M.N. Roy, J. - (1.) This appeal is directed against the judgment and order dated 8th January, 1987, passed in Civil Revision case No. 1612(W) of 1978 by Suhas Chandra Sen, J. and whereby the rule which was obtained by  M/s. Burn Standard Company Ltd. and another (hereinafter referred to as the said petitioners), against Union of India, the respondent appellants in this appeal (hereinafter referred to as the said appellants), was made absolute and it was directed that a writ of or writ in nature of mandamus do issue, commanding the said appellants to act and proceed in accordance with law and/or to cancel, rescind and withdraw the impugned trade notice dated 31st August, 1977, the show cause notices dated 20/22nd September, 1977 and 3rd December, 1977 and the demand notices dated 24th November, 1977, 9th December, 1977 and 30th November, 1977 and so also a notice dated 8/10th March, 1978 and further to forbear from giving any effect or further effect or continue to give effect to the notices as mentioned hereinbefore or to act further or to continue to act on the basis thereof or in pursuance thereto.
(2.) The respondent No. 1, was initially comprised of M/s. Burn & Company Limited and Indian Standard Wagon Co. Ltd. prior to their nationalisation by the Central Government in pursuance of an Ordinance No. 8 of 1976, which has since been replaced by Act 97 of 1976 and those constituted companies were public limited companies. It has been stated that by and under the said Act No. 97 of 1976, the undertakings of the two companies as mentioned above, and their right, title and interest in relation to their respective undertakings stood transferred to and vested absolutely in the Central Government on and from the appointed date which was 1st April, 1975.
(3.) It has been stated that the said respondent No. 1, at all material times was and still is one of the leading engineering concerns in India having its factory at various places and the said respondents have stated that wagon building is one of their main business activities and as a matter of fact, they mostly cater to demand from the Central Government insofar as the manufacturing of wagons are concerned. It was their case that such manufacturing of wagons has been continuing for some time and in phased contracts entered into and between them and the Railway Board from time to time. It has also been indicated that different wagon building programmes were and/or are taken in hand by the said respondent as per the placement of orders for the required number of wagons by the Railway Board and those wagons are manufactured as per the specification and expressly under the terms and conditions entered into by and between them and Railway Board and it was also their case that although the said respondents are manufacturing the entire wagons, the Railway Board invariably and following the usual practice supplies certain amounts of finished components to be fitted on the wagons, which are required to the manufacture and at all material times the said finished components were termed as "free supply items" and the said respondents in terms of the agreement were and are obliged to fit in and/or use the said "free supply items" in the completed wagons as manufactured by them in terms of the orders of the Railway Board.;