COMMISSIONER OF PAYMENTS Vs. KISHNI DEVI

JUDGEMENT

(1.) THE present appeal is against an order of the learned Single Judge dated 08.02.2010 in W.P. (C) 8337/2002, whereby the Commissioner of Payments' Writ Petition was rejected.

(2.) THE brief facts are that the respondents (hereafter referred to as "claimants") had deposited certain sums of money, i.e. Rs. 6500/-, Rs. 3136/-, Rs. 2500/-, Rs. 6000/- & Rs. 5000/- (mentioned in the Schedule), the aggregate of which worked out to Rs. 23136/- with the erstwhile Ajudhia Textiles Mills Ltd., a private company. These Fixed Deposits were to mature during different periods between 22.04.1970 and 01.02.1972. Finding that the affairs of the said company were not in good shape, the Central Government apparently intervened by issuing an order under Section 18A of the Industries (Development and Regulation), 1951, effective from 07.06.1971. The legal effect of this order was to suspend the management of the company; the Central Government gained intrusive powers to supervise the functioning of the company, which it did for almost three years, till the Sick Textile Undertaking (Nationalization) Act, 1974 (hereafter "the Nationalization Act") was enacted. That enactment came into force with effect from 01.04.1974. By its provisions, the Central Government put in place a structure whereby the claims, such as those of respondent depositors, other creditors, workers etc. were to be regulated. The respondent lodged their claims for payments.

(3.) THIS order was again challenged by the claimants, before the District Judge, by preferring RCA 95/1993 and RCA 96/1993. The Learned Additional District Judge, by his order of 08.09.2000 allowed the appeal. The learned Additional District Judge reasoned that the Commissioner's order was mechanical and without any reasons. The relevant part of the said judgment is as follows: