BYRAMJEE JEEJEEBHOY PVT. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The constitutional validity of the Textile Undertakings (Nationalisation) Laws (Amendment and Validation) Act, 2014 is under challenge in this writ petition filed under Article 226 of the Constitution of India. In the alternative, it is prayed that the Sick Textile Undertakings (Nationalisation) Act, 1974 as amended be struck down as being invalid and violative of the provisions of the Constitution of India. A further prayer is to strike down the provisions of the Sick Textile Undertakings (Nationalisation) Act, 1995 as amended being invalid and violative of the provisions of the Constitution of India.

(2.) Premises admeasuring 45,022 square yards as well as 153 square yards bearing Survey No. 17 of Parel Sewri Division, Parel was owned by Trustees of Byramjee Jeejeebhoy Settlement Trust. An Indenture of Lease dtd. 1/11/1900 came to be executed between the said Trustees and Maneckjee Petit Manufacturing Company Limited for a period of 99 years starting from 1/11/1900. Thereafter, M/s. Digvijay Spinning and Weaving Mills Ltd. became the successor in title of the said Company. A Deed of Conveyance dtd. 24/7/1951 came to be executed and the petitioner no.1-M/s. Byramjee Jeejeebhoy Pvt. Ltd. became the absolute owner of the said property. In view of breaches committed of the terms of the lease deed, the petitioners issued a notice to the National Textile Corporation Limited (for short, NTC) and M/s Digvijay Textile Mills Limited on 18/2/1991 and terminated the lease deed dtd. 1/11/1900. On 16/4/1991, the petitioners filed R.A.E. and R. Suit No. 758/2049 of 1991 in the Small Causes Court seeking recovery of possession of the leased premises. The suit was decreed ex-parte on 21/6/2000. However, subsequently the ex-parte decree was set aside on 21/6/2013 and suit was restored.

(3.) On 22/11/2006, the suit filed by the petitioners under provisions of the Act of 1999 was decreed holding the petitioners entitled to possession as well as mesne profits. Appeal No. 88 of 2007 preferred by the NTC challenging the aforesaid decree was dismissed. Civil Revision Application No. 617 of 2008 challenging the said decree was dismissed on 22/10/2012 holding that the lease in question was not a perpetual lease and that it expired on 31/10/1999. The NTC challenged the aforesaid decision by preferring Special Leave Petition No. 37299 of 2012. On 5/8/2014, leave was granted and the said proceedings were converted into Civil Appeal No. 7423 of 2014. That appeal is presently pending before the Supreme Court.