INDIA MACHINERY CO. LTD. Vs. UNION OF INDIA (UOI)
LAWS(CAL)-1996-4-33
HIGH COURT OF CALCUTTA
Decided on April 30,1996

India Machinery Co. Ltd. Appellant
VERSUS
UNION OF INDIA (UOI) Respondents

JUDGEMENT

N.N. Bhattacharjee, J. - (1.) The aforesaid writ applications are taken up together for sake of convenience. The facts are stated below:
(2.) The Petitioner No. 1, India Machinery Company Ltd. (hereinafter referred to as the Petitioner company) is engaged in the manufacturing and trading of Weighing Machines, Printing Machines, Machine Tools, Textiles Machines, Agricultural Implements etc. The Petitioners No. 2 to 6 are the registered members of the Petitioner company holding more than 51 per cent of its equity capital. In the year 1967 the company declared a lock -out and reopened on April 15, 1970. By an order dated November 25, 1972 the management and control of the Petitioner company was taken over by the Central Government under Sec. 18A of the Industries (Development & Regulations) Act, 1951. No hearing was given before the take over. Some share -holders and directors of the company challenged the said take over by a writ petition and in the Civil Rule No. 8278 (W) of 1972 P.K. Banerjee, J. held that there had been breach of natural justice but that the order of taking over management could not be set aside as the Petitioner company was not a party to the said writ petition. Sec. 18A(2) of the Industries (Development & Regulations) Act. 1951 lays down that the order of taking over of the management shall have effect for a period not exceeding five years initially, though, however, the Central Government may extend continuation of take over of management and control of the industrial undertaking for such further period not exceeding two years at a time as may be specified in the order so, however, that the total period of such continuance after the initial period of five years does not exceed twelve years. In other words the management and control of an industrial undertaking can be retained by the Central Government for a total period of seventeen years by issuance of notified orders.
(3.) In C.R. No. 7863 (W) of 1983 the subject -matter of challenge is the order dated May 21. 1983 passed by the Central Government directing that the original order dated November 25, 1972 by which the management of the Petitioner company was taken over for five years shall continue to have effect for a further period upto and inclusive of November 24. 1983. In this writ application the Petitioner company has prayed for mandamus commanding the Respondent Union of India not to give effect or further effect to the said order dated May 21, 1983 as also commanding the Respondent to return the management of the Petitioner company to its share -holders in accordance with law.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.