GUJARAT FILAMENTS LTD Vs. M N PANCHAL

JUDGEMENT

(1.) THE present appeal is directed against the judgement and order dated 3.5.2000 passed by the learned Single Judge of this Court in Special Civil Application No.1924 of 2000, whereby the learned Single Judge had issued direction to dispose of finished goods of the appellant Company and there was further direction to pay the amount to the workers and the balance was also to be deposited with this Court.

(2.) THE short facts of the case appear to be that the appellant - original respondent No.1 is a Company registered under the Indian Companies Act and it was having manufacturing Unit at Halol. As per the appellant, it had taken loans from various financial institutions namely; ICICI, IFCI, and SBI, amounting to Rs.3.59 crore, Rs.4.85 crore and Rs.2.11 crore respectively. The financial institution namely; ICICI had preferred suit for recovery against the appellant company before the Bombay High Court and in June 1999, prohibitory order also was passed by the Bombay High Court against the company, restraining it from transferring or alienating the property. As per the appellant Company, since it had financial inability, the outstanding electricity bill could not be paid and resultantly, the electricity supply was disconnected and it had to discontinue its manufacturing activity. As per the appellant Company, on 24.6.1999, it had declared 'lay -off', on account of non -availability of electric power from 24.6.1999 and such position continued thereafter. The intimation was also given to all workmen of the appellant Company in July and as per the appellant Company the 'lay -off' compensation was to be paid, but the workmen did not collect the 'lay -off' compensation. On 13.1.2000, State Bank of India filed suit for recovery of the amount before the Debts Recovery Tribunal, Ahmedabad, wherein also, prohibitory orders were passed against the company, restraining it from transferring or alienating the property. At this stage, on behalf of the workmen of the appellant company, Special Civil Application No.1924 of 2004 was preferred before this Court, contending that since 24.6.1999, wages have not been paid to the workmen and the 'lay -off' is without following the requisite procedure and the company has various assets, whereby the interest of the financial institutions has been sufficiently protected. It was prayed in the petition that appropriate directions be issued against the appellant company to take immediate steps for prosecution of the Board of directors for alleged offence under Section 25Q and/or Section 25R of the Industrial Disputes Act (hereinafter referred to as the 'Act') and it was also prayed that the company and its officers, who were joined as respondents be directed to pay full wages and other consequential benefits to the workmen from June 1999 till they comply with the provisions of Model Standing Orders.

(3.) BEFORE the learned Single Judge, the appellant - respondent therein initially resisted the petition contending, inter alia, the question of maintainability and the applicability of the provisions of the Chapter VB of the Act and submitted that the petition was not maintainable or that the Court may decline the exercise of the power under Article 226 of the Constitution. However, during the course of the hearing, may be after some hearing, the question of maintainability was not pressed and the additional affidavit in April 2000 was filed by Shri Madan Gopal Yadav, Executive Director of the Company, whereby it was stated at paragraph 3 as under: -