RAJESH BHATIA Vs. INDUSTRIAL DEVELOPMENT BANK OF INDIA

JUDGEMENT

(1.) In this writ petition, the petitioner, who was in the service of the Bihar Industrial and Technical Consultancy Organisation Ltd. (in short 'BITCO'), which is a subsidiary of the Industrial Development Bank of India (in short 'IDBI'), resigned from the service on 16.6.1986 and thus became entitled for gratuity alongwith the statutory interest, leave encashment for 32 days and difference of interest on provident fund accumulation with statutory interest. Prayer in the. writ petition is for payment of the said dues. The liability with respect to payment of gratuity has been admitted by the respondent-BITCO in Annexure 9 issued on 23rd May, 1991 and with respect to gratuity, provident fund and leave encashment, the liability is admitted by them in Annexure 15 issued on 20th September, 1993.

(2.) However, in the counter affidavit the respondent-BITCO has expressed their helplessness in discharging its liability in the absence of Board of Directors. It is stated that the overall control of the Company vests with the IDBI (respondent no. 1) which holds 49.25% shares of the Company.

(3.) Learned counsel appearing for the BITCO submitted that because of inaction of the IDBI in nominating the Directors and appointing the Chairman and Managing Director, the Company has not been able to discharge its liability. It is further stated that both because of the decline in industrial and other commercial activities in the State as well as the inherent nature of work of the Company, the Company started incurring losses and as per the Memorandum of Association shareholders of the Company including the IDBI met deficits as per Clause II (B)-19 'A' Articles of Association. However, after 1987 the shareholders of the Company did not give their share of the deficit, except that the IDBI gave ad hoc grants/loan/aids till the year 2000, which were inadequate to meet deficits and, as such, the liabilities of the Company have increased from year to year. According to the petitioner, earlier the IDBI released fund for deposit of the provident fund amount considering the losses incurred by the Company.