2001 (3) TMI 959 - HC - Companies Law

Issues Involved:
1. Validity of the orders of the BIFR and AAIFR.
2. Validity of the Government of India's order under section 25-O of the Industrial Disputes Act, 1947.
3. Consideration of revival proposals for Bharat Gold Mines Ltd. (BGML).
4. Evaluation of the Voluntary Separation Scheme (VSS) circular issued by BGML.

Detailed Analysis:

1. Validity of the Orders of the BIFR and AAIFR:
The petitioners challenged the orders of the BIFR and AAIFR, arguing that these bodies failed to take adequate steps for the revival of BGML and relied excessively on the Government of India's statements without verifying their correctness. The BIFR's order dated 21-2-2000 recommended winding up BGML due to the Government's decision not to support its revival. The AAIFR affirmed this order on 15-11-2000. The court found that the BIFR and AAIFR did not explore all possible revival options and failed to consider various reports and proposals submitted for BGML's revival. The court concluded that both bodies had not discharged their statutory obligations and relied unduly on the Central Government's stance.

2. Validity of the Government of India's Order under Section 25-O:
The Government of India passed an order on 29-1-2001 for the closure of BGML under section 25-O of the Industrial Disputes Act, 1947. The petitioners argued that this order violated natural justice principles and was a mere formality, as the decision to close BGML had already been made. The court found that the order lacked proper consideration of public interest, financial aspects, and the workers' plight. It was deemed arbitrary and not based on a thorough evaluation of all factors, thus failing to meet the statutory requirements.

3. Consideration of Revival Proposals for BGML:
The court examined the history and various attempts to revive BGML, including reports from committees and parliamentary bodies. It noted that despite several proposals and potential joint ventures, the BIFR and AAIFR ultimately recommended winding up BGML due to the Government's refusal to provide financial support. The court criticized the BIFR for not making serious attempts to implement revival schemes and for yielding to the Government's decision without exploring alternative funding sources or joint ventures.

4. Evaluation of the Voluntary Separation Scheme (VSS) Circular Issued by BGML:
The petitioners challenged the VSS circular dated 8-12-2000, arguing it was not properly approved by BGML's management and was issued by the Deputy General Manager in his personal capacity. The court found this contention incorrect, stating that the circular was issued based on directions from the Government of India. Consequently, the petitions challenging the VSS circular were dismissed.

Conclusion:
The court allowed the petitions challenging the orders of the BIFR, AAIFR, and the Government of India, quashing the orders dated 12-6-2000 (BIFR), 15-11-2000 (AAIFR), and 29-1-2001 (Government of India). The BIFR was directed to reconsider the revival of BGML, taking into account the proposals and claims made by the petitioners. The petitions challenging the VSS circular were dismissed.

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