C.S.P.Singh, J. - (1.) The petitioners challenge the order of appointment of the Receiver of their Mills as also the order dated 21-9-1972 (Annexure Rs.16' to the petition) by which the District Magistrate, Moradabad extended the period of appointment for a further period of one year with effect from 26-9-1972 as also an order dated 4-111972 passed by the same Officer (Annerure Rs.20' to the petition) dismissing the objections filed by the petitioners against the appointment of the aforesaid Receiver.
(2.) The facts leading to the present petition may now be shortly stater. Messrs Kundan Sugar Mills own a factory in Amroha in the district of Moradabad. This factory has been leased out to Kundan Sugar Mills (P) Ltd. and Seth Pooran Chand Agarwal is the Managing Director of the lessee company. A Receiver of the Factory was appointed by the District Magistrate, Moradabad for recovery of an amount of Rs. 82,41,071.78 which had fallen in arrears towards cane price, cane purchase tax and provident fund. The aforesaid appointment purported to have been made by virtue of powers conferred under Section 146(1) (i)/182-A (1) (a) of the U.P. Land Revenue Act. The order aforesaid was to remain effective till 31-10-1970. Writ Petition No. 3663 of 1969 was filed in this Court for quashing this order but was dismissed. Thereafter, Special Appeal No. 186 of 1970 was filed, but during the pendency of the appeal, the Collector, Moradabad superseded the order of 8th October 1969 and passed fresh orders for appointment of Receiver. As a result, the Special Appeal became infructuous and thereafter writ petition No. 1243 of 1971 was filed for quashing the order of appointment of Receiver dated 25th September, 1970. Subsequently, the tenure of Receiver was extended to 26-9-72 and this order too was challenged by the petitioners in the aforesaid writ petition. This writ petition was dismissed on 19th May, 1972. The Court, however directed that in as much as the order appointing a Receiver had been made without affording the petitioner an opportunity to show cause against the proposed order, it should be permitted to file objections before the Collector challenging the appointment of the Receiver. The petitioner thereafter filed objections against the order of appointment of the Receiver. Before the objections were disposed of, the District Magistrate, Moradabad passed one of the impugned orders dated 20-9-1972 by which the tenure of the Receiver was extended till 25-9-1973. Subsequently, after hearing the parties, he dismissed the, objection on 4-11-1972.
(3.) Counsel for the petitioners has urged that a Receiver has been functioning in respect of Mills since the year 1969 and that during this period the liabilities instead being wiped out, have increased to a colossal extent, and this being so, the order extending the appointment of the Receiver is unjustified and patently erroneous. There was considerable controversy between the parties as to the exact amount of arrears due at the present moment. Competing figures were given showing the extent of liability as due now. It is not necessary to decide the exact amount of liability qua Government dues. Still outstanding against the company, as it is not denied by the respondents that arrears running into several lacs of rupees still remained due in respect of cane price, cane purchase tax and provident fund dues. In the counter-affidavit of Shri Ram Newas Tewari, who is the Receiver of the Mills, the liability as on 30-6-1972 have been set out in Annexure 'CA-4'. The arrears in respect of sugarcane price and purchase tax are as under:--- JUDGEMENT_44_LAWS(ALL)8_1973.html;