Arijit Pasayat, J. - (1.) These appeals arise out of a common judgment of the Allahabad High Court dismissing the two appeals, one by U.P. State Sugar Corporation Ltd. and other by Raja Buland Sugar Co. Ltd. and others The cross appeals were filed against the judgment and decree passed by the trial Court on 18.8.1988 partly decreeing the suit in respect of certain properties involved in the suit while dismissing the suit in relation to other properties.
(2.) The defendants-Corporation filed First Appeal No. 265/1989 against part of the decree whereas First Appeal 949/1988 was filed by the plaintiffs-Raza Buland Sugar Co. Ltd. whereby part of the decree dismissing the suit was challenged.
(3.) The factual background in a nutshell is as follows : Prior to 1946 there were two independent companies namely, Raja Sugar Company and Buland Sugar Company. M/s. Govan Bros, were its Managing Agents. In the year 1946 the Dalmias purchased it from M/s. Govan Brothers. Both the companies were amalgamated in the year 1957 and one company under the name of Raza Buland Sugar Company Ltd. came into existence. In the year 1968 Jhunjhunwalas purchased the company from Dalmias. On coming into force of the U.P. Sugar Undertakings Acquisition Ordinance (in short the 'Ordinance') later on became Act No. 33 of 1971 (hereinafter referred to as the 'Act'). The plaintiffs filed a Writ Petition No. 4130 of 1971 challenging the validity of the Ordinance. The High Court stayed the operation of the Ordinance on 5.7.1971 and also directed restoration of the status quo ante on 2.7.1971. In the year 1978, the Sugar Undertakings (Taking Over of Management) Act, 1978 (in short the 'Taking Over Act') came into force. It provided for appointment of Authorized Controller to manage the sugar factories. The possession of the undertakings was taken over by the Authorized Controller on 30th October, 1979. The Central Government rescinded the aforesaid order w.e.f. 1.11.1979. The Authorized Controller delivered the possession of the undertaking to the Collector, Rampur on 2.11.1979. The High Court dismissed the writ petition filed by the plaintiffs on 3.5.1979. Suit No. 28 of 1979 was filed by the plaintiffs against the defendants i.e. (Corporation and others) for permanent injunction restraining them from interfering in any manner in the possession and management of affairs and business and assets of the registered office of the company as detailed in para 10 of the plaint and further sought declaration that the properties mentioned in para 10 of the plaint are outside the purview of the Ordinance and the Act and defendants Nos. 4 and 5 were not entitled to the possession of those properties. Plaintiffs during the pendency of the suit got the plaint amended by adding the relief that if the Court comes to the conclusion that the defendants were in possession of all or any of the items mentioned in para 10 of the plaint, a decree for possession be passed in favour of the plaintiffs. The suit was based on the allegations that the properties mentioned in para 10 of the plaint are not covered by the definition of 'scheduled undertaking' as defined in clause (h) of Section 2 of the Act. It was alleged that the plaintiffs were entitled to take possession of such property which is not covered by the expression 'scheduled undertaking'. The stand of the defendants in the written statement was that all the properties mentioned in para 10 of the plaint are covered by the expression 'scheduled undertaking'. It took the further plea that the suit was barred by res judicata as the writ petition filed by the plaintiffs was dismissed by the High Court and the suit was barred by Section 34 of the Specific Relief Act, 1963 (in short the 'Specific Relief Act') as the plaintiffs have not sought for other consequential relief in the suit. The trial Court framed various issues. It held that the properties mentioned at Item Nos. 3 and 6 in para 10 are not covered by the expression 'scheduled undertaking' and therefore passed the decree for possession of such properties against the defendants. It was held that the suit was not barred by Section 34 of the Specific Relief Act and the suit was accordingly decreed partly. As noted above, both the plaintiffs and defendants filed appeals. The High Court was of the view that the only question was whether the properties in dispute as specified in para 10 of the plaint stand vested in the Corporation in accordance with Sections 3 and 2(h) of the Act. The High Court partly allowed both the appeals. It was held that the suit in respect of Maize colony referred to in para 10 of the plaint as Item No. 3 stood dismissed. The first appeal was partly allowed in respect of shops at Nainital Road along with land appurtenant to it as referred to in para 10 of the plaint. The suit was decreed for possession in respect of properties mentioned at Item Nos. 4 and 6 in para 10 of the plaint. In both the appeals the issues relates to the question as to which items in para 10 of the plaint are covered by the Act. For appreciating that question para 10 needs to be quoted in full : "10. That M/s. Raza Buland Sugar Co. Ltd. have following assets and business other than the Sugar Undertaking : 1. Jai Bhawan and land appurtenant thereto. 2. Hari Bhawan and land appurtenant thereto. 3. Maize Colony including quarters and land appurtenant thereto. 4. Shops at Nainital Road along with land of playgrounds. 5. Buland Factory building including godowns residential accommodation and carbide buildings and lands appurtenant thereto. 6. Nursery land, equipments and livestock, crops etc. 7. Electrical installations, typewriter, furniture, fittings calculations and other things belonging to the registered office of the company as per the balance sheet of the company of the year 1978. 8. The managerial set up of Plaintiff No. 1 and its subsidiary company including its Secretary's residence Bungalow No. 2 and Administrative Manager's residence No. R.A.-1, situated near the Central Office, Civil Lines, Rampur and also the offices of Director, Secretary and Administrative Manager and share department situated in the Central Office, Civil Lines, Rampur. 9. Residential quarters along with land appurtenant thereto situated in Govan. Colony, Rampur rented to outsiders who are not connected with the scheduled undertaking. 10. Light railway land and equipment like locomotives, trollies, rails and other material which are in the use of sugar undertaking since a long time. 11. Temple land including construction thereof situated on Nainital Road, Civil Lines, Rampur. 12. Bagar Building land situated at Civil Lines, Rampur." ;