D C M LIMITED Vs. LT GOVERNOR DELHI

JUDGEMENT

(1.) This petition under Article 226 of the Constitution of India challenges the decision of the Lt. Governor, Delhi dated October 29, 1988. refusing the petitioners permission under Section 25-0 of the Industrial Disputes Act 1947 to close its industrial undertaking Delhi Cloth Mills at Bara Hindu Rao, Delhi.

(2.) The petitioners had earlier filed a petition, being C.W.P. 1281/85 ("D.C.M. Ltd. v. Union of India and Others") under Article 226 of the Constitution of India seeking a writ of certiorari to quash the decisions of the Lt. Governor, Delhi communicated in the letter dated April 16, 1985 rejecting the petitioners' application dated March 27, 1985 and refusing-the petitioners premission under Section 2-0 of the Industrial Disputes Act, r-47 (for short called the ID Act) to close its industirial undertaking Deibi Cloth Mills at Bara Hindu Rao, Delhi (for short called the Mill) with effect from July, 1985. The furthei relief claimed was to declare that the provision of Section 25 0 ID Act as inserted by Act 46 of 1982 are ultra vires Article 14 and 19 (l)(g) of the Constitution of India.

(3.) The stand of the petitioners of that petition was that the Mill is located in a non-conforming area and it can no longer continue the industrial activities at the present site and in fact the heavy and large scale industries are not permitted to be located in the Union Territory of Delhi. Apart from it, the contention was that the industrial undertaking per se is economically unviable and unprofitable. The losses suffered by the industrial undertaking of the petitioners over the past years from 1978-79 to 1983-84 were detailed in para 36 of the amended writ petition. The reasons for the alleged recurring heavy losses being suffered by the Mill were detailed in para 37 of the amended writ petition According to the petitioners, it is not possible to convert the present industrial undertaking into a modern plant at the present site for various reasons, inter alia that the industrial undertaking is located in a non-conforming area, that the buildings are very old and not designed for the installation of modern equipments and that the cost of renovation and modernization will not be substantially less than the cost of installing a new and modern unit projected at about Rs. 50 crores It was submitted that in view of the recurring loss being suffered, the Mill being 428 located in non-conformng area and other factors the petitioners were compelled to take the decision to close down the industrial undertaking.