TEA TRADING CORPORATION OF INDIA Vs. PASHOK TEA COMPANY LTD

JUDGEMENT

(1.) These appeals are directed against an order passed by the Hon'ble Single Judge making the rule absolute obtained by Pashok Tea Company Limited. The case made out by the petitioner Pashok Tea Company Ltd., is that on 12th October, 1976 two letters were received by the petitioner, each dated the 13th October, 1976, one in respect of the Pashok Tea Estate and the other in respect of Looksan Tea Estate addressed to the Company by the Tea Trading Corporation of India Ltd. The said two letters are identical in nature except as to the name of the Tea Garden and the contents of the letters concerning the Pashok Tea Estate are as follows:--

(2.) In the affidavit-in-opposition filed by the respondent, it is stated, inter alia, that the management of the said two tea Estates, namely, Looksan Tea Estate and Pashok Tea Estate, were taken over under an order of the Central Government made under Section 16E (1) (a) of the said Act by Notified Order dated the 11th October, 1976, and from the said date the management had been vested with the Tea Trading Corporation of India Ltd., a Government of India undertaking. On and from October 11, 1976, all the powers and functions of the petitioner No. 1 and its Board of Directors in respect of or over the said two Tea Units were vested in the said Tea Trading Corporation of India Ltd., and therefore the petitioner became disentitled in law to initiate or commence any legal proceeding like the present writ proceeding in respect of the said two tea estates or tea units. It is further stated that the petitioner No. 2 ceased to be a Director of the petitioner No. 1 and as such has no right whatsoever in law either to make the present writ petition or verify it on behalf of the petitioner No. 1, It is stated further that the order passed by the Central Government was in accordance with law. After the Central Government carefully considering the records, documents and reports concerning the said two tea units formed a bona fide opinion that the conditions necessary for the exercise of powers under Section 16E of the Tea (Amendment) Act, 1976 were actually in existence and that in the interest of the general public and for preventing fall in production and manufacture of Tea and ruin of the said two Tea Units it was necessary to take immediate action to take over the management of the said two tea units. It is denied that there were no materials or evidence on which the Central Government could be satisfied in relation to the said two Tea Units of the Company that the person-in-charge of the same had by creation of the incumbrances on the assets of the said Tea Units brought about a situation which was likely to affect the production of Tea, manufactured or produced by the said Tea Units, It is also stated that the said order was in accordance with law.

(3.) Before we deal with the question raised in this appeal, it is convenient for us to set out Sections 16B, 16C, 16D and 16E of the Act which are as follows :--