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1993 Supreme(Guj) 395

B.J.SHETHNA, R.A.MEHTA
TEXTILE LABOUR ASSOCIATION – Appellant
Versus
STATE – Respondent


Advocates Appeared: ASHOK C.GANDHI, B.J.MEHTA, D.S.VASAVADA SHUKLA, S.B.VAKIL

B. J. SHETHNA, R. A. MEHTA, J.

( 1 ) ). By this application the Textile Labour Association has made a prayer for issuance of a direction for payment of salary to the workers for the period they have actually worked and allowed to work and have produced the goods out of the sale proceeds of the finished goods sold in pursuance of the directions of this Court. The petition is resisted by respondent No. 3-the State Bank of Saurashtra a secured creditor having first charge on the current assets of the company which include the finished goods.

( 2 ) ). The petitioner has relied on Article 21 of the Constitution of India and the judgment of the Supreme Court in the case of Rohtas Industries Ltd. (1987 - II-LLJ-1) and of this court in the case of Amruta Mills. On behalf of the respondents it is submitted that these Judgments cannot be applied and followed as precedents and the bank is having legal rights as secured creditor and those rights cannot be destroyed unless the law authorises the same and it is submitted that there is no law which requires to ignore the rights of the secured creditors

( 3 ) ). The workmen of the mill are about 2 700 and it is submitted that the mill came to be clo






























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