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Issues: Validity, tenability, and legality of the order dated August 6, 1983, passed by the Central Government under section 15 of the Industries (Development and Regulation) Act, 1951
Validity of the Order: The petition under article 226 of the Constitution of India challenges the order dated August 6, 1983, passed by the Central Government under section 15 of the Industries (Development and Regulation) Act, 1951. The petitioners, a public limited company, and a shareholder, contest the order's validity concerning their rayon unit. The history of the rayon unit's operations, including license amendments and difficulties faced, leading to substantial losses, is outlined. The petitioners made efforts to address issues, including diversification and modernization requests, but faced rejections and challenges such as power cuts and labor troubles, resulting in significant financial losses. Despite attempts to resolve problems and consultations with the Government of Uttar Pradesh, the situation deteriorated, leading to the closure of the rayon unit. The petitioners offered to surrender their license and sell the unit to the Central Government for a token price, emphasizing the financial burden and inability to continue operations due to mounting losses. The Central Government appointed a Task Force to assess the unit's status, and subsequently, on August 6, 1983, issued the impugned order. The facts leading to the order are undisputed, setting the stage for the challenge to its validity. Tenability of the Order: The impugned order dated August 6, 1983, issued by the Central Government, is pivotal in the legal challenge brought forth by the petitioners. The order, following a series of events and consultations, signifies the government's response to the rayon unit's operational and financial crisis. The order's content and implications are crucial in determining its tenability. The order's text, as presented in the judgment, outlines the government's decision concerning the rayon unit's fate. The order's issuance after the Task Force assessment and discussions between the petitioners and government officials indicates a significant step in the resolution of the rayon unit's issues. The circumstances leading to the order, including the offer to transfer the unit to the Central Government, the Task Force's report, and subsequent meetings, provide context for evaluating the order's tenability. The legal basis and rationale behind the order, considering the complex history and challenges faced by the rayon unit, are essential aspects to be examined in assessing its tenability. Legality of the Order: The legality of the order dated August 6, 1983, passed by the Central Government under section 15 of the Industries (Development and Regulation) Act, 1951, is a core issue in the legal proceedings. The order's compliance with the relevant legal provisions, including the Act governing industrial development and regulation, is under scrutiny. The petitioners seek to challenge the order's legality based on the circumstances leading to its issuance and the impact on their rights and interests. The order's alignment with statutory requirements, procedural fairness, and the principles of natural justice are critical considerations in determining its legality. The Central Government's authority to issue such an order, the extent of its powers under the Act, and the justifiability of the order in light of the rayon unit's operational challenges and financial losses are key elements in assessing its legality. The petitioners' contentions regarding the order's legality, coupled with the factual background and events preceding its issuance, form the basis for the legal analysis of the order's validity under the applicable legal framework.
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