Tata Motors Ltd vs State Of Jharkhand And Ors

Learned counsel for the petitioner prays for and is allowed to make necessary correction in the name of the petitioner in the cause title of the writ

petition.

The present writ petition has been filed for quashing the letter no.922 dated 11th September, 2019 (Annexure-13 to the writ petition) issued by the

Chief Inspector of Factories, Jharkhand- respondent no.4, whereby mere opinion of the Department of Law and the Department of Finance,

Government of Jharkhand has been communicated to the petitioner without there being any decision of the respondent no.4 on an application preferred

by the petitioner-Company regarding merger of M/s. TML Drivelines Limited with M/s. Tata Motors Limited. The petitioner has also prayed for

issuance of direction upon the respondents to consider the merger application of the petitioner in view of the order dated 5th April, 2018 (Annexure-10

to the writ petition) passed by the National Company Law Tribunal, Mumbai Branch, approving the merger and arrangement between M/s. TML

Drivelines Limited and M/s. Tata Motors Limited so as to include Units-A, B, C & D of M/s. TML Drivelines Limited.

Mr. P. K. Shahi, learned senior counsel for the petitioner, submits that M/s. Tata Engineering and Locomotive Company Limited (TELCO) was

registered on 1st September, 1945. Its Gear Box Division got delinked from core business and a new company i.e. HV Transmissions Limited was

incorporated which took over the gearbox manufacturing. Thereafter, Axle Division got delinked and a new company, namely, HV Axles Limited was

incorporated which took over the Division relating to manufacturing of axle. HV Transmission Limited and HV Axles Limited thereafter functioned as

separate companies by obtaining separate factory licences in their respective names. In the year 2003, the name of TELCO got changed to Tata

Motors Limited. Subsequently, HV Transmission Limited and HV Axles Limited got amalgamated in the year 2011 and on such amalgamation the

name of amalgamated company- HV Axles Limited got changed to M/s. TML Drivelines Limited. Thereafter, separate factory licences were

obtained in the name of Units- A and B of M/s. TML Drivelines Limited. In the year 2013, the Forge Division was acquired by M/s. TML Drivelines

Limited. Subsequently, two more factory licences were obtained for Units- C & D of M/s. TML Drivelines Limited.

Learned senior counsel for the petitioner further submits that the National Company Law Tribunal, Mumbai Bench vide order dated 5th April, 2018

approved the merger of M/s. TML Drivelines Limited and Tata Motors Limited with effect from 1st May, 2018. After the said development, the

petitioner- Tata Motors Limited preferred an application before the respondent no.4 in view of the merger of the said two companies. However, vide

impugned letter as contained in memo no.922 dated 11th September, 2019, the respondent no.4 without taking any independent decision on the said

application, just communicated the opinion of the Department of Law and the Department of Finance, Government of Jharkhand to the petitioner.

Learned senior counsel for the petitioner also submits that Tata Motors Limited and four units of M/s. TML Drivelines Limited are presently having

separate factory licences (in total five factory licences) and all are going to expire on 31st December, 2019. Since National Company Law Tribunal

has already approved the merger of M/s. TML Drivelines Limited along with its four units with M/s. Tata Motors Limited and the respondent no.4 has

not taken any decision on the application preferred by the petitioner in this regard, all the said five entities may have to face closure after 31st

December, 2019. It is, thus, prayed by way of an ad interim measure that all the five units i.e. M/s. Tata Motors Limited and four units of M/s. TML

Drivelines Limited may be permitted to continue with the existing factory licences till disposal of the present writ petition.

Mr. Manoj Tandon, learned AAG-IV, prays for four weeks’ time to seek instructions and file counter affidavit.

Time as prayed for is allowed.

Put up this case under the heading “For Admissionâ€​ on 22nd January, 2020.

Till then, the petitioner-Tata Motors Limited and Units- A, B, C & D of M/s. TML Drivelines Limited are permitted to continue their operation with

the existing factory licences.