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Diamond Plastic Industries Vs. Govt. of A.P. & Ors [1997] INSC 539 (9 May 1997)




with 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.

These matters are disposedof by acommon order.

While 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.

LearnedsingleJudge by his judgment dated January 19,1988 directed the Governmentto appoint plant Level Committee and followthe enforceable guidelinesissued thereunder;

ancillary industries are the units coming within the scheme;

and, 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.

The 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.

The appeals are accordingly disposed of. No costs.


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