A
B
c
D
E
DIAMOND PLASTIC INDUSTRIES ETC.
v.
GOVERNMENT OF ANDHRA PRADESH AND ORS.
MAY 9, 1997
(K. RAMASWAMY AND D.P. WADHWA, JJ.]
Sick industry-Taken over by State Govemment-Decision of BIFR
regarding payment-Binding 011 the pa1ties-Payment pending to party-State
Government directed to implement the direction issued by BIFR.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3629 of
1997.
From the Judgment and Order dated 23.4.94 of the Andhra Pradesh
High Court in W.A. No. 16293 of 1992.
Narasimha P.S. Rina N. and V.G. Paragasam for the Appellants.
A.T.M. Sampath, Y.P. Rao and T. Anil Kr. for the Respondents
The following Order of the Court was delivered :
Leave granted.
These matters are disposed of by a common order.
While adopting the revised and updated guidelines for the implemen-
F
tation of Ancillary Development Programme by the Public Sector
Enterprises, by proceedings dated October 3, 1979, the Hyderabad Allwyn
Limited which has been a State Government undertaking, invited applica-
tions from the entrepreneurs to set up various ancillary industries for
supply of required goods. The appellants have set Up ancillary unit for
G supply of watch boxes, watch strips and dial holding rings. There was a
dispute as regards the payment of the amount and the resultant liability.
In regard thereto, a writ petition came to be filed in the High Court.
Learned Single Judge by his judgment dated January 19, 1988 directed the
Government to appoint Plant Level Committee and follow the enforceable
guidelines issued thereunder; ancillary industries are the units coming
H within the Scheme; and, therefore, the recommendations of the Plant Level
380
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DIAMOND PLASTIC IND. ETC. v. GOVT. OF ANDHRAPRADESH 381
Committee should be enforced. Accordingly, a mandamus was issued to A
the Hyderabad Allwyns Limited (HAL). Feeling aggrieved by that order,
the appellants filed a writ appeal. The Division Bench by its order dated
March 15, 1991 while upholding that the findings given by the learned
single Judge, directed that inst.ead of HAL mandamus be issued to the
State Government to comply with the direction issued by the Single Judge. B
It would appear that prices of DHR were reduced from Rs. 5.81 to Rs.
2.48 the appellants felt aggrieved and contend that the reduction is bad in
law. It is not in dispute that since subsequently HAL became sick industry,
the matter was referred to the Board for Industrial and Financial
Reconstruction which has gone into that question. M/s. Voltas Ltd. has
started functioning after take over of all the units except watch manufac-
C
luring Division which was taken over by the State Government with regard
to the respective assets and liabilities. The decision of the BIFR binds the
parties. We are informed that Rs. 27 lacs have already been paid to the
appellants. The appellants are claiming the balance amount, whatever be
the liability, as per the undertaking before the BIFR that binds the parties; D
the State Government is also bound to implement the direction issued by
the BIFR.
The appeals are accordingly disposed of. No costs.
G.N.
Appeals disposed of.
Lex