Het Ram v. M/S.Aina Exports P.Ltd.& Ors

S.N.AGGARWAL, J (ORAL) The petitioner workman has filed this writ petition for directions to the respondents No. 3 & 4 to recover the amount as per recovery certificate dated 18.10.1999 issued by the labour authority pursuant to award dated 01.09.1998 passed by the Labour Court in I.D. No. 325/1994.

¶2The petitioner holds an industrial award in his favour against the management of M/s Aina Exports Pvt. Ltd. which directs his reinstatement with back wages. The award was passed in favour of the petitioner way back on 01.09.1998. This award has remained unexecuted till date.

¶3Mr. Siddharth Panda, learned counsel appearing on behalf of the petitioner, submits that the management of M/s Aina Exports Pvt. Ltd. against whom the award in favour of the petitioner was passed, has since been closed down. According to the learned counsel appearing on behalf W.P.(C) No. 4001/2003 of the petitioner, the management of M/s Aina Exports Pvt. Ltd. after closing the said company has formed another company namely M/s Aaina Fashions Pvt. Ltd., which is operating from Gurgaon, Haryana-122016. Now, directions are sought to execute the award in question against the newly formed company M/s Aaina Fashions Pvt. Ltd.

¶4This request for execution of the award against M/s Aaina Fashions Pvt. Ltd., cannot be granted. The award was obtained by the petitioner against the company M/s Aina Exports Pvt. Ltd. The company is a juristic person in law. The award can be executed only against the person against whom the said award was passed. It may be the case of the petitioner/award holder that M/s Aaina Fashions Pvt. Ltd. is a camouflage and, in fact, the company against whom the award was passed and the newly formed company M/s Aaina Fashions Pvt. Ltd. are not distinct entities but, for that purpose, the petitioner has to seek declaration in appropriate proceedings. Unless M/s Aaina Fashions Pvt. Ltd. (newly formed company) is declared to be the same entity owned by the same management of the earlier company M/s Aina Exports Pvt. Ltd., the award cannot be executed against a newly formed company. Each company, on its incorporation, becomes a separate legal entity. The petitioner, under the circumstances, may take appropriate steps as may be available to him in law for execution of the industrial award in his favour.

¶5In view of what has been stated above, the prayer made in this writ petition cannot be granted. This writ petition is, therefore, dismissed reserving liberty for the petitioner to take such steps for execution of the industrial award in his favour as may be available to him in law. OCTOBER 21, 2009 S.N.AGGARWAL, J 'BSR' W.P.(C) No. 4001/2003

* IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C.) No. 4001/2003 % Date of Decision: 21st OCTOBER, 2009 # HET RAM .....PETITIONER ! Through: Mr. Siddharth Panda, Advocate. VERSUS $ M/S AINA EXPORTS PVT. LTD. & OTHERS ....RESPONDENTS ^ Through: Mr. Vikas Kumar for Mr. Arvind Nayar, counsel for respondents No. 4 & 5. CORAM: Hon'ble MR. JUSTICE S.N. AGGARWAL 1. Whether reporters of Local paper may be allowed to see the judgment? YES 2. To be referred to the reporter or not? YES 3. Whether the judgment should be reported in the Digest? YES