- (1.) This appeal, by Special Leave, by the Andhra Pradesh State Electricity Board - a corporation and constituted under the Electricity (Supply) Act, 1948 - arises out of the Judgment and Order dated 25-7-1973, of the Andhra Pradesh High Court in Writ Petition No. 3950 of 1971 on its file, rejecting appellant's challenge to certain proceedings for the recovery of insurance premia respecting the appellant's undertaking under the Emergency Risks (Factories) Insurance Act, 1962 ('Act') culminating in the appellate order, dated, 12-5-1971 of the Central Government under Section 11(3) of the Act affirming, in turn, that dated, 15-10-1969 of the Director of Emergency Risks Insurance Schemes determining the balance of the premia payable at Rs. 47,59,109.00.
(2.) The scheme under the Act which came into force on 1-1-1963 lapsed with the termination of the emergency on 10-1-1968. The legislation was to meet the need to provide for expeditious rehabilitation of industrial undertakings in the event of damage in times of war and the Central Government, accordingly, undertook to insure the factories against such war risks and to indemnify the owners in respect of loss and damage caused by enemy action, so that, there might be an expeditious industrial rehabilitation so vital in national interests. Section 3 of the Act envisages the promulgation and effectuation of the Emergency Risks (Factories) Insurance Scheme, mandating a compulsory insurance of factories against war-risks and the payment of premia in terms of and in accordance with the scheme.
(3.) The Director of the Emergency Risks Insurance Scheme casued a show-cause notice, dated 28-11-1968 to be issued to the appellant calling upon it as to why the balance of premia for the relevant periods should not be fixed at Rs. 47,59,109.00/- as against a much smaller sum indicated by appellant as its liability in that behalf. The cause shown by the appellant by its representation, dated, 24-1-1969 against the proposed addition not having commended itself to the Director, the latter, by his order dated, 15-10-1969 overruling objections of the appellant, determined that a sum of Rs. 47,59,109.00/- was due and recoverable from the appellant by way of balance of premia. Against this determination, appellant carried up, under Section 11(3) of the Act, an appeal before the Central Government. The Central Government, after affording an opportunity to the appellant of being heard and on a consideration of the merits, dismissed the appeal by its order dated, 12-5-1971. The legality of the proceedings so culminating in the said appellate order was assailed in the Writ Petition before the High Court.;