Workmen Of Mysore Lamp Works Ltd vs The State Of Karnataka on 14 January, 2011

[Cites 6, Cited by 0]

Karnataka High Court

Workmen Of Mysore Lamp Works Ltd vs The State Of Karnataka on 14 January, 2011

Author: N.Kumar

Bench: N.Kumar

IN THE HIGH COURT OF KARNATAKA AT 

Dated this U16 1.4"! day' oi"Ja1I11.1£1_ry--,.  u
tswoxéfa;

THE HON'BLE MR, 'J1:sTic;1é N   

 

Writ. Pe1..1'tio_1f1 No. 3 §_f:gQ}02 L? 

 4.6  % '. 1 
Wm Pef.iI'..i0i-1_

37 14g_;g:_' 2002;-" "a;-gd f5«Zg:' 2"oL>3 {L--RES1

 

Writ Pet.itii0I'1?    '

\/V01'km<3.1f1 of Ix/I'}rsOr€>." -Lé11:v1}5'  Limited
R<~:-presc:n.t.t3ci by 1."r3_<3 A'  2   

Mysore Lar1"'1p S1aI"I' 8~_: .P;I1*1pig);;2'e:es'

Um'01'1 [R€§§c1,} ' ._ * .  

EA R¢.g_§isi,e:<:3d '"I'rati€. ,Urn'Q1_1

 '~ ..Reg1'si}éreﬁ ,:,:_ngfe'1' they " """ "

I1.1cfia,.I1 Trad§:.Uf1'1ionS Act]

V' Re f)?'C S'€?I'} i'f?'Cf  ,r§t:$3'P1'esid:;%1'1'E..

f*ji':};viii.g.ii.S' ai'1"~§:Ti.::<3~§1E' Oid '.I.'umi<;u 1* Road
M 2,-1l}r:shwz1;";: m. _'.7\fe:--:sf,

V VV i3211'1gé;.!om"m 5350 055 ...Pefé.2'1,i0ner

{.831 M/5-3. 8233;;-1321 R210 8:. C0'. Acivcxtaiezs}





§ ' "

AND:

I The Siz--1'1,e of Kzmizltakel
Rezpresemed by the S<:cI'e1ary {.0
GoVem.n:uen1,

Depart11'u=:.m of Ir'1dL1s1,r1'e.s 8: C'<iI3r1'1.1':€>:fc'e
M S Buildings   " '
Dr. B R Ambedkar Road

Bangabre W 560 001

2 The .Mys01"e Lamp '\JVorks Li:ni'1.ed _
Rep1'esen1..ed by t.Ih1__e I\/I.£111§1g:_~jiI"J.§;:V§"DiVI'*€:C1.O1'
Old Tumkur Road  E  ~ V 
I\/Iafleshwaram Wes':   ; s ._  -.
Bangalore ~ 560 055 "  V  V"~{;v.--Respo11dents

[By Sn' FLT. Par1.'h'as1a1*aﬁ'__1y.{A6, é1"1qng \.vit;h' Sn' S.Z.A. Khureshi,

   ~ ; :}2-\,_Ib:<'';e.1: »
 E\/'_I.,?"sV. Lécx~*yé12§}!r1'(:--;.Ad$*QC'a1e for R2)

This WriViI"1¥"e!j_'ti«;111isV'ﬁ.1¢d Lmdex" Articles 226 and 227 of
the ConVsst.it':'uti<)11_GiffiJjCi'i.a.."A-prgyying to quash the order dated
4~].~2002 by the GQve:jn:1_1é1--1_t. or Kz1r11a::aka, Vida AH1)€XU1'€-A as
me: said o£'d_e1* - is -girbifirary, capr1'c1'ous, ixratzional, LII1j11SL
L11'kSU.SI{l~iI1'££bI€V5:1-!1d'S3QifT€'!7S .I}'o.m errors which are apparent on

 the mir:,c bf the 1'~s:C01f.ds, a an from 'beinf violative of the
. . P L

'p.ro\risio115s'L*z":f°"£.he c<311stii:u.1£on of India, Industrial Disputes Act

 2.md"£'he pV1*i;1c:ipI'"es'0I' natural justice,

¥V1*ii. P'c,:mo'11'8259 of 2002

' "   ' =\V'm'k.§11e.11 (if Mysom }Z_,a1'z2;.3 '\?v'oz'ks Liztniteeii
 _ R€:p;'€f-;'§{*.r1t.€:*{l by f'Z*§.{:>
«. ' 'ME;SdX-'L'A1JEif1'}E} Siaff 82 £?3n1pEoy€e:s'
 __ "U11i0n [Reg;dW) 



{A Registered Trade U}'}iO1'E

Regimered under Ehe

l1'}d.ian Trade Unions ACE.)

Rep1'ese'nt€d by its Presidem;

I-{Ewing its office at Old T'un1k;u.1' I~'.Q:2<:E 
1\/IaI}eshwdram West I  '   ~ A    A
Be111ga1om~ 560 055   ' V.§I??ei'fH;..i0ne1* "

{By M/s. Sub b_é£*~Ra0 &'~CQ.,.  
ANI):

1 The State of I{arf13£aka--. _ V  AA _
.Represemed by the Sec:r";?:{a'i*y ?::0_ " V  '
Govei--Iirnent  *_ '_ ' 
D@paﬂ.mtar_11'*-oi' hﬁd L1s't:_§:ies«.&"C;m:1ni§é:rce
M S B;::1c:;~.11gs _     ' 
Dr. B R'A,1nbe'dka11V'RO'ud " _  _
Banga;1oé"_e;~'_~ 560  ._ "  

2 The E"/1y'VSO:f8._I;EiE11'1_3.\?VOfKS-.LiI11i1€d
R_§3p;r§:s€:;1te'd  'i3y"ﬂ1éT'--Ma.nagi11g I):'m(:E"'or
Old, Tum kur Road "  '
Ma11€~S11wara.m A'.--?Ve"s--'E
;' ' "Bg1nga1U:'§§ 44 560' 055 ...R<-:-spondents

 " {{ S1:i''L:i3,'Tf'.'*.[5fa11"£11asa1'ath.y, AG, along with Sri SZAA. Khureshi,

.A _ GA.f0'1' R1;
 Leiwyeitg Inc, Aci*v0(:a};e. for R2}

__ '1fE'1i':s. W£'iI, .Pe1,it'ion is ﬂied L1nde:1' Amcles 226 and. 2.27' of
::he C'g)1*i5«:1,i.1.s.1ti01T1 01' India. praying to qL1.23.sh the order dated J8~

 passed by the Board for IndL1s't.riaE and F'i.r_1a11c1'a1
 f*{€{::}:ESf'.I'{}C1)iOI1 in €3.86 N:},6{}5/ "E996 vials Am';€x'ure~D :»;1:':<:i the
'._0r{_ie:,r.f dalted .i8~T.74:?.-OD} ;3:21:=;sss€rd by the Appe§§z;1f:c3 Authoritiy for

i':jzc:i:.::~31.1'i211 & Finanzriai R<3<:.<:}:':se;E.1'L1{>£'.i<m in App€a.3. No.30?/2000

 u   A'11r1s::<.:'L.1;'e~F, as tilese <::1.'{ie;:s=:; suffezx' fr<:m'1 {i'£"1"(}i" which are

E

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app212*e11*{, on {he face of the records, illegal} and (:o11i,r:iry to the
law iaid down by the Apex. Court' and also the _p1'()visVions..Voi'" the
Act. "   "

W1~1t Petition No.37142 of 2002
BETWEEN:   -

Vxforkrnen of Mysore Lamp Works Li'I'"I12'':tf3d'' (
Represented by the ,  
Mysore Lamp Staﬂ" <3: E2;11_p}oyeeEs~'._.
Un1on.[Regd.)  

[A Registered Trade Union

Registered uncierthe  e_

Indian Trade Unions Ad]  _ _  V  AA
Represented by its P'1'esident    '

Havmg its office 311 O1dv7!'u--:}.11:mr'Ro;1d V
Malleshwaram '.»''Jes_~t ' I _V   
Bangalore -   ,    f V  ...Petitioner

. 1 AV  R210 & Co., Advocates]

1 ; ' The State A or Karrszaaka
 f~Ze'p!'esented .b.y..i,he Secretary to
A Geox-'ei*nn1e11te

  DCpk1.I'{IfI'C,ﬂf of Labour

 ' ?*/IV '  BL1i'Edii.Ii
*  .132'; B R A'An1bedka11' Road

Bé?;1'~:g,§e}()re --~ 580 001

 -   2 Th;__e I\/Iysore Laznp Works Lin":i':.ed

--,_ Represented by the Managing .Dire<:t.o1°
 Bid To 1T1i«:.'L1r' Road
" M21l.1eShwarz1In West,
Ban.ga,§ore ~ 560 055



3 The Ccmm1issio1.1e,r of Labour
E11 Ka.1'11ai'aka
Baiinerghami Road
Bangalore

  
[R1 to R3 

This Writ Petii"o'.on is fi'IVed__ undeij Ar't.i(11es"'2a26V_VaI1gJ 22? of
the Co:1si.itut'ion of India, p'i":ayi';1g to C}LI;c13hv.'_i'.h€'v Ofd€I' dated
308-2002 passed by the Goveitnmerit o1",.K.ar1iaigaka. Labour
Deparmiem. Vide Ani1--eXu1'e--N';"as"-1Vhe._said oicier suffers from
errors which are appa,reé1t  ,the'v._E'aet'«.oi' the records ané is
inconsistent with the $provi.s.i'oi»1s _o§".S'eCtiori 254) of the
Indushial Disputes A(A:t,_'£947_, apziri'; V1'."2:'fr)Vi:a_r1' being violative of
Articles 14. 16,2 1,, 413.' 42a11L1.4'3.:o{the"Constitu'tion oflndia.

Writ E'eEiii%bfi      V

B1«:TWs1»:N«:e.'; '3-V

Mysore Lampsv' :3L}'hed1i1'e--:i . Casies
and S()'i'}€Ci1l1€Ci' TI'ib_je.s A~s&so«C§é1tioI1
{Registered L1.:1dei"_'ahe E(ai:_;v1ai,ake1
f{egistrai.io1ﬁ' of Socficzties AC1,

19,60) }%2eprese13i'_ecI byjiis Secretary

'V V"  _ In-.th'e  of'IVEyso1"e Lamps Works
, Old TL:mkL1r";Road

TM ;1i§$£§E'11X?£x.9éik11} "West.

 ,}5:~:k_}gziV1o«1*'e..f  055 .i.Pei.i1.ion.er

~  {By Sri {)aya11a'1'ida Saraswa.i.hi, Acivoctaiesj

 Ai\ED:" 

2  3:  The Staie of Kéi-1I"E'22?fEi£1R£1

' Represemecl by {he Sec:.i'e1.a'1'y to



G(>K»'e1'11x'11e';'11.

I)ep2:»11't1ne:';i, of Labour

M S Bui.ld1'11gs

E31'. B R Ambedkar Road
B211'1ge1lo1'e --~ 560 001   _

2 The Mysore I.,a;.11 p Works L1'II1:':'-1(:'Ci.  ~  . _
Repres(3.nt'ed by tile Managing £)i;9t-?ct0r  . V
Old TL1II'Ik.L1I' Road '[   T
Maileshwam-U11 West:
Ihngalore _ 560 055

3 'I'I"1<:% Com111issio11Ve::'r§'i'Labour " 
In KamaI.a.ka ._ A   
Belilzierghaiiet Road.  _ 
Ba11ga1<J1fe.   I V'

4 Joint,iSeL:b2*etéii"y--V._ ,   '
I)epe1r:«mér-rré'; Qt" D.i$i':1V€SE.I11_§311L ,a11d

Sm-'ev Public: Sis:-i::t.o"r., "
EiI_11t'eI°pI"Es3i~' R eI.'f.r):'1'n, " ~ ___ .

    
.[)J'§;/;V\1ﬁbedRa1' 'Vce_dh._1'% 4' V
Be1I'1g'a.I'Q:"c ' '  ...Resp0ndems

' V  {By  '--;\»'1'/_._$$]j;.z1x&*yci1*s Inc. Advocate for R2;

'V V'  Sn'  i,.P:2;11'i:M}r1.;1se11"a1by, AG. along with Sri S.Z.A. Khureslli, GA

for R1 and R3:
R4 ssewed)

" ,  TI'11':<~;. : Pr3i'.i_ti01[1  filed L'1I"1d.f3I' Articles 226 and 227 of

V _ the C:<3i'1:'~:.5é.;it.:':":Ii0z': <31" Inciia, praying to quash the order dated

'.f30~O8--2QO§.3 by me G()w31"r1111e2'1t of KarI1a1'.e1ka, Labour

 f}t2p:;2;"[.:11é;%i1.I:% v'i€1r3 A1'111€:mz"e~I-3 and iﬁhs c;:c)x"z1muz1i<:aEian aimed

".s§"£?-- .I2_.«20®2 :'s.s;esL,1<:rd by .;'e:ap<)11dc;1't'.«4 vids An:1ex1.1;°ewI5€ and e1':c.?

5



AH t,l'1ese Writ Pei.it':i()ns c01t{1i.11g on for fu.1"t.§'1'(;'i'._lf~::;?£fi~%.hiS
day. Lhe Court made the £'0!lmvi1"3£§: "    

0 R D A
In all these Writ Petiiiions 
challemged  an order u1'.1d61{:3¢Ci'.id%a 
Di.spL.1t'es Act. 1947 deliﬁi 3Q»8;E';(fO2"xyhe':;e«{1nd.r:?r~iihe company
My-sore Lamps came  Lciosed. In addition to
{he aforesaid   :10 the order dated

18.7'.2000__ --130a'rdl v£'br.1r1dustr'ia! and Financial

R(':('.OI1v:-:i'i.']"'E;§:C{:iV('i*jfi1  f.--re1"i--.a"s; J[Ei*f'"3'."()'1"C,lﬂL'".!' of the Appeliate Authority
for.' Ir1dL1S'€'f*i2Il.  F{ec011si.J'uction dated 18.7.2001.
The: 0rdé}'d4--..d21ied' .4»Ai'_f2Q_f'§2 pr:r'Init,t.i;1g the company to dose

dqxﬁpl  a 150 cdhheil !e__r_1g<~?vcf.
  j1'i«._¢ p<:t1.iU'.one1*:3 in W'P.N0s.319O/2002, 8259/2002

 'L-1§2"c_.'. ¢3?1Z§.2/2.062 are the saxmé. vize, the 'WO1"k":'1'1€'.1"1 of Mysore

L£ii'}'1}')S,_'~W?{Z'7l.7}§_$:S Linxititad. repre:s<?1'1i.ed. by Mysore Lazlzps XMGTKS

 5;':§ai'f" zzmd £?;.11'2;:)l:3y'&e.s' Union. {Reg.;is;£.e§<:d}, 21 ;'egjs1,e'red 'f'rad€~



Urliml. W¥'.N().7\37/2003 is f1'1.ed by Mys0r(3. 1.Ja1r.r1jp::';: 3ﬁ§h_§2dL1Ie

Castes and Sc:hedL:1ed '1'*ib€s As-ss0c:ia*ti0n, 21 _€As'{}--£:ic-jty' -I§eg§i;éie1'ed

under £116 K2u'1121é21£{21 .Rcgist;faEi()1.1; 01',SOCiei.ieé  n

orcier which £55 impugned in WP;;':N0.i75~7/20.03  

1"1}1PU§§I1E:d in WE'.N().37I42ij;3=_(5Q.2 a1:é~~ 4.-he 
passed under Section 25-0 of  ACA.[..'   Ieading to
these writ pc:E1'1Ii<>r:s gift? _;:1:1:ie%J;f': u .

The }3etj.?gi0z__.1e1~g:.~£:;j:,rg.   {éiﬁlployed in Mysore

Lamps WQ1'1<':5'[.iAA1i1_}i'3j'€d 4(h_et'r:ni11:?;i"t<é'1< 1*efer1*e<:1 [:0 as the 'Company

for sshd1'i]'.-_ §§E§::2i:;:)é1*r1y'-is a"'{"3'(;\?e1*n:I1er1i'. c:orI1par1y regist:erecf
uI1d€1*f_..}1r7:_C0nj1f)22,i1icS .A€:i,. " 1':/lore than 94% of Lhe sharehoiding
is with 'th'<:+_VG-{)V€1*:1I1;_e11t..bf Karr1a't::»3.ka and the balance of the

sI:12i';eIf1__Oidjr,ag iS"'L?."i.}£€'I] by the empioyees and some others.

' VV}V"i'(3xAI€'-ugﬁfgé :£:'l1E%' ..{_01,a1 control 01' the c:0.mpany  with the State

"G(j*:f:1'r1:1'1~:¥;1ifjéirld if is an .21u1_Im'rit'y :15; deﬁned wider Article 12

GE 1"Ir':§: ;:COI1:SE.iE.L1{.iC)I'1 of In.di2:1,

The (ii{)EI'1})E:i§'}}' £22:-Ki 21 w:)3'1.<: f<):'£:€ of a}3<:}uE E 888 c3;'11pioyee5

"§.1'1(:}_usi.w: of (}fi'i{:€:1'$. S*;'21ﬂ" and O§}ﬁ':2"El§li\»'€E5. SL1bsequ€n1.Iy, it

g  .

;//



Q

was I'€Cii'1(?E'.d to .1600 in 2111. Out. of whom abcmtf"i*35O are
()pe1'ai.ivet w01'kmer1. T116 p€¥i1'1i0ne1's in the f'ir:5iV."i-h'r§.évv.¢writ

pet.1't'.1'0ns 1*etpre.sc:1'1t almost": all the workmen __ci:1pIAE)y'€§c1~--h i"17:----.Tthe

company, except. for a small perc:en.§§1ge of 0pé'z"'a£iveészztboui. 1"5f) 

who are the members oJ'1.he otlicr T}.'.a.dE: Unhiohzi-\Vh}';£:l1w:LsAthe"'

pe1.i.tio11e'r 1'11 WP.No.7i57/2003. '1'h'»3y héienapapyi,  pf':0.cui'ucV:i1".g
the general lighting source 1z1§i1';%§.»i1u0réS~§_éi*11.fVtuhq i1£;§11ts, high
pressure r11e1"c.u.1y vapami' .1anj1p'S.'Ahi:gh"' p._ress'{1i*é"s0hc'ii'u.n1 Vapour
lamps, special purposeua 'i.a'1_.1'1'p'S..I'€h'::'phhjy%?:t11hf.--.medical spot-light,

studio, ciner11a_tb¢f_ra Jhv. V'c5n".~;V::.  fiaszrs ':~3h.e1Es and tabular

shellsﬂofva_ri}jiz.':: .1.;L_=1'1;_gjt}1s_ i*e<:;L;;irfcd for nlzmufacture of buibs and

tubes. T}"1ey '.?V€1j€;:"($80'fnéiiﬁ1;if21Cl.LEI'.iI1g' Ieaci-in-wires, ﬁkamerlts,

trathodes zinriV'a1.r:g:.iL1b€sf"" The company has Earge number of

 £31'-v.'§§E'sfi"L).n1 thé'"*'*€}(jve1':11111ent4/ Public Sector LmcIert.ak1'.r1g"S

' ;'.~:":{?.E*:.2 -giizizg'C€)2j§j<:ra1i<)z1s; and 1,0621% AL.1_E.lmritics as Wei} as Privme

S:-'»<:¥c:=Lr3:1  I7%<5ciucr't.s memuE'aci.L,1red by the Cornpany are 211} the

higghs1S1:'----Vqu:d.i1.y and its products are in great demand. it is one

  <:~f,i,he <5'i'c'E<;=s'1 (it011(?.<31'3'}s. havizgug good demauld. it W-'£1S one of the

' -.A;')11'(">.'%p'€21"<)1«1s;s 'L11'1c§ctI'i.21k.i11gs:a 01° 'éhe G-ovemmenf: of Kamatakga. The

3





10

<:0m1:321:ny hasa got vast. 1'e:-sources. 11.55 f21cE«:)ry is :+§i"t.=..:_ésa;,c?."'cflV in a

vasi. area n011sist.ing of 2} ac1'es of Earld. .3.§'3ésid:§sfi'}ni}5';*;*1the

company has aiso got. 1112111L1i'21Q£:uri_;1g {£11115I};&1fI'.1faC*{.'1}I'ii'Ig'

various products  stated above. 'TV211:*-Kw. '1"]E.1.E-, ggoi-..{§*93ined  "

'person11e1 and 11igI11y (-3i'I'ici€ﬁ_fi."'~1§T0_1"1<;"ibi%c:e V,£:-zipableiiai'
co1npeting,' with any Qi:her  II1E.l.i'1{',¥f_E:1v.("TA[1V1AV1%'i'i1"l',f._'.; products
Stated above. '{'110L1§:§I:1...V:t:'E1_€:  got: conlpeutors like
I9h1'1ipS, I3aj21j. .Cf0111ptc;ﬁ.,. Company. Surya.
and oi11e1x.s,_V  Wiih {hem not oniy in the
quantity.    ofgtﬁe products. On aectoum of
cic3Iibi'%,xa"21t_§--"-'.A and indifferexlt ai1'it.ude of the
GoxIer1;11'I}e'm of  company has been put to untold
}1£11'V(.i$v}1I'}T)V ".,  'I1,sV ;§1%(ﬁd'zi£tts were adversely affected. Thea

<:§31'§'.st,rii<.:t,ive SAL"xgg§3;'_>'_Iaé»011s gi.V€3I1 by the workmen were being

'c:i:}§.s(.::»11'iir3d._  «-'.§1":t:i (:c}m.par1y has-5 get: its sspiwead 1.E1r():,1gh Gui. {he

 C'f'C)t.11'VA11;v}":§/'::--..v 011i' ~21£éc~.::>ur1t' of ihe wrong p01.icj€$ of the Ctompany. the

<}o_n1pa}3}r Ls_1.aT1*i:<2d losing bolh its business and profits. When

the {:t~{)II'3L:_j}£:'iI'1:\_/" w'c1$ i'aC.ing C€:*.;'1:Tai11 dii'fi(::L1i'z.1'€:s 'L0 ram Elie {:0:11pa.11y,

A'{i*1e.¢ma33z1ger1'1r::t11. mqL1<;és3I,<3ci ihe wQ1'k.m.er1 to sa:':ril"ice so 1.1131" it

fc

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'ﬁiim

H

shauicl be ].)GsS1'bi€~é {'0 keep the (é()'r1'1pz-111}; g()iP§__';"'--iﬁSi'€%a1d of

clossixlg. [Despite <--3<:0n01ni(: great, hardship, thc?--A'\fv0:'ki1*1é'11 éigrlcci

s€'s,1,ie111e1:d. with the ma111a§g(an'1em. I_n»2.is:i_1j_g e'i1orii1ei;s Vsa_CArVifir:_e uazs '

petr the se't.%:1e111eni dated 1 1.7'.  U_ 1*1dé:' :t:'h_eW;-:fé§i.:1& 

Va1'1'ou.s beneﬁts to which _ ';'v..QVr1<;r1--'"1A<i:'11j ihciiiciiirig
'the bc--:nefi1.S of wage 1je\fisiO£1V_.F;':*»;':¢r.€_ '§;§iVen. L1'pT_:'Vt.}y  wo1'km.e11.
The said Se1',ti1<3ment:  5y i:,If.1:P'g»f01'k111€11 because 'th6
\>v0rkme1'1 w'a11f;ec§ E11:-<3"  and it should
c0111.inue    if¢ééi'Ii.}.1 in pubiic: interest.
 and soul to implement the
r)bjec?'€,§6 -'$1161 3.330 to keep the company going,
{he resp(>';1de1'11_§§'Vreciprocate the aforesaid gesture
p1'0Vp_cfj1"1y.--L"*«.. O13-v._'t;};1Ac?_b' V'e-:3u:1':.ra1ry their Concluct was totally

i1'1'(§$p()i";si})1c:.A'vT1f1f;§;_.1"espo11de;1tTs with oblique motive with

'Cif':1"[aif1,W?S§'£.<:€I i11E,é;é1.'::%s«;¥L; wzmts 1.0 :t1()se {.1143 <:0m.p211:1y. Ox:
 3.;:c()'1,:.1jit~,(3i' :3h(}_i.~'~t' ciiged p01i(::'.c=;s and on account. of not providing

w.§}.i"1;.ing;§. 'L(§--;Ta§§i1'.:;1i. the p'r'oz:it1(:1i.0n was ad\.~'er--se1y aH'ec1i:ed.

U114§§'}1EZif.<'f.1§? ihff :;:0mpar1y fiiisrd 2:11 a1pp1i<:2;1i.ie:):3 's.)efo1'e the E'3{)EiE"d

ni?>'1='._ I.r1c§:..:si1';'.zr;1§ 211'1(E Fi'1':2m(tiz-:1 Rectal:E;'s.r:,::e::ti.0x1 (fc>1" Shari.

2



12

§1ere1'1'123.i'1"er refers*ed is :3.s+; the 'B119-"R} L1i'}d€E' S€',C?'.i(}'i1:'"C)Af ihe

Sick fEne:1L1:3t.1'ial Companies [Special f3l'OV'iS§O11S}:'-WOT

short hereinafter referred to as the»..iA_ei,']. j;ip.p0:'_rV1uted 

ihe Ii1':dL1siri.al DeVe1opn1em' Ba1r1k:0«f' I'; 1iji~;?i (feif s'h:e;t:uiie1=eVﬁi3f1'.er 

referred to 2153 the {DB1}  C);:werai.ir1'g:  fob @h'e
company. NO1iC€ of the p_;f_e"C»e_ed.i»'_ngs  sewed on the
peI.i1,i0'r1e'rs who a});3em"x£}dA 'bc~,i1.}:'*e u 'fl-IFR. The Case was
numbered as 605/ {he parties, the BIFR
passed an :'_1.1§--?;vc:1"i:i%i'i. Qrderg  as underzm
3] V  \}vduid submit a fresh
 p1<0v}")Hc)sa1 to the OA by
V15.6;.2£000'x §?a3i>+£h_ or without OTB with the
  V%1"rj1eai'n_s'Vc3.f i"iﬁ";;~11.ce 1'u.i§.y "tied up and reliefs and
V c:«o;:V1Vc:'eSsic511s wit.hm RBI parameters. It was
 A. 111a1de"C'i"e';§.1' 1.ha.1; no fu1'ihe1' extension of time

.   {km_u1d be given.
  Oz'-\ w0L1}d examine 'the c:ompany'a:

 ﬁroposal and i.I'.i1 was found viabie with the
:T1e&:1"1s of finazme fully ﬂied up and reiiefs and
C():1Ce':SSi0I1E3 S()ugh"i'. st:rieti_V as §:)<:%'r Reserve
E32111}; 0f India gguidelines, womd fmmulaie 3.

%

3.1/..



13

propm' 1"eh2?1bili't'.a1i0n scthenle. l10l€l 3 jdini
111eetiI'1g for 2-1.1"ri\!iI';g 211'. an aggreecl 
and submit a report, lo the B0e1r_ci?.wi1l1-- 0 ~

minutes of E';l'1e_'i0in1. .mee1.ing by.  V
iii) In Cass the c:o1npa1r1y'/C%(.")I€.. l'a'iled_. 1jfoVs_nbn1it

the rehabili1,at.i011.  ztbiéﬁxrgll 
15.6.2000

to tlivsé -QA, {l1{:_ 'OA »».r;a':l:2'¢_.l§gb:}::{'l an I.nterim Staxétls.:l{&={)o1'1, l1';o_l_ 11116;? on 16.6.2000 gmd _11~_;c..""%:3¢h.«:Ah wémics. cénsider passing ap§li'0p:--'i0at%Q' :Vofd.§§rs.§'l:Vithou'14 helding any I'L11*l:he1j_h:€:a_.{inlg.

3. {10'1'.'El1t3.I'f.>*lI_l_"l(*)_ §C}oVem.ment 1'10}? lll'1€ comparxy sL1br11l1;!:.ed«. 27{1'1_\i ;-noposals 110 the Operative Agency. 'l'l'1Cl'C.fO1't'.f""LVl"1C'v 21 final order dated 18.7.2000 as per Anf--}ex:L1~re~C 'Cl;i.r"€()li11g {hall the company be wound up. l;§_~f the Séiid 0rd<;~'r of {he Z"3II*7'R, the G0verr1n1en€. . gjza-f1'f_e.I'é:r*2=l.4;§'a2'._:l ;1i1'1..--:"z1}i);J€2a_1 l3eE'01fe the Appellate AL1.tho1"it'.y for In-C,lLiE:311"E'3_lﬁééllld Fillancial. R<3.<::0nst:"1,1c1.ion (for shmi. h€r€inal"ter ;'e§'e1=ré€E:;_ 1,0 215; 2116: 'AAIFRJ in ap}_3e.ai N030?/2000, The Said. Ll.

14 appeal 21}:-so eame to be dis-stllisseci by EH1 order (1aLe(ix 722001.. copy of which produced at. Am1exu.re--[). 'I7-he.G:)§fei'nﬁ;e11t Pore't'errecE a revision before the AAJFR for 1'evi¢\»vfoI°'1ehe--..said.. ()'I'd€£.' in I.\/E/\..}\§0.l74/2001. 'E'heV-:3é'£ic}--.rev§_ew_ ea1nfe {.9 be ' dismissed on 1.6.8.2001 as per A;.111e.--§_§m"'e~E.~_ 0f these two Orders, the G0\Ier1<1__r.ne11Vi"'.(_Jf' p€_§'§SSed_:em order datied 4.1.2002 0rde:.'i'iig:V(:Eosure".Qf't1'ie eprI1par1y and int.r0dueing {he \f0I*L111"ia_ry --.eche1«n'e';' ""1 'he aforesaid three orders are eh;i1ie11gt<dgf.Fii.s Court by these petiuoners. When were pending, the me1n2ige11j1e11ii'V-"of'T,_ "i!3e".._(3e_r__11pany filed an applictation dated 9.7.20O2V_.seekiI:g; ;;«:r:;::;-;_sieoi1_ to close down the company under SeC;1;'ie~:1 25~u()V-.r.)"I'V1;'1'1"e E. i').;';1(T[. On service of the notice of {he said epi4(>c:ee}i'ir1gs2_1.0 the pexttitieners, they entered a.ppearanee and E"iE~t'<:i"v..i:f1§;§ii"' fx:iez.e1iIeci .s%;E421':.e:1'1e1:1t. ef 0bjeci;'.i()ns to the said E1}7).'1'3I}'C23,'i.if)fi}'A They have produced 12 cioeuments along with 1,1'1Cii':.Qi)jf3C1Li()E}S, A copy of the appiic:21ti0;1 filed and the. 'e;bg'e'e1:.§e11e iiieti axe eneEe:ae::§ :10 {he writ. px'3.[iU.Cr§'3S. Ex/£aeage'11ze1"1t 5fi1e:d 21 re§oinde;: 21 ecmy of which 211530 enelossed. Wietheut. 3,.

15 (.':(_7rI'1S§d€%1'ii1g the c0I1tem',.i()I1s 0'1' ﬁle p£:U1;,i.0ne1's, 1116*' _vG£'§.\:l'="ZI.':'1'._I11(i}1*.. passml an orcierr on 30.8.2002 a110w1'11g 1.h€7-""'c:ip}')']:'ij0I&:'¥fi'i731%iV'"-étﬂd gr:;mi.ing me per'n1isSi0:1 10 the n'1a,11agerI1ef11 id dam-3. the 2 eompelny antler sub--sec1,ic)11 (2) iwof 1S0eci31i01r;._ 2540 0 ;5/'~xV0j0'3.0sub- 8001,5011 (8) of Se<:i.:'0n 25-0 ci-f0f'vt:iqV§' I..0.'A@ ;; iasitat A11r1€xure»N. In viewpi' BIFR was affirmed by me AAIFf{<;...0i[:1c '¥'_eC2.:):*éﬁ'ré:v10:0ations we:re sent to the Company Court for up of the Company. company petition for winding 2000, which is still [)E¥1'1d:3'%1g __ 040 * The has filed its CO'£,EI1i€I' in V\f.¥'?.I\Eo.314'§;50V/0 02,05 T}A1.'f3}{V'.('"3..()I1tf311d LI'1a'L [hay issued a Governmelfm "'fﬁfésx.3;-~:ia.fa<a;d ;'T99E3 decic1.in.g Ea pr'iv::1ii:»..~:€-: 1.1%. Company.

"}}'i_<)"\1\:ef%.ke.:f; ».rjI'L.;_c " 10 I'z1:"thr:er losses and I'i11a1i1c:ia1 suffering by the C.§)§11;32:_r1$% C()11'1par1y was registered with the BIFR. Sev€~.1"a£ .yxzc*i'*;: ir'1vi1.<:%c,§ but {fie efE'<3r*£'.s fz.1.i1<:cE. 'I'11ey h.'S1"Jf;"* ir1f0r'rnec§ {ha ai.t;e1':1pi':;s were 11121516: [.0 36¢}: cthzarige. in I1'1an;1geI1';e;1'1t: and (Jfféfs g/, 3?"

the §§E:{'.O':}Ci 3?' AA Lifité. C(3i1ipa.'i'1y'. '1'hc-ry :gU'£:~.:~ 3: 16

Op<:.i'z;:i,iI'1g Ageiicity thzii. iiiough iii was willing to _13~ifi:';3'-E;1'UE5€ ihe Compamy. no (:()1i(:i"€te proposals have been ﬂy the CrO\f(31'H1'i1f?]'1L They \\.~'(31'E'. i'e'3ady to €3XJL.f:"'3.1'1.d_""~§.hff~.::V33CI1Sf'i'E _ c:0i1iinu2:1.E'.i0;1 of G()V€'1'I11"I1E',I1'I' :.'Gu'ai'a.11't:ee.-:' -Vd6fC1*_1i'1'eniV". 0;'. L commercia..1 tax liabilities and cofi'\{e19:';_'iic$r'i1 into equity. In spite of it. I'€_v1T1E1bi:1i{.E1{1OIJ ;:{1$dpQv3zi1VVb_éi'oi4e TEBIP-'R was 1'('3j€{.'l€d on 09.1 1.}. was before the AAIFR they tender to iocaie private pariiies r€:ga1'd to sale of land and 4.$€ii__i,1eéni'eni,"'(if _'c.iu:<3:'~;3 é>IV_?5an}<s and financial i11si:it§':i'i.ioi1.s V217?!~«.Qi'i(§€"aB:i;ifi' -imp.1ei'11eI11;:ation of VRS for the eniployeg:-.5'; C011imi1:i.ee was also constituted. The .QU\?€i'f1'i11€I1~'..,Vliilildﬁ (5'ii§"e1* of one time settlement to the banks f1."fA£;£&1IV"1(?iE11""'ii3$I_i§.L1E.i011S. But: these efforts could not 'CS1ELi.€:"1'"i';£;1U.§f5.€A.QSEJICE 212550 <3£'§.'e,z'e<:1 'i/'RS peickage to 11115; <:mp1oye<:.s of $§3'(i;idtér1.E:. \rVi1en ail these efforts failed. the AAIFR ﬁ:e:ii1f"i1*1i:s*d" f_-éhe ()fd€}" of BIFR "$71163; have set. out various '('3.§3-E*§§f?s1.£-li.'}{',£;*,. "'i'hey w€:re §3I'f;:'.].}€iI°€':d "£10 ggive ii, 21: \----'2iI"iOL.iS sstzigges to V i (C1) Comlz'rmaI.I'c)n Qf Governmen.: G~z:a.:1.'r_t:ar_1_'I.s':3I{'33,('g','.f« rs.14 crores to secure working 'r:dpi(:a.L " s'i1"'rV":'1;:fr_§,~'s provided by the CoI2sorf_n1..t.n_1 QfB'C.{Vf'.I'k§':?;-- .

(b) Conversion of oi.;I'sEv_1r:dsir1gsloam" Ii'fe.{§'lsz__:s"ii:;§z_;' Qf imgeresij Lgpfjg Rs. 1044.42 lakhs 'a..§'"eq:,u.z;;. . T (C) .FYr1ﬁf:*ei_iaZ .9/' Rs. lakhs to refpay the 'lbc_:r'1 .€LL::'(1?fl€3('i_' '_-,f'i'ron1*a--. Aizjforce Group Iz'1s1zmr1ce Sbériety, I\z1aiILv_ Ijeihi. " "

{d}._ .-€:_'r)hv:_e--rSian_r1 '()j"~«Sc1lz>s Tax dues from July *3'.l"'='___ 3\/Ickrch, 2001. aggregaiing to = Rs; .laFc!_1s loan.

£7:-'3)' "Fir.iVar1.c;'ial Assistance Qf RSJ O0 lalchs for sz4asz,aiI"tin;}V Company's operations.

Released Qf Rs-2,7() cmres as loan. to 'i_;"£9ea:- PF dues anti. Rs.34 lakhs ('0 dear 50% Q1"

' E-S1 ar7'2c21,m.i. iozraiiing R's.3.(}4 (mores wide Govt'. Order NQCI 33 CEL 99 dates! 08. I 1.2003."

5. The w01"1{:'1'1<:n. were caiéed upon to vSi1b'£3f1iE' the pr<)p0s21I which they "have ﬁieci. The set:i.1e'1nent.4w;isL-§:;ii;E:1'ed 11110 with $116 W0rk11'1a1'1 on 1 1.07.1996 with E')(}I1_}:1fiCi€3_vi\I1;€f:'i1'{fi()h¢_ As in spite of these efforts 11c1E.h1'r1g_,;1,1a'te1'ieé.1iVSe"&--.0i'_'I":. 1L¥3"Ii1S Of i,I".;.¢ ()1'<:1@r passed by the BIFR arld f:i1{3.: Ai.1i'1-}34'L1g11¢V(«iw.:m;'def'=-- deﬁed 04.01.2002 came :i.Q V.E.h>€3 1:m:a11ag6:Inet11i. to dose the tofu,j1'{Ivf;eu0V"gédfnfaany'Vin accordance with Iaw. .'I'he1'€jAfT0:'r:§A."LE1é-».§111ega{ti0.11sVA.:.::i1a1C1e against the G overnm 611i, are W1': 1€i)1_,1A1'. '02111},g% ' b sé;;'1::'1c:_§3. _ >Vl;}'";'{f3..__CQI1'1'pé'l1y .al_1-30 has filed its si;atemem of Obj€(',f.i('}'}1;$'.' , zgﬁiiajijéjiéi that before the order dated 04.01.2002.' mxgrie 'i0 Iﬁassecl, they have announced Voluntary .1V.'*&v.*,'1'ii1'.t3IEY'3:€i1"tE A~s;(:he113é:WcE21t.eci 3L12.2001. PL.1rsua111. to the said :=3.cE1e'1:1é"~21?30i.:10:Vii046 <::n'1};3Z<;yees E1:«.1ve 2?a1ré;'21dy Gptead far the said ::~T;c:-hen1_e3.~ _']7'rie Ia'-15.41 delta for submission of such app1i('.2).1.iOI} is Ac1a'1.ei£,f50'OE2002. Some of the employees who made " ':1;;}1j.;i(tai,i<)1'1s haxve \'5.='if}id1"c1'x-VI'). *£:ht":% SEHTEG t.hm.1g;h ii. has not __?pr:r[11.i1ied t.,'m:;T1T1 for SLl(,':h w'i1.11c%r2m7aI. Thr': i.n;'1}3L:g;§I1(:%d arcier I9 di:'e(?.'i,s:s the Company to step ()p('31.'c':1[,}'.OU, even E)<:%i4'{'§1'€{_"'!'._l41'1€';, Said ordelf éhe <.7c.):'1'1pa1h1y had (:l0sed its 1)rodL:c3ti_r.)'l3l« 2191.1'-.i'i"t:jJ :'.';~:i,r1*ce O(:tobe1.' 2001.. ln any event, C0::1péit1.3?.':v»ii£is'_' A.a1r'§aa{:é3{ ll e1nn0um(ted the VRS and most of for the S'c11'1'1t'.. If at all the C'\")7v1_"'Ev'1}3§}.1'1y"A('?lOV:':":t?E5' 1'.l"..z.tf."E'_',7 would Comply with illéf the '-I:r1:<V:h.'1:3VVtvfﬁria1 Disputes Act. and in the eveml: 'Cl:"CQ'1"aj1§)al;;& '4f'p.V1fv€).LA:')'C::~3bes to 1'e'{.rench. those employees whohave ;'.€1'1V"l')pliCé1'["iOI"i pursuant to VRS lhe reSp0ndent would comply \-vl:lhV "Oil" 1'v'}::'}.€?VV'})1'0ViSiOI1S of the ID. Act. 'E'hey'hav_e€- _l'cx2l'C1'1'r::Vd"«lo -\5_a.:iiQ"rJ.s p1'0ceediI1gs and (remand that

-in spite' Qf'E]1€il"'.§3€'E3f.' e_l'l"@.rfs $1.0 revive the Company, because of the; \2§»'1;§(§h"'{ve1"é? beyond their Controi, if Could not be ll ' aféié-"i\reﬁ'lR£11'i?t1;ll1c:'y cannot be found fau1i,wiil'1. V _ the a.'f0:'esald order. SE1. K. Subba Rao, ihe 'l€','é1'IV"11€C1 Sﬁuﬁi-(ﬁr Counsel Clianéellded t.hat.. {he i11'1pL1gn(-:d orders V21V:":{=l~.«<}1'1 £41121': sh.«:)r1. ggr0'L111d, the order is liable: to be quashed. passse;-<:i':§s i.maIl.y a;'bi:,1'a1"y and l.}.'1€'I"€ is no applictaiirm of mizacl L <:

The ni.z1Iid21*e()r'y 1"ec;L1i:'e1I1eiiis of Siib-S€"3(3U01'1 (2) of _25~O of 'the ED Aei. have note been borne in mind 21'r1d"i:iEi11CVC' v{'iie:"c3'rder passed by the C1(}V€I'11II}.€I.][. is Eiab1_e~te._be .I'€e_' enquiiy ' was (:()iicELzCt.ec1. N0 opporiuriity Tito to ' place {heir view. The Gci*§*ei9'i~1merai.A*-has. n°e._i L§_0'r:.sjdered the geiiuineness or adequacy of t_heu'seasQns f<':)r._iV1f1e eiﬁosure stated by the empteyer and iij'--dﬂidAf1.O'£§CCI1S£idC*i""{i?{1(E inieresi of generai public and olﬁhg:-1' 1*e1e'.r'aIx{1 ::i'aei::)r»s_. ",{':}()\,'(«31'1'111'1€:}'1i has not cons.idered_1"'he '-f¢_ piouseis.riteii1ii<3:1s L'£fged in opposition to the closure as ;~se{"--0£::_:i: in *i':.I"J;'f". (V'13"Jj'{"'(,",v1':1'0I1i:'§:'. III has Si1'n_pEy acted on the G0veij1m'1_e.m V'i'7"e;}1i__c,j/.t:(3«._eE-Qse dowii {he L':1de1*t21king emd has passed £._1ieii iiﬁpiigfied'"'ef&:2ér. White passing the impugned order', ii. mi_si-ead'V":he entire proceedings of the BIFR/AAIFR ' «aiid <::eme to the ccmelusion that ihere is no aktemative but . t:.:3'_ p§3iss:"'i§i<:. f{3~r.d"e2" of ei(:ssure_ The werknien had eiemenstraied £3':-91%. were wiiking {:0 advance monies towards the n\2g7(}1'E<:i3'~.1.g.__§ C21pi1':21E auck also 1-eE1abi£ii,ai,'i011 scheme, E3511. it is me V{m:}.f}_Vi€1'[1£11€T1E, whiczzh refuseci :10 eonsicjer Ehe suggfgesiieris i.h.ai; ..':{'.a'I1i.€ from ihe Bemks. :2 fen §'hOL'Egi'i ways aiid means were i;,,.

21 s«;h€)w'n 1101' oniy for 1*eviv21l (>fti§'1e C()mp3.ny but also to run the U11de1*I:a§<ing anci E'?'<11'El adeqL.1a'1,e p1'()i'its. t,h<:1'e was .!1Q'~.1fe:~3_p0nse I.i'()m {he M'at:21ge.113ent.. iI1E1SI11L1CTh as there VX7218',2;HdE1.§fI'¥'1ﬁfs-?}'fiQI1 to dose the U1mte1'1.aking. no r11a1.t.e1' what _he1ppfe31S';~ 'Thc--::jéfb;re ~. the enquiry and 1'ejeCt.i0n to be ddzne L:11'}5df€jI"-SéC?_.{'i'E)I1"25jO~.;béiI1g"~ 31 quasi judieiai in I1&1'£.L11'€', {l'.1'(~',. i111p::1g1'3ed r.}."'@.c.tS pezéseti are centrary to Ehc mzmda1;0r"y 1'e2c1'i:i;'é:ne111 é:{7.12iw':a11€E: it is passed like an adn11'11ist.1'ativ§'no;-dci" sjL1bj'eQtiVe satisfaction and f;he:~e£'0re, me m~1pug11ed 019dc1* 1"sV1iab--}«&:V"tQj:%3¢'_'.sei, aside.

_F?<2i'V'€?'(>1i;.V:.1'z3, 1'h_é"-1§:a-:1'I1ed Advocate Gen<31'a.1. appearing For 1h€"S1fa,k:e L?g)1:1't..rj:f11dV€':i_ '"'i:h'éH'. the I1aa'Lez'ia1 on recorsd Ciearly de111o11si.1'ei':z;es "£.h.e:i'._tIi1R3 Coinpamy became a sick Company. The n1v_::L'E'1,'..e41f \2\,"f~:1V--'=3 1'ef€r'":'6:_d___i'a BIFR. The' 11331 was appointed as an €;})c%1';3£.'i"1'1§g :j1§gs;%':'1<ty; S£1ffi(E'i£?1}§" <););)()1*i.L1t1i§.y 'W318 given H) 23.11 the c:Lé::i§é%1*a:i6{1b€.d'z:(s11'1e up with the rt-:hab'i1it.aI.i011 SChf3l"D€A In spite

c)'£7._0ppc;;".12:17;;iy: no sua::E'1 a1t.emat.ive scheme was axﬂved at, T}1(ff'l'"t3f}:)i'f*T, ii'. had no 0§3'1.i(m e><:cep1'. E10 t:}1'£§£~3z" far :1-:C:(>11m1emdi:1g AA}:'%:',l'7E-34"'§§.iSS(}1L1.i.i.()I'}. '§"'he G()Ve?:11m<3I1t'. p1'efc3:°1"ed an 9app€ai againsi ig./M 22 the esaid order. 'E'%é.¢3 appeihite amlloriaiy on f(?C?()}1'$i€§~'3i"&1€iQﬂ of the emire ma.'éer1'e13. has d1'sn'1.isse'd the appeai.-u°:R€\ziéu}' '21§,£1i11As.i, the saici on-oer air-3o (:a111e to be c1i_s:mis_sed.." Iohihive 1Vi'g§higO'f_t.IV1Vé:o. aforesaid orders. which has beconie.' fi1i ai*o.nt£~i;i' U..1(?'j1.5;};_}11::'[I'1€ GOVermnem'. Policy cou_1)1eCi_Wij,h. ih-E? "zicif p1'iVat€}- entrep1'eneu1' rzarrze forward 1o___téﬂs:_o. over éhe _rnan;'igen1eni and the Company had of R599 crores by oﬂ"e1'ir1g the VR S(iI'1€'.II1:e.," no option except;

io zuzcord under Section

256) as t}ot§V c or11Votitu1,ed genuineness and aciec{1ivo<éy__ the said closure was also in ge.x1erai'«:§'L2¥31ic:'{act.. the substantial number of empfoyees"-ha\.-'€%V o-pied. $019 Voluntary Retirement. Scheme and t'hc334§.«21re'~oo 111orei11 enzploynlent. The remai.;1ing staff has been " réjoiox/éitf. "I"f."}.:-'E ma':.te1' had becozne dead horse axfzd iherefozre the _ €;Lzo_(;i5t;io':1_&.()f"'Vi'5§virgi11g the j1.1du.st1"y, reE2abi1i1'.a,ti1"1g the empioyeres _ V in,'€e1'I"ei.'e311(;:e witiiii the Said order' iS rnade out. is "out, <)i.'fC__;_1.19;:sE.ioI1 and t'.here3fore the order passeci by the G<:>ver:3':12eé1{ is s'U:i{:Eiy in a{?COi"dEi1'1('.{i' Wi%';}1 Eaw arid no cage for 23

9. ReEyir1g on ihe j1.1dgI1'1e1'11. of the Apex C'(}'u1f1...T1f r1"

of BALCO EMPLOYEES UNION msaem .'tij$)*I1?C:g\f"0i?fv'.I1vz)I21; AND OTHERS, nrported in AIR iﬂhat. pI'()C6SS of d:'si11ves1.me»£1_§ "éﬁ 21 A;'_?;n:I"1'(.y_ud:=:f.,1:§iO'r:mif1v(>1ving complex e«::0r1c)m1'c: "h:ay'e_Econsistently refrainc:~d {'ron'1 ir1t':a*ri't33vri'.i'z$'xariﬁé de Cisio11s unless: it is C§€I}'10£1SE 'I'E1E't3C1 Lo.x1,9 e or Eegal limits on power 9': iﬂhei Courts would declimé §u.bmits that no case for i1'11.e:'I'ére;'1;:e w'1t.IE} -S;_{i(?11'&.,V{5O.1i(T}7 decision is made out. 'E0, hi1 '1t?1é"}'1:g11f.' of the elfblfesaid conientions, the point. "I.1}21T z11'§":§ e i'(5r.gt()I1s£derai,i01'1 is:

{If -".'{;m%;Iz';;>ziqs-,er we order passed. on 30.08.2002 * "iu':r1.er Sub~Se<:z:'1'.or1 {:2} Qf Secizizm 2130 read w1'.ih Sub--Secf',ior'1 {8} Qf Se::I.z'on. 25-0' is in a.<?<7<;>rci.a.r'2c':(2 §vz'zii': ism: '.9 {2} 'Wi?e-'>,I}'rae:' the order dC1{IE'Ci 4--Iw200.2 by {Ihe G()UQ>r"I1I7'?E;"r1f,' per':'m'(I,ing ting 4i?'iz§V')'_<;'l.'L'7"¢;'?V_' :_. the Company is valid?

Point No.1:

1 1. S€:céE'.i<)1:1 25(0) z'efa_<_"!s as L'1V31fTl €'I':A Section 25-0 Proaegiure foi"cl_6si:ng:'a:down an undertaking":~.__ VV {1} An '£5?/:1p£0;ja_e_rE--.fiazaa ;: ir1V:1:5<énds to Close down an mfzd.cr.I;aicir1g_ 1 Industrial esiai9lf:ii'?"£f'ri'g=r§il i.o:3._LL:i2ic~Fi I"ia1'.isV C'h'ag9_f..r:3r applies shall, $:{:'z'b'ea'-..x "m_a'r1ri'e:r, apply. for prior days begfbre the date on a;?u'cr'.'--1 z.f1<:a_ii'1§_¢r1.a.ea: 'closure is to become eff/isaciive, to r:Ft1:?.VVCq3pfopftaie«.gbuernmen1:', sr'atir1g clearly the ' uI"e>c1:;()r1suf:)rithe I'nien.d.ec:I closure Qf' the l.LI1dt'3I'ZClkiT1g . a~;_.'c){;;; c2f"'m.é~«1zcrf1. application. shall also be served 3 _ S'i7'_"éi1.é}fC£i'ié/'{)l{Sly on {he F8}}I'€St'3I1IfC£I.fU€3S Qf the :L:a?l":f:.n?;r::'z.V in the prescribed. manner:

.. V PIEOK/II3£:3I) ma! nothing fn t;h.z'.s subwsection S??:z.iZ. a_;)pZg; :0 an ur2de1*"z':aici2*fig 862' up jésr {he :5 'ii 3'//,.,» 26 been grcmzted. on {he eXpz'.ratlor1 Qf' the said. per~l_I():;?_. sixty days.

(4.) An order {he H gouerrunenz. grar1.1.1'r1.g or reg?-iesifilg To krct-.r__2_l. perrnissforz shall, slllqjecl 110 {he p.z'ovisiori.;s :Qf"sui'3§"

section (5). befinal ar1d.--v.Vl}ir1.d:r1gV'on all l2':1eV"~--p4dr'iles arid shall rerna.1'.n_in_[2)rCe__[t5r~Qne ye'arf:*0rI1 date Q1' such. order.

{5} 7716'.Ar"«'lPl7'50P'7C"13€Kgoiﬁerrlrrlenl may, either (ml 'i.ﬁs__E)wn2_m.@llen (ﬁr e'r::_""l;h.e__gij9pl1icai.ion made by Ihe L:':f_?7ffl_)'.f:)'ll'J§/"{'(i'?v' c.1_r--«.__c2i'ly t.!.7Or'kn1ar1, review its order ,;grar1i.i.r':g_()r* ref"1,l3:i'lg_'Io grant permission under sub "sec;'.l1fon (2)~.:;;-. _fljl;> mailer lo a Tribunal for fl?q,II'c$n_: V 1 PRhCV)"VIDE.'l) that where a reference has been _l'l't(".L(.3{;"' l.~O a Tribunal under this sub~seet;ion, it: shall ' cl;r*:,lr11uar-cl w1'.ihi.n. a period, Qf':l11'.rl;y days from lhe' 'd:'{l.f.'(:-.;' of such reference.

{6} 1-V}l£;.'?"£;' rte a:pplie::z!:ion for permission :m(,ler' s1zl3--seeI'.ien (1) is rrlade u:il:'h1'r1 the period sped/i.ec1 i'.i'1ez'ein. or where {he _perrnz'.5si(Jn for % L//...

27 e£osure has been refuseol. the closure of 'Ilia? u.nderI';a.king shall be deemed to be iIIegal'frc;?.o date of closure and the workmen shall to all the benefits under any lawfor being inforce as 1'./' the utnderialcirlgi f1aa'r1oi; be'e:1 C3osVed' down.

[7] .NoEou;ii:}1star1ei'ir.1:E_o ' anyt'hf.r;.g '&eo':Vitar'};.ed in the foregoing p:>ouisior'1;§ "of" '£.h3's section"; the appropriate gouerfirerzenf =..sa:isf1'ed that owing i.o__ such_...e§€CepLior;al ".«"CirC"a?t:":35rar1ces as accident tL?td.er!:alcTir1§*V.o_r_fAdeath of the er71g9Loyer~._or.v-£?*_;eV 3'i}g'£§.i{ﬂ Vis"_r'receVssary so to do, by ;vorder:."d[ir.ect"3?]'1a2'_ '(he pFG1)iSiOIlS of sub«secI:i,on {1} e§f1&aZ£._r1o£_a,t;«;r5'i~;;' "m_.re?,aL1:ort to such. undertgaking for S1Lc}g,pe:f{od as 'znay be specyied in the order. [8] 'Where an 1mderI'aking is permitted to I3.eV"eIjose'd_doLuz1 under sub-section. {2} or where A ;5e:9f7v1iss~:'3or¢ for closure is deemed to be granted u_racier3' sub--seCI;ion {.3}, every Lvorkman who is '*evmployea in {half unciert.ak1'ng immediately before A {he date of appiz'cau'.or1jor perrnissiorz under this : seeﬁort, shall be eruiiled Po receive eompertsation w;'1i.eh shail be equivalent: i.{)f§ff,een day}; average E P ' i//' 28 payfor every completed year of e:.'ontinu,ous serzieie or any part" thereof' in. excess of',<;tx months. it "

12. The Coxlsiitutionaf Va.IiE1'ify'«Qi'--.' VV25t%OV".as§'.

i'nse1'tied by amendment': Act. 46/ case of M/S. ORISSA VS.' STATE OF omssav emu e._[A112" 'zoee so 708] wherein, while validity of the amended p1'0visi,_o:1.s it was 'O'r3;3e.t"\t'(:.:C}.as 'u1':u:Ier:w :tf:tri'Ctrﬁetided«'Seettiorl 25-0 the order to sttbjecttue sat'1'3fact'tort qt"

V,a;ppropriate' ,(3;o-zgerruneztt. New in amended V.SeCt:iort 2:5~O'.the"-words used are "the appropriate after making such enquiry as it tiffttrtks:'gﬁtt, and after giving a reasonable of being heard to the employer, the tuorI{t'ae2't and persons interestied in such closure ' ;n};;ty[ ' having regard to the genutness; and aaequacy {ff the reasons states! by the employert imerest: of the general public and all other reievant. factors by order andfor reasons to be recorded in it,/» /"

writing, grant or refuse to grant such permlssl.onf. '' "Thus now the appropriate Govemrnen;:*._ passing an order is bound to make 'am, Now, the order passed the 1.&approprflat'e'* Government has to be in "writing" and "eorzfﬁainf'«. "

reasons. As in the case;of__retref'l::_hirwer1tso als_o_in_} closure, the employer give n0.t_:1'ce--E3y Lfllillg up aform. in which he has precls*'e~det'ails and informat'ion. ::feq;tbtlrei'nVer1At"lto make an enquiry poslulatesan etlcguizy I-nto'£he..eorrectI1ess of the stateia'. in the notice ser've_c1..l)y Ctrj1.d__!Ctl,SO:.CLiljv'Ol;h€r relevant facts and ei;:cu%.n;i;_tances--. the bonaficle of the _vl\lo'll:l;ll'aI_t'opportunlty to be heard would have' to employer, worlcrnen and all persons'inietested. The detailed lry"orrnation A. ~u.:hz'.ch 'the ' 'employer gives would enable the "7appI'opriateGovehtrttent to make up its mind and l * -. _V colleci'«I_1e'eessar';; factsfor the purposes of granting ..Ije/'zlsihg permission. The appropriate ' lGo;*efnr_ner1t' would have to ascertain whether the lir3formati.on. furmshed is Correct and whether the proposed action is necessary and gr" so. to what fxljertt. The making of an enquiry. the qjffordlng of an opportunity to the employer, the LUt',¥I"'lCfTl(-,'l'l and 30 all interested persons and the necessity to pas,§; written order crorltzatnmg reasons exercise Qf ftmctiorzs which are r1at.__" p.1trelt; adrnirtistirattue in Character _bL£f_'qltclﬁtefttditfviﬂttxxiii'T:

nature. The words "the apf}.r0pr-tare Gzoeern-zne:Vt:t,.___ at after matting such ertq»ui._ry. Ait'--thir1?cs:_}f}it'f'"dbesx . not mean that the Gotaernrnentz n{a;.,:._ the enquiry at its discre_ttc:1_, 'ilffteset utovydsvvfioniy mean that the C%_nft3.I.i;°£?I'T1l:ti6"IfIlf'A_Tdi.SCI'€£iOn about the nature Qfthe enquirgL'tt"i::'V t'o.,r_naAkfe. Bem7.1ri', the e1*:iVe¢r_'_v'"pa's<sed--.__ Lzrﬁder Seeﬂon 25%) is not an adnzinistratwe o1"cEef'.f éroeeecfinds before the Government

-' A V . av is q=;;1e{si..judte::a}V'iVn 1'i.atu.re. Before passing the order, the 'C.¥Q\Vf'err11f:1?e:1_'t bound to make enquiry". The Ilature of enquiry t:<>'«.§;e {:e.ri2:'_ti<:€.Ae'::i-"is to be left. to the Governmerat, but enquftry is a r1'1«.L_z&3t'..__* W1"i~e1'1 once the enquiry is comemplateci, p1'ine.i_pies of "r.1at'ura}*..-- jL1st.iee: is at.t:ra(tt.ecL Fear piety is the L1n€ie1'1in1'n__s;§ '-.§3V1:'i.;2;1£7i}31e in respect of any quasi _§u<.iic:iaI enquiry. The .. __rec1L1i:'en1e11t: to .ma.ke 21:': enqtxiry pc).s§.t1EatCess an e11qL1iry' into t/at 31 <:0r1'e(::tness of {he faet..«3 s1;at.e<:i by the employer a11«;i"»aiIa:o"'--Q1her "relevant facts and ei.1'eumsta11ees including Ehe--'b0n';1'fiiii'ee O?---.ihe empioyer. In the said enqui1*y__Vthe c;'d<2e';~zi::1¢;:1V"has, "tie ascertain whether the in.1'0rn1ai',ie'n ?{_e:fLnc':

whether the proposed act,i011 is_V.11eees;.s'é1.1"y exteni. The Government the interest Of general public also '\»'\/'1"V1'iA']..f.._'. :j1Jg1AS;'i-V',§1'£1.L;';_'__I;'igiifi» Mere receiving the statement from A¢it11erv's.idV§ if} Mapper: of the same wiihotﬁiv cross examine the other, in the assertions made in the st:é:v1'_e11j1eJ;3AVLe;*"weeiirj satisiy the requiren1eI1t: of prineipies of 11aturei£..'justicte;--

J4. iii»thejf;--.siz1ni"1§a1se, no such enquiry is conducted. " '~ F€{>..':g5;3p{3;f1?.a.:..11ity v§?a:s'~~ggﬁi%e:1 {,0 workmen 'Le place their view. The VG0i;eV'r;1'n3e;?,t'eVhas not considered the genuineness or adequacy 6? 1;f:L'e .1"ea1se=ij1ee::i'or ihe eicasure slateci by 'the empioyer and it did not. c:mis~3._ide3' {he imeresst of the geilerzii public and other relevezmii. 1%-1(fI.0I.SA The Czove1'11111e1at 1.1215 aise not eormidered the E E 32 various eor1*a,emic>§1s in epp()sit.i<'m of the C105-3L£1'€ a's sei;--_e:ut in 'the Obj€CT.§OE1S. It has pr'oc:eeciecE solely on the passed by the BIFR well AAIFE92.'a_11d_" 'f1;;is§reVE1vC:i.if1§xtﬁej ' said two orders. has come to t'}1e"»e0ii_ei"tisjeh Closure is made out. In is he reierenee to the case ef the wfio"ei1fe veibposing the closure. In those ei1*evLir:;staﬁcheg_,' order is liable to be struck down of procedural ir1'egu1ar1'ty of natural justice and for e':fiv1c_V1 11iry. Accordingly, it is herebyivset ;'1§_. Contirzgto the merits of the case, the material on "reCd'rd Zfijseioses that after the order of wirlding up the BIFR 1'e;1ch.ed f1'1i13.i:ity, the matter was piaieed High Power Committee, Chaired by the Chief ' '-_ V"SA€§3I'(i"Cé1E";§F:()'I'1 041312.200}. The C0mn1ii:1.ee after mkitig note ef tj:-qe,_;jA£~"o:teed.i.1'1gs before the BIFR/AAIFR and the orders pas-;sed__g VV _MI"€§;COI'1f1.1T1(3E"1d€:7C3: the Gm-'e1"nm.e11i for xvilldirag up of the Company F ,E//,.. ,-

33 as per the orders of BIFR/AAIFR, as several €{.f'O1"'LS"!?--.1 "{1'(T1':fs':~VI,'3f)f the Company / Government. for p3'iV&1EiZaEi()I1 had ' are of the View that this time 1:119 several assistam:ev--ej§<€_ef;dec1A byutheo Government of Karnatalga at various s-tssg§?:s'*s1jto' the Company as set out in the said o;~de3",.»"th__e p«rViz?§tt'1zatiot11~".t, of Company was not .;:~:§;3{ter careful consideration and ha'#:i_ii'g vLt'e._V_tt;2e--,Pub1ieASeet0r Reforms Policy formulated and the reConunlendaféioftslhof :1.;he::L Eefighs «:'i5o'\:ve..1_'__::Co111n1ittee, the order permitting.' the'1'1j1éiVh'&§feff1:é'D.t'of :3;he'v.:Mysore Lamp Works Ltd., to c1ose:'t1'1e _o.};)<§1*a*-;'é.jr;1._11"svoof't1i'e..._Company' with immediate effect after Io1I0\xdnga_ci.ue p1'oeedi;11_'e"as";§e1' law 011 the terms and Conditions set out tf1e'-»seiid 01'C§'e1".

' $6, .__it. is 1it1e--a<e::'E't.e13 the E1pp}iC§iIiO1"l under Section 25(O} ' t}r1je"1_f£dt1'sti'ia1 Disputes Act, 1947' was filed by the Company "'oet'oi'e §3oVern1nent. The Mysore Lamp Works Ltd., E2n1}3i.0j?ees Ursion was z1<}1':.i.[iec:i. They fiied written objectiorls. » nI3To";};; were hearcé. In fact, the eon'ten§,.io:1 of both the Company g/.. t 34 well as the eo11te11'ieion of the Workers' Union" eEe'a.1'lyVsel. out in the i111pug__{ned order at A1'1nexure--N. It is!_l.l1el.re.all,er; a_4l'te'r.__V analysmg the facts and the eon1em'i'ons, the _C~}oVe.1_ 11n'1e§at was'. of the View that the application backed by gemiineness a11dl»a4§leqL1a'teV' have' set out in the impugne_(:l I"V€El.3OI.1é;' ""1."l'1(§f1"j1"St reason given is, the bodies of i11dust:1'ial and l'£I-"=e11ciai"' Country. after taking on of Union and the recommended for winding up of »"l'ble.l'Mar1age11.1ent of the Company have also Pl"od1;1Leed :35 of Ka1'nat:aka Order dated 04.032092, uwiytexfellxzllfiel', the iI1l,€1'1i1'OI1 of the promoters to lcloee like nonviable under1'.aki.ng has been categorically Ae--stlaI;ed§' ':'s;:l'l'fs.:vi"1l1er obsserved {hat after heari1ag both the pafﬁes, {l1e.l3'll§?R/AA.EFEQ opined that the Company could not be ~'4«.__l"revivedz the only eoursse left is; £11211. the Company should be ":x;{';L1:3§,l' up, The assistance given by the Govemmemt of VA u Kg§r:1ai'.al§a1 at various :~s'£.age§3 10 the Company did not yield 511:}? 35

positive resuli. Several ei"i'oris made the Company/Government. of i~{arr1ai.aka for p1'ivatiza~iio11.__haTd_aiso failed. It. is on czuefui Consideration, The "'Grove.i'nmei1t Karnataka issued order dated ﬁihei.

Company. Therefore it was held izitedfnaij facts put. forth by the m21i1age.1fi«e.::ii,o.f éenuioe and adequate. Wherea's,V_ the Union levelled agaiiist the iiia'.oa§en§ie:iii__::a;ie:.vibdugisusta-jnable and baseless. clesure of the Company would 1101,; ~ as genuineness and adequacy hasbe-eii'iesi«a'bivi.si;;eei beyond doubt. There is no Valid reasoia to r'e.i"u's,e' pei-missi.o11 for closure of the Company. Aeeoi'd'ing1y _C:)i'Vd16l' 30.08.2002 was passed according V"p.eriiiiss'iei1uto.the Goveznmerli. to close down the Company of Seeiieri 25-O read with Sub»Seetior1 8 of Section 25(6)} of the Aer, af4.:e1° seia'i.ing out the respective Seeﬁoia the Tiiidustrizii Disputes Acid, 1947. i°}?{'i~ in the order dated 30,08.:'ZO0i2, which is passed 3 36 cases 01." the parties, it is stated that the BIFR/AAii5'V are ihe s':.ipi'eme bodies of the i.Iidustria1 Reoonst1'uoiio'i1 of the c:our1Li'y, after.'i3.I~:ﬁi11g 'oii" reeoiidj various oor1tei1i'.ioi"is of Union, Cori5i«pz1i°,y"ar1d 'i,E_v1e--. Ci'ov"e.1_"ni'11'eri1, have recommended for The riianagemeni of the Corrip§i1i_{f"~:.haye ..21'1s'o:..Ai13V1foc:Eueed the Govemment of Kai*n21te1ks:"O'1'<i.ei:2002. wherein the 'irii.er1tio'r1 of the. promo'te:i*s:"& to this rioryviabie Unde1*i.al«:ing_V I¥'ur1'.hei', it was contended aigya iho Mysore Lamp Works Limiteti proceed with the application filed ur1iie:fiSeot'ioi'i.V ID Act seeking permission for eiosurei of the Coirifiaiiy. For the aforesaid reasons it was held iii"ihafi:i1e5'eioii't:ei11.ion of the Union is not tenable to wiihheid the Section 2543 of ihe ID Act. The details of Iossijs for i1i:ii(;?..';jie1*iod from 1993-94 'to 2OOI~2002, aggregatiilg to '~ai'o'Lmd crores i'r1c:uri'ed by ihe Company as on 31.3.2002 '1*32:xr.e%_A.i;»eeri pi'o<:iuoed before this 21::i.hoi'ii.y by {he Maiiagemem ofiihe Mysore Lamp Works Lick, arid the same is not. disputed 3%./,...

37' by' the other side and they have not pirociueed Elfl3I:."CQI",tFa1"y material evidence before ihis auth_o1'i.i:y in this:-. }~'..fie>i' hearing both ihe parties, BI}<'R/,AAI}?R--'"

Company could 1101 be revived aT1 C*«, U'J§ the Company should be VVO':'1VD§d_ .U]).V"A'T[;I%1C the Govemment of s'Ei?i§€s to the Company did not yieV!a._..%.ny Several efforts make by the. Karnataka for Ilrivatisatiﬁf? N50 Vi "Hence, after careful eo11sidei~ati§0_1j1,'i:_4'_i};iev.i.C=3vei;i§Ii::i.:ei1'ii' Viiiainataka issued orders dated of the Company. Various a!1egai:.ioiasLr0f against the Management of Th€4:l\'/1"y-_'~3.Q1"€ VI.a:1ipVW0i9ks Ltd.,/Goverrimeni. of Karnataka are 'Li11sLisiiaii';:--1bie.and baseless. The Management has advised the "~en:i;IQ§ree's.VVeifizhe Corripany :0 avaii 'JR by ariiiouneing VR Sei"1*e__me__"asieper KSBPE guidelines. As per {he scheme V.":1:i"1I(1OL1£i'(}€:'('1g the benefits offered are more beneficial Lhan the "E_fCV}'§-1'.¥,f§}¢L:i.11€)7&JE.i{)I"1 payabie under the ID ACEt--» As discussed above, .V _M'ib§e i:1i.e};"11ai and external faciors put forifi by the Matiagemeni:

V a %§§/' 38 of The Mysore Lainp Works I,;'.m1'.ted are gemlinee da.:;1dd_ also adequate. Consequently. permission for e§{ooiiré::"--.. Company will not affect the poblie 'As 'tho genuineness and adequacy have been? e:3tab1i';«:hed*-L.__be;;or1d doubt, there is no vaiid reasons«VtodtVrettlse'":pe'§i11disé}ioti for eiosuzre of the Company. (iovetnnlent; was convinced that the the (goxnpany are geI1u1'r1e and adequate. was granted to close down the undier"Stto§Seet§on {2} of Section 25%) read with 5:50 of the ID Act, 1947'.

of aforesaid undisputed facts clearly passed both the impugned orders..soIeI$? on 'tlqe that the BIFR and AAIFR who are ~.-.,$,h§.e._:éé,1f3:£t'sm}:eAbodieémof i;1dustr:'21i and finaneiai reeonstzuction d:1i,1I1c: _§;e;3:1_i1:f§.V1";.r_ {gave recommended for the winding up of the Compa1":y., " The assistzmee given by the Gover11mem; of Karo2i1.ak§=d at various stages to the Company did not yield any V' ' -- o result, Severai effoﬂss made by the 39 C0mpany/Govemmellt. of Karrlaizika for priv21E':.izai:i_O}":.hatﬂakso faiied. Hence, the im'pugned orders passed 30.08.2002 are 1egaI and vaiid andicamioi. VViﬂ:1:' . 2

19. It is in this context iﬁ isgto beiism v.rhe1.he1j--0_;h'e;,said findnigs r(3c01~ded by the Gov:-érx__1r11erii.b'éi'0re p'éi's;;3In_g tkige drd_ér., is based on iegak €Vid.€11CE3. is to record 61* is} it a case of misreading the €I'1UI'€V{JI0C863t~:ii}'igSi:b3_1fOvi'é'.BIFR/AAIF R.

20. AI1I1€XL11'€"B préﬂurifetif the Writ Petiiiion whichvis the 531% Q'ir.1_"ia1'3f'r_é€:Qi"(E of proceedings of the hearing held on 27.04.3000 'bfiihebVE;.1ii'R""discEoses the cornpany/ promoters .

Xkgrefﬁ_diI'€C'f€d_vv[O_§$L1}g5iTI1ﬁf'.'LhEiiI' fresh rehabilitation proposal to R/S'GC1,1'_I""¢'C! creditors within 6 weeks. The 0A were .0 '£{i_}"ifiLT§L€"fti 1o"«:%Xa1i1i1"m. the: 1'"€;'1"1.3.bi1iU;1UOI1 proposal S'L1bII1iU'.§i"d by "ti1.(5V:ctdi'ii,;&)afiy_ if it was found viabie with the means of ifiiizince f{$~:H:;!A'::i,iCd up and reliefs and Concessions 213 per RBI §{'Lli"€.'1t§,'ﬁ"'}.1V(fSv, femlixlaie 21 pI"Op€3i' r<2h22.§3iIiLai,i.0i3 scheriie, can 21 "j(}i'{i'i'. .r1':<:*<;=.ting for e1rriVi'1"1.g at an agreed paicrkage and submit. I s 40 ixheir report aEor1g_§ w'ii,h minutes 01" the joint z1'1eei,1'r1g t0V'.iL1\1e BIFR within 8 weeks. M. / s Tremac India Pie Ltd {TIP}..v§%efe' di:fec.ted to submit; to the OA 21 detaiied proﬁle .\V§.fi"t"1'.1u ci£§Cui11.1e'r1'tdary"-V__ evidence [Bahnce Sheets for 'the yeéufs}-1'Gf:_.Vth_e.prdpO'sedi.__ Strategic Investor {IEZACEPJ within further directed to examinethe:"e1fedevf1'tigds~.sf and case it was a veniture vr:z3p1'1)21.1 codifavaiviyi they would submit an lmerim Sta1s"t:z:s'£'{e}5o1<§'§:'V;{o Shri Keerat Pal Singh, Assisyanﬁ the OA {IDBD submitted __':3rie1" profile of EACEP indica2ji11g_ in the process of making i.nVestme;r;_ts in s'everAa},,1'5'£<Qj'eei.s in India. TIP vide their letter datefi' advised the GA that based on due efiereise ccmducted by various experts for EACEP. e<;z13pé1zv3;{f":5vngxﬁsiségion was highly u11satisfaet.<).1y. Hewever, TIP hdd..__sti11' p1fAé~1)Aa.red a rehabﬂitaision proposal and submiﬁed to the cddrguﬁiany which had been folwarded by MLWL to the OA, x"'.fé;'i6.,C_fih€3jI' §e:1.e1* dated 3.4.2000» The eompanys Eetéer alse Wiiéidicaied Ehal, the proposa}. was subject E10 the ekearance of 3 We " 'fe;:i:°es'e1it:atives ef the iead bank.

41 GOK. In the said proeeedi11gs they haxre sei. out the aeka ii erivisafed in the rehabiiitzuion re ,,e\.se114.""--["A ""eifi--f, P x. 5, _ _ _ J T , meeting was held 02:1 19.4.2000 to mc»iibseuss.'"me1:i'*€Habi1.ii.a1'.viO'r1.1 proposal submitted by the e0i11pa':,:y.:_'~'lf1%1e 'e0n.se'nsuisi-.._aiI1ihe joint nieetmg was that varizius loose ends ei'iV19i..;ih_eV p_1§'Op0s.aV17 needed to be iied up. Tue seei1vi:e'd:e;'e§1iiefs riot averse to BIFR granting more tog suijjeet to the condition that sqme E11'I'T'LQf_LiV:V.lfliV '£1;-ﬁi-e) was deposited with the GA further discloses that the i'ir1i3__r1e,ife;1_siinsiitiiiieiuséi We'reV"2j16t agreeable to waive past !z1ie1'es't as t}1eV'ir;i:erest 'up"tv=:i_ Deeembei' 1999 had already been reeoverecI',i.._ihe a(:::o'L:f1i,.xXf;-iis'eiassiﬁed as standard asset and duesgwere sec:'ured"by'guarantee of GOK. The banks were, 'V'hQWeVef', "w'i}Eing 'L0 iiegotiaie about future interest rate after i' the OTS proposal submiiied by the (10111-panyr was' not acceptable. Representaiives of the financial K '"e__"'institL1i'.iQ_;'is agreed with. the said silbmissiori. made by the 42

21. S11' M K Sampangiramaiah, I)e'p:_1.1;y4'».Seojret3,1'y representillg GOK submitted that the Statft like to favourabl consider the revised"re11--abi;}it:eiti«onV "éické3.5e 7 made by TIP on behalf of EACEP. The efforts to ascertairl the finarieigit-V»(:'redib§1ity, thett investors. This would require so17:e..moret'ti1ne'*f.o"'o_rrive eitﬁa final decision in this re.ga1'd. He, thereVfo;_r'e,'péayedtthat. they might be given further time __t.'o1j -at Least ._m~o'1_1.t_hs "to enable the State Governn1e1j:t'V.oLit..__£1»_fe:é"sit)1e__proposa1. On a specific inq_ui1jV' Sift&'SamoéIngtramaiah submitted that the Gove1'n"me'nt wast 210.': (:»o.riten'2;)}at.i11g infusirlg' 1'u1'ther funds into the co1I1pei11-y. The feplfeseiitizitiives of the employees also sought " < ,_ £()1i"e%:t31}.'siQIa oI'"'t'in1.e..... « eonsi.derat.ior1. of the aforesaid facts and the sL:b'nfi1s.si(>;isftlfae ifieneh observed that though. there was no j Lzs*£.i£ictati'o.:f;.}' for git.-rizlg any more time to the gtasmpzing.-~'/pea;meters to su\1:s::11?t the reha'oEIi§atio:: proposaL in L 433 the interest. of workers the Bench was inclined i;o_eoVii.*-:;.i.de'r Vpihe request made by the GOK for exterisiori of tiIne~..T}iere"fore.-- company/GOK was direci,ed to svuI:i'r'I'1*it'.a '.fre.f-:hf'1'ehabiii.i.aiiionT. 00 proposal to the OA by 15.6.2000 means of finance fully tied»11:p~..gmdA'roE\:ieis_iafieiﬂboorioessioiis within RBI parameters,' It cIear"i--ha.iV§ no further extension of time woiiid was directed to examine the it found viable with the means of and concessions sought wg-1,1}_d formulate a proper reh21bili:iati_ooA 3-jdirit meeting for arriving at an agreed report to the Board with the niinuies of th.ejoi_r1'i.V'n1ek:iiI1g by 15.7.2000. it was made clear feoriipany/GOK failed to subniit the rehabilitation _;.:»:;¥m- aifjoyfe Vbiyi.-:E.5.E3.20O0 to the 0A. the OA would submit an 1I1i.eI<i.1_f11 S'£21i.ii~sA Report to the Board on 16.6.2000 and the E2'-enoh w<;ii}c1 consider passing appropriate orders W.iLh_OuI;

"iioﬁiiig any further hea1'i.ng.

44

23. Accordingly the Company s1.1}3:1o1itt.edl:ei";3é?opos5:d"t:o t.he OA subject to the approval of GOK. i--nch,§d'es induetiort of ftlnds of Rs.11.13A_ erofeis mobilisation of Rs.i4.22 o1fore_e ifro'm"""sz11e Principal Seereta1y, GOK fette;:'- 18.6.2000 addressed to the vhzehtion of the company's proposal. from GOK to provide funds;.ve1h«dL;f:e\ri:§;e respect of the so Called. Vievdigi (P) Ltd, GOK has not been Plincipal Secretary.

GOK concluded Global Investors Conference "a:1civ has stated that 21 number of investors have &_ 6Xpji'€':é.SE;d. ifilﬁresidionueany State PSUS. No specific interest in hy--._any identified promoter has been brought to the Board. He sought. further time of four months 'V from The.reafter, the Board by $.15 order dated 'u_'e~18*.'?;'§?t.O0C§' 21ft.e1' going through the emire history of the ease ff.-sfrjr::e its reference to the Board, observed that GOK since it

--,.»/"

45

parked the company with the BIFR in 1996 have 11ot.:f1a[de any worthwhile eﬁort. whatsoever to revive the 'BVRS prepared by the 0A was aiso scuttked by the so called privatisation. Privatisatjoﬁ' efforttg of h'a{}*'e 31307. not yielded any useful result.

the orders of the Board issuec1.o§.i'oIf11 ttrhtxe to-sjevideht from the sequence of,etIe11tsV,V-~~--*V€[;here'ﬁ7ore.the--Boetrd saw no justification to give as sought by them.

Therefore, they'}&1'auj eo'nfir_n1 the winding up of the they confirmed the olﬂer ofthe company and referred the matter éth;31'op1'iat:e action.

flghaellexagimg the said order the eorrapany preferred an I t.t5§'pf§eEiz1te Authority in Appeal No. 307/2000. At the 'o£A".f"'ztd111§ssion the Company put forth 3 fresh new R""~._VV"pr0posed..«e1ated 27.7.2000 su.br.nitted by the Tremae India Pte _hf;,t.:'i--t.. _..rTe consider the Viabi1i'i'ty and reliabiiitzy, the Appellate _A1it.hor'it'y gave certain directions .215; Set out in the order of the 4»?

in the inipug1'1ed order. The GOK and the (:<)11'1p;-in_il'iia.\}e« not shown sincerity of purpose in early solution. of _the:q.Liestio_if1 oi". rehabilitation. The Company hasi~io'mean's oi'. own' 'aindthef. GOK is unwilling to spare funds PSU. Then after referring to Cotift in disposing of 'matters;_before:BIFRAexoeeiitioiisly they took exception to the way before the BIFR and held not sincere in their effortsto. the :[email protected] made before the and the GOK have not been fttl1ill_eoA la.-'ck oi" sincerity in their efforts to rehabilitateihe months have been wasted here.

Dui"ii;1'g" the la'st_l:fiilre years the State Governiiieiit and the V'Crmifpariy:'11_a'\re been harping on privatisation and have been éi,<{-_§Ei.lii.'.i 23-F,1:'(;1i._vEt§}fV;':1,vi.1'i l,c'3.1{l{1g time biit to no usefui purpose. Thei~'efoife',' were satisﬁed that the Compz11iy/ promoters i:1i1e~... have not shown seriousness. sincerity and T 'l§}:1('2l;l.1"1E3;'['i().I1 to revive the Company. "i'he1'efor'e, they dismissed l u appeal as being without any merits. 5 dearly oie111o11si.rai,es 'that: the Government of Kamataka 48

26. Ur1da1,1.n'€.ed by the said d1'sm.1'ssa1 oI:¢.1_I_"}'eV'Va}o'pea13, a petition was {ﬂed to review the order in M.A.£'€o_:; Appeal No. 307/2000 by the Ciorﬁpany. e;e.i.:d'*:VReBVE.exA}i'.' Pet.i1.io'r1 came to be disrnissed 2 with the following obse1'vatio1is.,_; ;..

"We have rloigiéed f t}1:e,: ~..<;-.:1r:1'c.'.:,1_(:L' of the appellant'/prornoi:er;e Sta}ie.@"-o_Uernn1en£ in detail. "W__e heme V::a.l§;'o:j.;1ofic'eo5 that the appellar?ft/ ::,arJ1d_ 'Hf:-e Saar:-L» Government have 4I1('_:v'-5 V sincerily and ineliaaaiaortl' ﬂreoive» the appelazxit company. Long Ii§_sIo_rg; eonoi'u::t:'for_five years has been noticed in' are not satisfied with the gfo=1Lrtd,__fo'j---r fevieio that the counsei was not .«iaoailableartdvVa;:§,iournrner1I: was not granted. This is a*:;_alid groundfor review of our order dated The appeal has been considered and oh merii: and we are not inclined fo review ou'r orL:ier",

27. Thez°efor.'e the proceedings before the BEFR and 49 took time 'to consider the proposai and re}1abilit2i'tio'n :s.ehe.1ne and to come back with their ftlrther concrete "proposs.ax3s'§ = were given saiﬂieierat iiime. Except";seekir1g_I;ﬁ1re_ bef.'ovrenjt11ej' BIFR. they did not show their 1'ehab£1£i'.at.ior1. They did not "fV(")1"'f;i1'1Af.11.€'iI* even not make know their i11rentio'r1.s..rd?ii;hiia.,rhe'1ir11ve..grdn1:ed by the Board. it is because of attitude on the part of the Goverrwrmengg,frg.;::'§:rrrr;~irr}gzxddfj proposals in spite of keeping in m1'r1d the purpose passed and the time limit :0: be passed. the apprehension of the £"ir1a1'1eiaTIJe111y further deiay would result in seeuriijies beirrg Iost, "the Board proceeded to pass orders V"1'eeo'm11i'er1dimg for winding up. On the instructions of the I preferred an appeai. On the date of the e1d11':.issio'n' .05 the appeal, a fresh rehzibﬂitation package was V"sr,:fo111it'i:e.d to 'the zippellate a1'L1t:ho1"ity. Aefjrag" on such '' 3tL:b.z13;issio11, the appeliate aL1tho1'i'é.y gave one Hlore oppo1"iL1nit'y, .V _p__:i,ssed orders and ealled upon 'iihe Goverrmrent to perform its 50 part of the obligation. A perusal of the order of '-ethppellate atlthority shows that again the Government c0ni_hii't'tegj.._deteizlt. They did not perform their part of the 0b1.iga*t.i'en:'~.,'i'hey«weht taking time. In fact, their Cotlnsel 'at-.gV1'1.._,eLeitk with I10 a1t.ernat,ive, keepingv.in__.min«d Apex Court: regarding the by these expert bodies within the appellate authority aI"terV takittgw t-he.' the matter was conciueted be'ie1*ee:ethe with the BIFR in g1'ant:ing time.:'e11dieSsiy"'{Q.the._tGc5~:;emr11ent, ultimately passed the o17jder'_ c<ir1L=..*rIn_if1g t}1' €'V"'2\{'iI3C1_1i1g up order. A Review Petition was filed. 'It a1e0'be dismisseci. Therefore one thing that _€me1'ge.s 'frOm. th~¢SVe~"'0rders is, if the "rehabilitation of the Co.t1§tpan3.r walsvnot possible, it is not because of want of a1t.erI13";tLfvee:,}:>ut it is because of t.0t:aI :"1er1~eo~0perat.i0n on part eufe.t'.he ,VSt;tt'e hG,oi;--.:er11.111enE in assisting the Beard in framing and i1n1jien1e:itii_:;g7the rehabilitation scheme. Blame carmot be at;t.r£bt15;,ed V {:3 the fir1a.zaeia.1 i::1st,it.utior1e§ operating ageneiee, }e.3.di11g'"banks 01' {[0 the employees. If at 21%}. the entire biame E 52 '"I'herefGre. it is in the I'1a'i'.L1re 0f1:)e;'missio11 to t;11e-'jC§'<3r_i';péiny to 1'11itiaE,e appmprjai.e proceedings under Sec1"t§g3i1 "Q.;{'""i1*1':",4 Industrial Disputes Act. Beyond,t».ha1_z10€':.I":i11'g'ées.;iVc}.jge "'r_eaVCie. ' into the said order. It is in this the Iearneci Advocz.-He Ge12e1*éii t'E2;'V1t the aforesaid. Baico cage. igeiterfere with the policy decision 't:he1"ef0re it was cozfxtended that'..ﬂje :eat'2--:f1_eit_ Vf..i&"{v.v'j"1.,zdgr11er1t over the correctness 'aVi.fd1*esaid Balco case, what the SL1pre.1r{1eV.(§eL;i1;jj_ £'l%::§L1%}d€1'C V __ . 'Q[df§inpes£r71er1t is a policy decision irivelving' -.c'et'9ﬁ.on1ic factors. The Courts have"~Cor'z.sis£:erii.€Vg V'F£§fFaiI1€d from interfering with eczmomic 'C££:C§s___l'Qr1s as if. has been recognised mat"

eE¢m}:«;:r;¢ expedi.encz'es lack acfjudfcative and unless the economic decision, ' economic expediencies, is demonstaried (cf violaiive cgf consz1z'.z':m:z'onaI or Zegai €.im:i.s on LI')-Q.L:i.?€I' or so abhorrenf, to reason ihaf, the Couris H z,.:2c>uZ(E ::iecE1'.n.e I10 z'n1'e1ffer~e. In ma,{.£.e:':€; ?"€ZCZl'I"i.f"l§j £10 e<:om:>mic éesues. {he G0::err'm'1em" has, whfie taking 53 a decision. righi." to "ii'ri.ai. and error" as long jl')oi;h«.V"* tried and error are bonafide and wiihin :-

au.i:horii'y. There is no case made 'Q.1.i,f"v]?l}--»A_l.Zhe petitioner ihai the decision lO:dlSL'ilU€Si... in is: in any way capricious, 'arbi;ifi'czr";1j, Villego.' uniijiformed. Even ihoug'hl__.ihe iiiorirers isiiiaigféiiaueg interest' in. the manner iriabhicli. the: Co."i';1pai1yVVVis conduciing its l)i,-asir1ess,-wirriasrriucii as 'iis ﬁolicy decision may haiie" gr;-_ irﬁripacritvvohi ._the workers' rights. l'lt'3l7QI'lfht3l€S§V_t'l is service for an ernp_lr;yee':-i.o éicce5l;;:s'V..:a .dg5¢{;;.io1i lihe employer which" hoi1§3si.iy:f.'viakeii which is not cor1i'rVa.;§J'?:_.i'o_V' ligovernmeni servant, ofrioinorily Articles 14 and I6 (L'or1lsii"L'i.tiVi'c;:!<1_:l"lailialso of Ariicle 31 1. has no absbZiiiieVVrigh.i;Vio" rerhairi in service. For example, 'apart '-from" cases of disciplinary action, the 9f?-'."vi.ees of go'Uerr1I7ieI'1i:' servants can be ierminaiied §f_'are abolished. I/' such employee cannot a"'£QI"ieva,I'ice based on part: III of the CO?"2S:ll{"lll,lOTl or Ariicle 31] {hen ii, cannoi: stand to "reason i"ha1: like the petitioners, riowgoverrimeni A employees working in a ccompang which by reason '' ofjudiciai pronoiincemen: may be regarded as a Si:'ai:'efor the purpose of pari. H} of {he Consiii:ui"iorL Ly' 54 crazn claim CL superior or a beriier righl Government. servant' and irnpz.Lg11. ii (.ff'£anQe' status. In taking Qf a policy dec*isior3--~'i'~n- marliers at length, the prfr1c::;§fAe$"Qf'..vriatL£ral.._.ji.:3tie?'V__ :' have no role to play. Wllile izizjisé responsible employer * :o--.. take ' V. dli V as -..II2i1 consideration 1'nCZud1'ng li;4(§£[_:C'lI'{£. Qf 1e§b(§1.1.:' fgefore taking any pozic;;.gectsVich'A:2%:;;zz;"'t2y izse1jj"u3rzz not er1i"ii:£e the of hearing or consulrfmfion primt. .i:.<):'f:i1e'«IA;iIvl:ir"25«ij' v.()JV'fz£'.i':?,(¥3'..d£'L'iS ion.

29. in"'eiI"i:i:__fireL_'piéicé,._t_h<:,aIb1'esai.d judgnlent has no ap1)}icés:io1_3. --€.:o V1;1h2».fé1cis"vegfvvihis-case, because that was a case where t11eV..G0Ve1*ﬁ--.r11é:3,ished taken a poiicy decision to p1'i.Vatize Pubiijc "S-éjctor =;u1VdVéi'%,a1<L.11g which were not earI11'ng proﬁts. By 'S£1'(?1:1 they did not jmend E0 close down the mdustry.

'-"E".'hey é:t"§<:i:"=.i;()if 'in"E.<31'1ci to ciischarge the employees who were w-c)r}i:_i:z1gV__ii1i Ti'I."fﬁ'. Com._par1y. 'H1ere1'0:"e the qu<:s'1:i0.n of hear1'11g the V"e1j11;)l::)yees. \-whose r1"gh1:s are no?' in any way aflecrted by the "im;31.€i:fr1e:11ea{ion of the policy' decision was held to be not:

.V _V1f:%:qz.1ir'eci' H'<>wever, in the i:'1s1,a1'11", (223136, if the order dated 3, .

55 04.01.2002 is to be construed as policy the G-ovei'n.ment, in the preambie to the said 01'd€l'.M:2"h3.1,_Vi'Ss.!f€if§i*i'E§d' to is the proeeeciings before the_JBTFR f recoiiimendation of those two z:ii€,h(Jri1ies before ihe High Power C()111?I1liiv.'?";'t;'.J."'?,V..Vif11t)A"E1'&iV8 --d..ec:isior1 close down. there is also celled Public Sector Reforms PoIicy,Vt*he" pai.-itiic;ti1eii*s.Voijwhich is not available from the said order. A that because pf'iV£1'L}'Z2}ti()i'iH n_(:):'i; because of the i'{3COI11I1'1'€,'1'lCi€'c}.,tV}i'O:i"1i Committee and Public Sectoi~-'came to be passed permitting the In the aforesaid judgriient, it has been Cltﬁéllilyvthﬁldvlby the Supreme Court that it is not as tviihthe CtC:A)'t.1l"[";_1'1E"t\»'('. no power' 01' judicial review over this AB.Ci}'i};ii}iAS'i1"§2i-fjiift?LE-tf7i:i£)I'iS, .1m1y be in particular with the economic matitersiV_v'bL1if?' if the decision is otherwise illegal as bei.ng "V'{?Q11ti"E1£'}'*...tO law or cor1stitut.ioha£ provisio.ns, the perseris j &;:i"i"e::.iie=L:1 iike worlgmen can impugn the same. 'fE'i1ei"efoi'e, when .V order of the gevei'nn'iezzt do not state what the poiiey of the Govermneni and ihe preamble only discioses Lhe 1'e(:on11m:n(:i2m'o11s made by the BIFR and AAIFR. a decision is taken io dose ihe iI1dustry. As set out above, the Government; which is the cause for the said c§e'ei.s1f;o__I_1" {he AAIFR and BIFR. It is because of Ilheil', 'e.oIi}§1ete 11'1'(;:1x.b Cooperation in imp1en:1er1tin.g the policy' i'o1*1'uL1'i:1':te_(i"aju_19ii1g the V proceedings, noilling eor1cre1;e_ Can51'eA 'om; to,v--"r:esf£*i§1Cie't1re~ the Company. for their default. T I'1«ey'r:a11no't.p'1*eeeedv_t.o pass an order on the su 3 aosed "'C3-..overr'1Vr 1'1e'n--': 'eyoaiiie which is not set out 11 . . 37 any where. Therefore, the Asa.i'd"o:1'de1fh'i:§jari3itrary, illegai and eo11t.ra3-ry to --1a1xﬁlr"--é:t' also requires to be set aside.

30; ~;«mwe_{z'efrf_;,L'm;"*mae;~ of {he BIFR and AAIFR. is eor1ee_r;1ed, é-{:3 _sVet=.o.u£. above, several schemes were proposed in ' '~..A£hei._eou;fse~~e.gf theV§§i'oeeedings before the zmthoriiies. it is _ b?:e_2iuse'-,_of». iioV1j'--';::oope1*atior1. boih by the Company anci the GoVer:1n1_ehi";V_i*.Iﬁe same did no': materialise. New nearly? 8 years r__have Eapsied from fhai date. The said ['f3£i()1T1II1€fEdE1[{iOI1S are '=:":1owu"~7oeft)2*e the C::>mpa:*:y Jucige for his acoep'1a1.1ee. In those §;;__,,,/V "" ' 57 C§K'C'L'lI}'1S[aI1C€S, it: would not be 21ppropriat.e for this CoL1r'i: to go into 'the legeﬂity or correcmess of the said rec:ommendat'ion made by the BIFR and AAIFR. In so far as Co111panyy':.C--our1: is eoncem.ed., they can go into the legality of those lgsyaltso within the juris<:lic{.ior1 of the Company and means to revive the C()rI1pa11},7"il':pcssihle E411-ﬁe said' T prooeeclings it will be possible: for any fresh scheme by which the'v(:§o;.11pa1ly'eou1Ad

31. In those cir_cL1msta_I1.oes,_ E=..,a.o1 olﬂhe View that the Compemy _Co{i1l'°£'_i.s__V:l3ei*L'eifAV"soifetl to go into the legality of the orders pass-ed b}3'L{§I'FR" and BIFR and also to find out whether %.he.4_VCoI1.1p.£_tny stzeojtgild be revived or any other scheme C()11,}(§l"b(3"~?i(T(T€p'{€€lV.: Thereiore l decline to go Into the legality of "l}"E.€';? lé--11"«Oi""'(':SA_5£2i_('I"§_:fiy'&'() orders and pe'm1:il. the pet'if'.icme:"s h.ere;ih who I -..ail'e_- eiE';*ee€Iy' o'<:rf¥i~ies before the Company court. to agiéate all :1hz1l§e;}gi:z1g {he eosrreclness of the orciers of the AAIFR and those g'1'oL.1'nAd_sRxvhieh they have agitated in these xi-wit: petﬁions ;

$2 ﬁg ,,,,,, .

59 pei.i1.ior1ers to Lwge 1139 same before "-Cfnzxipaxiy Caurt.

(6) All the pc~:r1ding ap131i(f.;tii0;3$ ei;r€§ (I) No cosis.

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Karnataka High Court