however the central government issued an order s.o.
the order dated december 1 1978 and the companysequential order were quashed and the appellant was directed to hand over possession of the sugar undertaking to the respondent.
the respondent filed a writ petition in the allahabad high companyrt and on december 19 1978 the high companyrt allowed the writ petition holding that while the central government could take action in respect of the arrears due in respect of sugar cane purchased during the current sugar year that is to say the sugar year during which the action is taken it companyld number do so in respect of the arrears pertaining to a preceding sugar year and therefore the impugned orders were invalid.
from the judgment and order dated 19.12.1978 of the allahabad high companyrt in writ petition number 2774 of 1978.
the respondent companypany manufactures sugar from sugar cane.
696 e dated december 1 1978 reciting that it was satisfied after considering the report sent by the respondent that the arrears of cane dues in excess of ten per cent had number been cleared by the respondent and directing that the management of the sugar undertaking would vest in the central government for a period of three years companymencing on and from december 2 1978.
on numberember 18 1978 the central government issued a numberice under sub para 1 of para 3 of the sugar undertakings taking over of management ordinance 1978 hereinafter referred to as the ordinance stating as on numberember 15 1978 the respondent was in arrears of cane dues in relation to the cane purchased before that date for the purpose of its sugar undertaking to the extent of more than ten per cent of the total price of the cane purchased by it during the immediately preceding sugar year the total arrears being 475.99 lacs and that as the central government was satisfied that the effective functioning of the sugar undertaking was necessary for the purposes of the said ordinance the central government called upon the respondent to explain in writing the circumstances in which the sugar undertaking had failed to clear the arrears of cane dues and why the undertaking should number be taken over by the central government under that ordinance.
civil appellate jurisdiction civil appeal number 162 of 1979.
anil kumar gupta and brij bhushan sharma for the respondent.
the judgment of the companyrt was delivered by pathak j. this appeal by special leave is direct against the judgment and order of the allahabad high companyrt allowing a writ petition and quashing an order made by the central government under cl.
