JUDGMENT : U.C. Dhyani, J. By means of present writ petition, the petitioner corporation seeks to issue a writ, order or direction in the nature of mandamus commanding the U.P. Forest Corporation to release 54% of total money alongwith interest in favour of the petitioner corporation as per the Government Order dated 13.02.2004 (Annexure no. 5) and the order dated 11.07.2005 (Annexure no. 6) passed by this Court in Writ Petition no. 248 of 2000 (M/B). 2. In writ petition no. 248 of 2000 (M/B), titled as Dr. M.S. Pal vs. State of U.P. and others, which was filed as a Public Interest Litigation, challenging the order dated 18.012.2000 issued by the third respondent Principal Secretary, Department of Forests, Govt. of Uttar Pradesh, Lucknow, the Division Bench of this Court vide interim order dated 20.12.2000, restrained the Managing Director, Forest Corporation, Uttar Pradesh from withdrawing any amount deposited against the name of Uttar Pradesh Forest Corporation kept in the reserved fund of the Uttar Pradesh Forest Corporation. The above mentioned writ petition was disposed of vide order dated 11.07.2005 in view of the Government Orders which have been mentioned in the selfsame order. 3. According to the petitioner corporation, the respondents be directed to pay the entire amount of money due to the petitioner pursuant to the order dated 11.07.2005 passed by Hon’ble Division Bench of this Court and the Government Orders dated 13.02.2004 and 28.07.2004 in the ratio of 46:54, i.e., 54%, to the petitioner Uttaranchal Forest Development Corporation. 4. After the reorganization of the State of Uttar Pradesh, w.e.f. 09.11.2000, bifurcation of various government companies and statutory corporations was on the anvil. Section 47(4) of the Uttar Pradesh Reorganisation Act, 2000 (hereinafter referred to as ‘the Act’) deals with the apportionment of the assets of the statutory corporation and government companies between the State of U.P. and State of Uttaranchal. 5. Thus, according to the petitioner, the assets and liabilities of the existing body corporate, as on appointed day, are liable to be divided between the State of U.P. and State of Uttaranchal. The status of Government of U.P., after the appointed day, has been reduced to that of a custodian, in respect of the assets and properties of the various government companies and statutory corporations and it has to perform the duty of a Trust. The status of Government of U.P., after the appointed day, has been reduced to that of a custodian, in respect of the assets and properties of the various government companies and statutory corporations and it has to perform the duty of a Trust. Section 67(2) of the Act gives overriding effect to the directions issued by the Central Government. 6. It is pointed out by learned counsel for the petitioner that Uttaranchal Forest Development Corporation came into being on 31.03.2001 and became functional from 01.04.2001. 7. Learned counsel for the petitioner, therefore, prays that sub-clause (4) of the Notification dated 13.02.2004 may kindly be enforced through present writ petition. 8. According to learned counsel for the petitioner, in the balance sheet of U.P. Forest Corporation (year ending 31.03.2001), a sum of Rs. 425.11 crores was shown as reserved and surplus, of which the petitioner corporation is entitled to 54% as per Central Government Notification. 9. The respondent Corporation has filed counter affidavit. In para 9 of the counter affidavit, it has been averred that the Central Government, vide order dated 28.07.2004, directed status quo regarding sub-judice liabilities of the erstwhile Uttar Pradesh Forest Corporation, therefore, status quo with regard to the assets from which these sub-judice liabilities are to be met shall also have to be maintained. The liability of income tax and sales tax cannot be shifted because Uttar Pradesh Forest Corporation is still the ‘assessee’ and both the present day Forest Corporations are not the successor Corporations of the erstwhile Uttar Pradesh Forest Corporation as per the taxation laws. The erstwhile Uttar Pradesh Forest Corporation has not been dissolved/repealed and Uttaranchal Forest Development Corporation is new creation, being created by the Uttar Pradesh Forest Corporation (Uttaranchal Amendment) Act 2001 (Uttaranchal Act no. 7 of 2001). Therefore, for sharing the tax liability, the Uttaranchal Forest Development Corporation has to implead itself in all cases of income tax. 10. In para 10 of the counter affidavit, it has been stated that several meetings took place between the two States for implementing the orders of Govt. of India. The last meeting was held on 16.02.2005, in which it was decided that Uttaranchal Forest Development Corporation would obtain the consent of Uttarakhand Government on agreed points and will intimate to Forest Department of Uttar Pradesh accordingly. of India. The last meeting was held on 16.02.2005, in which it was decided that Uttaranchal Forest Development Corporation would obtain the consent of Uttarakhand Government on agreed points and will intimate to Forest Department of Uttar Pradesh accordingly. On receiving the consent of the Uttarakhand Government, the Forest Department would seek approval from the Government of Uttar Pradesh and thereafter when approval/consent is received from both the State Governments, the successor corporations of both the States shall complete the formalities of division of assets/liabilities and of personnel/posts, as early as possible. 11. As per para 11 of the counter affidavit, the consent of Uttarakhand Government is still awaited on the points agreed upon in the meeting dated 16.02.2005 and, therefore, the matter is pending at the end of Uttaranchal Forest Development Corporation. In para 12 of the counter affidavit of the respondent corporation it has been averred that since an agreement/consensus has reached between the two Forest Corporations as recorded in the minutes of the meeting dated 16.02.2005, it was obligatory on the part of the Uttaranchal Forest Development Corporation and Uttaranchal Forest Department to have informed the Forest department. According to the respondent corporation, since the petitioner corporation has directly moved to the Hon’ble Court for seeking a mandamus for release of money as per apportionment, present writ petition is not maintainable. 12. Further, Managing Directors of the Forest Corporations of the successor States again held a meeting on 10.04.2006, minutes of which meeting were forwarded to the respondent corporation, in which it was agreed that further action as regard the apportionment of assets and liabilities would be taken by the Government of U.P. after receiving consent in this behalf from the Uttarakhand Government. 13. In the supplementary counter affidavit, the respondent corporation stated that the said corporation has incurred tax liability of Rs. 322.74 crores upto the Assessment Year 2001-02, out of which the respondent corporation has already paid a sum of Rs. 179.67 crores (towards tax liability). According to learned counsel for the respondent corporation, the petitioner corporation is liable to apportion tax liability also. 14. This Court deems it necessary to reproduce relevant Government Order here-in-below for convenience: ““MINISTRY OF HOME AFFAIRS ORDER New Delhi, the 13th February, 2004 S.O. 195(E). 179.67 crores (towards tax liability). According to learned counsel for the respondent corporation, the petitioner corporation is liable to apportion tax liability also. 14. This Court deems it necessary to reproduce relevant Government Order here-in-below for convenience: ““MINISTRY OF HOME AFFAIRS ORDER New Delhi, the 13th February, 2004 S.O. 195(E). –WHEREAS consequent upon the creation of Uttaranchal w.e.f. 09.11.2000, the Uttar Pradesh Forest Corporation continued to function in the Successor States of Uttar Pradesh and Uttaranchal till 01.04.2001. ………………….. And whereas having failed to reach an amicable settlement between them, Governments of Uttaranchal and Uttar Pradesh have referred the matter to the Central Government for issuing directions for apportionment of assets and liabilities erstwhile Uttar Pradesh Forest Corporation; …………………… …………………… II. Order:- (i) Assets: (a) Fixed assets (land and buildings etc.) of the erstwhile Corporation situated in either Uttar Pradesh or Uttaranchal will pass on to the Successor Corporation of the State in which they are located. (b) Movable assets and stores of the field units shall be transferred on the basis of location. Stores, furniture and vehicles of the Head Office shall be divided according to the year of purchase in the ratio 46:54 between the successor Corporation of Uttar Pradesh and Uttaranchal. (ii) Liabilities: (a) Asset specific liability of the erstwhile Corporation shall pass on to the Successor Corporation of the Successor State to which the asset has been allocated. (b) Liability of the erstwhile Corporation that cannot be assigned to any asset shall be apportioned between the two Corporations of Uttar Pradesh and Uttaranchal in the ratio of 46:54. (iii) Employees: Employees of the erstwhile Corporation shall be allocated to Forest Corporation of the Successor States of Uttar Pradesh and Uttaranchal in the manner already agreed upon between the States. (iv) Reserve and surplus: The reserve and surplus as reflected in the balance sheet of erstwhile Corporation for the year ended 31st March 2001 will be apportioned between the successor Corporation of Uttar Pradesh and Uttaranchal in the ratio 46:54.” 15. Thereafter, the Central Government passed another order dated 28th July, 2004, providing as follows: “2. The representation of Government of Uttar Pradesh and the views of the Government of Uttaranchal thereon have been carefully considered and this Ministry have come to the conclusion that MHA Order no. 13012/1/2002-SR dated 13.02.2004 does not warrant any change/modification. 3. Thereafter, the Central Government passed another order dated 28th July, 2004, providing as follows: “2. The representation of Government of Uttar Pradesh and the views of the Government of Uttaranchal thereon have been carefully considered and this Ministry have come to the conclusion that MHA Order no. 13012/1/2002-SR dated 13.02.2004 does not warrant any change/modification. 3. With regard to division of liabilities of the erstwhile Uttar Pradesh Forest Corporation, which are sub-judice, it is clarified that Order/directions of the Court as and when they are passed, will have over-riding effect on the orders of MHA. Therefore, the status quo will have to be maintained until the Court pronounces Orders in such matter. 4. As regards division of liabilities that are in dispute between the State Governments of Uttar Pradesh and Uttaranchal, MHA Order No. 13012/1/2002-SR dated 13.2.2004 settles the matter. 5. MHA Order No. 13012/1/2002-SR dated 13.2.2004 may be implemented without any further loss of time.” 16. Sub-section (4) of Section 42 of the U.P. Reorganisation Act, 2000, reads as under: PART VI. APPORTIONMENT OF ASSETS AND LIABILITIES 42. Application of Part. – (1) the provisions of this Part shall apply in relation to the apportionment of the assets and liabilities of the existing State of Uttar Pradesh immediately before the appointed day. ………………. (4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual agreement, failing which by order by the Central Government on the advice of the Comptroller and Auditor-General of India.” (Emphasis supplied) 17. Since the dispute regarding the amount of financial assets and liabilities could not be settled through mutual agreement, therefore, Central Government passed the above mentioned orders. 18. It will also be useful to reproduce Section 67 of the Act for convenience. The same reads as under: “67. Since the dispute regarding the amount of financial assets and liabilities could not be settled through mutual agreement, therefore, Central Government passed the above mentioned orders. 18. It will also be useful to reproduce Section 67 of the Act for convenience. The same reads as under: “67. General provision as to statutory Corporations.- (1) Save as otherwise expressly provided by the foregoing provisions of this Part, where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Uttar Pradesh or any part thereof has, by virtue of the provisions of Part II become an inter-State body corporate, then, the body corporate shall, on and from the appointed day, continue to function and operate in those areas in respect of which it was functioning and operating immediately before that day, subject to such directions as may from time to time be issued by the Central Government, until other provision is made by law in respect of the said body corporate. (2) Any directions issued by the Central Government under sub-section (1) in respect of any such body corporate shall include a direction that any law by which the said body corporate is governed shall, in its application to that body corporate, have effect subject to such exceptions and modifications as may be specified in the direction.” 19. At this stage of dictation, it will be appropriate to quote Para 8 of the counter affidavit of respondent corporation here-in-below for convenience: “The U.P. Government sent a representation dated 28.04.2004 on behalf of U.P. Forest Corporation to the Government of India in which it was also requested that there is huge liability of disputed and sub-judice taxes to the tune of approximately Rs.1226.81 crores of income tax and Rs.29.27 crores of sales tax and it should be apportioned in the same ratio in which assets and other liabilities are to be apportioned. On this representation the Government of India passed order dated 28.07.2004 that order dated 13.02.2004 needs no modification. However, with regard to division of liabilities of erstwhile Uttar Pradesh Forest Corporation, which are sub-judice, it was clarified that orders/directions of the court, as and when they are passed, will have overriding effects on the orders of the Central Government. The order further stated that the status quo will have to be maintained until the court pronounces orders in such matters.” 20. The order further stated that the status quo will have to be maintained until the court pronounces orders in such matters.” 20. It is pointed out that learned Income Tax Appellate Tribunal vide order dated 16.01.2009 granted exemption to the U.P. Forest Corporation under Section 12AA of the Income Tax Act, 1961, which was affirmed by Hon’ble Allahabad High Court vide order dated 12.05.2010. Against said order, an SLP was filed by the Commissioner of Income Tax, Lucknow, before the Hon’ble Supreme Court, which was dismissed vide order dated 12.05.2011 and the order of the Tribunal was affirmed. On 18.04.2011, Commissioner of Income Tax, Lucknow has granted certificate of exemption under Section 12AA in compliance of the order of learned Income Tax Appellate Tribunal, Lucknow Bench, Lucknow, passed on 16.01.2009 in I.T.A. no. 512 of 2007. The said corporation was registered as ‘AOP (Trust)’ in the rolls of the income tax department. The said registration of the AOP (Trust) under Section 12AA of the Income Tax Act is being granted by the final decision of the Hon’ble Supreme Court. After the decision of the Hon’ble Supreme Court of India, the Commissioner of Income Tax, Lucknow vide order dated 17.12.2012, passed the following order. Relevant portion of the same reads as under: “3. In view of the above facts, it was requested that the Registration u/s 12A be granted w.e.f. 25.11.1974, i.e., the day of creation of the A.O.P. (Trust). 4. The application of the assessee has been considered, it is seen that delay in filing application for registration u/s 12A was condoned by Hon’ble ITAT and this order was subsequently upheld by Hon’ble High Court and Hon’ble Supreme Court. The order granting Registration dated 18.04.2001, therefore, needs to be rectified. Accordingly, the Registration u/s 12A of the I.T. Act is allowed from 25.11.1974, the date of creation of the AOP (Trust) by an enactment i.e. U.P. Forest Corporation Act.” 21. The necessary consequence, therefore, would be that income of the AOP (Trust) is exempted from the income tax liability. Now, the only income which is assessable to tax after the exemption certificate under Section 12AA of the Income Tax was granted, is only the interest accrued on the FDR of the AOP (Trust). The necessary consequence, therefore, would be that income of the AOP (Trust) is exempted from the income tax liability. Now, the only income which is assessable to tax after the exemption certificate under Section 12AA of the Income Tax was granted, is only the interest accrued on the FDR of the AOP (Trust). Clause (iv) of Notification dated 13.02.2004 provides that the reserve and surplus as reflected in the balance sheet of erstwhile corporation for the year ended 31.03.2001 will be apportioned between the successor corporation of Uttar Pradesh and Uttaranchal in ratio of 46:54, and it cannot be said that the interest accrued on the FDR of the AOP (Trust) is liability, which should be apportioned among the successor corporations of two States. 22. In letter dated 17.11.2011, written by the Managing Director of U.P. Forest Corporation to the Principal Secretary to the Government of U.P. in the Forest department, it is mentioned that, as per balance sheet, the reserve and surplus of the U.P. Forest Corporation is Rs. 425.11 crores as on 31.03.2001 and, therefore, 54% of the same be apportioned in favour of the petitioner corporation, which comes to Rs. 229.55 crores, though, according to learned counsel for the respondent corporation, the amount which has to be paid to the petitioner corporation would be Rs. 175.78 crores after deducting Rs. 53.77 crores from the liability, storage, properties situated within the territory of the State of Uttarakhand. Respondent Corporation, on the basis of documents brought on record, has not been able to make out a case of ‘contingent liability’. 23. Since, as per Notification dated 13.02.2004 issued by Ministry of Home Affairs, the reserve and surplus, as reflected in the balance sheet of erstwhile corporation for the year ended 31st March 2001 will be apportioned between the successor corporations of Uttar Pradesh and Uttaranchal in the ratio of 46:54 and the balance sheet shows the reserve and surplus of U.P Forest Corporation as on 31.03.2001 as Rs. 425.11 crores, 54% of which comes to Rs. 229.55 crores, therefore, the respondent corporation is liable to pay the aforesaid sum to the petitioner corporation. 425.11 crores, 54% of which comes to Rs. 229.55 crores, therefore, the respondent corporation is liable to pay the aforesaid sum to the petitioner corporation. Further, as per the aforesaid Notification, asset specific liability of the erstwhile corporation shall pass on to the successor corporation of the successor State to which the asset has been allocated and the liability of the erstwhile corporation that cannot be assigned to any asset shall be apportioned between the two corporations of Uttar Pradesh and Uttaranchal in the ratio of 46:54. This Court is unable to fathom whether there exists any liability of the erstwhile corporation that cannot be assigned to any asset, which may be apportioned between two corporations of Uttar Pradesh and Uttaranchal in the ratio of 46:54. 24. Learned counsel for the respondent corporation again tried to make out a case that Rs. 53.77 crores should be deducted from Rs. 229.55 crores from the shares of the Uttarakhand Forest Development Corporation. Learned counsel for the respondent corporation again reiterated that registration was granted to the respondent corporation as AOP (Trust) on 17.12.2012 and the tax which has been charged has not been exempted, and income tax department is still levying tax on respondent corporation treating it as ‘assessee’. Such assertion of learned counsel for the respondent corporation has already been negatived by this Court in Paras 20 and 21 of this judgment. 25. This fact is under no dispute that the money has been kept in the reserve fund of the U.P. Forest Corporation. This fact is also under no dispute that when two States were carved out from the parent State, the successor State of Uttarakhand created its own Forest Development Corporation which became functional from 01.04.2001. Apportionment of the assets of the statutory corporations, therefore, became imminent. The successor States tried to made an attempt to settle their dispute relating to their Forest Corporations by mutual agreement, but when they failed to settle the same through mutual agreement, Central Government stepped in and issued a Notification on 13.02.2004 to the effect that reserve and surplus as reflected in the balance sheet of the erstwhile corporation for the year ending 31.03.2001, will be apportioned between the successor corporations of Uttar Pradesh and Uttaranchal in the ratio of 46:54. On the representation of the Government of Uttar Pradesh, the Government of India, vide order dated 28.07.2004 clarified that the MHA order dated 13.02.2004 does not warrant any change/modification. It also directed that the division of liabilities of the erstwhile Uttar Pradesh Forest Corporation is since sub-judice, therefore, the order of the Court will have overriding effect on the orders of MHA and therefore, status quo will have to be maintained until the Court pronounces orders in such matter. 26. Sufficient water has flown in river Ganges since then. This writ petition itself was filed in the year 2007. Before that, another writ petition was filed in the year 2000, a reference of which has been given in Para 2 of this judgment. The Court cannot permit the status quo to be maintained for all times to come. Stalemate has to be broken. The assets are to be apportioned between the successor corporations of Uttar Pradesh and Uttaranchal in the ratio of 46:54 as per order of MHA. As per the balance sheet of the Uttar Pradesh Forest Corporation, a sum of Rs. 425.11 crores was shown as reserved, as on 31.03.2001 and, therefore, according to the Central Government Notification, the petitioner corporation is entitled to 54% of the same. So far as the liability, as projected by the respondent corporation, is concerned, this Court is of the view that there is no tax liability as such in the light of exemption granted to the U.P. Forest Corporation under Section 12AA of the Income Tax Act on its being registered as AOP (Trust). The money which is projected to be the liability part on behalf of the U.P. Forest Corporation is interest accrued on the FDRs and therefore cannot be said to be a liability on the respondent corporation. Writ Court is not expected to go into the calculation, but in the instant case, since the arithmetic is quite simple that as per MHA Notification the reserve and surplus as reflected in the balance sheet of the erstwhile Forest Corporation for the year ending 31.03.2001 will be apportioned between the successor corporations of Uttar Pradesh and Uttaranchal in the ratio of 46:54, therefore, the respondent corporation should be made to pay (as per calculation) a sum of Rs. 229.55 crores without further loss of time. 27. The writ petition, therefore, succeeds. The same is allowed. 229.55 crores without further loss of time. 27. The writ petition, therefore, succeeds. The same is allowed. Respondent corporation is directed to release a sum of Rs. 229.55 crores in favour of the petitioner corporation without further loss of time and, in any case, within six months of the date of this judgment, failing which the respondent corporation shall be liable to pay corresponding interests earned by it from time to time, as per RBI guidelines, to the petitioner corporation, from the date of filing of the writ petition. Order accordingly.