M.P. STATE TEXTILE CORPORATION LTD., UJJAIN Vs. CONTROLLING AUTHORITY AND ASSTT. LABOUR COMMISSIONER (CENTRAL) BHOPAL AND ANOTHER

JUDGEMENT

(1.) As these petitions M. P. Nos. 407/81, 411/81 and 412/81 raise and involve a common question of law they are taken up and heard together and the order passed in M. P. No. 407/81 shall also govern the disposal of M. P. Nos. 411/81 and 412/81.

(2.) Briefly stated the facts are that the Indore Textiles Ltd. Ujjain a Company incorporated and registered under the Companies Act, put up a notice for closure of the Mills w.e.f. 15-4-77. As the closure continued for a period exceeding three months and the same was considered to be prejudicial to the Cotton Textile Industry, the Central Government in exercise of its powers under Cl. (b) of sub-sec. (1) of S. 18AA of the Industries (Development and Regulation) Act, 1951 by notified order No. S.O. 617E/18AA/IDRA/77 dated Aug. 12, 1977 (published in the Gazette of India Extraordinary, Part II, S. 3 sub-sec. (ii) dated 12-8-1977) authorised the petitioner (M. P. State Textile Corporation, Ltd.) to take over the management of the whole of the Industrial undertaking known as "M/s. Indore Textiles Ltd., Ujjain," subject to the terms and conditions set out in the said order. The said order is filed by the petitioner as Annexure A to the petition.

(3.) On 17-2-78 the Central Government on being satisfied that it was necessary and in the interest of general public, and with a view to prevent further fall in the volume of production in the Unit (Indore Textiles Ltd.), in exercise of its powers under Cl. (b) of sub-sec. (1) of S. 18FB of the aforesaid Act issued a notified order published in the Gazette of India Extraordinary, declaring that the operation of all contracts, assurances of property, agreements, settlements, awards, standing orders or other instruments in force immediately before the date of issue of the said order to which may be applicable to such industrial undertaking or company shall remain suspended for a period of one year from the said date and that all the rights, privileges, obligations and Labilities accruing or arising thereunder before the said date, shall remain suspended for the said period. The said order is filed as Annexure B to the petition and the same has been extended from time to time and it is not disputed that the said order Annexure B is still in operation.