NATIONAL CONFEDERATION OF OFFICERS ASSOCIATION OF CENTRAL PUBLIC SECTOR ENTERPRISES Vs. UNION OF INDIA

JUDGEMENT

(1.) A Introduction

(2.) Metal Corporation of India Limited was incorporated in 1944 as a public limited company under the Companies Act 1913. It was the sole producer of zinc and lead from its mines situated at Zawar in Rajasthan. The company had established a lead smelter plant at Tundoo, near Dhanbad, in the then State of Bihar for producing lead, silver and other by-products. Subsequently it installed a zinc smelter at Debari, near Udaipur. Given the strategic importance of zinc and lead, the Union Government took a decision to acquire the company by a legislation.

(3.) On 22 October 1965, the President promulgated the Metal Corporation of India (Acquisition of Undertaking) Ordinance for acquisition of the undertaking by the Union Government. Possession, control and administration was taken over by the Union Government on 23 October 1965. A petition under Article 226 of the Constitution was instituted in 1965(WP 631-D of 1965 ) by the corporation and its managing director before the Circuit Bench in New Delhi of the then Punjab High Court, for challenging the constitutional validity of the Ordinance. During the pendency of the proceedings, the Ordinance was replaced by Act 44 of 1965 which led to the institution of another writ petition (WP 832-D of 1965) challenging its validity. On 10 January 1966, HZL was incorporated as a public sector company to develop the mining and smelting capacities, so as to substantially fulfil the domestic demand for zinc and lead.