At, High Court of Judicature at Madras
By, THE HONOURABLE MR. JUSTICE K. SHANMUKHAM
R. Shanmugam, M. Uttam Reddi, B. Ravi Raja, Advocates.
Judgment Text
SHANMUKHAM J.
The applicant is the Union of India, represented by the Secretary, Department of Textiles, Ministry of Commerce, New Delhi. The application is laid under s. 15A of the Industries (Development and Regulation) Act, 1951 (hereinafter referred to as " the Act "). It is now well-publicised that M/s. Anglo-French Textiles Ltd., Mudaliarpet, Pondicherry, had closed its business ; that 7, 000 workmen are left jobless and that the economy of the particular part of the country has suffered to a great extent. It is in this background the applicant has come forward with this application seeking permission to investigate/cause an investigation to be made in regard to the possibility of restarting the manufacturing unit of the company and to give such other direction or directions as this court may deem fit :
The facts as such are not in dispute. None the less the objection is that the application is not maintainable under s. 15A of the Act. The above objection finds support from the decision of the Calcutta High Court reported in Union of India v. Shalimar Works Ltd. It is, therefore, useful to refer to s 15A of the Act, which runs as follows :
" 15A. Power to investigate into the affairs of a company in liquidation.--(1) Where a company owning an industrial undertaking is being wound up by or under the supervision of the High Court, and the business of such company is not being continued, the Central Government may, if it is of opinion that it is necessary in the interests of the general public and, in particular, in the interests of production, supply or distribution of articles or class of articles relatable to the concerned scheduled industry to investigate into the possibility of running or restarting the industrial undertaking, make an application to the High Court praying for permission to make, or cause to be made, an investigation into such possibility by such person or body of persons as that Government may appoint for the purp
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ose.(2) Where an application is made by the Central Government under sub-section (1), the High Court shall, notwithstanding anything contained in the Companies Act, 1956In the result, the application is ordered as prayed for.