PANKAJA MILLS LTD. Vs. N. SIVARAMAKRISHNA IYER

JUDGEMENT

(1.) THESE several petitions have been filed by the respective Petitioners to quash the proceedings against them on the file of the Judicial First Class Magistrate, Coimbatore. On account of the similarity of facts and the common question of law arising for consideration in all these petitions, they have been clubbed together and are disposed of by the common order.

(2.) AGAINST the Petitioners in all the petitions, prosecution has been launched for non -payment of Provident Funds contributions and or administrative charges, statutorily payable under the Employees' Provident Funds and Family Pension Fund Act, 1952 and the Employee' Provident Funds Scheme, 1952 and the Employees' Family Pension Scheme 1971 (hereinafter referred to as the Act, the 1952 and 1971 scheme respectively). As illustrative of facts, the case of the Petitioners in Crl. M. P. No. 1034 of 1976 may be referred to.

(3.) THIS is the main ground of attack in each of the petitions. Besides, the Petitioners have raised certain other contentions as set out below. The two erstwhile Directors of Sri Ranga Vilas Mills Ltd., who have challenged the prosecution have further stated in these petitions that the Mill remained closed from 16th March 1967 and on 26th September 1969 the company was ordered by the High Court to be wound up in Company Petition Nos. 78 of 1967 and 30 of 1968 and the Official Liquidator was appointed to take charge of the affairs of the company. Subsequently, the Government of India, by Notification dated 7th January 1970 under Section 18 -A of the Industries (Development and Regulation) Act, took over the Mill and appointed the Tamil Nadu Textile Corporation Limited as the Authorised Controller and the latter took over the Mill on 16th January 1970. The Industries Department has subsequently declared the Mill as a Relief Undertaking under the Tamil Nadu Relief Undertakings (Special Provisions) Act, 1969 as and from 2nd February 1970 for a period of one year and it was extended till 1st February 1975. Subsequently the Mill was taken over by the National Textile Corporation Ltd., a Government of India Undertaking. Even prior to company being wound up, the affairs of the Mill were not managed, by all the Directors but only by a Managing Agency firm, which was a partnership concern, in which one of the Directors of the Mill was the Managing Partner. That Managing Partner had filed a suit O.S. No. 145 of 1951 in the Principal Subordinate Judge's Court, Coimbatore, against the other partners of the firm, for a declaration that he was the sole managing partner and therefore he was exclusively entitled to manage the Mill on behalf of the firm. That suit was decreed and a decree for injunction was passed in hit favour and, on account of it, the other partners including the two Petitioners wets prevented from managing the affairs of the Mill from 1951 onwards and consequently, they cannot be held liable for non -payment of Provident Fund Contribution and administrative charges.