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1959 Supreme(AP) 167

Andhra Pradesh High Court
Judges : M.SESHACHALAPATI
In Re: V.S.Hariharan - Appellant
Versus
. - Respondent
Decided On : 09-19-59

A writ of certiorari cannot be issued against a private company, such as the respondent company, as it is not a public authority or a quasi-judicial tribunal.

Headnote:

CONSTITUTIONAL LAW - ARTICLE 226 - WRIT OF CERTIORARI - ISSUANCE AGAINST PRIVATE COMPANY - CONDITIONS - HINDUSTAN SHIPYARD LIMITED - NOT A PUBLIC AUTHORITY - WRIT NOT ISSUABLE.

Fact of the Case:

Petitioner, employed as Superintendent of Stores in respondent company, was placed under suspension and charges were framed against him for alleged shortages in the stores. Before any final orders were passed, the matter was entrusted to the police, who arrested and registered a case against the petitioner under Section 420 I. P. C. The petitioner was acquitted in the criminal case. Thereafter, the petitioner requested the respondent company to reinstate him in service. The Managing Director of the respondent company notified the petitioner to report for duty, but on reporting, he was served with an order terminating his services under Sub-rule 1 of Rule 24 of the Officers Service Rules of the Company. The petitioner challenged the order as being unjust and in contravention of the terms of the rule.

Finding of the Court:

The court held that a writ of certiorari could not be issued against the respondent company as it was not a public authority or a quasi-judicial tribunal. The court observed that the respondent company was a limited liability company registered under the Indian Companies Act and its affairs were administered by a Board of Directors. The court further held that the fact that the Government of India had subscribed 80% of the share capital and nominated 10 of the 13 Directors did not make the company a public authority.

Issues: Whether a writ of certiorari could be issued against the respondent company, Hindustan Shipyard Limited, a private company, for quashing an order terminating the petitioner's services.

Ratio Decidendi: The court held that a writ of certiorari could not be issued against the respondent company as it was not a public authority or a quasi-judicial tribunal. The court observed that the respondent company was a limited liability company registered under the Indian Companies Act and its affairs were administered by a Board of Directors. The court further held that the fact that the Government of India had subscribed 80% of the share capital and nominated 10 of the 13 Directors did not make the company a public authority.

Final Decision: The petition was dismissed.

M. SESHACHALAPATI, J.

( 1 ) THIS is a petition filed under Article 226 of the Constitution of India for the issue of a writ of certiorari to the respondent, the Managing Director, Hindustan Shipyard Ltd. , Visakhapatnam, and to quash his order PD/36/26 dated 30-6-1959.

( 2 ) THE petitioner was employed in the respondent-company as a Superintendent of the Stores from 6-11-52 till 30-6-59. In 1955 there were certain shortages in the stores and suspicion fell on the petitioner. He was placed under suspension and charges were framed against him with a view to take disciplinary action. He submitted his explanation. But before any final orders were passed on that enquiry the matter was entrusted to the police, who arrested the petitioner and registered the case against him under Section 420 I. P. C. (C. C. No. 287 of 1957 ). After trial the criminal case was decided in favour of the petitioner and he was acquitted on 9-3-1959. Thereafter, the petitioner requested the respondent-company to reinstate him in service. On 29-6-1959 the Managing Director of the respondent-company notified to the petitioner that he should report himself to duty at 9-45 a. m. on 30-6-1959. After he reported himself at about 10-45 a. m. on 30-6-1959, he was served with an order to the effect that his services were terminated with effect from 30-6-1959 under Sub-rule 1 of Rule 24 of the Officers Service Rules of the Company, and that the Chief Accountant would pay six calendar months salary together with dearness allowance in lieu of notice in terms of the above rule along with the other dues. The amounts were duly paid.

( 3 ) AFTER receiving the above order, the petitioner and the Officers Association made unavailingly certain representations to the Managing Director that the order terminating the petitioners services should be rescinded. The petitioner got no relief. This petition therefore, is filed by him for quashing of the order of the Managing Director D/- 30-6-1959, as being unjust and in contravention of the terms of Sub-rule 1 of Rule 24 of the Officers Service Rules of the Hindustan Shipyard Ltd.

( 4 ) IT is not the case of the petitioner that he is a member of a civil service of the Union or the State Government, or that he holds a civil post under the Union Government or the State Government to whom Article 311 of the Constitution or the appropriate Union or State Service Rules would apply, and the infraction of which would entitle him for applying for a writ of certiorari.

( 5 ) THE question, therefore, is whether in the circumstances of this case, a writ could issue to the respondent company and whether the impugned order is liable to be quashed.

( 6 ) THE Hindustan Shipyard Limited, is a Company registered under the Indian Companys Act, governed by its own Memorandum and Articles of Association and its affairs are administered by a Board of Directors. Article 226 of the Constitution provides that the High Court could issue to any person or authority, including in appropriate cases any Government within whose territories, directions, orders or writs, including writs in the nature of habeas corpus. Mandamus, prohibition, quo-warrant, and certiorari, or any of them for the enforcement of any of the rights conferred by Part III of the Constitution and for any other purpose. It was sought to be argued that the expression "any person" used in Article 226 is of wide import and it would take in a case of a limited liability company like the respondent-company. It is true that the expression "person" as defined in Section 3 Clause 39 of the General Clauses Act includes a company or association or body of individuals whether incorporated or not. But the expression person cannot be detached from the context and viewed apart from the nature of the writs that are enumerated in the article.

( 7 ) IT is now well established that the purposes for which and the conditions under which these writs could be issued in India by the Supreme Court or the High Courts a









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