VIJAY KUMAR MUNDHRA Vs. UNION OF INDIA

JUDGEMENT

(1.) This judgment will dispose of two petitions viz.. Civil Writ No. 17 of 1972 and Civil Writ No. 63 of 1972 under Article 226 of the Constitution. The petitioner in the first writ is Shri Vijay Kumar Mundbra of Calcutta who claims to be a registered share-holder, and director of the Osmanshahi Mills Limited situate in Nanded, State of Maharashtra, hereafter referred to as the company, while the petitioner in civil writ No. 63 is a partnership firm which claims to be a creditor of the said company.

(2.) The common question in both the cases is whether respondents 1 to 3 were bound to hear the petitioners before an order dated the 29th December, 1971, under Section 18AA of the Industries (Development and Regulation) Act, 1951 as amended, could be passed whereby the respondent No. 1 could authorise the taking over of the management of the whole of the industrial undertaking viz. the textile mill owned by the said company.

(3.) The company has been in existence since several years past. After the termination of the managing agency, the management of the company passed into the hands of a Board of Directors. In 1963, the Committee of management appointed by the Board was dissolved and the management finally passed into the hands of Shri J. P. Maroo who was appointed Managing Director of the company for a period of three years with effect from 8th June 1963. His term was extended upto 7th June 1970 but owing to ill health he resigned from office as the Managing Director on 28th April, 1970 and acted in his capacity as Director till 14th August, 1970. On the resignation of Shri J. P. Maroo as Managing Director, the company was being managed by the Board of Directors through a Committee of management consisting of three persons of whom the petitioner Shri Vijay Kumar Mundhra was a member.