Page No.# 1/8 GAHC010195592022 undefined THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/6390/2022 M/S ASSAM CO-OPERATIVE SPINNING MILLS EMPLOYEES UNION REP. BY THE SECY., BOITAMARI, BONGAIGAON, ASSAM VERSUS THE STATE OF ASSAM AND 5 ORS REP. BY THE CHIEF SECY. TO THE GOVT. OF ASSAM, DISPUR, GHY 2:THE PRINCIPAL SECRETARY TO THE GOVT. OF ASSAM CO-OPERATION DEPTT. DISPUR GHY-6 3:THE PRINCIPAL SECY. TO THE GOVT. OF ASSAM PUBLIC ENTERPRISES DEPTT. DISPUR GHY-6 4:COMM. AND SECY. TO THE GOVT. OF ASSAM FINANCE DEPTT. DISPUR GHY-6 5:THE REGISTRAR OF CO-OPERATIVE SOCIETIES ASSAM GOVT. OF ASSAM KHANAPARA GHY-22 6:THE DY. REGISTRAR-CUM-LIQUIDATOR OFFICE OF THE DY. REGISTRAR CO-OPERATIVE SOCIETIES Page No.# 2/8 GOALPARA ASSA Advocate for the Petitioner : MR. M SAIKIA, Advocate for the Respondent : GA, ASSAM, SC, FINANCE,SC, CO OP BEFORE HONOURABLE MR. JUSTICE SOUMITRA SAIKIA ORDER 30.04.2025 Heard Mr. M. Saikia, learned counsel for the petitioner. Also heard Mr. G. Bordoloi, learned Standing Counsel, Co-operation Department and Ms. M. Bhattacharjee, learned Additional Senior Government Advocate, Assam for the respondent no.1. 2. The present writ petition is filed by the petitioner a Union which claims to represent the interest of the employees and workers (now Ex-employees) of the Assam Cooperative Spinning Mills Ltd. at Boitamari in the district of Bongaigaon. The Association is represented by the Secretary who is duly authorized to do so. The Assam Cooperative Spinning Mills Ltd. was established on 22.03.1979 and it was registered under the Cooperative Societies Act, 1949. The Society was managed by the Board of Directors and Managing Director constituted as per the provisions of the societies by-law, Assam Cooperative Societies Acts and Rules. There is an authorized capital of Rs. 1500 Lakhs of which Rs.6.33 Lakhs as paid-up equity capital of Rs.6.33 Crore was contributed by the State Government and 41 lakhs vide other entities. The Mill was established as a Cotton Spinning Mills with an objective of manufacturing, dying, sizing, weaving and selling of cotton yarn with 25,000 spindles at an approved cost of Rs.18.48 Crore, but only 8750 spindles and 168 rotors were installed. The Trial run was done on 01.01.1991 with effect from 1994. The Mill stopped manufacturing of cotton for want of raw materials and poor financial position. The income earned by the Mill could not cover the whole expenditure incurred under the different heads of the accounts and thus, accumulated loss mounted day by day. The Page No.# 3/8 accumulated loss as on 31.03.2004 was Rs.21.78 Crore and the negative net worth was Rs.15.07 Crore and the whole outstanding liabilities stood at Rs.21.79 Crore. Because of the huge loss incurred by the Mill it was given on lease to one M/s Bhatter Sizing and Weaving Mills Ltd., Cuttack, Orissa, for 49 years on 18.12.2000 by the Cooperation Department for the revival of the Mill. However, the said lessee also failed to revive the Mill. Although the purpose of handing over the Mill to the lessee was to revive the Mill and the conditions of the employees were sought to be improved, but the said lessee failed to revive the Mill and the conditions of the employees remained as it was. 3. Although the lessee failed to revive the Mill, the Government neither took steps to reopen or revive the Mill nor had taken any steps to pay the arrear, salary and wages as well as the current dues to the employees and workers of the Mill. The employees of the Mill did not receive the salary along with other allowances from the month of August 1994. 4. Under such circumstances, no steps were initiated by the Government for revival of the Mill and for giving arrear since 1994. On 24.03.2004 the Secretary to the Government of Assam initiated a proposal for Voluntary Retirement Scheme (VRS) for the employees of the Mills. In response to the communication received from the Department inviting proposal for the VRS, the Managing Director of the Mill submitted a VRS proposal of the Mill to the Deputy Secretary, Government of Assam, Co-operative Department, Dispur. A meeting was followed to discuss the fund requirement for implementation of the VRS Scheme for the employees of the Mill. The fund requirements were duly submitted by the Managing Director of the Mill, Boitamari suggesting three VRS schemes. Although several communications were exchanged between the Mill Authorities and the competent Departments of the Government, no steps were taken for implementation of the VRS Scheme. Under such circumstances, the petitioner Union submitted a representation before the Registrar of the Co-operative Societies with a request for implementation of the VRS Scheme to the employees of the Mill. The Registrar of the Co-operative Societies, Assam, by communication dated 15.12.2006 sought for requirement of fund from Managing Director of the Mill for implementation of the VRS Scheme in the State Level Public Enterprises (SLPEs). The said requirement of fund was submitted by the Managing Director of the Mill by a communication dated 04.01.2007. Subsequently, on 11.04.2007 the Managing Director of the Mill submitted the VRS proposal for the employees of the Mill Boitamari. However, with effect from February, 2004 till middle of 2007 several communications were made at different levels for implementation of the VRS to the employees of the Mill, but Page No.# 4/8 without any result. On 01.11.2007 a communication was sent to the Registrar of the Cooperative Societies, Khanapara by the Deputy Secretary to the Government of Assam that the Government of Assam had decided to close down the Mill and therefore, the valuation of assets and liabilities of Mill, assessment of both movable and immovable properties of the Mill, loss and damage assessment of Mill and balance sheet of the Mill for the last 3 (three) years were sought for. This information was duly furnished by the Managing Director of the Mill. Thereafter, subsequently on 30.10.2010 the Registrar of the Co-operative Societies by notification No.CMP.17/2009/209 cancelled the registration of the Assam Cooperative Spinning Mills Ltd., Boitamari bearing Registration No. A-1/978/79 dated 22.03.1979 and appointed a liquidator to initiate proceedings for liquidation of the Mill. In the said communication it was mentioned that the registration was cancelled because the Society failed to hold the Annual General Meeting regularly and elect the Board of Directors. The Society is virtually defunct since 2000-2001. The society failed to revive its business even after huge financial assistance granted by the Government and that the loss of the society as on 31.03.2009 stands at Rs.40.16 Crore and further, there is no possibility for revival of the Mill. Under such circumstances, in exercise of power under the appropriate provision of the Act of the Assam Cooperative Societies Act, 1949 the registration was cancelled. Thereafter, on 07.06.2011 the Additional Chief Secretary to the Government of Assam, Public Enterprises Department, Dispur communicated that the Nowgong Cooperative Sugar Mill Ltd., Assam Cooperative Spinning Mills Ltd., (the Mill in which the members of the petitioner Union were employees) and Swahid Kushal Konwar Samabai Sutakol Ltd have been decided to be closed down and the employees liabilities shall be borne by the Administrative Department. Thereafter, by notification dated 29.07.2011, the Assam Cooperative Spinning Mills Ltd. was declared to be closed with immediate effect. 5. The petitioner is aggrieved by the facts that although the employees are under the VRS scheme some payments have been made, however, their payments were calculated upto the date of the notification dated 30.10.2010 which is the date whereby the registration of the Assam Cooperative Spinning Mill, Boitamari was cancelled by the Registrar of the Cooperative Societies, Khanapara. It is submitted by the leaned counsel for the petitioner that the Mill ultimately came to be closed only with effect from 29.07.2011. It is submitted that notwithstanding the cancellation of the Registration by notification dated 30.10.2010 the members of the Union continued to be the employees of the Spinning Mill till it was finally closed by notification dated 29.07.2011. It is submitted that since the Mill came to be closed on 29.07.2011 the petitioners Page No.# 5/8 are entitled to be paid all their dues and emoluments under the VRS scheme till 29.07.2011. This claim of the petitioners although made before the Authorities time and again, the same have not been redressed. Being aggrieved, they are before this Court filing the present proceedings. 6. The respondents have filed their affidavit disputing the claim made by the writ petitioner. Learned counsel for the respondents submits the in terms of the VRS calculation made house rent allowances and medical allowances are not included as a part of the VRS. It is further submitted that the Mill has been lying defunct since 1994 and there was no production so therefore, it was under these circumstances, the Government took a decision to close the Mill and appoint a liquidator. It is submitted that the Government has examined the claims of the petitioners towards their dues and emoluments under the VRS scheme and have accordingly, made the necessary payments upto the date when the registration of the Mill was cancelled. 7. The learned counsel for the parties have been heard and the pleadings available on record have been carefully perused. 8. It is seen that the claims before the Court by the petitioner Union is that the VRS benefits payable to the employees are to be calculated till the final closer of the Assam Cooperative Spinning Mill, Boitamari by notification dated 29.07.2011. However, their benefits have been calculated till 30.10.2010 on which date the Registration of the Assam Cooperative Spinning Mill stood cancelled. Under Section 94 (2) of the Assam Cooperative Societies Act, 2007 the Registrar after an enquiry has been held under Section 87 or after the inspection has been made under Section 88 may cancel the registration of a society which -(i) has not commenced working; or (ii) has ceased working; or (iii) has ceased to comply materially with any condition as to registration in this Act, Rules or Bye-laws; and(iv) in his opinion ought to be dissolved. Section 94 (4) of the Assam Cooperative Societies Act, 2007 provides that where the cancelation of the Registration of a Society takes effect, the society shall cease to exist as a co-operate body, but shall vest in the liquidator. Section 94 (5) of the Assam Cooperative Societies Act, 2007 provides for filling an appeal within 2 Page No.# 6/8 months from the date of publication of the order. From the communication dated 30.10.2010 it is seen that the registration of the Spinning Mill was cancelled with immediate effect and the liquidator has also been appointed. 9. The petitioner has not challenged the communication dated 30.10.2010 cancelling the registration of the Mill and/or the notification dated 29.07.2011 by which the Mill was declared to be closed. No appeal has been filed against the cancellation of the registration as prescribed under Section 94 of the Assam Cooperative Societies Act, 2007. There is also no dispute that the Mill has stopped effectively functioned since 1994. The petitioner has also not denied the fact that some payments have been made by the Government in response to the proposal of the VRS. These presuppose that VRS proposal in respect of the members of the petitioner have been accepted. The only grievance raised before this Court is that the benefits under the VRS should be extended till the actual date of closer which is 29.07.2011. The VRS proposal submitted and/or the VRS opted for by the Members of the petitioner’s Union which proposal was ultimately accepted by the Government and payments thereon have been made has also not been placed before the Court. The VRS scheme is generally floated by the Department or any employer when certain employees are given the option to opt out of the employment well prior to the date of superannuation. Such a scheme is also envisaged in cases like the present writ petition, where the employer has suffered extreme financial losses from the enterprise or a particular department. The Assam Cooperative Spinning Mill, Boitamari run by the Cooperative Societies in the present proceeding has incurred severe financial losses and is unable to revive and restore to its earlier position. The VRS Scheme/proposal will clearly indicate the benefits which are to be given to the Members of the institution or the enterprise and the cutoff date till which the pay or other benefits are to be calculated in the event the employees opt for the VRS and the same are accepted by the employers. 10. The decision to notify VRS Scheme was a policy decision taken by the Government in the appropriate department. Such scheme will indicate the reasons for initiating the voluntary retirement scheme along with the various terms and conditions including the effective date. There are no pleadings before the Court to show that policy decision of the Government in respect of the effective date for the VRS scheme has been altered subsequently to the detriment of the writ petitioner. It is not the case of the petitioner that at the time of submission of their option or while accepting the voluntary retirement scheme, the terms and conditions including the effective date were Page No.# 7/8 subsequently altered without proper information or intimation to the writ petitioner and/or to their detriment. 11. As have been discussed above, in the absence of any pleadings to show that the respondents have violated the terms of the VRS scheme, the respondents cannot be faulted with the decision taken in respect of the terms of the VRS scheme towards payment of any pay or emoluments to the erstwhile employees of the Assam Cooperative Spinning Mill, Boitamari who are the Members of the petitioner Union. 12. Once the employees accept the VRS proposal of the scheme and the same is accorded approval by the appropriate Department, the employees are bound by the terms and conditions specified in the VRS Scheme. The closure date of the Mill as notified by the Department will not bear any consequence without reference to the terms and conditions specified in the VRS scheme/proposal which are not before the Court 13. In spite of the opportunities granted to the petitioners no attempt has been made to place the VRS scheme before the Court to enable the Court to arrive at a decision regarding the claims urged by the petitioner Association. 14. Under such circumstances, the writ petitioner in the facts of the present proceedings have failed to establish a legal right which they can claim to be enforceable through a writ Court. Consequently in the absence of a judicially enforceable right as well as a legally protected right and the denial of which has resulted in legal suffering of the petitioner, the pre condition for issuance of writ or mandamus is not available. A person can be said to be aggrieved only when the person is denied a legal right by someone who has a legal duty to do something or has abstained from doing something which it is otherwise legally bound to do so. Reference in this context may be made to Mani Subrat Jain v. State of Haryana, (1977) 1 SCC 486 and the relevant paragraph is extracted below: 9. The High Court rightly dismissed the petitions. It is elementary though it is to be restated that no one can ask for a mandamus without a legal right. There must be a judicially enforceable right as well as a legally protected right before one suffering a legal grievance can ask for a mandamus. A person can be said to be aggrieved only when a person is denied a legal right by someone who has a legal duty to do something or to abstain from doing something. (See Halsbury's Laws of England, 4th Edn., Vol. I, para 122; State of Haryana v. Subash Chander Marwaha [(1974) 3 SCC 220 : 1973 SCC (L&S) 488 : (1974) 1 SCR 165] ; Jasbhai Motibhai Desai v. Roshan Kumar Haji Bashir Ahmed [(1976) 1 SCC 671 : (1976) 3 SCR 58] and Ferris : Extraordinary Legal Remedies, para 198.) 15. In the facts of the present proceedings, in the absence of pleadings and relevant materials before this Court to determine the legal right that had Page No.# 8/8 accrued to the members of the petitioner’s association and that consequential failure on the part of the respondent authorities to do something which such authority was legally bound to do so and thereby had deprived the legal or accrued rights of the members of the petitioner association, no legally enforceable right has been shown to have been infringed or deprived of which calls for issuance of a Writ. 16. Under such circumstances, the Members of the petitioner Union have not been able to make out a case for issuance of a Writ Mandamus or any specific appropriate orders to the respondents authorities for a direction to calculate the pay and emoluments to the members of the petitioner Union upto the closure of the Assam Cooperative Spinning Mill, Boitamari which is 29.07.2011 instead of the date of the cancellation of the Registration of the Cooperative Society dated 30.10.2010. 17. In view of the above, the writ petition therefore is devoid of any merit and stands dismissed. No order as to cost. JUDGE Comparing Assistant