NATIONAL TEXTILE WORKERS' UNION ETC. versus P.R. RAMKRISHNAN AND OTHERS

NATIONAL TEXTILE WORKERS' UNION ETC. versus P.R. RAMKRISHNAN AND OTHERS

Workers of a company, through their trade unions, have the right to appear and be heard in winding-up petitions, both before and after admission of the petition and until the order is made, as the making of a winding-up order or an adverse interim order materially affects their interests. This is required by the...

Source-derived case information.

Parties
Appellant: National Textile Workers' Union etc.; Respondent: P.R. Ramakrishnan and Others
Jurisdiction
India
Judgment Date
10 December 1982
Procedural Posture
Special Leave Appeal / Supreme Court Judgment on Special Leave Appeals From Company Judge/division Bench Orders
Outcome
Appeals allowed by majority.
Legal Topics
Winding Up of Companies, Workers' Right to Be Heard, Locus Standi, Trade Unions' Role, Audi Alteram Partem, Public Interest in Corporate Proceedings
Company Law Labour Law Constitutional Law Winding Up of Companies Workers' Right to Be Heard Locus Standi Trade Unions' Role Audi Alteram Partem +1 more

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Parties

National Textile Workers' Union etc.

Appellant

P.R. Ramakrishnan and Others

Respondent

Procedural Posture

Special Leave Appeal / Supreme Court Judgment on Special Leave Appeals From Company Judge/division Bench Orders

Legal Issues

  1. 1 Whether workers and trade unions have the right to appear and be heard in winding-up petitions under the Companies Act, 1956
  2. 2 Whether the Companies (Court) Rules, 1959, confer such right
  3. 3 Whether denial of hearing is contrary to the principles of natural justice

Ratio Decidendi

Workers of a company, through their trade unions, have the right to appear and be heard in winding-up petitions, both before and after admission of the petition and until the order is made, as the making of a winding-up order or an adverse interim order materially affects their interests. This is required by the principle of natural justice and is consistent with the Constitution's directive principles. Absence of express statutory prohibition means their right to be heard must be recognized.

Court Disposition

Appeals allowed by majority.

Orders

  • Workers and trade unions are entitled to appear and be heard in winding-up petitions.
  • It is open to workers to apply for vacating any adverse order (such as appointment of a provisional liquidator) affecting their interests.