1990 (5) TMI 232

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....he people. It must keep on changing from time to time, otherwise law will not be able to cope with the need of the people. It is a social process and it must keep on changing with the changing structure of the society. Time has now come for the law courts to rise to the occasion and interpret the law in accordance with the need of the hour. Rigid interpretation of law contrary to the needs of the society will lead to social catastrophe and law courts ought not to be a party to them. Law cannot be termed to be static or inflexible. It is flexible though, however, its stability cannot be disputed and it lies upon the law court to interpret the law so as not to destabilise on the one hand but to suit the requirement of the society since law subserves the social purpose and it lays stress upon the social purpose. In the event of an imperative demand of justice law courts are obliged to interpret the law in a manner so as to suit the social purpose rather than follow the strict and rigid formula of law. 4. The view expressed above finds support from the decision of the Supreme Court in Motilal Padampat Sugar Mills Co. Ltd. v. State of Uttar Pradesh, , wherein Bhagwati J. observed (at....

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....failed to comply therewith and the corporation thereafter on July 7, 1988, sent another notice under Section 29 of the Act, 1951. The corporation thereafter fixed July 22, 1988, for taking over possession of the assets of the company and, in fact, as per the notice took over possession of the assets of the company. Subsequently, advertisements were published for sale of the assets and in response thereto offers were received by the corporation from prospective buyers. 8. On December 19, 1988, the above-noted company, however, had gone into liquidation by an order passed by this court. 9. Thereafter in an open auction in court, the assets were sold to one P. E. C. Boiler Pvt. Ltd. Incidentally, it is to be noted that the above-noted company was carrying on business in the manufacture of boilers and pressure vessels. While confirming the sale on February 19, 1990, this court observed ; "Normally, the highest bidder ought to be given opportunity to buy the fixed assets, but in this particular case the trade is a very sophisticated one and is controlled by various provisions of the statute, viz., the Indian Boilers Act, 1923, and the rules framed thereunder. By reason whereof,....

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....uld be sealed forever. The purchaser will also be facing difficulties since it is a highly sophisticated trade, drawing designs will have to be effected and then shifted on to the factory for implementation of the same. Apart from the technical difficulty of not having sufficient space, in my view, the consideration of the court ought to be on the other count, viz., those 45 employees. Would the court be a mere passive spectator by the turn of events of commeicial ventures of the landlord so as to seal the fate of these 45 employees on mere technicality by reason of a strict interpretation of existing law or would the court try to discharge its social obligation and allow continuance of employment of these 45 persons. 13. As noted above, law courts have a social obligation as well. They cannot turn a deaf ear to the cry of the employees, a stark reality in the country as also in the State. 14. The sale was confirmed by this court only on the ground that it would be sold as a going concern so that employment opportunities continue to exist as in the past. Rigid interpretation of law resulting thereby in loss of employment opportunities to 45 persons, that means 45 families, an....

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....ved is transfer of tenancy--that is what the statute prohibits. There must be a voluntary and deliberate act in the matter of transfer or assignment of tenancy. Involuntary acts are not covered within the meaning of Section 14 of the West Bengal Premises Tenancy Act. 18. Coming back to the facts of the matter under consideration vis-a-vis Section 14 of the Act, it is to be seen that the company has gone into liquidation and the fixed assets were sold in open auction in court at the instance of the West Bengal Financial Corporation. The matter appeared in the daily cause list day in and day out before this court whereupon PEC Boilers was declared to be the purchaser and the factory was sold as a going concern. Employment opportunities which were in an unstable condition became stable and employees were protected. At that juncture, to hold that Section 14 will have application will mean and imply loss of employment opportunities to about 45 employees of the registered office ; the aspiration of those 45 families to continue with the employment will be razed to the ground ; can it be said to be the intent of the Legislature--in my view the answer ought to be in the negative. 19.....