9911796707
TMI Blog2007 (7) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... as a State Government company within the meaning of section 617 of the Companies Act with their registered offices situate at Patna in the State of Bihar. As the financial condition of the aforesaid three Government companies as also other Government companies became precarious and they were unable to discharge their routine liability, such as, payment of salary and wages to their employees, a Full Bench of this Court in the case of Manikant Pathak v. State of Bihar [1997] (1) PLJR 664, directed the State Government companies unable to pay salaries/wages to its employees within a period of four months to remove political chairman from their board of directors and further to initiate action for winding up of the companies. None of the aforesaid Government companies were in a position to generate resources to meet the expenses of salary and wages. Consequently, in compliance with the directions of this court, not only the political chairmen were removed from the board of directors but the State Government, as a shareholder of the companies directed the companies to take a decision in respect of winding up, whereafter the board of directors of M/s. Bihar State Small Industries Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whereunder the existing State of Bihar was bifurcated into the successor States of Bihar and Jharkhand which came into existence with effect from the appointed day. In terms of sub-section (4) of section 46 and sub-section (1) of section 65 of the Bihar Reorganisation Act, the aforesaid three Government companies became inter-State corporations as they were included in the Ninth Schedule to the Reorganisation Act and in terms of the provisions of the Reorganisation Act, on and from the appointed day the companies continued to function in the area in which they were functioning prior to the reorganisation of the State until otherwise provided in any law or in any agreement among the successor States or in any direction issued by the Central Government notwithstanding anything to the contrary contained in the Companies Act, 1956, or in any other law. With reference to the aforesaid sections 46 and 65 of the Reorganisation Act, learned counsel for the workers' union submitted that the winding up petitions be dismissed, as in terms of sub-section (4) of section 46 and section 65 of the Bihar Reorganisation Act the Government companies included in Schedule 9 to the Bihar Reorganisation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1957, it was submitted that in order to qualify an inter-State corporation, it postulates two ingredients to be fulfilled. The first ingredient is that it must be a body constituted under any of the Act included in the Schedule. The second ingredient is that the company should be functioning in two or more States immediately preceding appointed day. The Acts under which different bodies have been constituted is envisaged in section 2 of the Act as specified in the Schedule itself. Subsequent amendment in section 2 of the Act introduced in the year 1960 does not in any manner change the basic requirement of the Act. It only adds any other enactment relating to reorganisation of the States. The words "of any other enactment relating to reorganisation of States" qualifies States Reorganisation Act, 1956 and has to be read ejusdem generis, with the words "States Reorganisation Act, 1956". As a canon of interpretation of statute, when a word or language of statute is clear, it has to be read as such. Section 2 is unambiguous in its language. It reads that any body corporate constituted under any of the Acts specified in the Schedule and . . . "and" in section 2 cannot be read as "or". I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule 9 to the Bihar Reorganisation Act becomes an inter-State corporation and has to function notwithstanding the provisions contained in the Companies Act until a law is enacted or agreement is reached between the successor States or directions are issued by the Central Government. In the present case, neither the law has been enacted nor the agreement has been reached between the successor States nor any direction has been issued by the Central Government. In the circumstances, according to this court, notwithstanding the provisions contained in the Companies Act, the aforesaid Government companies, by virtue of the provisions contained in sub-section (4) of section 46 and sub-section (1) of section 65 of the Bihar Reorganisation Act, have to function in the areas in which they were functioning immediately before the appointed day until a law is framed, an agreement is reached between the successor States or directions are issued by the Central Government. 9. My aforesaid views are further reinforced in the light of the provisions contained in sections 2 and 3 of the Inter-State Corporations Act, 1957, as amended by the Bombay Reorganisation, Act, 1960, as no sooner the afo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
