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PETITIONER: DIAMOND PLASTIC INDUSTRIES ETC.

       Vs.

RESPONDENT: GOVT. OF A.P. & ORS.

DATE OF JUDGMENT:       09/05/1997

BENCH: K. RAMASWAMY, D.P. WADHWA

ACT:

HEADNOTE:

JUDGMENT:     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

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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.