Shamsher Bahadur, J. - (1.) The Petitioner Mohd. Hanif, a Managing Director of the Sugauli Sugar Works (Private) Limited, in the district of Champaran in the State of Bihar; has questioned the validity of the notified order issued by the Government of India in the Ministry of Commerce and Industry on 5th of October, 1962 (Annexure C) taking over the management of the Company under Sec. 18A of the Industries (Development and Regulation) Act, 1951 (hereinafter called the Act).
(2.) The Petitioner, Mohd. Hanif, and his cousin Haji Ashraf Ali are the Managing Directors of the Sugar Works (Private) Limited (hereinafter called the Company), and according to the allegations made in the petition, there have been some differences of opinion between the management and the Cane Commissioner. These allegations, however, do not concern the merits of the question which has to be disposed of in this petition. Being of the opinion that the affairs of the Company were being managed "in a manner highly detrimental to the sugar industry and to public interest" a Committee consisting of Shri Gyan Chandra, Officer on Special Duty, Shri K. Nagaswami Senior Cost Accounts Officer, and Shri Jatinder Prasad, Cane Commissioner, was appointed to make "a full and complete investigation into the affairs and circumstances of the undertaking", under Sec. 15 of the Act which provides that: Where the Central Government is of the opinion that - - (a) * * * * (b) any industrial undertaking is being managed in a manner highly detrimental to the scheduled industry concerned or to public interest; the Central Government may make or cause to be made a full and complete investigation into the circumstances of the case by such person or body of persons as it may appoint for the purpose.
(3.) After the Committee of investigation had taken evidence and collected materials, a report was submitted to the Central Government which, under Sec. 18 -A, if it is of the opinion that "an industrial undertaking in respect of which an investigation has been made under Sec. 15 (whether or not any directions have been issued to the undertaking in pursuance of Sec. 16) is being managed in a manner highly detrimental to the scheduled industry concerned or to public interest," may, by a notified order, "authorise any person or body of persons to take over the management of the whole or any part of the under taking or to exercise in respect of the whole or any part of the undertaking such functions of control as may be specified in the order." In the exercise of powers conferred on the Central Government under Sec. 18A the impugned notified order was made on 5th of October, 1962, wherewith Shri J.P. Goel, Officer on Special Duty was appointed an Authorised Controller to take over the management of the whole of the company for a period or three months. The effect of the order impugned is that the entire management and affairs of the company have been taken over by the Authorised Controller.;