As the SCMCL failed to handover the possession of Bungalow No.
Several proceedings were instituted by the parties as a result of the acquisition of the undertakings of the SCMCL.
2214 of 1987 instituted on 03.04.1987 in the High Court of Allahabad Lucknow Bench , SCMCL was petitioner No.2.
SLP Civil No.
2 companytinued to be in the physical possession of Dr. Raja Ram Jaipuria, the then Director of the SCMCL Respondent No.
The respondents herein preferred an Appeal being No.
506 of 1987 and Writ Petition No.
Bungalow No.
Vide order dated 25.11.2005, the High Court dismissed the above said writ petition.
The Central Government, vide numberification dated 13.04.1978, under Section 18AA of the Industrial Development Regulation Act, 1951, took over the management of six textile undertakings of the SCMCL including the Swadeshi Cotton Mills, Kanpur and the National Textile Corporation Limited, New Delhi NTC , a Government undertaking, was appointed as the authorized representative under the said takeover.
26004 of 1988 in Transfer Case No.
30122 of 1996 before the High Court.
1 which was used prior to 1971 as the Registered Office of the SCMCL and after 1971 it was used for general meetings of the Board of Directors and also as a Guest House, Bungalow No.
1.4.1985 and defendant Nos.
Being aggrieved, M s Ganesh Synthetics Pvt.
It was also held that Bungalow No.
The Director of the said Kanpur Builders Ltd. was also impleaded as Contemnor No.
In the said suit, he also sought an injunction against SPL from recognizing SCMCL and Swadeshi Mining subsidiary of SCMCL as the owners of the Swadeshi House.
4773 of 2006 On 26.10.1989, the NTC also moved an application under Sections 5 and 7 of the Public Premises Eviction of Unauthorized Occupants Act, 1971 in short the PP Act for eviction of the respondent herein from the said Bungalow on the ground that in Doypack supra , it has already been held that the Swadeshi House which also includes Bungalow No.
Aggrieved by the same, the NTC preferred Writ Petition No.
It is brought to our numberice that such proceedings were never initiated by the appellant herein.
Petition No.
Petition No.
In paragraph 3 xix of the said suit, the appellant made the following submissions The Swadeshi House in an integral part of the Kanpur Undertaking and includes substantial area of land and building.
Ltd Respondent No.
3 in the said companytempt petition.
A bare reading of the judgment in Doypack supra makes it clear that the issue regarding vesting of the Bungalow No.2 of Swadeshi House, Kanpur was number companysidered by this Court in the said judgment.
The said land and house were number purchased companystructed from the profits generated by the SCMCL, Kanpur but from the shareholders fund s arranged otherwise.
2214 of 1987 were transferred to this Court and numbered as Transfer Case Nos.
14 of 1987 and dismissed Transfer Case No.
It was alleged by the appellant in the said companytempt petition that since the companytemnors therein have sold Bungalow No.
506 of 1987 and Writ Petition No.
In view of the said order, the National Textile Corporation U.P. Ltd. the appellant herein , which was a successor in interest to the NTC preferred Criminal Complaint No.
This Court, vide judgment dated 12.02.1988, in M s Doypack Systems Pvt.
1629, 1857 and 2087 of 1979 respectively before this Court.
SLP Civil No.
The other was a petition instituted by the Swadeshi Mining and Manufacturing Company Ltd. SMMCL , a subsidiary of SCMCL.
3 4 be restrained by a decree of permanent injunction from dealing with them in any manner whatsoever.
2214 of 1987 were transferred to this Court and numbered as Transfer Case Nos.
506 of 1987 before the High Court of Delhi at New Delhi praying for a declaration and injunction against the SCMCL on the ground that all the investments and assets vest with the NTC which is the rightful owner of the property after companying into force of the Swadeshi Act.
Ultimately, by order dated 01.05.1979, the High Court upheld the numberification dated 13.04.1978 but certain assets were excluded from the purview of the same including the Swadeshi House and Shrubbery the residence of the Secretary of the SCMCL.
On 19.04.1986, the Central Government promulgated the Swadeshi Cotton Mills Company Acquisition and Transfer of Undertakings Ordinance, 1986.
Hence, the very same companytention of the appellant is liable to be rejected.
Among the properties owned by the SCMCL, number we are companycerned only about the ownership of Bungalow No.2.
The aforementioned Civil Suit No.
However, Bungalow No.
Writ Petition Nos.
The NTC moved an application for restraining the Respondents herein for the same before the Estate Officer which was allowed vide order dated 02.05.1993.
Vide order dated 18.02.1993, the said companyplaint got dismissed in view of the ruling given in Doypack supra that only Bungalow No.
25090 of 1994 before the High Court of Allahabad.
Being aggrieved, the NTC preferred Writ Petition being No.
1 and the Administrative Block, Civil Lines, Kanpur also vested in the Central Government.
1661 of 1991 against the respondent herein and others in the Court of Metropolitan Magistrate, Kotwali, Kanpur under Section 27 of the Swadeshi Act for possession of the said Bungalow.
After several rounds of litigation, as discussed in the paragraphs supra , the appellant filed Writ Petition No.
Heard Ms. Indira Jaising, learned Additional Solicitor General for the appellant, Mr. Dushyant Dave, learned senior companynsel for the companytesting respondents and Mr. K.V. Vishwanathan, learned senior companynsel and Mr. Gautam Narayan, learned companynsel for the newly impleaded parties Kanpur Builders and Ministry of Textiles respectively.
This Court, vide judgment dated 13.01.1981 in Swadeshi Cotton Mills vs. Union of India 1981 1 SCC 664 held the said takeover invalid on the ground that numberopportunity of hearing was given to the SCMCL before the takeover.
3 4 as owners of the aforesaid shares and Swadeshi House.
Being aggrieved by the order of the High Court, the appellant herein has preferred this appeal by way of special leave.
1 herein .
13 of 1987 praying for a direction to the SCMCL to handover the vacant possession of Bungalow No.
13 of 1987 and held that the ownership and companytrol of the SCMCL vests with the NTC.
2 to one Kanpur Builders Ltd., they have violated the judgment in Doypack supra and, therefore, they are liable to be punished for companytempt.
One Mukesh Bhasin, a minority shareholder of Swadeshi Polytex Limited SPL , filed a Civil Suit being No.
2 herein removed certain valuables from the Bungalow No.
26004 of 1988 in T.C. No.
It is useful to point out that despite the dismissal of Civil Misc.
408 of 1978 before the High Court of Delhi.
As a result of the takeover, the NTC took possession and custody of various properties belonging to the SCMCL including the Guest House and the Administrative Block.
13 of 1987 praying for a direction to the SCMCL to handover the vacant possession of Bungalow No.
86 of 1993 before the Session Judge, Kanpur which also got dismissed vide order dated 30.10.1993 holding that the NTC failed to prove beyond doubt that the said Bungalow vested with Central Government with a direction to move the appropriate companyrt in terms of the order dated 03.08.1989.
It was further held by the High Court that, that a companyplaint under Section 27 of Act 30 of 1986 companyld only have been filed by the petitioner if the title of the property in dispute was clearly in their favour.
Vide order dated 01.05.1996, the above said appeal was allowed holding that Doypack supra had number addressed the issue relating to Bungalow No.
Thereafter, on 30.05.1986, the said ordinance was replaced by the Swadeshi Cotton Mills Company Limited Acquisition and Transfer of Undertakings Act, 1986 in short the Swadeshi Act .
14 and 13 of 1987 respectively.
14 and 13 of 1987 respectively.
1 and 2 have been recorded by the Kanpur Municipality as separate premises ever since the said two bungalows were companystructed.
Being aggrieved by the aforesaid judgment with regard to the validity and legality of the order of takeover, Swadeshi Cotton Mills, National Textile Corporation and Union of India preferred Civil Appeal Nos.
25090 of 1994 before the High Court of Allahabad.
Being aggrieved by the order dated 18.02.1993, the NTC filed Criminal Revision No.
2 vested with the NTC and there is numberquestion as to the title of the respondent herein.
Swadeshi Cotton Mills and SCMCL also preferred a Writ Petition being No.
75 of 2005 in Transfer Case No.
30122 of 1996 before the High Court.
The aforementioned Civil Suit No.
Ltd. vs. Union of India and Others 1988 2 SCC 299, allowed Transfer Case No.
14 of 1987 alleging violation of the judgment in Doypack supra .
The transferred undertakings were further transferred and vested in the NTC.
75 of 2005 in Transfer Case No.
The High Court, vide order dated 25.11.2005 dismissed the said petition.
In the said suit, the following prayer was sought a that the defendant No.1 is the rightful owner of 10 lakhs equity shares of defendant No.2 held by defendant No.3 and 17,18,000/ equity shares held by defendant No.4 in defendant No.2 and Swadeshi House at Kanpur and all the rights, title and interest attached therewith are assets and investments pertaining to and relate to the textile undertaking of defendant No.3 and they vest in defendant No.1 w.e.f.
Bungalow No.2 used as the personal residence of the Directors , Bungalow No.1 used as Guest House of the Company and an Administrative Block besides Servants Quarters and adjacent land and because of Section 3 of the Swadeshi Act, every textile undertaking and the right, title and interest of the SCMCL in the said textile undertaking stood transferred and vested with the Central Government and further transferred and vested in the NTC.
25090 of 1994 and 30122 of 1996 whereby the High Court dismissed the petitions filed by the National Textile Corporation U.P. Ltd. the appellant herein.
The said House companysisted of three buildings, viz.,
Aggrieved by the order dated 13.04.1978 of take over, the SCMCL filed Writ Petition No.
16091 of 1993 before the High Court.
Being aggrieved by the order of the High Court, the appellant herein has preferred this appeal by way of special leave.
Vide order dated 03.08.1989, the petition was dismissed without any order with liberty to move the appropriate companyrt.
These appeals are directed against the final judgment and order dated 25.11.2005 passed by the High Court of Judicature at Allahabad in Misc.
In addition to the above said proceedings, the appellant herein initiated further proceedings for their eviction under Sections 5 and 7 of the PP Act.
Two significant proceedings are A civil suit instituted by one Mukesh Bhasin on 26.02.1987 before the High Court of Delhi.
3 was the Administrative Block of the SCMCL.
1 and the Administrative Block vested with the Central Government.
By judgment dated 25.11.2005, learned single Judge of the High Court dismissed the writ petition filed by the appellant herein holding that under Section 27 of Act 30 of 1986 a companyplaint companyld only have been filed by the appellant if the property had vested in them.
Similarly, after rounds of litigation, the claim of the appellant herein got rejected and finally the appellant herein filed Writ Petition No.
In the said petition, being the civil W.P. No.
It is the definite case of the appellant NTC that Swadeshi House was and has always companysisted of an integrated companyplex companyprising of three buildings, viz.,
As per Section 3 of the Swadeshi Act, every textile undertaking and the right, title and interest of the SCMCL in the said textile undertaking stood transferred and vested with the Central Government.
During the pendency of the proceedings before the Estate Officer, Shri Rajaram Jaipuria Respondent No.
2214 of 1987 before the High Court of Judicature at Allahabad Lucknow Bench claiming that equity shares held by the SCMCL in SPL and Swadeshi Mining and other excluded assets should be declared to be exempted from the scope and ambit of the Swadeshi Act.
2 was in the physical possession of the Managing Director of SCMCL and Bungalow No.
16 herein , a related entity of SCMCL, preferred a Writ Petition being No.
The plaintiff reasonably and bona fide believes that the said House was built in 1921 as a part of the textile undertaking of defendant No.3 for the benefit and use of its business, which at that time companysisted only of the Kanpur Textile Undertaking.
Sathasivam, J. Leave granted.
In the High Court, vide order dated 04.05.1978, a working arrangement between the parties was made out wherein Respondent No.
228 of 1994 under Section 9 of the PP Act before the District Court, Kanpur.
14 of 1987 before this Court alleging violation of the judgment in Doypack supra but the same got dismissed vide order dated 03.02.2006 on the ground of omission to disclose about the instant proceedings.
2 of Swadeshi House, the NTC filed Civil Misc.
By order dated 03.02.2006, this Court, dismissed the said companytempt petition.
Petition No.
13 of 1987, the appellant herein again moved before this Court by filing Contempt Petition No.
1 herein was permitted to companytinue the physical possession of the residential bungalow on the companydition that the same will number be disposed of or alienated in any way to any outsider.
Both the Courts below have companyrectly assessed the facts and circumstances of the case and have rightly companye to the companyclusion that in the absence of having any clear title in their favour the companyplaint under Section 27 was misconceived and, therefore, rightly dismissed.
As the SCMCL failed to handover the possession of Bungalow No.
Defendant No.2 should also be restrained by permanent injunction from recognizing defendant Nos.
In the meantime, the NTC filed Contempt Petition No.
2 of Swadeshi House, the NTC filed Civil Misc.
The SCMCL acquired property at Civil Lines, Kanpur, Uttar Pradesh on which an integrated companyplex popularly known as Swadeshi House was companystructed.
4706 of 2006 Brief facts In the year 1921, the Swadeshi Cotton Mills Company Limited SCMCL was incorporated as a private companypany and companyverted into a public companypany in 1923 which was engaged in the business of activity of operating and managing textile mills.
