STATE BANK OF INDIA Vs. PODAR MILL LTD

JUDGEMENT

(1.) This Chamber Summons is by Rajasthan Trade Union Kendra who represent the interest of the workers employed by the Defendant No. 1. They seek an order that they be joined as Defendants to the suit. They claim that they ought to be joined as Defendants as their presence before the Court necessary "in order to enable the Court effectively and completely to adjudicate upon and settle all the questions involved in the suit."* * Order 1 Rule 10(2).

(2.) The plaintiff a bank, has instituted this suit against the Defendant No. 1, inter alia, for the recovery of a sum of Rs. 14,76,08,669.18 and interest. The Defendant No. 1 is a Company, the Defendant No. 2 and Defendant No. 3 are Directors, the Defendant No. 4 and Defendant No. 5 are National Textile Corporation Ltd. and National Textile Corporation (South Maharashtra) Ltd. respectively. By the order dated 8th March, 1988 in the Notice of Motion No. 337 of 1987 taken out by the Plaintiffs, this Court appointed Receiver of the immovable property of the Defendant No. 1, situated at Jaipur together with the machinery, goods, stock etc.

(3.) The Applicants' case is based on these averments : The Central Government has taken over the management of Podar Mills (Process House) at Bombay under the Textile Undertakings (Takeover of Management) Act, 1983. The production in the Jaipur unit came to a total halt on 2nd Aug. 1985. The workers' salaries for the months of June and July 1983 are still unpaid. The workers held a decree in their favour for a sum of Rs. 14,34,000/-. A total amount of Rs. 4,25,00,000/- inclusive of arrears of wages and gratuity is claimed as due and payable by the Defendant No. 1. The Applicants claim that the workers are keen to restart the Mill and have approached the appropriate authorities of the State Government as well as the Central Government. Ahmedabad Textile Industries Research Association, in an exhaustive survey, has concluded that the Jaipur unit is technically viable. The workers claim that they are confident of working the Mills to its full capacity, the possibilities of which are being discussed with the State Government of Rajasthan and various financial institutions. An application has been made to the State of Rajasthan and the Central Government to permit the workers to run the Jaipur unit. If in these circumstances, the Court Receiver sells or disposes of the machinery and other assets which are the means of production and source of the livelihood of the workers, the entire exercise of the Applicants will become infructuous.