Purposive construction of industrial revival powers permits intervention despite pending winding-up proceedings.

Section 15A of the Industries (Development and Regulation) Act, 1951 was construed purposively as an enabling provision intended to protect public interest, production, and employment. The Madras HC read the expression "being wound up by or under the supervision of the High Court" to include a pending winding-up petition, because the statutory scheme contemplated intervention to examine takeover, revival, or reorganisation even where winding-up proceedings were already on foot. On that reading, the Central Government's application was maintainable and permission to investigate the possibility of restarting the undertaking was granted.

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Issues: Whether an application by the Central Government under section 15A of the Industries (Development and Regulation) Act, 1951 was maintainable when a winding-up petition under section 433 of the Companies Act, 1956 was pending, and whether permission to investigate the possibility of restarting the industrial undertaking could be granted.

Analysis: Section 15A was construed in the light of the scheme of the Industries (Development and Regulation) Act, 1951, which is an enabling statute intended to protect public interest, production, and employment. The connected provisions relating to takeover, stay of winding-up proceedings, and government action for restarting or reorganisation of an industrial undertaking showed that the Act contemplated intervention even where winding-up proceedings were already pending. The expression "being wound up by or under the supervision of the High Court" was accordingly read to include a case where a winding-up petition was pending, so that the Central Government was not driven to pursue parallel or redundant steps to secure substantially the same relief.

Conclusion: The application was maintainable and the request for permission was granted in favour of the applicant.

Final Conclusion: The Court adopted a purposive construction of section 15A and treated the pending winding-up proceedings as sufficient to invoke the statutory mechanism for investigation into restarting the undertaking.

Ratio Decidendi: A beneficial industrial-relief provision may be construed purposively so as to advance the statutory object of public interest and revival of the undertaking, and the pendency of a winding-up petition can satisfy the condition of the company being wound up by or under the supervision of the High Court.

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