B. Mukerji, J. - (1.) This is an appeal against the decision of a learned single Judge disposing of a writ petition filed by the appellants by which a prayer for the issue of a writ in the nature of certiorari was prayed for to quash an order made by the second respondent on the 25th June, 1956. Further there was a prayer for the issue of a writ of mandamus directing the Land Reforms Commissioner, namely the first respondent, to withdraw his order dated the 8th of August 1955, No. 570 (2) CALB. 34-B (75) 55, whereby the Land Reforms Commissioner approved of the proposal to put for sale the movable and immovable properties of the petitioners as also for the withdrawal of his order dated the 2nd July, 1956, whereby the auction sale was confirmed. A writ of certiorari was prayed for quashing the auction proceedings and the sale in general, and a writ in the nature of mandamus was sought to direct the District Magistrate and Collector of Deoria to restore the petitioner-appellant to the possession of moveable and immoveable properties which had been made the subject of the sale proceedings. The other prayers need not be referred to for our purposes.
(2.) In order to appreciate the scope of the petition out of which this appeal has arisen and further to appreciate the scope of the prayers noticed above, it is necessary to state a few facts. The appellants carried on the business of manufacture and sale of sugar. The first appellant, namely the Padrauna Raj Krishna Sugar Works Limited got into some difficulties with the result that it became necessary for the Government under the powers it had under the law to appoint a Controller for the management and conduct of the business of the Padrauna Raj Krishna Sugar Works Limited. On the 14th July, 1954, the District Magistrate of Deoria was appointed the authorised Controller under the Essential Supplies (Temporary) Powers Act. On October 28, 1954, a change was made in the authorised Controller for the District Magistrate was relieved of the responsibility of being an authorised Controller and in his place the Cane Commissioner was appointed the authorised Controller.
(3.) One of the primary reasons why an authorised Controller was appointed was That the Padrauna Raj Krishna Sugar Works Limited to be hereafter referred to as the Sugar Company) had large liabilities in respect of cess and price of cane outstanding for the period 1954-55. The outstanding amount of the cess was about Rs. 5 lacs and the outstanding in regard to cane price was about 2 lacs. The Sugar Company had also arrears in respect of Income Tax to the extent of Rs. 81,821-2-0 to pay; this arrear of Income Tax related to a period prior to the appointment of the authorised Controller. The total amount realisable in respect of the outstandings of the Sugar Company came to Rs. 8,38,176-13-0. This amount, it may be mentioned here, was recoverable as arrears of land revenue. It may further be mentioned that there was no dispute in regard to either the total amount recoverable or the recoverability of that amount as arrears of land revenue.;