SUTI MILLS MAZDOOR UNION Vs. UNION OF INDIA

JUDGEMENT

(1.) Suti Mills Mazdoor Union, Kanpur through its Vice President Smt. Annada Sharma and Textile Mazdoor Ekta Manch, Kanpur have filed the present petition under Article 226/227 of the Constitution of India seeking the following reliefs:

(2.) Suti Mills Mazdoor Union, Kanpur Nagar and Textile Mazdoor Ekta Manch, according to the petitioners, are duly registered Trade Unions under the Trade Unions Act. They are entitled to initiate legal action for the benefits of their members. National Textiles Corporation (U.P.) Limited is a company incorporated under the provisions of Companies Act, 1956. It is a Government of India Undertaking. It manages eleven Cotton Mills in the State of Uttar Pradesh, namely:

(3.) Sri Vijay Bahadur Singh, learned senior counsel, however submitted that even though these eleven mills were nationalised by the Centr.al Government by passing the Nationalisation Act but on account of continued heavy losses, it has been found that the Mills cannot be revived and in these compelling circumstances, a decision has been taken for the closure of the mills, which is also in conformity with the rehabilitation scheme prepared by BIFR. He further submitted that the object of Nationalisation Act would still be achieved if by closure of nine Mills the remaining two Mills are revived. According to him Section 35 of the Nationalisation Act only puts an embargo on the powers of the Court to wind up the mills without the consent of the Central Government. In the present case, application for closure of the mills has been made to the Central Government. Thus, Section 35 of the Act will not be attracted in the present case.