METTUR BEARDSELL LTD vs WORKMEN - 2006 Supreme(SC) 398

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2006 Supreme(SC) 398

TARUN CHATTERJEE, ARIJIT PASAYAT
METTUR BEARDSELL LTD – Appellant
Versus
WORKMEN – Respondent

Advocates appeared:
Rajeev Dhavan and T.S. Gopala, Senior Advocates (Mahesh Agarwal, Rishi Agrawal and E.C. Agarwala, Advocates, with them) for the Appellant;
Ambrish Kumar, Advocate, for the Respondents.

Judgement Key Points

Yes, the judgement explicitly discusses the issues of locus and fraud. It examines whether there was a transfer of undertaking under the relevant legal provisions, which involves considerations of locus standi and the legitimacy of the transfer process. Additionally, the judgement addresses the question of whether the transfer was vitiated by fraud, analyzing the evidence and arguments related to the alleged fraudulent conduct. The court scrutinizes the material presented to establish fraud, evaluates the legitimacy of the transaction, and ultimately concludes that the claims of fraud and sham transactions are not substantiated based on the evidence.

ARIJIT PASAYAT, J.-

Leave granted in SLPs (C) Nos. 22724 of 2004 and 5071 of 2005.

2. These appeals have a common matrix. By the impugned judgment rendered by a Division Bench of the Madras High Court three appeals were disposed of. Writ Appeal No. 761 of 1992 was against order dated 22-7-1991 passed in Writ Petition No. 11956 of 1987 passed by a learned Single Judge. while Writ Appeal No. 760 of 1997 was against the order dated 24-2-1997 in Writ Petition No. 1063 of 1988 passed by a learned Single Judge. The third appeal before the Division Bench was Contempt Appeal No. 13 of 1992 directed against order dated 11-12-1992 in Contempt Application No. 336 of 1992 passed by a learned Single Judge.

3. Factual background as highlighted by the appellant Management of Mettur Beardsell Ltd. is as follows:

Mettur Beardsell Ltd. started business in 1936 and conducted operations successfully till 1970, when it faced financial problems. On 19-5-1977 a resolution was passed to hive off its textile operation by entrusting it to its wholly-owned subsidiary which was to be formed. In fact on 19-12-1981, Mettur Textile Pvt. Ltd. was formed. On 21-6-1982 at the annual general meeting of Mettur Beardsell

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2006 Supreme(SC) 398

TARUN CHATTERJEE, ARIJIT PASAYATMETTUR BEARDSELL LTD – AppellantVersusWORKMEN – Respondent

Cases Referred (8)

TARUN CHATTERJEE, ARIJIT PASAYAT
METTUR BEARDSELL LTD – Appellant
Versus
WORKMEN – Respondent