TaxTMI 
TaxTMI 
1977 (8) TMI 149
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....ness of selling goods in Delhi and includes- (i) the Central Government or a State Government carrying on such business; (ii) an incorporated society (including a co-operative society), club or association which sells or supplies goods, whether or not in the course of business, to its members for cash or for deferred payment or for commission, remuneration or other valuable consideration; (iii) a manager, factor, broker, commission agent, del credere agent, or any mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who sells goods belonging to any principal whether disclosed or not; and (iv) an auctioneer who sells or auctions goods belonging to any principal, whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;...... (g) 'goods' includes all materials, articles, commodities and all other kinds of movable property, but does not include newspapers, actionable claims, stocks, shares, securities or money;........" Under article 285 of the Constitution, the property of the Union shall, save in so far as Parliament may by ....
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.... 6 provides the effect of transfer of undertakings. Section 7 provides for the transfer of service of existing employees in certain cases. Section 9 provides that the Central Government shall form a Government company in accordance with the provisions of the Companies Act, to be known as the General Insurance Corporation of India, for the purpose of superintending, controlling and carrying on the business of general insurance. Section 10 provides that all the shares in the capital of every Indian insurance company which stand transferred to and vested in the Central Government by virtue of section 4 [with the exception of the shares transferred to any person under sub-section (2) of that section] shall immediately after such vesting, stand transferred to and vested in the corporation and every Indian insurance company shall forthwith give effect to such transfer of shares and rectify its register of members by including therein the corporation as the holder of such shares. It is the petitioner's case that after the commencement of the Nationalisation Act, the Central Government issued notifications under the Act, by virtue of which the business of certain insurance companies was me....
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....s should be constituted to pronounce upon the constitutional validity of the said provisions. The Supreme Court has often emphasised that the investigations of validity of a given statute or any part thereof shall be limited to the extent absolutely necessary for the disposal of the issue before the court. Again, a court will not decide the constitutional validity of any law at the instance of a party whose material interests are not prejudicially affected by the enforcement of the law. As a general rule, the courts do not pronounce upon the constitutionality of laws except at the instance of a petitioner whose material interests have been or will be adversely affected by the enforcement of laws. Sitting singly, I may not be having competence to pronounce upon the constitutional validity of any State law, but I have jurisdiction to determine my powers. Any court of law has inherent jurisdiction to determine whether it has jurisdiction to decide a particular case. The mere fact that the petitioner has raised the question relating to the constitutional validity of a State law will not oust the jurisdiction of this court to consider whether such a question in fact arises on the adm....
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....at case, the Heavy Engineering Corporation Ltd., Ranchi, was a company incorporated under the Companies Act, 1956. Its entire share capital is contributed by the Central Government and all its shares have been registered in the name of the President of India and certain officers of the Central Government. It is, therefore, a Government company within the meaning of section 617 of the Companies Act. It was held that the undertaking is not one carried on directly by the Central Government or by any one of its departments as in the case of Post and Telegraphs or the Railways. It was held: "An incorporated company, as is well-known, has a separate existence and the law recognises it as a juristic person separate and distinct from its members. This new personality emerges from the moment of its incorporation and from that date the persons subscribing to its memorandum of association and others joining it as members are regarded as a body incorporate or a corporation aggregate and the new person begins to function as an entity. Its rights and obligations are different from those of its shareholders. Action taken against it does not directly affect its shareholders..." In Andhra Pra....