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Issues:
Challenge to Memorandum of Understanding and lease of residential accommodation at Sindri unit. Analysis: The petitioners challenged a Memorandum of Understanding (MoU) dated 5-2-2004 between the Department of Fertilizer and Ministry of Home Affairs, regarding the transfer of properties belonging to the Fertilizer Corporation of India Limited at its Sindri unit. They also sought a mandamus to lease out residential accommodation at the same unit. The petitioners were employees of the Fertilizer Corporation of India Limited at the Sindri unit, which faced financial issues leading to the winding up process and asset transfer under the Sick Industrial Companies (Special Provisions) Act, 1985. The petitioners argued that the MoU violated section 20(4) of the Sick Industrial Companies Act, contending that workmen's interests should be considered during asset sales. They claimed that the decision to sell assets without constituting the Assets Sale Committee as per BIFR's order was illegal and lacked jurisdiction. On the other hand, the respondents stated that BIFR had ordered winding up of the company and approved the transfer of infrastructural assets to CRPF authorities as per the MoU. The court noted that the petitioners had voluntarily opted for a Separation Scheme and were compensated under the Industrial Disputes Act. Despite receiving benefits, they filed writ petitions to retain company quarters beyond the specified time. The court held that the petitioners had no standing to challenge the MoU since they were allowed to occupy quarters post-compensation, and the petitions were filed to continue occupancy. Consequently, the court dismissed the writ petitions for lacking merit. In conclusion, the court dismissed the writ petitions challenging the MoU between the Department of Fertilizer and Ministry of Home Affairs, as the petitioners had no standing to challenge it after receiving compensation and being allowed to occupy company quarters beyond the specified time.
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