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A. Sreenivasacharlu and Others Vs. State of Karnataka and Another

A. Sreenivasacharlu and Others vs State of Karnataka and Another

Type Court Judgment Court Karnataka Decided Jun 15, 1990
~3 min read
https://sooperkanoon.com/case/371029

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Citation
Court
Karnataka High Court
Judge
Decided On
Case Number
W.P. No. 15102 of 1982
Subject
Constitution

Case Summary

AI-generated summary - not the official court judgment text.

- COMPANIES ACT, 1956 [C.A. No. 1/1956]. Sections 529 & 529A & State Financial Corporation Act 1951, Section 29: [S.R. Bannurmath & A.N. Venugopala Gowda, JJ] Proceedings under Taking over of assets of the industrial concern in realisation of dues Sale of assets - Applicability of provisions of Section 529 and ...

Key legal issue
Constitution
Acts & sections
Constitution of India - Article 226

Parties & Advocates

Appellant / Petitioner

A. Sreenivasacharlu and Others

Advocate Rangavittalachar, Adv.

Respondent

State of Karnataka and Another

Advocate Sateesh M. Doddamani, Govt. Pleader

Legal References

Acts
Constitution of India - Article 226
Reported In
AIR1991Kant61; 1990(2)KarLJ125

Excerpt

- companies act, 1956 [c.a. no. 1/1956]. sections 529 & 529a & state financial corporation act 1951, section 29: [s.r. bannurmath & a.n. venugopala gowda, jj] proceedings under taking over of assets of the industrial concern in realisation of dues sale of assets - applicability of provisions of section 529 and 529a held, the corporation cannot exercise its rights if the assets of the industrial concern, has already vested in the company court or if the official liquidator had been put in charge of the assets of the industrial concern. if the winding up proceedings are not set in motion, then, there is no legal impediment to the corporation to take action under section 29 of the s.f.c. act, 1951 and permission of company court is not required to be obtained. in the absence of commencement of winding up proceedings, the provision of section 529 and 529a of the companies act cannot be made applicable. the action of the corporation under section 29 of the s.f.c. act is lawful. further, the corporation took over only the assets and not the management. the money realised by effecting sale under sub-section (2) of section 29, cannot be apportioned or ordered to be paid to the workmen of the industrial concern, when the industrial concern is not under the winding up proceedings, in terms of the provisions under the companies act. the corporation cannot be held liable either jointly or severally to pay the closure compensation or other claims of the workmen. the industry is liable to pay the wages of the lockout period and the closure compensation to the workmen. -- state financial corporations act, 1951 [63/1951]. section 29; power of the corporation under taking over the assets of the industrial concern to realise the dues -justification of the action of the corporation held, the corporation is empowered to effect recovery of its dues, by resorting to the measures, both under section 29 and 31 of the act. since the industry which was under a liability to the..........28. in r.v. south west london' supplementary benefit appeal tribunal, ex. p. bullen (1976 (120) sol jo 437) it was held that to fail to accede to a request for an adjournment may amount to a failure to give a hearing and thus to a failure of natural justice or fairness. 29. in priddle v. fisher & sons (l968(3) all er 506), the applicant was given forty-eight hours notice to attend a hearing. he immediately told the tribunal that the time of hearing coincided with an interview for employment. this was confirmed by a third party. he asked for an adjournment. the tribunal said the reason was insufficient to justify an adjournment or to explain the failure to attend, and made a direction in the applicant's absence. the direction was quashed. the right to a hearing was restored.' 4. the same principle enures to the benefit of the petitioners in the facts and circumstances of the case. i am satisfied that the order of the tribunal deserves to be quashed for violation of principles of natural justice. hence, the following order : the writ petition is allowed and theimpugned order of the tribunal dated 28-1-1982 vide annexure-d is quashed. the tribunal is directed to hold a fresh enquiry and afford a reasonable opportunity of hearing to the petitioners and to the otherconcerned parties and pass an order on merits and in accordance with law expeditiously. 5. petition allowed.

Full Judgment

ORDER

1. The grievance of the petitioners is that despite a request in writing made to the Chairman, Land Tribunal, Sandur, dated 28-1-1982 vide Annexure-B supported by a medical certificate of 23-1-1982 seeking an adjournment of the case since the petitioner A. Sreenivasacharlu was suffering from Dirarhoea and unable to go to the office, the Tribunal ignored the application and proceeded to dispose of the case on merits.

2. The point for consideration is, whether such an order of the tribunal is opposed to principles of natural justice, particularly since the person concerned cannot be represented by a counsel before the Tribunal and the party had to contend in person.

3. The answer is not difficult to find. I refer to a decision of this Court reported in the case of K. Sathyashankara Shetty v. Mangalore University, ILR 1990 Kant 1064. This Court took the view as under :

'27. Administrative Justice contemplates certain requirements to be fulfilled if the hearing is to be regarded as fair. One of them is adequate notice of hearing. The notice must be of sufficient length to enable the defence of the case to be prepared; In R. V. Thames Magistrates' Court, exPolcmis (1974 (2) All ER 1219), conviction was quashed for breach of natural justice since the defendant was not afforded sufficient time to prepare his defence. This was considered to be more important than the apprehension that the defendant might leave the jurisdiction of the Court.'

28. In R.V. south West London' supplementary Benefit Appeal Tribunal, Ex. p. Bullen (1976 (120) Sol Jo 437) it was held that to fail to accede to a request for an adjournment may amount to a failure to give a hearing and thus to a failure of natural justice or fairness.

29. In Priddle v. fisher & Sons (l968(3) All ER 506), the applicant was given forty-eight hours notice to attend a hearing. He immediately told the Tribunal that the time of hearing coincided with an interview for employment. This was confirmed by a third party. He asked for an adjournment. The Tribunal said the reason was insufficient to justify an adjournment or to explain the failure to attend, and made a direction in the applicant's absence. The direction was quashed. The right to a hearing was restored.'

4. The same principle enures to the benefit of the petitioners in the facts and circumstances of the case. I am satisfied that the order of the tribunal deserves to be quashed for violation of principles of natural justice. Hence, the following order :

The writ petition is allowed and theimpugned order of the Tribunal dated 28-1-1982 vide Annexure-D is quashed. The Tribunal is directed to hold a fresh enquiry and afford a reasonable opportunity of hearing to the petitioners and to the otherconcerned parties and pass an order on merits and in accordance with law expeditiously.

5. Petition allowed.

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