V.K.BALI, J. - (1.) THIS order will be dispose of Letters Patent Appeals Nos. 447 and 448 of 1988 and Civil Writ Petition No. 18608 of 1991. M/s. Hindustan Vegetable Oils Corporation Limited, a Government company within the meaning of section 6 (2) of the Amritsar Oil Works (Acquisition and Transfer of Undertakings) Act, 1982, the respondents herein, successfully challenged notice issued by the Assistant Collector, 1st Grade and Excise and Taxation Officer, Amritsar, requiring it to appear before him with various amounts for various assessment years in pursuance to the demand notices and inn the event of non-compliance, action of issuance of warrants of arrest of attachment for the purpose of recovery of amounts, vide two separate writ petitions bearing numbers 730 and 1293 of 1886. Both these petitions were decided and accordingly allowed by a common judgment rendered on that behalf by the learned single Judge. The State of Punjab, vide two separate appeals, seeks setting aside of the order passed by the learned single Judge in the present appeals filed by it under clause X of the Letters Patent Act.
(2.) THE brief fact of the case reveal that Amritsar Sugar Mills Company Limited had a unit for the purpose of manufacture of vegetable oil products. The said oil products is situated at Amritsar. The Central Government in exercise of the powers conferred under sub-section (1) of section 18-AA of the Industries (Development and Regulation) Act, 1951, took over the management of the Amritsar Oil Works, vide notification dated September 13, 1974. The Amritsar Oil Works was a dealer under the Punjab General Sales Tax Act, 1948 and was being assessed as such. For the assessment year 1976-77, sales tax liability to the tune of Rs. 6,49,377 was created and a demand notice in that respect was issued. Similarly for the assessment years 1977-78 and 1978-79, sales tax liabilities to the tune of Rs. 7,62,966 and Rs. 12,53,861 respectively was created and separate demand notices were issued. A total liability to the tune of Rs. 20,16,827 for all the aforesaid assessment years was created. It is the aforesaid notices and non-compliance of the demands contained therein which was to result in warrants of attachment and recovery as arrears of land revenue that were challenged in the Civil Writ Petitions Nos. 730 and 1293 of 1986. The recovery summons requiring they petitioner to appear before the Assistant Collector, 1st Grade and Excise and Taxation Officer on March 4, 1986, with an amount of Rs. 4,22,580, i. e. , Rs. 1,30. 680 for the assessment year 1969-70 and Rs. 2,91,900 for the assessment year 1970-71 that were challenged in the Civil Writ Petition No. 1293 of 1986.
(3.) ON October 19, 1982, the Amritsar Oil Works (Acquisition and Transfer of Undertakings) Act, 1982, was enacted by the Parliament. In accordance with section 3 of the Act aforesaid, the Amritsar Oil Works and right, title and interest of Amritsar Sugar Mills Company in relation to the Amritsar Oil Works stood transferred and vested in the Central Government on the appointed day. Section 2 defines "amritsar Oil Works" as an undertaking of the Amritsar Sugar Mills Company engaged in the manufacture, production and marketing of vanaspati and refined edible oils. As per section 2 (b) Amritsar Sugar Mills Company Amritsar Sugar Mills Company Limited. Under section 2 (c) appointed day meant the dated of commencement of the said Act. Under section 2 (i) the Government company meant the Government in which the Amritsar Oil Works were directed to vest under sub-section (1) of section 5-A. Notification was issued by the Central Government under section 5 (1) of the Act on April 23, 1984 and thus, it is from the said date the property of the Amritsar Oil Works was to vest in the Government Company which was the petitioner-company. The question of payment of the liabilities of the Amritsar Sugar Mills Company which had been incurred before the appointed day, viz. , October 19, 1982, was dealt with under section 6 of the said Act. The case of the petitioner as made out in the writ is that except for the liabilities specified in sub-section (2) of section 6 of the Act, the Central Government company is not liable for any liability which might have been incurred or accrued prior to October 19, 1982, which was the appointed day, for the purpose of fixing liability. That being so, the only liability which was to be borne by the petitioner-company was the liability in respect of the amount advanced after the date of taking over of the Amritsar Sugar Mills Company, the taking over date being September 13, 1974. It was further pleaded by the petitioner that the various notice for recovery impugned in the writ petition were illegal wholly unjustified. In order to appreciate the controversy, it shall be necessary to notice some of the provisions of the Act which have a direct bearing in adjudicating the dispute involved in the case : Section 6, 7, 14, 16, 17 and 21 read as follows : " Section 6. The Amritsar Sugar Mills Company to be liable for certain prior liabilities.- (1) Every liability, other than the liability specified under sub-section (2), of the Amritsar Sugar Mills Company in relation to the Amritsar Oil Works in respect of any period to the appointed day shall be the liability of the Amritsar Sugar Mills Company and shall be enforceable against it and not against the Central Government or where the Amritsar Oil Works vest in a Government company, against the Government company. (2) Any liability in respect of the amount advanced after the date of taking over of the Amritsar Sugar Mills Company in relation to the Amritsar Oil Works together with interest due thereon and the wages, salaries and other dues of persons employed in the Amritsar Oil Works in respect of any period after the date of taking over shall, on and from the appointed day, be the liability of the Central Government and shall be discharged by the Central Government or, for and on behalf of that Government, by the Government company as and when repayment of such amount becomes due or as and when such wages, salaries and other dues become due and payable. (3) For the removal of doubts, it is hereby declared that - (a) save as otherwise expressly provided in this section or in any other section of this Act, no liability, other than the liability specified in sub-section (2), of the Amritsar Sugar Mills Company in relation to the Amritsar Oil Works in respect of a period to the appointed day shall be enforceable against the Central Government or the Government company, as the case may be : (b) no award, decree or order of any court, Tribunal or other authority in relation to the Amritsar Oil Works, passed after the appointed day, in respect of any matter, claim or dispute in relation to any matter, not being a matter referred to in sub-section (2), which arose before the date shall be enforceable against the Central Government or the Government company, as the case may be; (c) no liability incurred by the Amritsar Sugar Mills Company before the appointed day, for the contravention, in relation to the Amritsar Oil Works, of any provision of law for the time being in force, shall be enforceable against the Central Government or the Government company, as the case may be. ;