A P SUTHAR Vs. ASSOCIATED CEMENT COMPANIES LTD

JUDGEMENT

(1.) This set of two writ petitions raises a common question of law namely, whether the Associated Cement Companies Ltd. respondent, a Company registered under the Companies Act, 1956, is in essence an instrumentality or agency of the State and consequently amenable to the writ jurisdiction of the Court.

(2.) The petitioner in Civil Writ Petition No. 4845 of 1989 is qualified Civil Engineer and was employed by the Associated Cements Companies Ltd., Bombay (referred to hereinafter as "the Company") as Assistant Civil Engineer in the year 1965. According to the terms and conditions of his employment as contained in the letter of appointment, the petitioner was to remain on probation for a period of one year and was to be confirmed thereafter subject to his ability, work and suitability being found satisfactory. Clause 3 of the appointment letter provides that after confirmation the services of the petitioner could be terminated by either side by giving one month's notice or one month's pay in lieu thereof. His services have now been terminated in terms of Clause 3 of the letter of appointment on paying him one month's salary in lieu of notice after he had put in more than 23 years of service. It is this order which is being challenged before us.

(3.) The respondents have controverted the stand of the writ petitioners and their case is that the company was established in the year 1936 and is engaged inter alia in the manufacture and sale of cement and allied products. It is stated to be one of the leading cement manufacturers in the private sector in India having cement manufacturing units in several States in the country including the one at Surajpur in the State of Haryana. The shares of this company are stated to be popular with the investing public and are available through different stock exchanges. The majority of shares of the company are held by private persons and those held by the Central Government are significantly much less. The corporate share-holders, in fact are private companies which are owned and controlled by the private sector. It is not disputed that on 31.3.1990, 55,95,504 shares of Rs. 100/- each had been issued by the company and the share-holding pattern was as under :-