SHRI AMBALAL M. SHAH AND ANOTHER versus HATHISINGH MANUFACTURING CO., LTD.

SHRI AMBALAL M. SHAH AND ANOTHER versus HATHISINGH MANUFACTURING CO., LTD.

The words in section 18A(1)(b) of the Industries (Development and Regulation) Act, 1951 cannot be cut down to require that the investigation under section 15 must have been initiated only on the ground of mismanagement; it is sufficient if any investigation has been made under section 15 and the Government subsequently forms the requisite opinion. The High Court's construction was incorrect.

Parties
Appellants: Shri Ambalal M. Shah and another; Respondents: Hathisingh Manufacturing Co., Ltd.
Jurisdiction
India
Judgment Date
21 August 1961
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated December 6, 1960, of the Gujarat High Court in Special Civil Application No. 434 of 1960
Outcome
Appeal allowed
Legal Topics
Interpretation of Statutory Provisions, Industrial Undertaking Management, Governmental Takeover of Industrial Management, Writ Jurisdiction Under Article 226
Administrative Law Industrial Law Interpretation of Statutory Provisions Industrial Undertaking Management Governmental Takeover of Industrial Management Writ Jurisdiction Under Article 226

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 2 Party arguments 2
Sign in to unlock

Parties

Shri Ambalal M. Shah and another

Appellants

Hathisingh Manufacturing Co., Ltd.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated December 6, 1960, of the Gujarat High Court in Special Civil Application No. 434 of 1960

Legal Issues

  1. 1 Whether the Central Government can make an order under section 18A(1)(b) of the Industries (Development and Regulation) Act, 1951 after an investigation is made under section 15, even when the investigation was not originally initiated on the ground of mismanagement detrimental to public interest.

Ratio Decidendi

The words in section 18A(1)(b) of the Industries (Development and Regulation) Act, 1951 cannot be cut down to require that the investigation under section 15 must have been initiated only on the ground of mismanagement; it is sufficient if any investigation has been made under section 15 and the Government subsequently forms the requisite opinion. The High Court's construction was incorrect.

Court Disposition

Appeal allowed

Orders

  • Order of the High Court set aside
  • Application under Article 226 of the Constitution dismissed