The Cooperative Store Limited (Super Bazar) vs. Super Bazar Karamchari Dalit Sangh
Background
The well-known cooperative retailer "Super Bazar," now under liquidation with liabilities far exceeding its assets, had its writ petition (challenging a workers' Dearness Allowance award) withdrawn in 2018 on instructions from Dr. A.K. Mishra, who described himself as the Official Liquidator. Years later, a new Official Liquidator discovered that Dr. Mishra's tenure had actually expired days before he gave those withdrawal instructions, and, amid serious findings of financial impropriety against him, including by the Supreme Court in a related matter, sought to recall the 2018 withdrawal, despite a delay of over 1,600 days in raising the issue.
Decision Breakdown
The Court found that Dr. Mishra's tenure as Official Liquidator had indeed lapsed before he instructed withdrawal of the petition, so he had no authority to bind Super Bazar at that point. Given the substantial public money at stake (Super Bazar's liabilities of about Rs. 500 crore against assets of about Rs. 150 crore) and the serious, independently-corroborated concerns about the former liquidator's conduct, the Court condoned the long delay, recalled the 2018 order, and restored the writ petition to be decided on its actual merits, without expressing any view on those merits.
Lesson Learnt
Instructions given by an official acting outside their authority (here, after their tenure had already expired) do not bind the organisation they claim to represent, and courts will look past even a long delay to correct such a defect where large amounts of public money are at stake.