( 1 ) ONE of the oldest Spinning Mills in the State is facing extinction. The fate of more than 1150 workmen is hanging in the air for more than six years. This Court is called upon to resurrect the situation to extricate the Mill and dependent Mill workers.

( 2 ) THIS Writ petition is filed by the President of the Andhra National Textile Workers Union. The Andhra Co-operative Spinning Mills Limited, Guntakal was established in 1950s under the A. P. Coperative Societies Act and had worked upto July, 1991. It has been working under the control of the A. P. Spinning Federation Lay off was declared by the Mill on 29-7-1991 but no lay off compensation or wages were paid to the workmen. While so, the Government issued GO. Ms. No. 133, dated: 21-3-1992 by invoking the powers of subsections (1) and (2) of Section 3 of A. P. Relief Undertakings (Special Provisions) Act, 1971 declaring the said Mill as a Relief undertaking with effect from 21-3-1992. Initially, it covered for a period of 12 months and subsequently, it was being extended from time to time. Finally, the extension was valid unto 20-3-1995 and thereafter, no further extension was given.

( 3 ) IT is the case of the petitioners that by virtue of the notification issued under the Act, they were prohibited from approaching the authorities under the Industrial Disputes Act and they were not paid the lay off and other wages. Having no other forum to agitate the matter, they approached this Court seeking directions to pay the salaries. It is also their case that a sum of Rs. 3,200. 00each was paid to the workmen employed in the Mill. In fact, they are entitled for higher amounts.

( 4 ) IN the main writ petition, counter affidavit was filed on behalf of the respondents. It was accepted that notification was issued declaring the Mill as a Relief Undertaking. The Mill ran into severe difficulties due to lack of cotton supply, working capital and very low productivity of the workers. Consequently, the cumulative effect was that the Mill could not be worked at all as no funds could be generated by the Mill even to meet its daily running expenditure. The Government has advanced huge sums of money and stood guarantee for several financial institutions including Industrial Development Bank of India. It is also the case of the Government that a sum of Rs. 55. 38 lakhs was spent towards payment of salaries and other benefits to the workmen. The Andhra Cooperative Spinning Mills Limited, Guntakal was established in the year 1954. The financial position of the Mill became very precarious for the last several years and therefore, it was closed on 27-7-1991. A Project Report was prepared to reopen the Mill at an estimated cost of Rs. 750 lakhs with modem machinery. Efforts are being made to revive the Mill. Unless the funds are made available, there is no scope for payment of further money to the workmen.

( 5 ) THE issue that arises for consideration of this Court is whether the workmen are entitled for any relief?

( 6 ) THE learned Advocate General appearing on behalf of the respondents submits that the Government cannot be made liable to pay any sum to the petitioners as the Mill itself is closed and that the Mill is an independent entity governed by the provisions of the A. P. Cooperative Societies Act. More over, a Receiver was appointed by the High Court of Bombay and it is open for the petitioners to implead themselves before the High Court of Bombay and claim for pro rata sum. It is also submitted that the High Court of Bombay has ordered the sale of property by the Receiver and in pursuance of the same, the sale proceedings are taking place. The learned Advocate General submits that Government made efforts to rehabilitate the Spinning Mill, but it was found not feasible. The only course that is available on the basis of present situation, the learned Advocate General submits, is that the Cooperative Spinning Mills is governed by the provisions of the A. P. Cooperative