Plastic Industries Vs. Govt. of A.P. & Ors  INSC 539 (9 May 1997)
RAMASWAMY, D.P. WADHWA
CIVIL APPEAL NOS. 3630-31 OF 1997 (Arising out of SLP (C) No.14142 of 1994
&SLP (C) No.11259/97 (CC-28024/94) O R D E R Leave granted.
matters are disposedof by acommon order.
adopting the revised and updated guidelines for the implementation of AncillaryDevelopment
Programme by the Public Sector Enterprises, byproceedings dated October 3,
1979, the Hyderabed Allwyn Limited which hasbeen a State Government
undertaking, invited applications from the entrepreneurs to set up various
ancillary industries for apply of required goods.; The appellants have set up
ancillary unitfor supply of watch boxes, watch strips and dial holding rings.
There wasa dispute asregards the paymentof the amount and the resultantliability.
In regard thereto, a writpetition came to be filed in the High Court.
by his judgment dated January
19,1988 directed the Governmentto
appoint plant Level Committee and followthe enforceable guidelinesissued thereunder;
industries are the units coming within the scheme;
therefore, the recommendations of theplant Level Committee should be enforced.Accordingly,
amandamus was issued to the Hyderabad Allwayns Limited (HAL). Felling aggrieved
by that order, the appellantsfiled awrit appeal.
Division Bench byits order dated March 15,1991 while upholding thatthe findings
given bythe learned single judge, directed that instead of Hal mandamusbe
issued to the State Government to complywith the direction issued by the single
judge. it would appear that prices of DHRwere reduced fromRs.5.81 to Rs.2.48
the appellantsfelt aggrieved and contend that the reduction is bad in law. it
is notin dispute that sincesubsequently HAL becamesick industry, the matter was
referred to the Board for Industrial andfinancial Reconstruction which has goneinto
that question. M/s Voltas Ltd. has started functioning after take over of all
the unitsexceptwatch manufacturing Division whichwas taken overby the State Governmentwith
regardto the respective assets and liabilities. The decision of theBIFR binds
the parties.We are informedthat Rs.27 lacs have already been paid tothe
appellants. The appellants areclaiming the balance amount, whatever be the
liability, as per the undertaking before the BIFR that binds the parties; the
State Government is also boundto implement the direction issued bythe BIFR.
appeals are accordingly disposed of. No costs.