{"id":158583,"date":"1994-12-08T00:00:00","date_gmt":"1994-12-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ashok-kumar-jain-and-others-vs-the-state-of-bihar-and-others-on-8-december-1994"},"modified":"2017-11-18T16:12:11","modified_gmt":"2017-11-18T10:42:11","slug":"ashok-kumar-jain-and-others-vs-the-state-of-bihar-and-others-on-8-december-1994","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ashok-kumar-jain-and-others-vs-the-state-of-bihar-and-others-on-8-december-1994","title":{"rendered":"Ashok Kumar Jain And Others vs The State Of Bihar And Others on 8 December, 1994"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Ashok Kumar Jain And Others vs The State Of Bihar And Others on 8 December, 1994<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1995 SCC  (1) 516, \t  JT 1995 (1)\t150<\/div>\n<div class=\"doc_author\">Author: G Ray<\/div>\n<div class=\"doc_bench\">Bench: Ray, G.N. (J)<\/div>\n<pre>           PETITIONER:\nASHOK KUMAR JAIN AND OTHERS\n\n\tVs.\n\nRESPONDENT:\nTHE STATE OF BIHAR AND OTHERS\n\nDATE OF JUDGMENT08\/12\/1994\n\nBENCH:\nRAY, G.N. (J)\nBENCH:\nRAY, G.N. (J)\nHANSARIA B.L. (J)\n\nCITATION:\n 1995 SCC  (1) 516\t  JT 1995 (1)\t150\n 1994 SCALE  (5)187\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>G.N.RAY, J.:\n<\/p>\n<p>1.    The appellants in these criminal appeals arc Chairman,<br \/>\nManaging   Director  and  other\t senior\t officials  in\t the<br \/>\nmanagement  of\tthe  Rohtas  Industries\t Limited  a  company<br \/>\nregistered under the Indian Companies Act and engaged in the<br \/>\nmanufacture  and sale of variety of products namely  cement,<br \/>\nvanaspati,   paper  asbestos,  cement  products\t  etc.\t The<br \/>\nfactories owned by the company were situated  at Dalmianagar<br \/>\nin  the\t district  of Rohtas,  Bihar,  wherein\tabout  15000<br \/>\nworkers were engaged. The Company had a contract with  Bihar<br \/>\nState  Electricity  Board  for the supply of  25000  KVA  of<br \/>\nelectricity   and  the\tCompany\t was  to  pay  75%  of\t the<br \/>\nelectricity  charges irrespective of the fact  whether\tsuch<br \/>\nsupply\tfor  running its factories and\testablishments\twere<br \/>\nmade.  The  case  of  the Company is  that  due\t to  chronic<br \/>\nshortage  of  power supply ever since 1981  varying  between<br \/>\n11.5  to  7.3 MW. of electricity per  diem,  the  productive<br \/>\nactivities   of\t the  Company  suffered\t  immensely.\tThe.<br \/>\nElectricity: Board made demand for payment of Bill including<br \/>\nenhanced  fuel surcharge for the period 1977-80 and  1980-81<br \/>\nwhich stood at Rs. 72,61,010,70.00.  The Company moved\twrit<br \/>\npetitions  in  Patna High Court for  quashing  supplementary<br \/>\nBills but such writ petitions were dismissed. The  Company&#8217;s<br \/>\nattempt to clear dues of the Electricity<br \/>\n<span class=\"hidden_text\">151<\/span><br \/>\nBoard  by  instalments also failed. The\t Board\tdisconnected<br \/>\nelectric   connection\tto  the\t Company&#8217;s   factories\t and<br \/>\nestablishments for which the Company suffered a serious\t set<br \/>\nback. The Company resorted to lay off of its workers without<br \/>\nobtaining  prior permission of the concerned authority.\t For<br \/>\nsuch  action  of  lay  off, complaints\twere  filed  by\t the<br \/>\nSuperintendent\tof  Labour,  Dalmianagar  before  the  Chief<br \/>\nJudicial  Magistrate&#8217;  Sasaram who took\t cognizance  of\t the<br \/>\noffence\t under\tSection 25-M read with Section 25-O  of\t the<br \/>\nIndustrial Disputes Act. The appellants moved the Patna High<br \/>\nCourt\tfor  quashing  the  complaint  by  challenging\t the<br \/>\nmaintainability\t of  the said criminal cases  by  contending<br \/>\nthat Section 25-M in so far as it required permission tO lay<br \/>\noff   was  ultra  vires\t the  Constitution  of\tIndia.\t The<br \/>\nappellants  also  contended that lay  off  was\tnecessitated<br \/>\nbecause\t of  power failure on account  of  insufficient\t and<br \/>\nirregular supply of power by the Electricity Board and\tsome<br \/>\nother  reasons\tbeyond\tthe control of the  Company  or\t the<br \/>\nappellants. It was also contended that the appellants  could<br \/>\nnot  be held an employer for the purpose of prosecution\t for<br \/>\nthe offence under Section 25-M read with Section 25-Q of the<br \/>\nIndustrial Disputes Act.  The High Court of Patna held inter<br \/>\nalia that the Section 25-M was ultra vires the\tConstitution<br \/>\nand  the complaint prima facie disclosed offence  under\t the<br \/>\nsaid  provisions. Hence, taking of cognizance by  the  Chief<br \/>\nJudicial  Magistrate  could not be held illegal\t or  invalid<br \/>\nwarranting  quashing  of  the  complaint.  The\tHigh  Court,<br \/>\nhowever, held that it was only just and proper in the  facts<br \/>\nand  circumstances  of the case, that the  Magistrate  would<br \/>\nhold  enquiry  under  Section 202 of the  Code\tof  Criminal<br \/>\nProcedure for the purpose of ascertaining as to whether\t the<br \/>\nappellants  or any one of them could be held to be  employer<br \/>\nso  that  they\tcould be summoned to  stand  trial  for\t the<br \/>\naforesaid offence. The High Court therefore allowed the said<br \/>\napplications  for quashing the criminal proceedings only  to<br \/>\nthe extent indicated above.\n<\/p>\n<p>2.     Against\tthe aforesaid decisions of  the\t High  Court<br \/>\nspecial\t leave petitions were moved before this Court  which<br \/>\nhave  been  admitted giving rise to these  appeals.  Further<br \/>\nproceedings and prosecution of the criminal cases have\tbeen<br \/>\nstayed by this Court on 22.2.1985. Mr. Jain, learned  Senior<br \/>\nAdvocate appearing for the appellants has contended that the<br \/>\nvires  of Section 25-M(2) cannot be upheld for\tthe  reasons<br \/>\nindicated  by  this  Court  in Excel  Wear&#8217;s  case.  He\t has<br \/>\nsubmitted that Madras High Court has held the said provision<br \/>\nas  constitutionally  invalid  and  the\t appeal\t from\tsuch<br \/>\ndecision is pending disposal before this Court. That  apart,<br \/>\nlay  off  became  inevitable on\t account  of  power  failure<br \/>\noccasioned  by\tshort supply and irregular supply  of  power<br \/>\nseriously  affecting productive activities. In the facts  of<br \/>\nthe  case it is more than evident that the lay off  was\t not<br \/>\nmotivated or unjustified but such lay off had to be resorted<br \/>\nfor  compulsive\t circumstances\tbeyond the  control  of\t the<br \/>\ncompany and its management including the appellants. He\t has<br \/>\nsubmitted  that the Company became sick beyond\trevival\t and<br \/>\nall attempts to revive have failed. The Company is no longer<br \/>\nin  the\t management of the factories and  productive  units.<br \/>\nEven if the vires of Section 25-M is upheld, in the facts of<br \/>\nthe  case, there is no difficulty in finding that there\t was<br \/>\nno  lack  of  bonafide on the part of the  Company  and\t its<br \/>\nmanagement  in resorting to lay off. Such action had  to  be<br \/>\ntaken  to save the Company from being permanently sick.\t The<br \/>\nsitua-\n<\/p>\n<p><span class=\"hidden_text\">152<\/span><\/p>\n<p>tion  was  so  grave that the management felt  the  need  of<br \/>\nimmediate   lay\t off  without  waiting\tfor  permission\t  as<br \/>\ncontemplated  under Section 25-M. That apart,  Section\t25-O<br \/>\nwas declared ultra vires by this Court in Excel Wear&#8217;s\tcase<br \/>\nand constitutional validity of Section 25-M for the  reasons<br \/>\nindicated  in Excel Wear&#8217;s case was seriously  doubted.\t  In<br \/>\nthe  aforesaid\tcircumstances, the lay\toff  without  taking<br \/>\nprior  permission  cannot be held to be per se\tillegal\t and<br \/>\nunjustified  and mala fide. The liability of the  appellants<br \/>\nfor  being prosecuted under Section 25-M read  with  Section<br \/>\n25-Q,  in any event, are doubtful. AS a matter of fact,\t the<br \/>\nHigh  Court  has directed the Chief Judicial  Magistrate  to<br \/>\nfirst  ascertain  the  liability of  the  appellants  before<br \/>\nproceeding further with the criminal cases. In view of order<br \/>\nof stay granted by this Court, such enquiry has not yet been<br \/>\nheld.\tAfter  such  a long lapse  of  time,  resumption  of<br \/>\nenquiry\t and  the criminal proceedings will  not  serve\t any<br \/>\npractical  purpose  but the appellants are bound  to  suffer<br \/>\nirreparable  loss  and\tprejudice  because  of\tthe  changed<br \/>\ncircumstances  and  long  lapse\t of  time.   Mr.  Jain\t has<br \/>\nsubmitted  that\t the  criminal cases should  be\t quashed  to<br \/>\nsecure\tends of justice.  He has submitted that\t such  power<br \/>\nhas  been exercised by this Court when the ends\t of  justice<br \/>\ndemanded  such\tquashing  although  the\t criminal  case\t was<br \/>\nvalidly instituted and was otherwise maintainable.\n<\/p>\n<p>3.\tAs  the\t question  of  vires  of  Section  25-M\t  of<br \/>\nIndustrial  Disputes Act was involved in these\tappeals\t and<br \/>\nalso  a\t Civil Appeal No. 807 of 1982  (arising out  of\t the<br \/>\ndecision of Madras High Court), all these matters were heard<br \/>\nanalogously. We have upheld the vires of Section 25-M in the<br \/>\ndecision  rendered in Civil Appeal No. 807 of  1982.  Hence,<br \/>\nthe  contention\t that  Section 25-M being  ultra  vires,  no<br \/>\nprosecution  on\t account of violation of the  provisions  of<br \/>\nSection 25-M is maintainable, cannot be accepted.\n<\/p>\n<p>4.    It however appears to us that there is enough force in<br \/>\nthe contention of Mr. Jain that in the special facts of\t the<br \/>\ncase and in the altered scenario, the enquiry as directed by<br \/>\nthe  High  Court  need not be made and\tthe  criminal  cases<br \/>\ninstituted  against the appellants need not be\tpursued\t any<br \/>\nfurther.   Such\t course of action in our view  is  not\tonly<br \/>\nwithin\tthe  scope and ambit of Section 482 of the  Code  of<br \/>\nCriminal Procedure but in the special facts of the case will<br \/>\nalso secure the ends of justice. We, therefore, allow  these<br \/>\nappeals and quash the criminal cases instituted against\t the<br \/>\nappellants  for\t the alleged violation of  Section  25-M  of<br \/>\nIndustrial Disputes Act, 1947.\n<\/p>\n<p><span class=\"hidden_text\">153<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Ashok Kumar Jain And Others vs The State Of Bihar And Others on 8 December, 1994 Equivalent citations: 1995 SCC (1) 516, JT 1995 (1) 150 Author: G Ray Bench: Ray, G.N. (J) PETITIONER: ASHOK KUMAR JAIN AND OTHERS Vs. RESPONDENT: THE STATE OF BIHAR AND OTHERS DATE OF JUDGMENT08\/12\/1994 BENCH: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-158583","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ashok Kumar Jain And Others vs The State Of Bihar And Others on 8 December, 1994 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ashok-kumar-jain-and-others-vs-the-state-of-bihar-and-others-on-8-december-1994\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ashok Kumar Jain And Others vs The State Of Bihar And Others on 8 December, 1994 - Free Judgements of Supreme Court &amp; 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