NATIONAL TEXTILE CORPORATION MAHARASHTRA NORTH LIMITED Vs. RASHTRIYA MILL MAZDOOR SANGH MAZDOOR MANZIL

JUDGEMENT

(1.) THIS appeal has been preferred by National Textile Corporation (Maharashtra North) against judgment of the learned Single Judge dated 16th/20th November, 1990, in Writ Petition No. 2338 of 1985 by which the writ petition filed by respondents Nos. 1 to 4 stood allowed and a direction was given to the effect that the National Textile Corporation the appellants herein were liable to pay the provident fund contributions for the period 1965 to 1972 in respect of employees who ceased to be members of the Provident Fund on death, retirement etc. (hereinafter referred to as "the outgoing employees") after 1st April, 1974, being the appointed date under Sick Textile Undertaking (Nationalisation) Act, 1974.

(2.) THE facts giving rise to this Appeal lie within a very narrow compass.

(3.) BEFORE coming to the contentions raised on behalf of the appellants, it would be relevant to refer to the provisions of the Sick Textile Undertaking (Nationalisation) Act, 1974. The preamble of the said Acts 1972 and 1974 show, among other things, that the Acts were enacted because the affairs of the textile mills were mismanaged and it was necessary to invest large sums for reorganisation and rehabilitation of the Mills and thereby protect the interest of the workmen employed therein and to increase the production and distribution of cloth at fair prices to subserve public interest. Section 2 (1) (a) of the Act. 1974, defines the expression "appointed date" to mean the 1st day of April, 1975. Under section 2 (h) of the said Act, 1974, the word "owner" has been defined in relation to a sick textile undertaking to mean any person of firm which is, immediately before the appointed day, the immediate proprietor, lessee or occupier of the sick textile undertaking or any part thereof, but does not include any person or body of persons authorised under Industries (Development and Regulation) Act, 1951 or Sick Textile Undertaking (Take Over of Management) Act, 1972, to take over the management of the whole or any part of the sick textile undertaking. Section 2 (j) defines the expression "sick textile undertaking" to mean a textile undertaking specified in the first Schedule, the management of which has, before the appointed day, been taken over by the Central Government under the Industries (Development and Regulation) Act, 1951 or the undertaking which vested in the Central Government under the Sick Textile Undertaking (Take Over of Management) Act, 1972. Items 38 to 43 of the said Act, 1974, refer to the take over of the above United India Mills 1 to 5 as also India United Mills, Dye Works, Bombay. Under section 3 (1) which falls in the Chapter, dealing with acquisition of the rights of owners of sick textile undertaking, lays down inter alia that on the appointed day, every sick textile undertaking and the right, title and interest of the owner in relation to every such sick textile undertaking shall stand transferred to and vest absolutely in the Central Government. Under section 3 (2) of the Act, every sick textile undertaking which stands vested in the Central Government by virtue of section 3 (1) shall immediately after it has so vested, stand transferred to and vested in, the National Textile Corporation. Under section 4 of the said Act, 1974, the sick textile undertaking shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges and all property, both moveable and immoveable as also cash balances, cash on hand, reserve funds, investments and book debts and all other rights and interests in, or arising out of, such property as were immediately before the appointed date in ownership, possession, power or control of the owner of the sick textile undertaking. Under section 4 (2), all properties referred to under section 4 (1) of the Act which have vested in the Central Government under section 3 (1) shall vest in the Central Government, free of trusts, obligations, mortgage or lien. 3a. Section 5, which is relevant for the purpose of deciding this matter, reads as under :