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FERTILIZER CORPORATION KAMGAR UNION (REGD.), B SINDRI AND OTHERS vs. UNION OF INDIA AND OTHERS

SCR Citation: [1981] 2 S.C.R. 52
Year/Volume: 1981/ Volume 2
Date of Judgment: 13 November 1980
Petitioner: FERTILIZER CORPORATION KAMGAR UNION (REGD.), B SINDRI AND OTHERS
Disposal Nature: Petition Dismissed
Neutral Citation: 1980 INSC 217
Judgment Delivered by: Hon'ble Mr. Justice Y.V. Chandrachud,Hon'ble Mr. Justice S. Murtaza Fazal Ali,Hon'ble Mr. Justice A.D. Koshal
Respondent: UNION OF INDIA AND OTHERS
Case Type: WRIT PETITION (CIVIL)/3804/1980
Order/Judgment: Judgment
1. Headnote

Constitution of India-Article 19(1)(g)-Sale of redundant /retired planis  & equipment--Occupation of an industrial worker-Whether affected by such sale-Article 14-Whether violated-Article 43A-Wrongs committed by management in public sector whether can be remedied-Article 32-Access to Justice-Public Property dissipated by sale-When and by whom can the sale be set aside. 


The petitioners (workers) challenged the legality of the sale of certain plants and equipment of the Sindri Fertilizer Factory, whereby the highest  tender submitted by respondent No. 4 was accepted by the Tender Committee and approved by the Board of Directors. The petitioners, amongst others, contended that (i) that the decision to sell the plants and equipment of the Factory was taken without rolling for any report ; (ii) the original tender of Rs. 7.6 crores was unaccountably reduced to Rs. 4.25 crores; (iii) the price of the plants and equipment, which was ultimately realised in the sale was manipulated with ulterior purposes; (iv) the decision to restrict fresh offers, in respect of  the reduced equipment, to the tenderers who had submitted tenders for more  than Rs. 4 crores was unfair and arbitrary; (v) the said decision resulted in a huge loss to the public exchequer and (vi) the sale had jeopardised the employment of 11000 odd workers who faced retrenchment as a result of the sale. 

On behalf of petitioners 3 and 4 it was further contended that the sale will deprive them of their fundamental right under Article 19(1) (g) to carry on their occupation as industrial workers and that the sale is in violation of the provisions of Article 14 of the Constitution being arbitrary and unfair. The respondents raised a preliminary objection to the maintainability of the writ petition on the ground that the petitioners have no locus standi and that the impugned sale did not violate any Of the fundamental rights of the petitioners

2. Case referred
3. Act
  • Constitution Of India
4. Keyword
  • Constitution of India
5. Equivalent citation
    Citation(s) 1981 AIR 344 = 1981 (1) SCC 568 = 1981 (1) Suppl. SCC 568 =