INDORE TEXTILES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The acquisition of the undertaking of the Indore Textiles Ltd. by The Indore Textiles Limited (Upkaram Ka Arjan Aur Antaran) Adhiniyam, 1986, is under challenge in the writ petition and the appeal.

(2.) M/s. Indore Textiles Ltd. was a public limited company whose shares were purchased by one Ajit Kumar Singh Kasliwal (Petitioner No. 2 in the writ petition) on 10th February, 1977. It appears that the undertaking of the company had been closed for sometime and the Central Government had appointed a Committe to investigate into its affairs. After the receipt of the report the Central Government, by an order dated 12th August, 1977, took over the management of the textile mill. This order was passed by the Central Government in exercise of its powers under Section 18AA (1) (b) of the Industries (Development and Regulation) Act, 1951 (hereinafter refered to as 'the IDR Act'). The said order was challenged with the filing of a writ petition in the Madhya Pradesh High Court and by judgment dated 8th September, 1980 the writ petition was partly allowed and the Central Government was directed to give an opportunity to the petitioners to show cause why the order of taking over of the management should not be passed and to cancel the order if the petitioners were able to show that the conditions to pass the order did not exist.

(3.) The petitioners were heard by the Joint Secretary, Government of India on 15th November, 1980 but when no order was passed a fresh Writ Petition No. 825 of 1981 was filed in the Madhya Pradesh High Court. During the pendency of this petition an interim order was passed by the High Court directing the Central Government to pass an order pursuant to the hearing which had been given to the petitioners on 15th November, 1980. Thereafter the petitioners were informed that an order dated 2nd January, 1982 had been passed by the Central Government to the effect that the conditions for the taking over of the management of the mill did exist and that the take over was justified in the facts and circumstances of the case. On amendment being allowed this communication dated 2nd January, 1982 was challenged before the High Court in the writ petition which was pending. During the pendency of the writ petition an order dated 22nd May, 1982 signed by the Joint Secretary, Ministry of Commerce, Department of Textiles, stating the reasons for taking over of the mills' management was communicated to the petitioner. By an amendment in the pending writ petition this order of 22nd May, 1982 was also allowed to be challenged. Ultimately the High Court by its judgment dated 17th December, 1982 dismissed the writ petition. Civil Appeal No. 6815 of 1983, which is also being disposed of by this judgment, arises by way of special leave having been granted against the judgment dated 17th December, 1982.