JAYSYNTH DYECHEM Vs. MEWAR TEXTILE MILLS LTD

JUDGEMENT

(1.) In these winding up petitions by the creditors, objections have been filed by the creditor-petitioners challenging the validity of the Rajasthan Relief Undertakings (Special Provisions) Act, 1961 (for short 'the Act') and consequently, the notification issued by the State Government under the provisions of Ss.3 and 4 of the Act. The first notification was issued on April 8, 1985 and subsequently the term was further extended by one year by the notification dt. 14-2-86. By the notification, issued under S.4 all pending proceedings in any court have been stayed. Reply to the objections have been filed by the non-petitioner-Company refuting the case pleaded by the creditor-petitioner. The creditor petitioners' case is that the Act is covered under the entries 43, 44 and 95 of the List I Union List in the VII Schedule, whereas the case of the non-petitioner company is that the Act is covered under entries 23 and 33(a) of List III of the 7th Schedule i.e. Concurrent List.

(2.) In order to appreciate the controversy, it would be proper to reproduce the relevant entries, reference of which has been made by the learned counsel for the parties. Entries 43, 44 and 95 of List I are as under with comment thereunder in the shorter Constitution of India (VIII) edition by P.D. Basu :-

(3.) Entries 23 and 33 of the List III of the Concurrent List are as under :- 23. Social Security and social insurance; employment and unemployment. 33. Trade and commerce in, and the production, supply and distribution of :-