11/13/2015

PermanentLeadingImprintCasesMinervaMillsLtd.v.UnionofIndiaLUSeptember2011
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PERMAMENT IMPRINT LEADING CASES

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Taking over of management of the undertaking of Minerva Mills after conducting

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enquiry under section 18A of the Industries (Development and Regulation) Act, 1951

ConstitutionofIndia

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Minerva Mills Ltd. v. Union of India

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Facts: On the writ petition under Article 32 of the Constitution of India the petitioners

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includingMinervaMillsLtd.andsomecreditorschallengedthelegalityoforderfortakingover

GoodLiving

the management of textile undertaking of petitions. The writ petition had also included the

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validityofSickTextileUndertakings(Nationalisation)Act,1974.

Health&Fitness

A Central Government appointed Committee made a full and complete investigation of the
affairs of the Minerva Mills Ltd. and after investigation the Central Government authorized

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Cases

NationalTextileCorporationtotakeoverthemanagementoftheundertakingofthecompany.

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Issues: (1) Whether there was justification for taking over the management of the

TheLawandTheCelebrity

undertakingofthecompanyundersection18AoftheIndustries(DevelopmentandRegulation)

LegalArticles

Act,1951?

LegalEvents

(2) Whether there was foundation for the finding of the Central Government that where the

LawforOtherSpecies

undertaking of the company was being managed in a manner highly detrimental to public
interest,theGovernmentcouldnotsanctionaguaranteeinsuchissues?

LawSchoolConfidential

Decision:Itwasheldthatwherethemanagementofatextileundertakingwhichwasbeing

LegalScanner

run in loss and had to be closed down was taken over by the Central Government after

LegalTrotternama

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SEPTEMBER 2011

conductingenquiryonthegroundthattheaffairsoftheundertakingwerebeingmanagedina

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mannerhighlydetrimentaltopublicinterest,thedecisiontotakeoverthemanagementwould

Potpourri

notbeopentochallengeonthegroundthatpriortotakingoverofthemanagement,theState

ReasoningTheReasons

Governmenthadgivenfinancialassistancetotheundertakingespeciallywhenthedecisionto

takeoverthemanagementwasnotchallengedbeforeanycourtoflaw.

StreetLawyer

ItwasfurtherheldthatIndustries(DevelopmentandRegulation)Act,1956couldnotbesaidto

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damagethebasicstructureoftheConstitution.

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PermanentLeadingImprintCasesMinervaMillsLtd.v.UnionofIndiaLUSeptember2011

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