N K GAMBHIR Vs. CARPET EXPORT PROMOTION COUNCIL

JUDGEMENT

(1.) This order will dispose of application of the plaintiff under Order 39 Rules 1 & 2 Civil Procedure Code for stay of the suit and the application of the defendant under Order 39 Rule 4 Civil Procedure Code for vacating the ex parte stay granted on 20th October, 1995.

(2.) Carpet Export Promotion Council (In short referred to as the Council) is a company limited by guarantee, incorporated under the provisions of Companies Act. Main object of the company is to support, protect, maintain, increase and promote the export of hand knitted carpets, woolen druggets and floor coverings by such methods as may be necessary or expediet. The administration of the Council is vested in a committee known as the Committee of Administration. This Committee consists of a Chairman, 2 Vice-Chairmen, 16 elected members (including Chairman and 2 Vice- Chairmen) and 4 Government nominees (including a representative of the Federation of Association of Small Industries). Elected members are elected in accordance with the procedure prescribed in Articles of Association of the Council. Articles of Association of the Council shows that the Government has some control over the affairs of the Council in as much as not only that the budget has to be prepared in consultation with the Government but there can also not be any change, alteration or modification of the Articles without approval of the Central Government in the Ministry of Commerce. Central Government has also the powerKs, under the Articles, to issue directives to the Council, in public interest from time to time, and the Council is duty-bound to carry out those directives faithfully.

(3.) In its general meeting held on 12th June, 1995, the Council decided to amend the Articles of Associati of the Council in the manner contained in the Resolution passed by the Governing Body meeting of the Council held on the said date. This Resolution was sent to the Government for approval, however, the Government by its letter dated 16th August, 1995 informed the Council that proposed amendments were not found feasible in the larger interest of the public, to accede to the same. While rejecting the proposed amendments, the Government also issued directives to hold the elections as per existing rules at the earliest possible but not later than 30th September, 1995. On receipt of these directions, the Committee of Administration issued the circular dated 5th September, 1995 for holding the elections on 27th October, 1995, Schedule of elections was also fixed by the said circular.