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2013 Supreme(SC) 544
IN THE SUPREME COURT OF INDIA
P. SATHASIVAM AND JAGDISH SINGH KHEHAR, JJ.
National Textile Corpn. (UP) Ltd. - Appellant(s)
Versus
Dr. Raja Ram Jaipuria & Ors. - Respondent(s)
CIVIL APPEAL NO. 4818 OF 2013 (Arising out of SLP (Civil) No. 4706 of 2006), CIVIL APPEAL NO. 4819 OF 2013 (Arising out of SLP (Civil) No. 4773 of 2006)
Decided On : 01-07-2013
Headnote:
Industrial Development Regulation Act, 1951 - Section 18AA - Swadeshi Act - Section 27 - Public Premises (Eviction of Unauthorized Occupants) Act, 1971 - Sections 5 and 7 – Offence of punishment – Transfer - SCMCL acquired property at Civil Lines Uttar Pradesh on which an integrated complex popularly known as House was constructed - House consisted of three buildings Bungalow which was used prior to Registered Office of SCMCL and after it was used for general meetings of Board of Directors and also as Guest House Bungalow was in physical possession of Managing Director of SCMCL and Bungalow was Administrative Block of SCMCL - Central Government vide notification Section of Industrial Development Regulation Act took over management of six textile undertakings of SCMCL including Cotton Mills Kanpur and National Textile Corporation Limited New Delhi Government undertaking was appointed as authorized representative takeover – Held, Director of Kanpur Builders Ltd was also impleaded as Contemnor contempt petition - After several rounds of litigation as discussed in paragraphs appellant filed Petition High Court of Allahabad - By judgment single Judge of High Court dismissed petition filed by appellant herein holding that Section of Act of complaint could only have been filed by appellant property had vested in them further by High Court that complaint Section of Act could only have been filed by petitioner title of property in dispute was clearly in their favour - Both Courts below have correctly assessed facts and circumstances of case and have rightly come to conclusion that in absence of having any clear title in their favour complaint Section was misconceived rightly dismissed – Appeal dismissed
JUDGMENT
P. Sathasivam, J.
1) Leave granted.
2) These appeals are directed against the final judgment and order dated 25.11.2005 passed by the High Court of Judicature at Allahabad in Misc. Writ Petition Nos. 25090 of 1994 and 30122 of 1996 whereby the High Court dismissed the petitions filed by the National Textile Corporation (U.P.) Ltd.-the appellant herein.
SLP (Civil) No. 4706 of 2006
3) Brief facts:
(a) In the year 1921, the Swadeshi Cotton Mills Company Limited (SCMCL) was incorporated as a private company and converted into a public company in 1923 which was engaged in the business of activity of operating and managing textile mills. The SCMCL acquired property at Civil Lines, Kanpur, Uttar Pradesh on which an integrated complex popularly known as ‘Swadeshi House’ was constructed. The said House consisted of three buildings, viz., Bungalow No. 1 which was used prior to 1971 as the Registered Office of the SCMCL and after 1971 it was used for general meetings of the Board of Directors and also as a Guest House, Bungalow No. 2 was in the physical possession of the Managing Director of SCMCL and Bungalow No. 3 was the Administrative Block of the SCMCL.
(b) The Central Government, vide notification dated 13.04.1978, under Section 18AA of the Industrial Development Regulation Act, 1951, took over the management of six textile undertakings of the SCMCL including the Swadeshi Cotton Mills, Kanpur and the National Textile Corporation Limited, New Delhi (NTC), a Government undertaking, was appointed as the authorized representative under the said takeover. As a result of the takeover, the NTC took possession and custody of various properties belonging to the SCMCL including the Guest House and the Administrative Block. However, Bungalow No. 2 continued to be in the physical possession of Dr. Raja Ram Jaipuria, the then Director of the SCMCL (Respondent No. 1 herein).
(c) Aggrieved by the order dated 13.04.1978 of take over, the SCMCL filed Writ Petition No. 408 of 1978 before the High Court of Delhi. In the High Court, vide order dated 04.05.1978, a working arrangement between the parties was made out wherein Respondent No. 1 herein was permitted to continue the physical possession of the residential bungalow on the condition that the same will not be disposed of or alienated in any way to any outsider. Ultimately, by order dated 01.05.1979, the High Court upheld the notification dated 13.04.1978 but certain assets were excluded from the purview of the same including the ‘Swadeshi House’ and ‘Shrubbery’-the residence of the Secretary of the SCMCL.
(d) Being aggrieved by the aforesaid judgment with regard to the validity and legality of the order of takeover, Swadeshi Cotton Mills, National Textile Corporation and Union of India preferred Civil Appeal Nos. 1629, 1857 and 2087 of 1979 respectively before this Court. This Court, vide judgment dated 13.01.1981 in Swadeshi Cotton Mills vs. Union of India (1981) 1 SCC 664 held the said takeover invalid on the ground that no opportunity of hearing was given to the SCMCL before the takeover.
(e) On 19.04.1986, the Central Government promulgated the Swadeshi Cotton Mills Company (Acquisition and Transfer of Undertakings) Ordinance, 1986. Thereafter, on 30.05.1986, the said ordinance was replaced by the Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986 (in short ‘the Swadeshi Act’). As per Section 3 of the Swadeshi Act, every textile undertaking and the right, title and interest of the SCMCL in the said textile undertaking stood transferred and vested with the Central Government. The transferred undertakings were further transferred and vested in the NTC. Several proceedings were instituted by the parties as a result of the acquisition of the undertakings of the SCMCL.
(f) One Mukesh Bhasin, a minority shareholder of Swadeshi Polytex Limited (SPL), filed a Civil Suit being No. 506 of 1987 before the High Court of Delhi at New Delhi praying for a declarati
