G. P. Mathur, J. - (1.) These appeals by special leave have been preferred against the judgment and order dated 4-8-2000 of a Division Bench of Calcutta High Court, whereby the appeal preferred by respondent Nos. 1 and 2 was allowed, the order dated 11-4-1997 of the learned single Judge dismissing the writ petition was set aside and the writ petition was disposed of with certain directions.
(2.) The respondents Nos. 2 and 3 filed the writ petition praying that a writ of mandamus be issued commanding the appellant herein to produce the entire records relating to the withholding of delivery of goods pursuant to the contracts mentioned in Annexure-A to the writ petition and also to deliver the goods mentioned in Annexure-A upon adjustment of advance payment made by them. A further prayer was made that the appellants herein be directed to take a final decision as envisaged in the letter dated 24-10-1989 (Annexure-A to the writ petition) and an injunction be issued restraining the appellants from transferring, dealing with or disposing of goods pursuant to the contracts mentioned in Annexure-A in any manner without keeping the goods which are to be supplied to writ petitioner No.1.
(3.) The case set up in the writ petition is as follows. The writ petitioners had been purchasing various quantities of cloth from Finlay Mills Limited and Gold Mohour Mills Limited, both situate in Bombay. The petitioners entered into contracts specified in Annexure-A to the writ petition and made advance payment against the same. The concerned mills supplied and delivered the goods to the petitioners from time to time but a substantial part of the contract remained unexecuted. By the letter 26-9-1993 the mills were requested to take necessary steps for immediate delivery of the goods, in respect whereof payment had already been made. The mills vide their letter dated 29-9-1993 intimated that deliveries could not be effected as the banking transaction and accounts of the mills had been frozen, but assured that arrangements were being made to deliver the goods as early as possible. The management of the mills was taken over by the Central Government on 18-10-1993 under Textile Undertakings (Taking Over of Management) Ordinance, 1983 which was subsequently replaced by Textile Undertakings (Taking Over of Management) Act, 1993 on 25-12-1993. The Central Government constituted National Textile Corporation (south Maharashtra) Limited for the purpose of managing the textile undertakings which in turn as additional custodian took over the management of the two textile undertakings. The writ petitioners, thereafter approached the appellants for release of the goods and one bale of contractual specification was delivered but 12 bales were detained by the Excise Authorities, as a consequence whereof the same were not delivered. The National Textile Corporation (south Maharashtra) vide their letter dated 15-3-1984 requested the Officer on Special Duty of taken over mills including Gold Mohur Mills and Gold Mohur Mills to furnish particulars in prescribed pro forma to enable it to take up the matter with the Central Government for taking action under Section 11(1) of the Act for the purpose of cancelling or varying any contract or agreement entered prior to pre-take over period which action had to be taken on or before 14-4-1984. After giving a reasonable opportunity of hearing to the parties concerned, the textile mills called upon the writ petitioners to verify the pre-take over contracts and joint meetings took place for the said purpose and the matter was referred back to the Officer on Special Duty. The writ petitioners then vide their letter dated 13-10-1984 requested the Chairman-cum-Managing Director of National Textile Corporation (South Maharashtra) Ltd. to deliver the balance quantity of cloth in terms of the pending contracts and to adjust all sums of money which had been paid by way of advance. The appellants sent a reply on 7-11-1994 stating that (1) all the outstanding contracts had been cancelled on the date of take over as they were not binding upon them; (2) the deposits that were made with the erstwhile management were not specifically marked towards any of invoice of packed material and as such could not be adjusted against any future delivery and the writ petitioners will have to claim this amount from the erstwhile management since the custodian is prohibited from discharging any liability pertaining to pre-take over period; and (3) there were no invoices against which payments were received from the petitioners prior to take over and as such the question of effecting delivery of paid stocks did not arise. The writ petitioners made several representations and they were informed by the letter dated 4-10-1989 that the matter relating to delivery of cloth in pursuance of pre-take over contracts was under active consideration. However, no delivery was effected. The writ petition was thereafter filed in December, 1989 seeking the reliefs mentioned in the earlier part of the judgment.;