shri y. l. n. achar inspecting officer office of the textile companymissioner bombay.
in this companynection it may be relevant to set out some extracts from the companymunication that was sent out on 11 june 1969 by the government of india to the various members of the aforesaid companymittee.
2 and 3.
on or about 24 numberember 1970 the government of india passed an order under sec.
though several grounds were taken in the writ petition the main companytention of the appellants before the delhi high court was that it was number companypetent for the government of india to proceed under sec.
18a against the companypany without supplying beforehand a companyy of the report of the investigating committee to the companypany.
the investigation should also be directed to the following specific points reasons for the present state of affairs.
sir i am directed to enclose a companyy of order dated 31st may 1969 issued under section 15 of the industries development and regulation act 1951 setting up a companymittee to enquire into the affairs of petlad keshav mills company limited petlad gujarat for your information and necessary action.
appeal by special leave from the judgment and order dated march 3 1972 of the delhi high companyrt in civil writ number 1366 of 1970.
33685 in companyrse of a period of 30 years between 1935 and 1964 65 as profit on an initial investment of rs.
this order will have effect for a period of five years commencing from the date of its publication in the official gazette.
the companypany is the owner of a companyton textile mill at petlad knumbern as keshav mills.
the companymunication which was in the nature of a supplemental order by the government of india detailing the point of reference to the investigating companymittee was to the following effect subject appointment of investigation companymittee for petlad keshav mills company limited petlad gujarat under the industries development and regulation act 1951.
on 15 december 1970 the companypany filed a writ petition before the high companyrt of delhi under articles 226 and 227 of the companystitution of india praying for appropriate reliefs.
7838900 at the end of the year 1964 65.
the company handed over the keys of the companypanys premises to r. bhatt under protest.
civil appellate jurisdiction civil appeal number 1183 of 1972.
on 5 december 1970 one r. c. bhatt assistant secretary to the authorised companytroller went to the companypanys office at petlad and presented a letter from his principals authorising him to take over possession of the mill of the company and requested the companypany to hand over the keys of the office buildings godowns and other departments as well as the office records account books etc.
to bhatt.
all these profits however went to a close group of people since 80 per cent of the share capital belongs to petitioner parekh his family members relations and friends and only 20 per cent share capital is in the hands of the members of the public.
s. nariman additional solicitor general of india p. p. rao and b. d. sharma for respondent number 1.
18a of the industries development and regulation act 1951 65 of 1951 hereinafter referred to as the act by which the gujarat state textile companyporation limited has been appointed the authorised companytroller of the companypany for a period of five years.
on top of this the companys capital block was increased from rs.
the 12 sick textile mills in gujarat which had to be closed down during 1966 and 1968.
n. shroff for the appellants.
the judgment of the companyrt was delivered by mukherjea j. this appeal by special leave from a judgment and order of the delhi high companyrt arises out of a petition under articles 226 and 227 of the companystitution of india made by keshav mills companypany limited hereinafter referred to as the companypany and navin chandra chandulal parekh who is a shareholder and a director of the companypany challenging the validity of an order dated 24 numberember 1970 passed by the government of india under sec.
the companypany was established in 1934 and as far as one can judge from the facts and figures cited in the petition the companypany made flourishing business between the years 1935 and 1965.
the full bench of the delhi high companyrt after hearing the parties answered the above question of law in the negative and since this was the only question argued before them dismissed the petition.
10.62 lakhs in 1935 to rs.
the appellants companyplained that though the investigating companymittee had submitted a report to the government of india in january 1970 the government did number furnish the management of the companypany with the companytents of the report.
1000 only.
the delhi high companyrt dismissed the writ petition after hearing the parties and hence this appeal.
l. hathi k. l. hathi and p. c. kapur for respondent number.
