SAYAJI MILLS LTD Vs. P A BHASKAR

JUDGEMENT

(1.) THIS appeal arises out of a suit for a declaration that the provisions of the Employeesprovident Funds Act, 1952 (Act XIX of 1952), hereinafter called "the Act", cannot be enforced against the plaintiffs in regard to the factory established by them in the name of "sayaji Mills No. 2", at Ferguson Road, Bombay, until the expiry of three years from the 12th November, 1955. The plaintiffs also asked for a declaration that they are not bound to make any contribution to the Employees' Provident Fund either under the Act or under the Em-ployees' Provident Fund Scheme, 1952. The facts Hiving rise to the suit are these:

(2.) SINCE about 1931, a Cotton Mill in Bombay run by Hirji Mills Ltd. used to manufacture textile goods. On a petition filed by their creditors, Hirii Mills Ltd. were ordered to be wound up under an order of this Court, dated 17th December, 1954. On 22nd July, 1955, the plaintiffs, Shri Sayaji Mills Ltd. , a public limited company registered under the Indian Companies Act, purchased the assets of the Hirji Mills Ltd. for Rs. 42,80,000/-, from the Official Liquidator. The conveyance in favour of the plaintiffs was executed on the 5th of December, 1955. The break-up of the consideration shows that, Rs. 5,00,000/- was the price of the land, Rs. 10,62,000/-, the price of the structures and the balance viz. . Rs. 27,18,000/-, the price of the plant, machinery and stock-in-trade.

(3.) THE plaintiffs neither acquired the goodwill of the business nor did they purchase the assets of the Hirji Mills Ltd. , as a going concern. The manufacturing operations carried on by the Hirji Mills Ltd. , had come to an end some time prior to 17th December. 1954 when the winding up order was passed. The Mills had discharged their workers prior to the winding up order.