G.N. RAY, J. - (1.) THE Judgment of the court was delivered by -
(2.) LEAVE granted. Heard learned counsel for the parties. All the three special leave petitions namely Special Leave Petition (Civil) No. 19729 of 1995, Special Leave Petition (Civil) No. 20137 of 1995 and Special Leave Petition (Civil) No. 19796 of 1995 are directed against the common judgment dated 9/5/1995 passed by the Madhya Pradesh High court respectively in Miscellaneous Petitions Nos. 1371, 1980 and 2315 of 1992. All the said miscellaneous petitions were filed before the Madhya Pradesh High court under Article 226 of the Constitution challenging the legality and validity of agreements made by the State government of Madhya Pradesh with M/s Bastar Oil Mills and Industries Ltd. and M/s Sal Udyog (Pvt.) Ltd. for supply of sal seeds grown in the State of Madhya Pradesh on payment of determined royalty by alleging inter alia that the writ petitioners namely K.N. Oil Industries and M.P. Oil Extraction Ltd. have been subjected to hostile discrimination in the matter of grant of largesse so far as distribution of sal seeds is concerned by favourably treating the said Bastar Oil Mills and Industries Ltd. and M/s Sal Udyog (Pvt.) Ltd. thereby affecting the economic viability of the writ petitioners. It may be indicated here that before the said writ petitions were filed in the Madhya Pradesh High court, a series of litigations were fought between the parties to these appeals both in the Madhya Pradesh High court and in this 597 Court. In 1981, the appellants M.P. Oil Extraction Limited and K.N. Oil Industries filed writ petitions numbered as MPs Nos. 559 and 1404 of 1981, in the Madhya Pradesh High court challenging the agreements between Bastar Oil Mills and Industries Ltd. and Sal Udyog (Pvt.) Ltd. and the State Government of Madhya Pradesh for distribution of specified amount of sal seeds to the said concerns annually by alleging hostile discrimination against the said writ petitioners in the matter of distribution of sal seeds. Such writ petitions were dismissed by the division bench of the High court by order dated 21/8/1981. The said decision has been reported in M.P. Oil Extraction (P) Ltd. v. State of M.P. Against the said decision, both the writ petitioners filed special leave petitions before this court in which leave was granted in CAs Nos. 2994 and 2295 of 1982. In terms of the interim orders dated 5/5/1982 and 6/5/1983, the State of Madhya Pradesh had to supply 5000 MT of sal seeds in favour of each of the said appellants namely M.P. Oil Extraction Limited and K.N. Oil Industries in 1982 and 1983. M/s Bastar Oil Mills and Sal Udyog (Pvt.) Ltd. did not receive the contractual quality of sal seeds in the said years. It, however, appears that after obtaining the said interim orders on two occasions, both the appellants withdrew CAs Nos. 2994 and 2995 of 1982 and the said appeals stood disposed of and the impugned judgment of the High court became final. It may be stated here that under two separate agreements by the M.P. State government, both the appellants namely M.P. Oil Extraction and K.N. Oil Industries got reservation of 13 to 17 sal-seeds-producing forest units in their favour. Such reservation of forests was challenged before the High court in MPs Nos. 261 and 266 of 1980 and by judgment dated 25/9/1980 the division bench of the M.P. High Court allowed the writ petitions and set aside the said agreement for reservation of forests in favour of the appellants. During the year 1983, both the appellants again managed to get reservation and allotment of 7500 MT of sal seeds per annum under two separate but identical agreements dated 12/12/1983 from the State government for a term of 12 years. Such agreements were challenged by M/s General Foods Private Limited in MP No. 1364 of 1984 before the M.P. High court. A Division bench of the High Court by order dated 11/6/1985 quashed the said agreements executed in favour of both the appellants. It may be indicated here that before the said agreements were annulled by the High court, the appellants got 7500 MT of sal seeds per annum for the years 1984 and 1985 in terms of the said invalid agreements. The respondents Bastar Oil Mills and M/s Sal Udyog (Pvt.) Ltd. had to receive much lesser quantity of sal seeds which were due to them in terms of the agreements made in their favour. Both the appellants moved special leave petitions before this court assailing the said judgment dated 11/6/1985 of the High court. Such leave petitions were disposed of by this court by order dated 10/4/1986 (reported in K.N. Oil Industries v. Secy. to the Ministry of Forest. By the said order, 598 this court upheld allotment and reservation of sal seeds in favour of Bastar Oil Mills and M/s Sal Udyog (Pvt.) Ltd. and M/s Allied Oil Industries Pvt. Ltd. and M/s M.P. Glychern Industries being the four units selected by the State government of Madhya Pradesh under the 1977 Industrial Policy. It appears that after all such futile attempts, the appellants did not give up their pursuit to get allotment of sal seeds from the government. In 1986, both the appellants filed two separate but identical writ petitions being MPs Nos. 645 and 644 of 1996 challenging the reservation and allotment of 10,000.00 MT of sal seeds in favour of M/s M.P. Glychem Industries which was also selected under 1977 Industrial Policy. Such writ petitions were also dismissed by the High court by order dated 6/5/1986. Thereafter, the writ petitions were again filed by both the appellants challenging the renewal of lease in favour of the respondents M/s Bastar Oil Mills and M/s Sal Udyog Pvt. Ltd. by treating such renewals as new leases and also challenging the determination of royalty to be paid for the sal seeds to be supplied to the respondents. Such writ petitions have also been dismissed by the division bench of the Madhya Pradesh High court and the present appeals are directed against the decision of the High court passed in the said writ petitions.
(3.) MR. Sanghi, the learned Senior Counsel appearing for the appellants K.N. Oil Industries, has submitted that the appellants had set up their first solvent extraction plant in 1966 using rice bran as raw material. The appellant made suitable modification in their plant for processing of sal seeds and also set up a new plant for extraction of sal seeds on the basis of an assurance of availability of sal seeds vide letter dated 24/1/1970 of the State government to the effect: "Since sal seeds are available in huge quantity in nearby area, spare capacity of your plant, if any, be utilised after modification in the existing plant." The appellants have been using sal seeds and rice bran as raw material, alternatively in their solvent extraction plant from 1973 onwards. As the availability of sal seeds was seasonal and limited, no solvent plant could exclusively depend on sal seeds for running its business.;