B EML LIMITED A GOVERNMENT OF INDIA UNDERTAKING-MINI RATHNA COMPANY UNDER MINISTRY OF DEFENCE Vs. INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA MUMBAI BY ITS CHAIRMAN AND MANAGING DIRECTOR

JUDGEMENT

(1.) SRI N. Devhadass, learned senior counsel appears for the Union of India. We have heard SRI S.P. Shankar, learned senior counsel, who has made submissions on Misc Civil Application No.22107/2009 seeking for vacating the earlier interim Order dated 23.10.2009 passed by this court reading as under:-

(2.) SRI S. P. Shankar, learned senior counsel, submits that the applicant is a Co-operative Society formed to defend and protect the interest of employees. This Society was registered on 05.12.2004 more than four-and-half years after the BIFR recommended this Court for winding up the affairs of the Company for the reason that the intended object of the Company for which it had begun its activities cannot be carried on in a viable or practicable manner particularly having regard to the fact that the main activity of the Company being to extract gold metal from the ore that the Company was digging and that having regard to the value of the metal at that time and the cost of production. Such extraction of the metal from the dug up ore though was economical earlier due to various developments it has now become uneconomical and not viable, etc., and if such an eventuality should take place, the large number of work-force of about 3500 employed at the time, when BIFR passed the Order on 30.06.2000 will be rendered unemployed and to prevent this eventuality the Society was formed during December 2004, only to protect the interest of the employees, as winding up of the Company definitely is not in their interest, but on the other hand, it is detrimental to their interest and the employees being thrown to streets without avocation and virtually affected their right guarantied under Article 21 of the Constitution of India, etc.

(3.) AS per the submission of the learned senior counsel appearing for the applicant, the Society proclaims that its objective is to protect the interest of its members and that can happen only if the Company is survived and not otherwise.