HARI RAM SHAH Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioner Hari Ram Shah, who is one of the Directors of the Britannia Engineering Company Ltd. (hereinafter referred to as the Company) with its Head Office at Calcutta, has filed this application for the quashing of the order dated 14-2-1973 (Annexure 2 to the petition) as passed by the Subdivisional Magistrate, Barb (who has been implcadcd as opposite party No. 2, the State of Bihar opposite party No. 1) under Section 144 of the Code of Criminal Procedure (hereinafter called the Code). Under this order learned Magistrate has restrained the petitioner as also the other five Directors of the Company, as named therein, from taking any action in respect of the closure of their Wagon Factory at Mokaxneh situated within Barh subdivision. He has also, in exercise of his powers under Sub-section (2) of this section, made this order absolute against those Directors.

(2.) THE said Company established its above Wagon Factory at Mokamah in 1959 for the purpose of manufacturing railway wagons as its principal products. It is said, this Factory, employing about 950 workers, had generally been running in loss which became more pronounced since 1966 as a result of the Railway Board having imposed 33.1/3 per cent, production cut on its railway wagon output. THEy tried to improve their position but to no substantial effect and in recent past their losses have been exorbitantly high due to substantial idle capacity in the works and the consequent large unabsorbed overheads. Its losses till 1970 have been over 20 lacs and in 1972 it was estimated to be to the tune of 30 lacs. Being unable to manage the affairs the Company decided to close the Wagon Factory and as required under the Industrial Disputes Act (Sections 25-FFA) it sent the required notice dated the 15th December, 1972 (Annexure 1) to the Government of Bihar informing them of theii decision to close down this Factory with effect from the 20th February, 1973 setting out in detail the reasons for that closure.

(3.) LEARNED Subdivisional Magistrate on a perusal and consideration of this police report felt satisfied about the necessity of such an action against those Directors and made the impugned order by means of which, as already observed, he purported to restrain them from closing the factory, making it absolute against them ex parte.