Legal Assignment on Doypack Systems Private Limited vs.

Union of India, AIR 1988 SC 782

Background

M/s. Doypack Systems Private Limited (Doypack) was a company incorporated under the
Companies Act, 1956. The company was engaged in the manufacture and sale of packaging
materials. In 1986, the Government of India (Union of India) acquired 100% of the shares of
Doypack under the Swadeshi Cotton Mills Co. Ltd. (Acquisition and Transfer of Undertakings)
Act, 1986 (Act 30 of 1986).

Issue

Doypack challenged the acquisition of its shares by the Union of India on the ground that the
acquisition was not for a public purpose and was violative of its fundamental rights under Article
14 and 19 of the Constitution of India.

Supreme Court Judgment

The Supreme Court of India, in a landmark judgment, upheld the acquisition of Doypack's
shares by the Union of India. The Court held that the acquisition was for a public purpose,
namely, to revive and revitalize the Swadeshi Cotton Mills Company Limited (SCML), which was
a public sector undertaking. The Court further held that the acquisition did not violate Doypack's
fundamental rights under Article 14 and 19 of the Constitution.

Key Points

The Doypack case is a landmark decision in Indian jurisprudence. It lays down the following
important principles:

1. The acquisition of a private enterprise by the Government of India can be justified if it is

for a public purpose.
2. The determination of what constitutes a public purpose is a question to be decided by
the Government, subject to judicial review.
3. The acquisition of a private enterprise does not automatically violate the fundamental
rights of the shareholders of the company.

Impact

The Doypack case has had a significant impact on Indian corporate law. It has made it easier for
the Government of India to acquire private enterprises in the public interest. The case has also
been cited in several other cases involving the acquisition of private enterprises by the
Government.
Conclusion

The Doypack case is a complex and important decision that has had a significant impact on
Indian corporate law. The case raises important questions about the role of the Government in
the economy and the balance between public and private interests.

Additional Notes

● The Doypack case was decided by a five-judge bench of the Supreme Court of India.
● The judgment was delivered by Justice Sabyasachi Mukharjee.
● The case is cited as AIR 1988 SC 782.

I hope this legal assignment on Doypack Systems Private Limited vs. Union of India, AIR 1988
SC 782 is helpful. Please let me know if you have any other questions.

Legal Assignment on doypack systems private limited vs

uoi Air 1988 SC 782 case law

Draft 1

Legal Assignment on Doypack Systems Private Limited vs. Union of India, AIR 1988 SC
782

Background
M/s. Doypack Systems Private Limited (Doypack) was a company incorporated under the
Companies Act, 1956. The company was engaged in the manufacture and sale of
packaging materials. In 1986, the Government of India (Union of India) acquired 100% of
the shares of Doypack under the Swadeshi Cotton Mills Co. Ltd. (Acquisition and
Transfer of Undertakings) Act, 1986 (Act 30 of 1986).

Issue

Doypack challenged the acquisition of its shares by the Union of India on the ground that
the acquisition was not for a public purpose and was violative of its fundamental rights
under Article 14 and 19 of the Constitution of India.

Supreme Court Judgment

The Supreme Court of India, in a landmark judgment, upheld the acquisition of Doypack's
shares by the Union of India. The Court held that the acquisition was for a public
purpose, namely, to revive and revitalize the Swadeshi Cotton Mills Company Limited
(SCML), which was a public sector undertaking. The Court further held that the
acquisition did not violate Doypack's fundamental rights under Article 14 and 19 of the
Constitution.

Key Points

The Doypack case is a landmark decision in Indian jurisprudence. It lays down the
following important principles:

1. The acquisition of a private enterprise by the Government of India can be justified

if it is for a public purpose.
2. The determination of what constitutes a public purpose is a question to be decided
by the Government, subject to judicial review.
3. The acquisition of a private enterprise does not automatically violate the
fundamental rights of the shareholders of the company.

Impact

The Doypack case has had a significant impact on Indian corporate law. It has made it
easier for the Government of India to acquire private enterprises in the public interest.
The case has also been cited in several other cases involving the acquisition of private
enterprises by the Government.
 Conclusion

The Doypack case is a complex and important decision that has had a significant impact
on Indian corporate law. The case raises important questions about the role of the
Government in the economy and the balance between public and private interests.

Additional Notes

● The Doypack case was decided by a five-judge bench of the Supreme Court of
India.
● The judgment was delivered by Justice Sabyasachi Mukharjee.
● The case is cited as AIR 1988 SC 782.

I hope this legal assignment on Doypack Systems Private Limited vs. Union of India, AIR
1988 SC 782 is helpful. Please let me know if you have any other questions.

Draft 2
Case Summary:

Doypack Systems Private Limited vs. Union of India (AIR 1988 SC 782) is a landmark
decision of the Supreme Court of India that dealt with the issue of the constitutionality of
the Swadeshi Cotton Mills Co. Ltd. (Acquisition and Transfer of Undertakings) Act, 1986
(Act 30 of 1986).

Facts of the Case:

The Swadeshi Cotton Mills Company Limited (SCMCL) was a public limited company
engaged in the business of operating and managing textile mills. In 1986, the Central
Government, acting under the provisions of the Swadeshi Cotton Mills Co. Ltd.
(Acquisition and Transfer of Undertakings) Act, 1986, acquired the shares of SCMCL and
took over the management of its undertakings.

Dispute:

The petitioners, Doypack Systems Private Limited and others, challenged the acquisition
of SCMCL's shares and the takeover of its undertakings on the ground that the Act was
unconstitutional. The petitioners contended that the Act was violative of Articles 14, 19,
and 31 of the Constitution of India.

Issue:

The main issue before the Supreme Court was whether the Swadeshi Cotton Mills Co.
Ltd. (Acquisition and Transfer of Undertakings) Act, 1986, was constitutionally valid.

Judgement:

The Supreme Court upheld the constitutionality of the Act. The Court held that the Act
was enacted for a public purpose, namely, to revive the sick textile mills of SCMCL and to
safeguard the interests of the workers and the general public. The Court further held that
the Act did not violate Articles 14, 19, and 31 of the Constitution of India.

Significance of the Case:

The Doypack case is a significant decision in the area of Indian constitutional law. It lays
down the principles that the government can acquire private property for a public purpose
and that the compensation paid for such acquisition must be fair and reasonable.

Questions for Discussion:

1. What are the different grounds on which the petitioners challenged the
constitutionality of the Act?
2. What were the main arguments advanced by the petitioners and the government?
3. On what grounds did the Supreme Court uphold the constitutionality of the Act?
4. What are the implications of the Doypack case for the government's power to
acquire private property?
5. How does the Doypack case balance the interests of the government, the public,
and private property owners?
 Draft 3

Case Name: Doypack Systems Private Limited vs Union Of India

Case Citation: AIR 1988 SC 782

Court: Supreme Court of India

Date of Judgment: 25th February 1988

Bench:

● Justice Sabyasachi Mukharji

● Justice G. L. Oza

Facts:

The Swadeshi Cotton Mills Company Limited (SCMCL) was a public company engaged
in the business of operating and managing textile mills. In 1986, the Central Government,
under the Industries (Development and Regulation) Act, 1951, took over the
management of SCMCL for a period of five years. The takeover order also vested in the
Government the shares held by SCMCL in other companies, including Doypack Systems
Private Limited (Doypack).

Doypack challenged the vesting of its shares in the Government on the ground that it was
not a public purpose acquisition. The company argued that the acquisition was solely for
the purpose of nationalizing SCMCL and that its shares were not necessary for the
running of SCMCL's business.

Issues:
 1. Whether the vesting of Doypack's shares in the Government was for a public
purpose?
2. Whether the acquisition of Doypack's shares was necessary for the running of
SCMCL's business?

Judgment:

The Supreme Court held that the vesting of Doypack's shares in the Government was for
a public purpose. The Court observed that the takeover of SCMCL was intended to revive
and restructure the ailing textile industry, and that the acquisition of Doypack's shares
was necessary to achieve this objective.

The Court further held that the acquisition of Doypack's shares was not excessive. The
Court observed that the shares were acquired at a fair price, and that the acquisition did
not result in any undue hardship to Doypack.

Conclusion:

The Supreme Court dismissed Doypack's petition and upheld the vesting of its shares in
the Government.