SUTI MILLS MAZDOOR UNION Vs. UNION OF INDIA
LAWS(ALL)-2002-10-29
HIGH COURT OF ALLAHABAD
Decided on October 07,2002

SUTI MILLS MAZDOOR UNION Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

R.K.AGRAWAL, J. - (1.) Suti Mills Mazdoor Union, Kanpur through its Vice President Smt. Annada Sharma and Textile Mazdoor Ekta Manch, Kanpur have filed the present petition under Article 226/227 of the Constitution of India seeking the following reliefs: (i) Issue a writ order or direction in the nature of mandamus restraining the respondents from treating the Laxmi Ratan Cotton Mills, Kanpur, Atherton West Cotton Mills, Kanpur, New Victoria Cotton Mills, Kanpur and Swadeshi Cotton Mills, Kanpur as closed in pursuance of notice dated May 30, 2002 till such time as the Central Government takes appropriate decision under Section 25-O of the Industrial Disputes Act; (ii) Issue a writ order or direction in the nature of mandamus directing the respondents from proceeding to close the Cotton Mills of Kanpur units of respondent No. 2 specially Laxmi Ratan Cotton Mills, Atherton West Cotton Mills during the subsistence of Sick Textiles Undertaking (Nationalisation) Act, 1995; (Hi) Issue a writ order or direction in the nature of mandamus directing the respondent not to proceed with the desired closure of the concerned mills without making any effort to optimise utilization of the available facilities and to secure, continued employment of the workers in accordance with the aims and objects of the Sick Textiles Undertaking (Nationalisation) Amendment Ordinance, 1995 as passed by the Parliament; (iv) Issue a writ order or direction in the nature of mandamus directing the respondents not to close the concerned mills in pursuance of the notice dated May 30, 2002 served on the petitioner on July 12, 2002; (v) Issue such other writ order or direction as this Hon'ble Court may deem fit and proper in the circumstances of the case; (iv) Award costs to the petitioner. Briefly stated, the facts giving rise to the present writ petition are as follows:
(2.) Suti Mills Mazdoor Union, Kanpur Nagar and Textile Mazdoor Ekta Manch, according to the petitioners, are duly registered Trade Unions under the Trade Unions Act. They are entitled to initiate legal action for the benefits of their members. National Textiles Corporation (U.P.) Limited is a company incorporated under the provisions of Companies Act, 1956. It is a Government of India Undertaking. It manages eleven Cotton Mills in the State of Uttar Pradesh, namely: (i) Muir Mills, Kanpur (ii) New Victoria Mills, Kanpur (in) Atherton Mills, Kanpur (iv) Laxmi Rattan Cotton Mills, Kanpur (v) Swadeshi Cotton Mills, Kanpur (vi) Vikram Cotton Mills, Lucknow (vii) Lord Krishna Textiles Mills, Saharanpur (viii) Raibarely Cotton Mills, Raibarely (ix) Bijli Cotton Mills, Hathras (x) Swadeshi Cotton Mills, Naini, Allahabad (xi) Maunath Bhanjan Cotton Mills, Mau the Central Government as more than 51% of its shares are not held by the Central Government but by the National Textiles Corporation Limited, therefore, the application made by the respondent No. 3 before the Central Government is not maintainable.
(3.) Sri Vijay Bahadur Singh, learned senior counsel, however submitted that even though these eleven mills were nationalised by the Centr.al Government by passing the Nationalisation Act but on account of continued heavy losses, it has been found that the Mills cannot be revived and in these compelling circumstances, a decision has been taken for the closure of the mills, which is also in conformity with the rehabilitation scheme prepared by BIFR. He further submitted that the object of Nationalisation Act would still be achieved if by closure of nine Mills the remaining two Mills are revived. According to him Section 35 of the Nationalisation Act only puts an embargo on the powers of the Court to wind up the mills without the consent of the Central Government. In the present case, application for closure of the mills has been made to the Central Government. Thus, Section 35 of the Act will not be attracted in the present case.;


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