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1986 (5) TMI 273

ntral India Spinning, Weaving & Manufacturing Company Limited - was incorporated in 1874. It was, in all probability, the first industrial enterprise of Tatas and the forerunner of their many other pioneering ventures in a variety of fields touching the economic, social, educational and cultural life of this country. 2. In the course of its career spanning over a century and mere, the Company passed through several vicissitudes. The last twenty years particularly, witnessed its pendulum widely swinging between profit and loss - less profits and more losses. And in these very recent years, matters turned from bad to worse. Efforts to salvage the situation did not cut much ice. Negotiations vis-a-vis government, financial institutions and .....

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this Court yesterday that - ...the State Government has decided in principle to initiate the process of takeover of the mill in the interest of the workers on certain conditions." (Emphasis added). [herein indicated in italics-Ed.] Though in itself a welcome and encouraging sign, the decision, as it stands conveyed to this Court, is rather vague. It is not a decision to instantly take over but a decision to only initiate a process in that regard. When this process would commence is not disclosed and is thus anybody's guess. The "certain conditions" on which this process of take-over would be based are also not disclosed. Bonafide though it be, the decision does not measure up to the urgent need for prompt action. The Gov .....

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d as a matter of course. But the Court is not always bound to do so. Though its jurisdiction in this respect is discretionary and, unlike that of the executive, not limited or fettered by any particular factor or circumstance (political or otherwise) the Court would nonetheless not act lightly or arbitrarily but exercise its discretionary jurisdiction carefully and judicially. It will consider the pros and cons, the practical benefits of such appointment and the possible consequences otherwise. In this judicial process, the Court will not overlook the dire need of the moment and the attendant' risk in default of such appointment. So considering this judge's summons together with the specter of commercial insolvency looming large ove .....

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and properties; for bringing these in custodia legis; and for supervising, regulating and monitoring the Company's affairs. His appointment will also arrest the declension, crystallise the position and help accelerate the course of action ahead. It will also assist in expediting the take-over process to be initiated by the State Government. It will also result in a fair and just direction in public interest to the pending winding up proceedings. Therefore, everything is to be gained and nothing to be lost by this appointment. 8. Of course, a provisional liquidator has no Alladjn's lamp in his hands nor any magic formula up his sleeve. Nor is his appointment a panacea for all the ills afflicting a company. But in a case as the instan .....

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mortem would be an exercise in futility with only a pyretic victory at the end of it all. Whatever be the unfortunate past and whosoever be all those responsible therefore ,it is now best left abandoned. Let bygones be bygones. Attempts at passing the buck should stop. Cutting the gordian knot, let all concerned get down to brass tacks. Mutual co-operation of a constructive character backed up by requisite will and determination can considerably help bring in positive results. On his part, Mr. Palkhivala, learned Counsel for the Company, assured the Court - and this is a very significant statement - that the Company will not challenge any take-over of the management nor will it challenge any take-over even of the assets and properties of th .....

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