The movables were then put up for sale, and the highest bid for Rs.
7 in this appeal.
2,75,000/ .
The sale was companyfirmed by order dated July 2, 1956, by the Land Reforms Commissioner.
The petition was dismissed by Oak, J. In appeal under the Letters Patent the order was companyfirmed by the High Court.
On December 6, 1955, the Company moved an application before the Commissioner, Gorakhpur Division, under r. 285 1 of the P. Zamindari Abolition and Land Reforms Rules praying that the sale be set aside.
2,75,000/ was accepted.
Appeal from the judgment and decree dated December 13, 1961 of the Allahabad High Court in Special Appeal No.
8,38,176 13 0.
The purchasers of both the lots were the Cawnpore Sugar Works Ltd., through their managing agent Tulsidas Mundra respondent No.
13,50,000/ was made and accepted.
On August 8, 1955 the Land Reforms Commis sioner sanctioned the proposal submitted by the Collector, Deoria, to sell the holdings and the property of the Company for realizing Rs.
217 of 1958.
The Collector then put up for sale the immov able property for which a bid of Rs.
Mukherji, J., was of the view that s. 286 of the U.P. Zamindari Abolition and Land Reforms Act did number oblige the Collector to exhaust the processes prescribed by, cls.
The principal liabilities of the Company in July 1955 were Rs.
The Commissioner rejected the peti tion, observing that an application under r. 285 1 of the P. Zamindari Abolition and Land Reforms Rules, 1952, to set aside a sale on the ground of material irregularity or mistake in publishing or companyducting a sale may be granted only if the applicant proves to the satisfaction of the Commissioner that he has sustained substantial injury by reason of such irregularity or mistake, and that numbermaterial irregularity or mistake was proved to be companymitted in publishing or companyducting the sale, far less, a mistake or irregularity which companyld have caused substantial injury to the applicant.
The sale was fixed for November 8, 1955.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
On, July 30, a petition was moved by the Company in the High Court of Allahabad for a writ in the nature of certiorari quashing the order dated June 25, 1956, of the Commissioner, Gorakhpur Division.
1, 2, 3 and 8.
7 , 64,817/ ,and the lands and the factory at Rs.
8,38,176 13 0.
The Company was in financial difficulties in 1954 and was unable to meet its obligations.
K. Daphtary, B. Sen, J, P, Goyal and A. Banerjee, for the appellants.
A. Ramachandran and R. N. Sachthey, for respondent No.
23,75,000/ .
Sardar Jagjit Singh, Chief Engineer, Indian Institute of Sugar Technology, Kanpur, valued the movables belonging to the Company i.e. tools and workshop plant, mill stores, spare parts and furniture at Rs.
5,64,301 14 9 due as sugarcane cess under s. 29 of the Sugar Factories Control Act, 1938, for the years 1952 53 to, 1954 55 and Rs.
81,821 2 0 due as income tax provisionally assessed for the assessment year 1952 53 in respect of which an order for recovery was made under s. 46 2 of the Income tax Act, 1922 Rs.
B. Agarwala and O. P. Rana, for respondents Nos.
5 and 6.
130 of 1966.
By order dated July 14, 1954, issued under the Essential Supplies Temporary Powers Act, the Government of U.P. appointed the Collector, Deoria as the Authorised Controller of the Company.
In the first instance only the movables were put up for sale by the Collector, Deoria, but the highest bid offered was Rs.
C. Chagla, G. D. Srivastava, B. Datta and J. B. Pada chanji, for respondents Nos.
Thereafter a sale proclamation was issued on October 4, 1955, for recovery of the total amount of Rs.
1,92,053 12 3 due by the Company to the Co operative Development Union Ltd. as arrears of cane price for the year 1954 55.
The Judgment of the Court was delivered by Shah, J. The Padrauna Rajkrishna Sugar Works Ltd.hereinafter called the Company carried on the business of manufacture and sale of sugar and supply of electricity.
