MAFATBHAI V SHAH Vs. SECRETARY GOVERNMENT OF INDIA

JUDGEMENT

(1.) A practising Lawyer has filed this petition making a prayer, amongst other prayers, that the Central Government be directed to appoint adequate staff and to provide adequate space for the office of the Official Liquidator. The petitioner has also prayed for a direction to the Official Liquidator to expedite the disposal of all issues arising in winding-up matters more particularly of Textile Mills on top priority basis as the ex-workers of these Mills are suffering on account of non-payment of their dues.

(2.) From the record it appears that there are in all 239 Companies under liquidation and the present Liquidator is required to deal with all these 239 Companies. Out of the 239 Companies under liquidation, 50 Companies are Textile Mills. Management of huge assets are involved in the liquidation of these Companies. For example, it is indicated that assets worth Rs. 100 Crores are involved insofar as Calico Mills is concerned. Assets of about Rs. 70 to 80 Crores of Ambica Mills, Rs. 50 Crores of Motorolla Company and Rs. 150-175 Crores of 16 units of G.S.T.C. are involved in some of the other matters.

(3.) In the petition, petitioner has given history of Textile Industry since the establishment of Textile Mills in Ahmedabad. The petitioner has placed on record the figures from a Press Cutting, Economic Times, dated 18-1-1999 (vide Annexure 'A') indicating that in Bombay in 1981, 2,50,000 workers were employed in Textile Mills and today there are less than 30,000 workers on the rolls of these mills. It is contended that the Mill Owners explain the downfall of the Textile Mills by saying that there is a massive evasion of excise duty by powerloom sector. So far as the State of Gujarat is concerned, it is stated that the winding-up of the Textile Mills has thrown about 50,000 workers out of their permanent jobs out of which about 36,000 workers in Ahmedabad alone. Out of 63 Mills in liquidation, 36 Textile Mills are situated in Ahmedabad and 12 Textile Mills belong to the Gujarat State Textile Corporation Ltd. Ambica Mills group Company ordered to be wound-up on 17-1-1997 and Calico Mills and Illac Limited were ordered to be wound-up on 15-7-1998. The petitioner has given figures in a separate Annexure vide Annexure 'B'. The petitioner has placed on record list of the Companies in liquidation, vide Annexure 'C' with number and date of winding-up order. Orders with regard to two Companies were passed prior to 1960. With regard to 7 Companies, the date of winding- up range between 1961 and 1969. Four companies were ordered to be wound- up in 1970. Thus even orders passed prior to 13-12-1970 still remain in cold storage in certain cases. The petitioner has given the break-up of workers and the date of winding-up orders etc. insofar as Textile Mills of Ahmedabad are concerned.