K. A. SWAMI C. J.

These appeals are preferred against the order dated July 25, 1994, passed by the learned single judge in Writ Petitions Nos. 2456 of 1994 and 4427 of 1994. There was another writ petition filed and all the writ petitions were taken up together for hearing and a common order was passed by the learned single judge. The petitioners in Writ Petitions Nos. 2456 of 1994 and 4427 of 1994 have come up in appeals. In the writ petitions, the petitioners sought for declaring that section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "the Act"), is ultra vires and unconstitutional. This relief was sought for on the ground that section 20 of the Act is violative of article 14 of the Constitution. The learned single judge has negatived the contention and rejected the writ petitions.

It is contended before us that section 20 of the Act imposes restriction on the exercise of jurisdiction by a High Court, that unbridled power is given to the Board and as such the Board can be arbitrary, and it can adopt different norms and different procedures in the matters coming up before the Board and as such, it is discriminatory.

Section 20 of the Act reads thus :

"20. Winding up of sick industrial company.---(1) Where the Board after making inquiry under section 16 and after consideration of all the relevant facts and circumstances and after giving an opportunity of being heard to all concerned parties, is of opinion that it is just and equitable that the sick industrial company should be wound up, it may record and forward its opinion to the concerned High Court.

(2) The High Court shall on the basis of the opinion of the Board, order winding up of the sick industrial company and may proceed and cause to proceed with the winding up of sick industrial company in accordance with the provisions of the Companies Act, 1956

(4) Notwithstanding anything contained in sub-section (2) or sub-section (3) the Board may cause to be sold the assets of the sick industrial company in such manner as it may deem fit and forward the sale proceeds to the High Court for orders for distribution in accordance with the provisions of section 529A and other provisions of the Companies Act, 1956 (1 of 1956)."*

Before considering the scope of section 20 of the Act, it is necessary to consider the object of the enactment and also the context in which section 20 appears in the Act. The object of the Act is to make in public interest special provisions with a view to securing the timely detection of sick and potentially sick companies owning industrial undertakings, the speedy determination by a board of experts of the preventive, ameliorative, remedial and other measures which need to be taken with respect to such companies and the expeditious enforcement of the measures so determined and for matters connected therewith or incidental thereto. In the Statement of Objects and Reasons, it has been stated as to why it has become necessary to bring out legislation of the nature in question. It is relevant to advert to those objects and reasons also (see 1985 (58) CC 303)

"STATEMENT OF OBJECTS AND REASONS

(1) The ill-effects of sickness in industrial companies, such as, loss of production, loss of employment, loss of revenue to the Central and State Governments and locking up of investible funds of banks and financial institutions are of serious concern to the Govemment and the society at large. The concern of the Government is accentuated by the alarming increase in the incidence of sickness in industrial companies. It has been recognised that in order to fully utilise the productive industrial assets, to afford maximum protection of employment and optimise the use of the funds of the banks and financial institutions, it would be imperative to revive and rehabilitate the potentially viable sick industrial companies as quickly as possible. It would also be equally imperative to salvage the productive assets and realis