D C M LIMITED Vs. LT GOVERNOR

JUDGEMENT

(1.) This is an application filed by the petitioner for directions to the Receiver to proceed against all ex-employees of the petitioner company who are in occupation of the quarters which they have not so far vacated pursuant to this Court's judgement dated 1.10.1993 which has since been upheld by the Hon'ble Supreme Court.

(2.) Ms. Asha Jain Madan, counsel for M/s D.K. Sudan and Dr. B.D.Kaushal submitted that the cases of these persons who happen to be senior executives in companies of the group covered by scheme of arrangement sanctioned by this Court under Sections 391 and 392 of the Companies Act, are quite distinct and different. As such it was decided to hear these persons separately. The facts giving rise to the controversy are as under :-

(3.) A textile mill under the name and style of Delhi Cloth Mills was set up in the year 1889 on a land area of about 63 acres of which the mill complex was occupying 24 acres and a little over 42 acres was used to put up a residential colony for the company's, complex. The mill continued to work until the Master Plan of Delhi came into force in September, 1962 wherein Delhi Cloth Mill and its residential colony were shown to be in non-confirming use and in the said Master Plan, the area was shown for being used for flatted factories and residential group housing. On 1.6.1981, the petitioner company was asked to shift its Delhi Cloth Mill from its location. Keeping in view the said provision of Master Plan and on being required to shift, the petitioner company applied to Delhi Administration on or about 27.3.1985 for permission to close its Delhi Cloth Mill. The said permission was promptly refused in the middle of April, 1985. This was followed by the petitioner company moving a Writ Petition being No. 1281/85 wherein the decision of Delhi Administration declining permission to close was challenged. That petition was referred to Full Bench. However, while the said writ petition was still pending, counsel for Union of India, Delhi Administration and Delhi Development Authority confirmed that the location of Delhi Cloth Mills and its staff quarters was in non confirming use under the Master Plan and that there was no proposal to permit the continuance of the said mill. In the light of this situation, the Management and the workmen representing the unions arrived at a settlement on 27.7.1987 which was filed in the aforesaid Writ Petition No. 1281/85 wherein the petitioner company in addition to the retrenchment compensation, agreed to pay six years' wages by way of additional compensation from the date of closure to its employees making it clear that the company can pay that additional compensation only if it is allowed to redevelop the area for flatted factories and group housing complex. The said settlement was filed in the aforesaid writ petition whereafter the writ petition was allowed and a direction was given to Delhi Administration to consider the company's application for closure within a period of 60 days in the light of the order made by the Full Bench of this Court.