Het Ram vs M/S Aina Exports Private Limited ...
2009 Latest Caselaw 4247 Del

*           IN THE HIGH COURT OF DELHI AT NEW DELHI

+                       W.P.(C.) No. 4001/2003

%                  Date of Decision: 21st OCTOBER, 2009


#     HET RAM
                                                           .....PETITIONER

!                  Through:   Mr. Siddharth Panda, Advocate.

                                   VERSUS

$     M/S AINA EXPORTS PVT. LTD. & OTHERS
                                                         ....RESPONDENTS

^ Through: Mr. Vikas Kumar for Mr. Arvind Nayar, counsel for respondents No. 4 & 5.

CORAM:

Hon'ble MR. JUSTICE S.N. AGGARWAL

1. Whether reporters of Local paper may be allowed to see the judgment? YES

2. To be referred to the reporter or not? YES

3. Whether the judgment should be reported in the Digest? YES

S.N.AGGARWAL, J (ORAL)

The petitioner workman has filed this writ petition for directions to

the respondents No. 3 & 4 to recover the amount as per recovery

certificate dated 18.10.1999 issued by the labour authority pursuant to

award dated 01.09.1998 passed by the Labour Court in I.D. No. 325/1994.

2. The petitioner holds an industrial award in his favour against the

management of M/s Aina Exports Pvt. Ltd. which directs his reinstatement

with back wages. The award was passed in favour of the petitioner way

back on 01.09.1998. This award has remained unexecuted till date.

3. Mr. Siddharth Panda, learned counsel appearing on behalf of the

petitioner, submits that the management of M/s Aina Exports Pvt. Ltd.

against whom the award in favour of the petitioner was passed, has since

been closed down. According to the learned counsel appearing on behalf

of the petitioner, the management of M/s Aina Exports Pvt. Ltd. after

closing the said company has formed another company namely M/s Aaina

Fashions Pvt. Ltd., which is operating from Gurgaon, Haryana- 122016.

Now, directions are sought to execute the award in question against the

newly formed company M/s Aaina Fashions Pvt. Ltd.

4. This request for execution of the award against M/s Aaina Fashions

Pvt. Ltd., cannot be granted. The award was obtained by the petitioner

against the company M/s Aina Exports Pvt. Ltd. The company is a juristic

person in law. The award can be executed only against the person

against whom the said award was passed. It may be the case of the

petitioner/award holder that M/s Aaina Fashions Pvt. Ltd. is a camouflage

and, in fact, the company against whom the award was passed and the

newly formed company M/s Aaina Fashions Pvt. Ltd. are not distinct

entities but, for that purpose, the petitioner has to seek declaration in

appropriate proceedings. Unless M/s Aaina Fashions Pvt. Ltd. (newly

formed company) is declared to be the same entity owned by the same

management of the earlier company M/s Aina Exports Pvt. Ltd., the award

cannot be executed against a newly formed company. Each company, on

its incorporation, becomes a separate legal entity. The petitioner, under

the circumstances, may take appropriate steps as may be available to

him in law for execution of the industrial award in his favour.

5. In view of what has been stated above, the prayer made in this writ

petition cannot be granted. This writ petition is, therefore, dismissed

reserving liberty for the petitioner to take such steps for execution of the

industrial award in his favour as may be available to him in law.

OCTOBER 21, 2009                                      S.N.AGGARWAL, J
'BSR'