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TMI Blog1995 (9) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... quidator, High Court, as the liquidator. However, before the liquidator could take possession of the assets of the two factories of the company at Chanpatiya, West Champaran and Bara Chakiya, East Champaran (Bihar) an application was filed by one Venkateshwar Vanijya India Limited ("VVIL" in short) stating that the applicant may be impleaded as a party to these proceedings and further be permitted to submit a scheme for running the company in liquidation, and its mills on immediate basis in accordance with the directions given by this court. They also submitted the scheme for taking over and running the company in liquidation. On December 16, 1994, this court directed that the scheme submitted by the applicant (VVIL) be circulated to the banks and other financial institutions who are the major creditors of the company as well as on the company (in liquidation) and the liquidator. The court also directed that a meeting of the major creditors and officers of the company (in liquidation) be held under the chairmanship of the liquidator for considering the proposed scheme of VVIL. Before the meeting could take place two other proposals for taking over and running the company (in liquid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liquidation). However, pending further and deeper probe into the proposals/schemes submitted before the court it would be proper in view of the consensus arrived at between the parties that the two factories of the company (in liquidation) at Bara Chakiya and Chanpatiya be permitted to run immediately. Out of the three proposals/schemes submitted and after hearing learned counsel regarding the interim arrangement that could be made pending consideration of the proposed schemes, this court, vide its order dated February 1, 1995, permitted VVIL to run the two factories of the company (in liquidation) as an interim measure for the remaining period of the crushing season by putting them to terms. The applicant, VVIL, however, backed out possibly because it could not fulfil the terms and conditions imposed by this court in its order dated February 1, 1995. When the matter was listed again before this court, an application was filed on behalf of one Vishnu Sugar Mills Limited praying that they may be impleaded as a party to the above proceedings and permitted to run the two factories in accordance with the proposals given by them subject to further directions of this court. They, howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n submitting any scheme, the scheme submitted by Dr. B.C. Roy and Pharmaceuticals Limited, which has also furnished a bank draft of rupees five lakhs as security, shall be considered after notice is served on the Cane Commissioner, Bihar, Secretary, Industries Department, Government of Bihar, Director of Industries and the Chief Secretary, Government of Bihar. Notice was directed to be sent by registered post as well as by dasti. Subsequently, notice was also directed to be issued to the Bihar Industrial and Technical Consultancy Organisation Limited ("BITCO" for short). Despite service of the notice, the Government of Bihar did not put in appearance but a letter dated June 16, 1995, was sent to the Deputy Registrar of the court by the Cane Commissioner stating that the scheme furnished by Dr. B.C. Roy and Pharmaceuticals Limited was too vague and without necessary details and unless all the details are furnished it was not possible to make any comments on the scheme furnished by them. When the matter was listed on July 22, 1995, learned counsel appearing for Dr. B.C. Roy Pharmaceuticals Limited stated that they are getting a detailed scheme prepared by a chartered accountant and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial plan for immediate re-opening of the sugar mills along with a plan for expansion. It was further submitted that the reopening of each mill will not cost less than rupees five crores and to carry out the expansion programme of each mill the expenditure will be at least rupees twenty-five crores and these financial resources the party must have. Shri Yatinder Singh, learned counsel appearing for the creditor, IFCI has submitted that both the schemes proposed by Dr. B.C. Roy Pharmaceuticals Ltd. and Shri Hanuman Sugar and Industries Limited are vague and do not give any clear proposal for payment of dues to the secured creditors including the IFCI and he has instructions to say that none of the two proposals as submitted before the court is acceptable to the IFCI. I have heard Shri Dhirendra Kumar, learned counsel appearing for Dr. B.C. Roy Pharmaceuticals Limited, S/Sri. Sudhir Chandra, Tarun Agarwal and Mrs. Geeta Luthra, learned counsel for Shree Hanuman Sugar and Industries Limited, Shri J.N. Tewari, learned senior counsel for the company (in liquidation), Shri M.S. Negi, learned counsel for the workers union of the head office of the company (in liquidation) at Kanpur, Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... growers, who are solely dependent upon the running of the two factories, at least some interim orders may be passed so that the factories can be run as a trial measure in the present crushing season and at least a certain part of their dues is paid to them. They have also submitted that they have entered into a sort of understanding with Dr. B.C. Roy Pharmaceuticals Limited and they have no objection if the said company is permitted to run the two factories subject to the conditions imposed by this court. Having taken into consideration the respective contentions of learned counsel for the parties, this court is of the view that none of the schemes submitted by the parties can be acceptable at this stage in the absence of the major secured creditors and the Bihar Government before this court. The court has already given wide publicity inviting proposals/schemes for the rehabilitation of the company (in liquidation). Except the parties before the court no other party has shown any interest in the matter. Out of the two schemes which are presently being considered by this court, Shri Hanuman Sugar and Industries Limited has submitted separate schemes for Barachakiya and Chanpatiy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to consideration the plight of the cane growers and the workmen and further that the livelihood of a large number of people is involved and also in view of the fact that stock of sugar is already lying in the mills premises and the same will deteriorate by lapse of time and the sugarcane crop standing in the fields of the company (in liquidation) which if not harvested will either be lost or have to be transported to some distant factories, which would not be conducive to the interest of the cane growers, this court considers it expedient in the interest of justice, without prejudice to the rights and contentions of the parties including the secured and unsecured creditors and pending final disposal of different schemes and proposals, to permit Dr. B.C. Roy Pharmaceuticals Limited to run the two sugar factories of the company (in liquidation) at Barachakiya and Chanpatiya as an interim measure on the following terms and conditions : (1)The applicant, Dr. B.C. Roy Pharmaceuticals Limited, shall deposit a sum of rupees fifty lakhs (rupees twenty-five lakhs for each factory) for using the plant and machinery and running the two factories of the company (in liquidation) by way of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the stores of each factory prepared with the help of the representative of the company (in liquidation) and all the items which are taken out of the stores, if required, shall be accounted for. The company (in liquidation) shall post a representative for the said purpose and to safeguard the interest of the company and the salary of the said representative of the company (in liquidation) shall be borne by the applicant company. (9)The applicant shall keep the plant and machinery of the two factories in good order and shall not transfer, sell or remove any part of the plant or the machinery and shall also not sell any asset of the factories except the finished product. In case any replacement of the machinery or a part thereof is required the same shall be done after obtaining necessary orders from this court. (10)The applicant shall get the stocks of sugar, khandsari and molasses, which are stored in the premises of the two factories, valued with the help of the Food Corporation of India and the same shall be got sold as per the said valuation or after obtaining offers from local interested parties or the Food Corporation of India, with the permission of the court and the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report before the court. (17)Till the scheme of rehabilitation is finally decided and the interim arrangement continues this court will have the right and jurisdiction to decide, alter, add or withdraw any of the conditions keeping in view the circumstances. (18)The applicant shall, before taking over possession of the two factories as per the directions of this court, give due information to the district magistrates of the two districts where the factories are situate and to the official liquidator, and presidents of the recognised workmen unions of the two factories who shall depute their representatives and in whose presence the possession will be handed over to the applicant. (19)If the applicant successfully runs the two factories during the current season then the proposal of complete rehabilitation and taking over of the two units shall be considered along with the other scheme after obtaining the views of the creditors. (20)It shall be open to the applicant to take permission from the concerned authorities regarding free sale of 100 per cent, non-levy sugar. If such an application is made by the applicant the authorities concerned shall consider the same taking into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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