CEMENT WORKERS KARAMCHARI SANGH versus M/S. JAIPUR UDYOG LIMITED AND ORS.

CEMENT WORKERS KARAMCHARI SANGH versus M/S. JAIPUR UDYOG LIMITED AND ORS.

AAIFR did not breach principles of natural justice in declining adjournment and proceeding with hearing; High Court erred in setting aside the final order passed by AAIFR on grounds of breach of audi alteram partem rule. However, justice demands JUL/GDCL be afforded one chance to present their case before AAIFR.

Parties
Appellant: Cement Workers Karamchari Sangh; Respondent: M/s. Jaipur Udyog Limited; Respondent: State Bank of India; Respondent: Gannon Dunkerley Company Ltd. (GDCL); Interveners: Other Unions and Workmen
Jurisdiction
India
Judgment Date
24 March 2008
Procedural Posture
Civil Appeal / Supreme Court Final Judgment on Appeal From Rajasthan High Court
Outcome
Appeal disposed of
Legal Topics
Principles of Natural Justice, Adjournment, Winding Up of Sick Company, Workmen's Dues, Delay and Laches, Rehabilitation of Sick Industry
Company Law Labour Law Principles of Natural Justice Adjournment Winding Up of Sick Company Workmen's Dues Delay and Laches Rehabilitation of Sick Industry

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Parties

Cement Workers Karamchari Sangh

Appellant

M/s. Jaipur Udyog Limited

Respondent

State Bank of India

Respondent

Gannon Dunkerley Company Ltd. (GDCL)

Respondent

Other Unions and Workmen

Interveners

Procedural Posture

Civil Appeal / Supreme Court Final Judgment on Appeal From Rajasthan High Court

Legal Issues

  1. 1 Whether AAIFR breached principles of natural justice by declining adjournment and proceeding with appeal hearing
  2. 2 Whether High Court was correct in setting aside AAIFR final order on grounds of breach of natural justice
  3. 3 Delay in disposal of appeal and prejudice to creditors and workmen

Ratio Decidendi

AAIFR did not breach principles of natural justice in declining adjournment and proceeding with hearing; High Court erred in setting aside the final order passed by AAIFR on grounds of breach of audi alteram partem rule. However, justice demands JUL/GDCL be afforded one chance to present their case before AAIFR.

Court Disposition

Appeal disposed of

Orders

  • Matter remitted to AAIFR; Appeal restored provided Rs.10 crore deposit is made within two months; Failure to deposit results in dismissal of appeal and restoration of earlier AAIFR order.
  • JUL may file revised rehabilitation scheme; other parties including workmen may also file schemes.