B.C.Mitra, J. - (1.) This is an application for appropriate Writs and Orders directing the Union of India (respondent No. 1) not to give effect to the Metal Corporation of India (Acquisition of Undertaking) Act, 1966, and for orders striking down, cancelling and declaring void the said Act and also for orders prohibiting the Union of India from enforcing and/or giving effect to the Metal Corporation of India (Acquisition of Undertaking) Ordinance, 1965. There is also a prayer for an injunction restraining the Union of India from selling, charging and dealing with the petitioner's undertaking and also the petitioner's properties both movable and immovable including lead and zinc ore and lead and zinc metals and silver smelter of the petitioner.
(2.) In 1944 the petitioner No. 1 (hereinafter referred to as the company) was Incorporated as a public company under the Indian Companies Act, 1913. The company initially commenced its business in 1944 with a share capital of Rs. 35 lacs. The authorised capital of the company at present is Rs. 5 crores divided into 7000, 5 per cent tax free cumulative preference shares of Rupees 100/- each; 1,93,000, 6 per cent tax free redeemable cumulative preference shares of Rs, 100/- each and 30,00,000 ordinary shares of Rs. 10/- each. The paid-up share capital of the company is Rupees 2,46,64,2357-. The petitioner No. 2 is a share-holder of the company and is at present a Director. The petitioner No. 2 claims to make this application for self and for the benefit of all the share-holders of the company.
(3.) The company obtained the lease of 20 Sq. miles of the mining land at Zawar in Rajasthan from the Government of Rajasthan for a term of 20 years with options for two further terms of like period and commenced prospecting. A Geological survey of the area was made and survey reports were prepared. The company had a lead smelter at Tundoo near Dhanbad and started smelting of lead and silver metals. Subsequently the company also installed a zinc smelter at Udaipur, Rajasthan.;