LAWS(BOM)-1984-2-6

PODAR MILLS LTD Vs. J K SYNTHETICS LTD

Decided On February 13, 1984
PODAR MILLS LTD Appellant
V/S
J K Synthetics Ltd Respondents

JUDGEMENT

(1.) THIS judge's summons dated January 19, 1984, has been taken out by the applicants for an order that all further proceedings in Company Petition No. 352 of 1983 be stayed, and for an order that the respondents be restrained by an order and injunction from taking any further steps in Company Petition No.352 of 1983 including advertising the notice of the hearing of the petition, and for such other and further reliefs as may be deemed fit and proper. The respondents have resisted the summons.

(2.) AT the hearing of this matter, Mr. Kapadia, the learned counsel for the applicants, argued that a company petition being Petition No. 352 of 1983 was filed by the respondents against the applicants. At the stage of admission, consent terms were filed , where under the respondent agreed to pay a sum of Rs. 45,11,798.47 by monthly installments. The first monthly installments was payable on September 20, 1983, and the subsequent installments were to be paid on 20th of each succeeding month. The consent terms further provided that in the event of default as provided in the consent terms, the respondents would be entitled to advertise the petition. That, in view of the consent terms, the applicants paid to the respondents the first installment. That the next monthly installment was due on October 20, 1983 . However, on October 18, 1983, the Central Govt. took over the management of the textile undertakings of the applicants under the Textile Undertakings (Taking over of Management) Ordinance, 1983. Later, an Act came to be passed. That the provisions of the Ordinance and the Act are identical. That it is in the view of the said Ordinance and the Act the applicants have now taken out the present judge's summons.

(3.) THAT Chapter II provides for taking over of the management of certain textile undertakings and s. 3 provides that ' the management of certain textile undertakings to vest in the Central Government'. That s. 3, sub -ss. (3) and (7), provides as follows: