House No. 54/14 Canal Range at Kanpur. 2. Ambassador Car 3. Plot of Siddhaur 4. Grove Land 5. Land appurtenant to the factory 6. Sale proceeds of Siddhaur Khan Sari Plant 7. Amount of loan realised from Sri Kishandas, Bhagirath Lal Arora 8. Share and securities Bonds. 7. Appellant filed its counter affidavit wherein it was mentioned that except the following properties which have vested in the corporation, the possession of no other property was transferred to it. 1. House No. 54/14 Canal Range at Kanpur from where sugar sale of the sugar manufactured in Burhwal Sugar Factory used to the stored immediately before the appointed day. 2. One Ambassador Car No. 7142 (and not 481 307). 3. Land appurtenant to the factory which was used immediately before the appointed day for the purposes of parking of cane carts and trollies, purpose directly connected with the process of the sugar fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in the appellant. It was also argued that the house in question was being used as the residence of the Director and a guest house of the factory. As against this, learned counsel appealing for respondent No. 1 supported the findings recorded by the High Court to the effect that the building was the registered office of the company and the same was not being used as a godown and indeed it could not have been used as such because the same was situated at Kanpur which is at a distance of 116 Kms. from Barabanki where the sugar was being manufactured. It was denied that the premises in dispute were being used either as the residence of the Director or as a guest house of the factory. 12. For the purpose of resolving the controversy as indicated, a reference to the definition of the word Schedule Undertaking as defined in the Act may be made. It is defined in Clause (h) of Section 2 of the Act, the same reads: (h) Schedule Undertaking means an undertaking engaged in the manufacture or production of sugar by means of vacuum pans and with the aid of mechanical power in factory specified in the schedule and comprises - (i) all plant, machinery and other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of the above provision shows that generally all machines, tools, plants and other equipment which were being used for manufacturing sugar were acquired including the workshops, chemical laboratories, vehicles, dispensaries, hospitals, community or welfare center exclusively used for the benefit of the workmen and other persons employed in the factory. Limestone queries, electrical installations, tools, spare parts and stores pertaining to that factory were also acquired. Under Sub-clause (vi) all lands and buildings held or occupied for the purposes of that factory, guest houses and residences of directors, managerial personnel, staff and workmen or of any other person were also taken over. 14. The intention of the Legislature is clear that the land and buildings which were connected with or were in use for the purposes of the factory would be covered by Clause (vi) of section 2 (h). Admittedly, the registered office of the respondent company was located at House No. 54/14 Canal Range, Kanpur. There is no material on the record to show the premises in question were being used or occupied for the storage of sugar. Similarly, there is no material on record to, show that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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