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O. CHINNAPPA REDDY AND M.M. DUTT, JJ
Transferred Case No. 33 of 1983 In Transfer Petn.(Civil) No. 196 of 1981, D/-10-9-1986.
Vidarbha Mills Berar Limited and another Petitioners
Versus
Union of India and others, Respondents.
Sick Textile Undertakings Act – Section 4 – Property of Textile – Government company - Question raised in this case is whether properties which were excluded from lease granted by company to Government could also be taken over as part of Sick Textile Undertakings submission of learned counsel for petitioner was that very exclusion of properties from lease was an indication that these properties were not necessary for running – Held, Mill and that they were not used in connection with Undertaking at any rate from 1966 – There is no substance in submission – There is no dispute that property is property of Textile Undertaking – Once it is found to be property of Textile Undertaking there is no escape from provisions of Sick Textile Undertakings Act – Petition dismissed.
Judgment
CIHNNAPPA REDDY, J. :- The question raised in this case is whether the properties which were excluded from the lease granted by the company to the Government in 1966 could also be taken over as part of the Sick Textile Undertakings. The submission of the learned counsel for the petitioner was that the very exclusion of the properties from the lease was an indication that these properties were not necessary for the running of the Mill and that they were not used in connection with the Undertaking, at any rate from 1966. There is no substance in the submission. There is no dispute that the property is the property of the Textile Undertaking. Once it is found to be the property of the Textile Undertaking there is no escape from the provisions of S. 4(l) read with S. 4(3) of the Sick Textile Undertakings (Taking Over of Management) Act. The Writ Petition is, therefore, dismissed.
Petition dismissed.
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