The installed capacity of the project was 2 x 50 MW.
The Ordinance was subsequently replaced by Bharat Hydro Power Corporation Limited Acquisition and Transfer of Undertaking Act, 1996 hereinafter referred to as the Act .
Facts In the year 1979, the Planning Commission of India sanctioned a proposal of the Assam State Electricity Board hereinafter referred to as the Board for companystruction of a Hydro Electric Power Station in the District of Karbi Anglong on the river Barapani at an estimated companyt of Rs.36.36 crores.
The writ petition was filed by the appellants challenging the companystitutional validity of the Bharat Hydro Power Corporation Limited Acquisition and Transfer of Undertaking Act, 1996 being Assam Act 1 of 1997 published in the Assam Gazette Extraordinary dated 6th January, 1997.
The dam was to be companypleted in the year 1986, but due to the failure of the local companytractor, the project companyld number be companypleted and the Board terminated the companytract and protracted litigation ensued.
In terms of the said Deed of Assignment appellant No.1 was to companyplete the project and start generation by June, 1995 which was subsequently extended to June, 1996.
On 30th November, 1996 the State of Assam, keeping in view, the inordinate delay in the companypletion of the project and to safeguard the public interest by companypleting the project as early as possible in the companytext of acute power shortage in the State, promulgated Bharat Hydro Power Corporation Limited Acquisition and Transfer of Undertaking Ordinance, 1996 acquiring the undertaking of Karbi Langpi Project of appellant No.1.
According to the said MOU, SPML was to promote a new companypany to companyplete the project.
WHEREAS the Bharat Hydro Power Corporation Ltd., having its registered office in the State of Assam, has been engaged for speedy execution and companypletion of the Karbi Langpi Lower Barapani Hydro Electric Project for ensuring supply of electricity in the State of Assam in view of the chronic shortages of power in the State Whereas it was agreed upon in the Memorandum of Understanding entered into between the Government of Assam, the Assam State Electricity Board and the M s Subhas Project and Marketing Limited on 25th March, 1993 that the project would be companypleted and would be companymissioned by the month of June, 1995 And whereas the companypany failed in the sole object of speedy execution of the project within the specified time Whereas it is expedient in the public interest that the undertaking of the Bharat Hydro Power Corporation Limited should be acquired for the purpose of the enabling the State Government to efficiently supervise manage and execute the work expeditiously as to subserve the companymon good, in the companytext of the acute power shortage in the State.
The project companyprised companystruction of 51 meter high companycrete dam on the river Barapani near Hatidubi for utilising flow of water from catchment area of 1178 Sq.
On 1st December, 1996, the State Government by Notification transferred to and vested the said project in the Board.
After the said numberification the possession of the project was handed over to the Board in the presence of the representatives of the both sides on 2nd December, 1996.
244/96 in the Court of the Assistant District Judge No.1, Guwahati for specific performance of the companytract against the Board alleging that the Board was remiss in the performance of its obligation under the MOU and the Deed of Assignment.
In the year 1992, after termination of the companytract as aforesaid, the project was entrusted to National Project Construction Corporation in short NPCC , but the similar fate followed and Board had to terminate their companytract as well in December, 1992.
On 5th December, 1996 Memorandum of handing over and taking over was signed.
On the other hand, appellants Nos.
The Preamble of the Act reads as follows ASSAM ACT NO.1 OF 1997 Received the Assent of the Governor on 6th January, 1997 THE BHARAT HYDRO POWER CORPORATION LIMITED ACQUISITION AND TRANSFER OF UNDERTAKING ACT, 1996 AN ACT To provide for the acquisition, in the public interest, of the right, title and interest of the undertaking of the Bharat Hydro Power Corporation Limited and for matters companynected therewith or incidental thereto.
Thereafter writ petitions being CR 6/97 and CR 283/97 were filed in the High Court of Assam challenging the legality and validity of the Ordinance and the Act.
In the writ petitions the appellants challenged the companystitutional validity of the Act being ultra vires and violative of Articles 14 and 19 1 g of the Constitution of India and on the ground of being vague, unfair and arbitrary.
Board filed an application for stay of suit in view of arbitration clause.
According to Board as well as the State of Assam, the appellant No.1 after its incorporation failed to take charge of the project till 5th April, 1994.
On 27th May, 1996, Board wrote to appellant No.1 that due to the failure of the appellant No.1 to companyplete the work within the extended period, the MOU was liable to be terminated and repudiated.
In the mean time, companyt of the project initially sanctioned at Rs.
On 25th March, 1993, Memorandum of Undertaking MOU was signed between the Board, Government of Assam and M s Subhash Project and Marketing Limited SPML , appellant No.2 herein.
The Board companyld number generate the additional fund required for companypleting the project.
60 crores to companyplete the project excluding other liabilities.
Appellant No.1 filed an application in the High Court under Sections 8 and 11 of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrator to decide pending disputes between the parties.
189.90 crores.
In terms of the said MOU a new companypany under the name and style of M s. Bharat Hydro Power Corporation Limited hereinafter referred to as appellant No.1 came into existence in which the equity participation was as follows ASEB the Board 11 SPML appellant No.2 40 General Public 49 On 8th April, 1993 the Deed of Assignment was executed between the Board and the appellant No.1, in terms of which all the assets and liabilities of the project were transferred to appellant No.1 w.e.f.
1 2 put the entire blame on the Board and the State Government for the delay in the progress of the project.
36.36 crores rose to Rs.
Out of the aforesaid estimate, the work companypleted was of about Rs.116 crores and the Board needed about Rs.
Disputes arose between the parties.
On 20th December, 1995, appellant No.1 filed a suit being TS No.
Even after taking over of the project, the appellant No.1 companyld number achieve any progress towards companypletion of the project due to serious lapses and negligence on its part.
8.4.1993.
BHAN, J. These appeals are directed against a companymon judgment passed by the Division Bench of the High Court of Gauhati wherein the Division Bench while setting aside the judgment of the learned Single Judge dated 19th July, 1997 has dismissed the writ petition filed by the appellants.
