NAVNIT R. KAMANI & ORS. versus R.R. KAMANI

NAVNIT R. KAMANI & ORS. versus R.R. KAMANI

The Court held that the BIFR was competent to direct transfer of shares at Re. 1 per share to employees for revival; the Workers’ Scheme was stamped with judicial sanction, immune from challenge, framed in larger public interest, and obligations of guarantors for prior debts remained unaffected. Orders from other forums cannot impede implementation; recourse must be taken only to Supreme Court for further directions.

Parties
Petitioner: N.R. Kamani; Respondent: R.R. Kamani; Intervener: Intervener
Jurisdiction
India
Judgment Date
19 September 1988
Procedural Posture
Special Leave Petition (civil) / Final Order
Outcome
Scheme sanctioned and enforced
Legal Topics
Constitutional Validity of Sick Industrial Companies (special Provisions) Act, 1985, Revival of Sick Industrial Companies, Transfer of Shares to Workers, Workers' Management Scheme, Statutory Powers of BIFR
Constitutional Law Corporate Law Labour Law Constitutional Validity of Sick Industrial Companies (special Provisions) Act, 1985 Revival of Sick Industrial Companies Transfer of Shares to Workers Workers' Management Scheme Statutory Powers of BIFR

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Parties

N.R. Kamani

Petitioner

R.R. Kamani

Respondent

Intervener

Intervener

Procedural Posture

Special Leave Petition (civil) / Final Order

Legal Issues

  1. 1 Whether the Sick Industrial Companies (Special Provisions) Act, 1985 is constitutionally valid under Article 31C
  2. 2 Whether the Workers' Scheme for revival of Kamani Tubes Limited can be sanctioned and enforced
  3. 3 Whether BIFR has statutory authority to transfer shares to employees at nominal value

Ratio Decidendi

The Court held that the BIFR was competent to direct transfer of shares at Re. 1 per share to employees for revival; the Workers’ Scheme was stamped with judicial sanction, immune from challenge, framed in larger public interest, and obligations of guarantors for prior debts remained unaffected. Orders from other forums cannot impede implementation; recourse must be taken only to Supreme Court for further directions.

Court Disposition

Scheme sanctioned and enforced

Orders

  • Workers' Scheme for revival of Kamani Tubes Limited is sanctioned and to be implemented.
  • Kamani family to transfer shares at Re. 1 per share to employees as directed.