PLYWOOD KARMCHARI SANGTHAN Vs. U.O.I.

JUDGEMENT

(1.) This is an interesting petition wherein an Employees' Union has challenged award of Additional District and Sessions Judge, Court No. 1, Sitapur (hereinafter referred to as "Reference Court") in Land Acquisition Reference No. 15 of 2011 on a reference made under Section 18 of Land Acquisition Act, 1894 (hereinafter referred to as "Act, 1894") for determining entitlement of disbursement of compensation though admittedly acquired land does not belong to petitioner.

(2.) Facts in brief, as evident from the pleadings in the writ petition are, that there was a partnership firm namely, "M/s Plywood Products" having its registered office at Plywood Point, Zeenat Market, 106/396, Hiraganj, Kanpur. There was another Corporate body namely, "M/s Sitapur Plywood Manufacturers Ltd." which is a Company registered under the Companies Act, 1956 (hereinafter referred to as "Act, 1956"). "M/s Plywood Products" had purchased agricultural land at Sitapur and established factory for manufacturing plywood products thereat. Vide Agreement of lease dated 30.06.1973, factory situated at Sitapur and agricultural land was leased out by "M/s Plywood Products" to "M/s Sitapur Plywood Manufacturers Ltd.".

(3.) A winding up petition was filed before Company Judge of this Court i.e. Company Petition No. 73 of 1999 in the matter of "M/s Sitapur Plywood Manufacturers Ltd." and order of winding up was passed on 24.01.2000. An Official Liquidator was appointed to take assets of said Company. When land, buildings, plants, machinery etc. of plywood factory sought to be taken over, an objection was filed before this Court by "M/s Plywood Products" that entire land, buildings, plants etc. is owned by a partnership firm and it was leased out to Company on 30.06.1973 and said lease was terminated on 30.11.1999, therefore, said assets cannot be taken over after passing order of winding up of Company since leased property does not belong to Company. It was revealed before Company Judge that "M/s Sitapur Plywood Manufacturers Ltd." had secured certain loans from Central Bank of India and as a guarantee to the same, "M/s Plywood Products", a partnership firm, mortgaged entire land and buildings situate at Sitapur to Central Bank of India for advancement of said loan to "M/s Sitapur Plywood Manufacturers Ltd".