- (1.) These appeals are against the judgment of the Andhra Pradesh High Court dated 8/6/2001.
(2.) Briefly stated, the facts are as follows: in Andhra Pradesh, there was a company known as "hyderabad Allwyn Ltd. " In this Company, the Government of Andhra Pradesh was a major shareholder. The Company suffered huge losses and became a sick company. Therefore, the matter was taken up before the Board for Industrial and Financial Reconstruction (BIFR).
(3.) While the matter was before BIFR, negotiations took place with the appellants for the purpose of reviving at least the Refrigeration Department of that Company. A memorandum of understanding was entered into on 28/3/1993, which, inter alia, provided as under: "Hal has been incurring losses for the past few years and the Government of Andhra Pradesh has decided to disinvest its holding and inter alia privatise HAL with a view to making it a viable unit and achieving the following objectives: (a) To secure the public interest by reviving HAL, balancing the drain on the State's exchequer and consequential denial of use of the State's finances for other State and public purposes and objectives and obviating allocations of the State budget to HAL, as contrasted with the consequences of continued retention of the shareholding and management of HAL as a government company. (b) To avoid bankruptcy of HAL and consequential loss of employment in the State of Andhra Pradesh and loss of capital of the State of Andhra Pradesh by initiating measures of privatisation. (c) To ensure the commitment on the part of the new owner to maintain and fully utilise the existing production capacities at reasonable level and to ensure the growth and stability of HAL in the long run. ";