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1999 (7) TMI 589

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..... o render necessary protection to the writ petitioner for opening and operating the mill; and ( iii )direction upon the Additional Labour Commissioner, Calcutta to frame a reasonable time for settlement between the petitioner-company and workers. By an interim order dated 10-12-1997 upon the writ application being moved before this Court, the operation of the order dated 20-11-1997 passed by BIFR was stayed and directions for filing affidavit-in-opposition were also issued. 5. The workers union representing 4300 workers who are employees of the writ petitioner s company made an application for : ( i )vacating the aforesaid interim order; ( ii )for appointment of Special Officer for making an Inventory of the Plant and Machinery, Finished Goods, materials etc. lying in the premises of the mill of the petitioner-company; ( iii )to open the jute mill and allow the normal operation of the mill with the assistance of the Committee of Management to be appointed by the Court with the representatives of the workers as also of one Delta International Ltd. Another application being G.A. No. 1193 of 1999 was filed by certain share-holders of the petitioner-company who claimed t .....

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..... pointed the Special Officer. He shall forthwith take possession of the mill and made an inventory of the plant, machinery, finished goods and raw materials etc. and other assets of the company in the premises of the mill after giving notice to the petitioner company, the State Bank of India and the workers. ( d )The Special Officer after taking such possession and making such inventory shall take immediate steps to open the mill and allow the normal operation thereof and for the aforesaid purpose the Special Officer will take assistance from the Committee of Management to be formed by him with the representatives of the workers. State Bank of India, the Petitioner Company and the aforesaid Delta International (P.) Ltd. ( e )It is made clear that it is under the supervision of the said Special Officer the mill shall be operated with the assistance of the said Committee of Management. The said Committee or management shall be constituted with three representatives from the workers ; one representative from the State Bank of India, one representative from the petitioner-company and another representative from the said Delta International (P.) Ltd. such Committee or Management sha .....

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..... ry. ( n )The remuneration of the Special Officer is fixed at 300 Gold Mohurs per month for the present to be paid by the said Delta International (P.) Ltd." The company and the SBI respondent No. 3 in the writ petition, feeling aggrieved against the said order have filed the respective two appeals. It must be stated here that on 20-11-1997 one Shalimar Industries Ltd. along with 39 others filed an application under article 226 of the Constitution of India before this High Court claiming themselves to be the jute suppliers to the petitioner-company and praying for writ of mandamus against the BIFR and Union of India to ensure that the management of the petitioner-company be not allowed to change hands and the status quo of the company prevailing on the date of filing of the reference case No. 13 of 1995 before BIFR was maintained and an interim injunction dated 20-11-1997 was passed by a learned Single Judge restraining the company and its Management from changing its hands till the disposal of the Case No. 13 of 1995. Another writ application was filed by the Bengal Chatkal Mazdur Union praying for direction upon C.E.S.C. to restore electricity supply to the jute mill .....

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..... in which the mill is directed to be run, cannot be in the interest of the workers or creditors of the company. 14. Mr. Samarditya Pal, the learned senior counsel appearing on behalf of the respondent Unions, representing the workers, submitted that the interim order passed by the Single Judge does not in any manner affect the jurisdiction of the BIFR for passing such orders for revival of the company as to it may seem appropriate in accordance with Law. There is no provision under the Sick Industrial Companies (Special Provisions) Act, 1985 ( the SICA ), for passing of any order of interim nature during the pendency of proceeding before the BIFR and, therefore,the Writ Court is not powerless to issue appropriate directions while the matter is pending before the BIFR. The interest of 4300 workers also their very livelihood is at stake. The Writ Court has stated the reasons in the order under appeal and on the basis of similar orders as has, have been passed in the case of Angus Company, Kelvin Jute Mill and as also by the Supreme Court in Rohtas case the learned Single Judge was justified in passing orders under appeal, it was submitted. 15. Mr. Pal, the learned senior co .....

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..... llowing 3 weeks time for submission of offers, i.e., upto 26-12-1997 the promoters of the petitioner-company were also permitted to submit their proposals in response to the advertisement along or with the co-promoters. As noticed hereinbefore, the above orders were stayed when the writ application was moved by the petitioner-company. 17. The learned Single Judge by the order under appeal has vacated the said interim order and in our opinion very rightly so. 18. The short question, therefore, for consideration is as to whether the further directions issued by the learned Single Judge for the running of the mill during pendency of the matter before the BIFR can be sustained. 19. The order under appeal is sought to be sustained on the ground that similar directions have been issued by the Apex Court and also by this High Court in certain matters of similar nature on the applications filed by the Workers Union for revival of sick industries. It would there be appropriate to have a brief look at some of the decisions on this aspect of the matter. 20. The Land-mark judgment is that of the Supreme Court in Navnit R. Kamani v. R.R. Kamani AIR 1989 SC 9. The Suprem .....

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..... India whereupon an order was passed whereby the Central Government was directed to make a reference to the BIFR for obtaining the scheme as contemplated under section 18 of the Act for revival of the company. The BIFR submitted report and keeping in view of the statements filed on behalf of the State of Bihar and the Union of India and the memorandum prepared by the learned Attorney General, the Supreme Court passed an order whereby the State of Bihar was directed to appoint an Authorised Officer in commissioning of certain units of the company and for taking steps to explore the viability of certain other units. Thereafter, the proposal was submitted by the workers Co-operative Society Ltd. to purchase the Industrial Undertaking with its allied and sister concern and to run the same on the moratorium basis for 3 years only through the workers Co-operative Society which postulated grant of certain exemptions, reliefs and concession. State of Bihar also placed before the Court the statement indicating the line of action for revival of the industries in question. The Supreme Court on a consideration of the matter opined that the best course would be to revive the reference which w .....

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..... is not desirable that this Court should deal with the allegations made by the respondents against the petitioners as regards their alleged act of bad faith and misconduct etc. Suffice, however, it to say that in terms of the provision of the said Act which is a beneficient statute. It is the solemn duty of the BIFR to find out ways and means for speedy determination by it of the preventive ameliorative, remedial and other measures required to be taken with respect of sick companies and the expeditious enforcement of the measures so determined as would be evident from the preamble of the said Act. Expeditious disposal of such case, thus is a statutory compulsion. It also beyond any cavil of doubt that while accepting a Scheme the interest of workmen has also to be borne in mind. It has also to be borne in mind that speedy determination of a matter before the Board is absolutely essential as during pendency of such proceedings all other proceedings and suits against the sick company remain stayed. Even the enforcement of contract etc., can be directed to be stayed." 26. In an unreported decision of the Division Bench presided over by one of us (S.B. Sinha, J.) in Allahabad Bank .....

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..... to the workmen to submit the scheme for revival of the company with the help of Delta or by forming a workers Co-operative or otherwise before the BIFR for consideration. The learned Judge, however, misdirected himself in issuing direction for running the mill by a Special Officer in the interregnum. 29. As the affairs of the company and proposals for its rehabilitation are pending before the BIFR the interim stay having been vacated by the Court and none of the parties before us being aggrieved thereby, at least no appeal having been filed by any party against that part of the order. We are of the considered opinion that the best course to be adopted in the facts and circumstances of the case would be as indicated in the order of the Supreme Court in Shri Ambika Industries Ltd. v. National Oil Gas Ltd. [1992] Spl. (2) SCC 144 namely, to direct all parties including the workers and Delta to appear before the BIFR and submit their proposals in accordance with law and we have no doubt that BIFR shall consider all such representations and proposals expeditiously and pass appropriate orders thereon in accordance with law. It is accordingly so directed, however, with the requ .....

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