Decided on March 13,1990

D C M Limited:D C M Limited Respondents

Cited Judgements :-



- (1.)Special leave granted.
(2.)These two appeals respectively are directed by the Union of India and the Delhi Development Authority (hereinafter referred to as 'the DDA') against the full bench decision and order of the Delhi High court dated 22/05/1987 declaring and by necessary implication directing that the DDA carry out and implement its Resolution No. 26 dated 1/02/1983, which resolution was said to have been substituted by it by a later Resolution No. 3 dated 1/08/1986 reiterated by another resolution dated 3/11/1986. These resolutions related to some affairs of the Delhi Cloth Mills Limited (hereinafter referred to as 'the DCM') , the writ petitioner before the High court, and the official reaction thereon.
(3.)Some of the essential facts as culled out from the judgment of the High court, and others which have come by in the meantime, would be necessary to be noticed. The Mill has a complex over an area of about 63 acres at sites at Bara Hindu Rao and Kishan Ganj at Delhi. The Delhi Development Act, 1956 envisages preparation by the DDA of a Master Plan for Delhi, which it did, and was enforced and one of its attributes is to assign land use. Bara Hindu Rao is a non-conforming area and the industry of the kind in which the Mill is engaged in has to be shifted out to a conforming area. 612 acres of land near about Narela was said to have been earmarked for conformed use of factories. The DCM in September 1982 approached the DDA and put forth its proposal for shifting the Mill and for re-developing the Mill area for group housing and flatted factories. On 1/02/1983 the DDA by Resolution No. 26 agreed to the scheme as propounded by DCM as feasible for implementation in phases. But in passing it recorded a fact that the shifting of the Mill would involve a lot of working population and consequently income and products manufactured by the DCM would carefully need to be looked into by the Delhi Administration and Ministry of Industries in terms of its affectation (sic) to the economy of Delhi. On the other hand in September 1983 the DDA turned down the request of the DCM for allotment of an alternate site measuring 150 to 200 acres of land in a conforming area for shifting having regard to the kind of industry the DCM was engaged in. The DCM then applied to the secretary, Labour/labour Commissioner', Delhi Administration forpermission to close down the Mill under the provisions of S. 25-0 of the Industrial Disputes Act. The reasons advanced by the DCM inter alia were that the Mill could not be kept located in a non-conforming area as otherwise penal consequences would follow as also that it had run into tremendous losses, the industry being unprofitable. On 15/04/1985, the request of the DCM was turned down by the secretary, Labour/labour Commissioner. In this state of affairs when the DCM had been given no place to shift to and the closure of the Mill had been declined, the DDA reviewed the situation and passed a fresh Resolution No. 3 dated 1/08/1986 reviewing its earlier resolution dated 1/02/1983 recalling the grant of approval with regard to the scheme propounded by the DCM. Further it felt justified in taking such step as the master plan was under process of review keeping the perspective of the year 2001 AD in view. The DDA even reiterated its resolution of the pendency of the writ petition in the High Court restoring the earlier resolutions dated 1/2/1983 taking a broader view that the Mill could not be kept working in a non-conforming area as otherwise it would attract penal action under the law after the lapse of three years from January 18, 1986, and that the DDA could not justify its action as even the proposals to not contain any proposals for change of land use of the site under the DCM, and as of original, it was a site marked for group housing and flatted factories.

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