Law: Hydrogenated Vegetable Oil Industry (Control and Development) Act, 1973

Section: 5

Hydrogenated Vegetable Oil Industry (Control and Development) Act (LXV of 1973)-- S. 5-A [amended by Hydrogenated Vegetable Oil Industry (Control and Development) (Second Amendment) Act (XI of 1992)] ---Sale of State owned industrial unit --- Petitioner workers bid to purchase State owned industrial unit was not accepted ---Petitioner's Constitutional petition against rejection of their bid dismissed --- Validity --- Petitioner's claim to purchase industrial unit in question, was based on Memorandum of Agreement between Government and employees union whereby it was agreed that employees would be provided all opportunities to purchase a unit if they made a bid and would also have right of negotiation on the highest bid --- Right given to the employees by Memorandum of Agreement to purchase State-owned industrial unit was of a very general nature and during negotiations that ensued in connection with the consideration of the bid, the law underwent a change; statutory provision which existed on the date of the final decision was that the management could be given only to that group of employees which was recognised by the Federal Government to have been formally constituted as such --- Where after submission of petitioner's bid nearly fifty per cent. (50%) of the members of petitioner group had disassociated themselves from the petitioner and even recognised representative of the workers viz. C.B.A., was not supporting their bid, no fault could be found with the decision of Authority in rejecting bid of petitioner and deciding in favour of ex-management (respondent) whose bid was ultimately higher than that submitted by the petitioner --- Petitioner's plea, that law as it obtained on the date of the bid i.e. 17-10-1991 governed the cause and amendment made thereafter on 27-4-1992 in S.5-A by Ordinance VII of 1992 did not affect the right of the parties, was found to be untenable-- Respondent (purchaser of industrial unit) however, gave undertaking that in case members of petitioner group were given a "golden band shake" or their services were dispensed with, all benefits and privileges eligible to such employees under terms of Memorandum…