- (1.) By Uttar Pradesh Sugar Undertakings (Acquisition) Ordinance, 1971 which later became an Act No. 23 of the same name [hereinafter referred to shortly as the 'ordinance/act'], M/s Maheshwari Khetan sugar Mill Pvt. Ltd. , [respondent no. 2 herein] at Ramkola, District Deoria in the state of Uttar Pradesh, was acquired by the appellant U. P. State Sugar Corporation [shortly referred to as 'the corporation'].
(2.) On the date of coming into force of the ordinance, the sugar mill was under management of Receiver appointed on 04.3.1970 by the Collector for recovery of dues of cane-growers as arrears of land revenue in accordance with section 279 (1) (g) read with Section 286a of the u. P. Zamindari Abolition and Land Reforms act, 1950 [shortly referred to as 'the Act of 1950'].
(3.) M/s Mahalchand M. Kothari which is a partnership firm carrying on trade in gauhati in the State of Assam filed two suits in the Court of Assistant District Judge, gauhati for recovery of damages caused to it as a result of non-supply of sugar under the contract entered into by the plaintiff firm with the Receiver who was managing the sugar mill. The orders were placed by the plaintiff for supply of different quantities of sugar in the year 1973 and advance money was paid to the Receiver for timely supply. The prices of sugar having gone up in the period of supply under the contract, the Receiver neither sent the quantity of sugar nor returned the advance price paid by the plaintiff. Both the suits Nos. 11 and 27 were filed in the year 1982. The erstwhile Mill owner and the appellant corporation were made defendants to the suits because by that time, sugar mill already stood transferred to, vested in and been in actual possession of the Corporation in accordance with section 3 of the Act.;