TMI Blog1994 (6) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany either on the ground that the industrial unit though presently sick is capable of being made viable with the aid of further substantial investments by the State, or on the ground that such disinvestment would deprive the employees of the rights conferred by articles 14 and 16 or of the right to approach this Court under article 226 or the Supreme Court under article 32 - is the question that arises for consideration in this petition filed by the Southern Structurals Staff Union representing 250 of the 1600 workmen employed in Southern Structurals Limited - Respondent No. 1 in this petition. 2. Southern Structurals Limited which was incorporated in 1956 as a Public Limited Company was under private management and was closed in 1970 after it became sick. In 1971 the State Government of Tamil Nadu stepped in and took over the management of the company with a view to ensure the continued functioning of the industrial units owned by the Company. In 1978, the State acquired over 99 per cent of the shares of the company and the company became a Government company. The com- pany is now a wholly-owned State Government company doing business in various diversified activities such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may become necessary in future having regard to inflationary and other increases. 6. During the pendency of this Petition, the State Government by their G.O. dated 6-9-1993 extended the following concessions to the company : ( a )Outstanding Ways and Means Advance of Rs. 17.5 crores as on 31-3-1992 has been written off. ( b )Arrears of interest of Rs. 5.85 crores on the ways and means Advance as on 31-3-1992 has been written off. ( c )Arrears of guarantee commission as on 31-3-1992 amounting to Rs. 72 lakhs has been written off. 7. Even after substantial concessions having been extended by the State, as stated by the Deputy Secretary, Industries Department, in his counter-affidavit dated 27-4-1994, the operating agency has drawn up a draft rehabilitation programme at a cost of Rs. 13.65 crores which assumes that the entire cost of rehabilitation has to be met by the State Government alone by way of a rehabilitation loan. 8. The rehabilitation of the company is thus possible only by further infusion of taxpayers' monies, which have already been utilised in gener-ous measure to grant Ways and Means Advance to the company, year after year, as can be seen from the fig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a time when funds are badly needed for funding such basic necessities as primary education and health care, fully justified the decision to disinvest. The State further has not shown itself to be capable of running this business enterprise on sound commer-cial principles, and continued State ownership is not an imperative necessity on account of security and like considerations. 13. Shri R. Krishnamurthy, the learned Advocate General, appearing for the Respondents submitted that the decision to disinvest, being a policy decision of the State, the same was not amenable to judicial review. There is considerable force in this submission. Normally the Court will not sit in judgment over issues of economic policy, unless such policy is violative of constitutional or statutory provisions. Mala fide or arbitrary decisions in the guise of policy will, however, remain open to judicial scrutiny. Whether the policy formulated is the best policy or is a wise policy is not a matter for decision by the Court. In this context, it is useful to set out the following observation of the Supreme Court in the case of Premium Granites v. State of Tamil Nadu [1994] (2) SCC 691: "It is not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employees to invoke article 14 or article 16 and to approach the High Court or the Supreme Court directly by invoking article 226 or article 32, the Government is bound to retain its ownership of the bulk of the shares in this company for ever, is devoid of any force. 16A. The protection of article 14 is available to all and is not confined to employees of the State. The limitations placed by article 16 on the State with regard to employment under the State is not intended to compel the State to provide employment under it to all who seek such employment or retain all persons presently in its service in order to enable such persons to claim the benefit of article 16. 16B. Employment under the State is not a pre-condition for approaching the High Court or the Supreme Court. All industrial workers have a right to approach the Labour Court or Industrial Tribunals for adjudication of their rights subject to the limitations contained in the Industrial Disputes Act. Like all citizens and others, industrial workers also have the right to approach civil courts for redressal of their wrongs. The decisions rendered by the Civil, Labour and Industrial Courts or Tribunals are open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India AIR 1981 SC 344: "...The right to pursue a calling or to carry on an occupation is not the same thing as the right to work in a particular post under a contract of employment. If the workers are retrenched consequent upon and on account of the sale, it will be open to them to pursue their rights and remedies under the Industrial Laws. But the point to be noted is that the closure of an establishment in which a workman is for the time being employed does not by itself infringe his fundamental right to carry on an occupation which is guaranteed by Article 19(1)( g ) of the Constitution. Supposing laws were passed preventing a certain category of workers from accepting employment in a fertilizer factory, it would be possible to contend then that the workers have been deprived of their right to carry on an occupation. Even assuming that some of the workers may eventually have to be retrenched in the instant case, it will not be possible to say that their right to carry on an occupation has been violated. It would be open to them, though undoubtedly it will not be easy, to find out other avenues of employment as industrial workers. Article 19(1)( g ) confers a broad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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