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State Farm Corporation India Limited And Another v. State Of Uttar Pradesh And Others

State Farm Corporation India Limited And Another v. State Of Uttar Pradesh And Others

(High Court Of Judicature At Allahabad, Lucknow Bench)

Civil Miscellaneous Application No. 103414 of 2014 and Miscellaneous Bench No. 491 of 1998 | 25-01-2018

Sudhir Agarwal, J.)

1. Heard Sri Dipak Seth, Advocate, for petitioners; and, Sri Ramesh Kumar Singh, Additional Advocate General, assisted by Sri H.P. Srivastava, learned Additional Chief Standing Counsel, for respondents.

2. This is an application filed by National Seeds Corporation Limited, a Government of India Undertaking, through its Advocate, Sri Dipak Seth, stating that "State Farm Corporation India Limited", i.e., petitioner-1 has amalgamated with "National Seeds Corporation Limited" and new Company is now in the name of "National Seeds Corporation Limited". The aforesaid amalgamation has been approved by Government of India pursuant to Sections 391-394 read with Section 396 and other provisions of Companies Act, 1956 (hereinafter referred to as "Act, 1956"). Copy of the order of Amalgamation has also been filed as Annexure-1 to the affidavit accompanying application. It is then requested that since new Company, which has come into existence, is "National Seeds Corporation Limited", therefore, money which was to be released to petitioner-1, should be released in the name of "National Seeds Corporation Limited", or, in the alternative, description of petitioners in writ petition be modified and applicant be made petitioner-1 in place of "State Farm Corporation India Limited" which has already merged with "National Seeds Corporation Limited".

3. Though this application has been opposed by Sri Ramesh Kumar Singh, Additional Advocate General, assisted by Sri H.P. Srivastava, learned Additional Chief Standing Counsel, on behalf of respondents-State of U.P. and others, but nothing has been placed on record to dispute amalgamation of "State Farm Corporation India Limited" with the applicant, "National Seeds Corporation Limited".

4. The background facts are that Writ Petition (M/B) No. 491 of 1998 was filed by two petitioners describing themselves as under:

(1) State Farm Corporation India Ltd.

Farm Bhawan,

14-15, Nehru Place,

New Delhi

though its Managing Director

(2) Director

Central State Farm

Bahraich.

5. Petitioner-2 admittedly was an Officer of petitioner-1. The dispute relates to 9622.50 acres of forest land in respect whereto State demanded lease rent/damages from petitioners and orders passed in this regard by Special Secretary, U.P. Government on 03.02.1998 and that of the Forest Officer, Nishan Gara Range, Bahraich were challenged as Annexures-1 and 2 to this writ petition.

6. While entertaining this writ petition, on 19.02.1998 this Court granted an interim order for payment of Rs. 25,00,000/- by petitioners in this Court and the said amount was deposited. Writ petition was finally disposed of vide judgment dated 08.07.2011 which reads as under:

"This order shall dispose of connected Writ Petition No.11094(MB) of 2010 (Katarnia Ghat Goundation v. State of U.P. & ors.) and Writ Petition No. 491(MB) of 1998 ( State Farm Corporation India Ltd. v. State of U.P. & ors). We have heard Sri Dhruv Mathur and Ms. Vanshaja Shukla, learned counsel for the Petitioner, and Mr. I.H. Farooqui, Addl. Solicitor General of India; Sri D.K. Upadhyay, learned Chief Standing Counsel, and Sri Deepak Seth, learned Advocate, and perused the record.

A joint affidavit sworn by Sri Vinod Kumar Gaur, Chairman & Managing Director of State Farm Corporation of India on the instructions of Secretary (Agriculture) Government of India and by Sri Bijoy Kumar Patnaik, Principal Chief Conservator of Forest, Wild Life, Government of U.P., Lucknow, on the instructions of Principal Secretary, Forest, Government of U.P. filed in Court, is taken on record.

The parties have agreed on the following points:

"A. That the State Government shall get an Inventory prepared and valued in respect of all the assets at the Girjapuri Farm of the State Farm Corporation at Bahraich including the Buildings, other Pucca structures and trees etc. from an agency approved by the State Government. The said agency shall prepare the Inventory in presence of the representatives of the State Government as well as the State Farm Corporation.

B. That the State Farm Corporation shall vacate and hand over the entire land along with all fixed assets to the State of U.P. within one month from the date of completion of the work of preparation of Inventory and Valuation of the entire immovable assets including buildings, other pucca structures and trees etc. by an agency approved by the State Government."

According to Secretary (Agriculture), Government of India, some other points that may also need to be clarified are like payment of lease-rent, and adjustment of the lease rent against the amount of Rs.25 Lacs already deposited with the Registry of this Court, as also against the existing assets of Corporation raised from Public Exchequer which are presently worth the value of Rs.1 Crore after deductions of depreciation (although at the time of construction, an amount of Rs.2 Crore was spent). Besides, there are some criminal cases pending against the workers of the Farm which appear to have arisen during the discharge of their official duties.

It need to be noticed that the Officers of the Farm had been discharging public duties and if they are prosecuted for the alleged criminal liabilities originating in such discharge of duties, without carefully considering their culpability, it would be difficult for any public servant to function with complete devotion, and ultimately, the public interests would be made to suffer. Moreover, in order to deal with the controversies like the instant one, we are informed that the Cabinet Secretariat, Government of India, has issued some official memoranda under the directions contained in the judgements of Honble the Apex Court, and one of such judgments is the judgment passed in the case of O.N.G.C., Whereby, in the case of disputes between the Centre and the States or their agencies, the matters are to be referred to the High Power committees/Co-ordination committees of both parties to find out the ways for amicable settlements.

Thus, Agriculture Secretary (Government of India); Principal Secretary (Forest) (Government of India) and the Law Secretary (Government of India) as well as Legal Remembrancer, Government of U.P., shall look into the matters as aforesaid and resolve the disputes.

This exercise shall be undertaken within a period of four months from the date of receiving of a copy of the order.

With the aforesaid directions and observations, this writ petition is disposed of."

7. It is not in dispute that pursuant to judgment dated 08.07.2011 passed by this Court, High Powered Committee examined the matter and directed petitioner-1, State Farm Corporation India Limited, to vacate land and hand over same along with fixed assets to State Government. With respect to lease rent, High Powered Committee requested State Government to re-determine the same and, in the meantime, worked out liability for payment of Rs. 5,02,26,783/-.

8. In furtherance thereof, possession of land in dispute was handed over to State Government on 07.01.2012. Thereafter, petitioners filed Application No. 4877 of 2012 in which an order was passed on 12.02.2014, which reads as under:

"This is an application for withdrawal of money deposited by the petitioner in compliance of orders dated 19.2.1998.

Vide order dated 19.2.1998, this Court provided as under :

"Till then, the parties shall maintain status quo as regards possession, as existing today. It is further provided that the vehicles of the petitioners shall also be allowed to be moved around without any restriction. The benefit of the above order shall be subject to the deposit of a sum of rupees twenty five lacs by the petitioners in this Court within ten days."

Counsel for the petitioner has submitted that in compliance of the above ad interim order dated 19.2.1998, the petitioner has deposited Rs.25,00,000/- before this Court on 28.2.1998 and the same is still lying in deposit with this Court. Thereafter, the instant writ petition along with writ petition Nos. 4436 (M/B) of 2010 and 11094 (M/B) of 2010 was finally disposed of by this Court by a common order dated 8.7.2011. Therefore, interest of justice would suffice, if Rs.25,00,000/-, which has been deposited by the petitioner in compliance of the order dated 19.2.1998, be released in favour of the petitioner.

Learned Standing Counsel does not dispute the aforesaid facts.

Considering the peculiar facts and circumstances of the case, the application is allowed. Registry is directed to release the amount of Rs.25,00,000/-, which has been deposited by the petitioner in compliance of the order dated 19.2.1998, before this Court in favour of the petitioner within a week."

9. Respondents filed Misc. Application No. 99275 of 2014 praying for recall of order dated 12.02.2014 but the said Application was dismissed on 23.02.2015. Therefore order dated 12.02.2014 has already attained finality and money, i.e., Rs. 25,00,000/-, deposited by petitioners has to be released to petitioners-1. Only difference is that petitioner-1, which was admittedly a Central Government Undertaking, has merged with "National Seeds Corporation Limited" on 30.04.2014, therefore, money has to be released to "National Seeds Corporation Limited".

10. Counsel for respondents sought to argue that earlier order was obtained by petitioners without disclosing full facts etc. but we find it difficult to examine this aspect in this application for the reason that order dated 12.02.2014 has already attained finality and respondents cannot be allowed to re-agitate that issue in this application.

11. Looking to the facts discussed above and also considering the fact of amalgamation of petitioner, "State Farm Corporation India Limited" with "National Seeds Corporation Limited" and the factum that Company, which is now in existence, is "National Seeds Corporation Limited", we have no hesitation in observing that name of petitioner-1, after its amalgamation with the applicant-Company should be replaced with the name of new Company, i.e, "National Seeds Corporation Limited" and money deposited with the Court should be released in the name of applicant, "National Seeds Corporation Limited".

12. In the result, application is allowed. Cause title of writ petition is permitted to be amended by making "National Seeds Corporation Limited" as petitioner-1 in place of "State Farm Corporation India Limited". Senior Registrar of this Court is directed to release the money deposited by petitioners, in the name of "National Seeds Corporation Limited", forthwith.

Advocate List
  • For Petitioner : S.C. Misra, Adv., Dipak Seth, Adv., A. Kalra, Adv., B.B. Saxena, Adv., Y. Kesharwani, Adv.
Bench
  • HON'BLE JUSTICE SUDHIR AGARWAL
  • HON'BLE JUSTICE RANG NATH PANDEY, JJ.
Eq Citations
  • 2018 (5) ADJ 181
  • LQ/AllHC/2018/498
Head Note

Incorporation & Amalgamation of Companies — Companies Act, 1956 — Ss. 391-394 and 396 — Amalgamation — Effect of, on pending litigation — Money deposited in Court in pursuance of interim order — Release of — Petitioner-1, a Central Government Undertaking, merged with applicant-Company on 30.4.2014 — Cause title of writ petition permitted to be amended by making applicant-Company as petitioner-1 in place of petitioner-1 — Money deposited by petitioners directed to be released in name of applicant-Company — Companies Act, 1956 — Ss. 391-394 and 396 — Amalgamation