CALICO FIBRE EMPLOYEES ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. This petition is taken for final hearing in view of the facts and circumstances of the case as well as with the content of parties.

(2.) The petitioner has filed this petition seeking writ of mandamus and direct the respondent No. 1 to decide the representation made on 9th October, 1997.

(3.) The petitioner is a Union of the Workmen working in Calico Polyesters Fibre Division situated at Baroda. Calico Polyesters Fibre is an undertaking owned and controlled by respondent No. 4 the Ahmedabad Manufacturing and Calico Printing Company LIMITED (hereinafter to be referred as Principal Company). The principal company was in very strained financial position and became sick. Therefore, the Board of Directors of principal company made a reference to "Board for Industrial and Financial Reconstitution" (hereinafter be referred as B.I.F.R.) under Sec. 15 of Sick Industrial Companies (Special Provisions) Act, 1985. Thereafter B.I.F.R. made the necessary inquiry into the working of sick "principal company". But B.I.F.R. could not work out any scheme to see that the 'principal company' could come over losses and financial difficulties. Consequently, B.I.F.R. submitted its report dated 30-11-1995 to the company Court that there is no possibilities to sustain and survive and hence the principal company should be wound up. On the strength of the said report of B.I.F.R. the winding proceedings are going on before the company Court in Company Petition No. 157 of 1995.