Ajit Kumar Sengupta, J. - (1.) In this application under Article 226 of the Constitution of India the petitioners have challenged the validity of the action of Jute Corporation of India Ltd. cancelling a contract for supply of 33,300 Quintals of raw jute to the Petitioner No. 1.
(2.) The Petitioner No. 1 is Nellimarla Jute Mills Co. Lid. (hereinafter referred to as "Nellimarla"). The Petitioner No. 2 is a Shareholder and Director of the Petitioner No. 1. Nellimarla is engaged in the business of manufacturing jute goods Its jute mill is situated it Village Nellimarla in the State of Andhra Pradesh. This jute mill is said to be one of the largest of its kind in the country and provides employment for about 7,000 workers For its manufacturing activity Nellimarla requires huge quantities of raw jute.
(3.) The Jute Corporation of India Ltd is the Respondent No.1 in this proceeding (hereinafter referred to as "JCI"). JCI is a Government Company. The nature of the functions of JCI will be apparent from the following objects specified in the Objects clause of its Memorandum of Association:- "(a) To generally implement such special arrangement for import for internal trade or distribution of jute and Mestas, in public interest. (b) To organise and undertake purchase, sale and transport of Jute and Mestas (imported into or grown in India) including such allied duties as may be entrusted to the Company for such purpose by the Central Government from time to time in India or anywhere else in the world.";