RASIKLAL RATILAL Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition, the petitioners are challenging some of the provisions of the Textile Undertakings (Taking Over of Management) Act, 1983 which repealed the Textile Undertakings (Taking Over of Management) Ordinance, 1983. A few facts leading to the present controversy may be stated as under.

(2.) THE first petitioner is a partnership firm duly registered under the provisions of the Indian Partnership Act, 1932 carrying on business as dealers and suppliers of yarn. The second petitioner is the partner of the first petitioner firm. On 7th October, 1983, the first petitioner supplied a consignment comprising 497. 27 Kgs. of Standard Polyster Texturised Nirlon Yarn to the third respondent-company which is a textile undertaking covered by the said 1983 Act. The said consignment was covered by the first petitioners delivery order and invoice dated 7th October, 1983 and was valued at Rs. 83,819. 58. In respect of this consignment, the third respondent had, on 17th October, 1983, issued a cheque bearing No. 038378 drawn on 5th respondent-Bank of Baroda for Rs. 83,820/ -. On 12th October, 1983, the petitioners supplied the second consignment comprising 493. 58 Kgs. , of Standard Polyster Texturised Nirlon Yarn to the third respondent. This second consignment was covered by delivery order and invoice dated 12th October, 1983 and was valued at Rs. 96,982/ -. The payment in respect of this second consignment was made by the third respondent under cheque dated 18th October, 1983 bearing No. 208489 for Rs. 26,982/ -. on 18th October, 1983, the Textile Undertakings (Taking Over of Management) Ordinance, 1983 was promulagated to take effect from that date. This Ordinance has subsequently been replaced by the Textile Undertakings (Taking Over of Management) Act, 1983. By virtue of sub-section (1) of section 3, of the said Act, on and from the appointed day, the management of all the textile undertakings stood vested in the Central Government. Under sub-sections (1) and (3) of section 3, it has been provided as under:

(3.) IT is also necessary to refer to section 6 of the said Act and in particular section 6 (1) (b) appearing in Chapter III under the heading "power to Provide Relief to the Textile Undertakings". Section 6 (1) (b) reads as under: