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1988 Supreme(Raj) 432

RAJASTHAN HIGH COURT
S.C.Agrawal, P.C.Jain, JJ.
Ishaq Mohammad etc. etc. - Appellant
Versus
Jaipur Metals & Electricals Ltd. - Respondent
D.B. Civil Writ Petition No. 1369 of 1984 and 16 other writ petitions.
Decided On : 5-02-1988

JUDGMENT

1. - In this writ petition, the petitioner Ishaq Mohd, has prayed for issuance of a writ, order or direction to quash and set-aside the impugned termination order whereby his services were terminated by M/s. Jaipur Metals & Electricals Ltd., Jaipur. The services of some other employees were also terminated by M/s. Jaipur Metals & Electricals Ltd. They have also challenged their order of termination in separate writ petitions, the details of which are given in Annexure/1 to this order.

2. In all the writ petitions, a common question of law is raised, whether M/s. Jaipur Metals and Electricals Ltd. Jaipur (for short 'the Company') is an "authority" falling within the definition of State in Article 12 of the Constitution of India. Is it an instrumentality or agency of the Government ?

3. In this group of writ petitions, the respondent Company has contended that M/s. Jaipur Metals and Electricals is a Company registered under the Companies Act is therefore, not an 'authority' within the meaning of Article 12 of the Constitution and no writ petition can be maintained against it. Since a common question of law is raised in all the cases, it was thought desirable, with the consent of the learned counsel for the parties in all the writ petitions to decide the said question in this writ petition and the order passed in it in this regard will govern all the other writ petitions. Therefore, we propose to decide the preliminary issue in Part-I of this order and the merit of the order of termination would he decided in Part-it of the order. The order passed in Part-I shall be placed on the file of each writ petition referred in Annexure-I. PART:I4. A few facts may briefly be stated:-

M/s. Jaipur Metals & Electricals is a public limited company registered under the Companies Act. The Company was set up by the Kamani Group in 1943. It is said that the Company was a pioneer in the field of non-ferros metals and alloys. The Company diversified in 1953 and commenced manufacturing house service and energy meters. It is further said that the Company continued to enjoy good reputation for quality products as well as substantial profits till 1971-72. However, thereafter the process of degeneration set in mainly due to internal strife in the Kamani family and cut throat competition in the market, non-availability of adequate raw-materials and abnormal increase in the cost of production. By the end of 1976-77, not only the accumulated profits were wiped out but losses accumulated to the extent of Rs. 74 lacs began to wipe out the share-holders' capital. On account of the said situation coupled with the bleak future prospects, the then private management headed by Shri R.R. Kamani proposed voluntary liquidation of the Company However, the proposal could not get through as the share-holders in their extra-ordinary general meeting held on 17th June, 1977, rejected the same and simultaneously directed for constituting a management committee with two nominees of the State Government and one each of IFCI and RFC, State Bank of Bikaner and Jaipur and the Central Bank of India. The Government of Rajasthan declared the Company as 'relief undertaking' under the Rajasthan Relief Undertaking (Special Provision) Act, 1961 with a view to protect it from legal proceedings and also to enable its working properly. 'The declaration as Relief Undertaking also gave its special protection in various ways; such as provisions of the Industrial Employment (Standing Orders) Act, 1946, Industrial Disputes Act, 1947 as amended by the Industrial Disputes (Rajasthan Amendment) Act, 1956; the Minimum Wages Act, 1948 and the Rajasthan Shops & Commercial Establishments Act, 1958 were made in applicable to the Relief Undertaking The Company was declared as a Relief Undertaking vide Notification No. F. (2) (111) IHD/l/77 dated 17th December, 1977. Initially, it remained a relief undertaking upto 12th August, 1978, but this period was extended from time to time and the Company i






























































































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