Minerva Mills Lrd. & Ors v/s. Union of India & Ors

  • C M Vaishnavi
  • May 24, 2020

Content :

Minerva Mills is a textile company located in Karnataka State of India. On 20th of August, 1970, the Central Government appointed a Committee under Section 15 of The Industries (Development Regulation Act), 1951 in order to completely investigate the affairs of the aforesaid textiles Company. It was so investigated because they were of the view that they had reduction in the volume of production. The report of the Investigation was submitted in January, 1971. In the same year of submission of the report, on 19th of October, The Central Government passed an order under Section 18 A of the 1951 Act that Minerva Mills is to be acquired by the National Textile Corporation because its affairs tended to cause harm to the Public in general. The certain provisions of the Sick Textile Undertakings (Nationalisation) Act,1974 were challenged by the petitioners. The Court by Majority held that the newly introduced clause under Article 368 is unconstitutional and the Sections 4 and 55 of the Constitution (Forty-Second Amendment) Act, 1976 are void and beyond the amending powers of the Constitution.