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TMI Blog2000 (3) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... of the creation of SDF, manner of remittance to SDF and purpose of its utilisation, it is a fund created ultimately for the utilisation by the member steel producers only. We do not think it is a fit case where this Court in the exercise of its powers under Article 136 of the Constitution of India should grant leave to appeal from the impugned judgment of the High Court. Leave to appeal is refused. - SLP(C) 2930 OF 2000 - - - Dated:- 31-3-2000 - D.P. Wadhwa and A.P.Misra, JJ. JUDGMENT Petitioners seek leave to appeal under Article 136 of the Constitution from the judgment dated February 3, 2000 of the Division Bench of Calcutta High Court. First petitioner is engaged in the manufacture of steel. Second petitioner is a shareholder of the first petitioner and is also a director. First petitioner established its factory for production of steel in 1998. The petitioners in the writ petition filed in the High Court claimed the following reliefs: - a) A declaration do issue declaring that the petitioners and similarly placed other units in the steel industry are eligible and entitled to avail of financial assistance from the Steel Development Fund; b) Declaratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... granted to the said respondent may manner whatsoever; j) An order do issue directing the respondent Nos. 1 to 4 to forthwith take steps for (illegible) of the outstanding (illegible) to the fifth respondent and others with interest accrued thereon and not to grant any renewal of the outstanding loans or any fresh loans without first considering the case of the petitioners; k) Ad interim order in terms of prayers above; l) Cost of and incident to this application be borne and paid by the respondent; m) Such further order or orders be made and/or direction or directions be given as this Hon'ble Court may deem fit and proper. In effect the petitioners want restraint on the Union of India and the Joint Plant Committee from utilisation of the Steel Development Fund for the sole benefit of SAIL and TISCO. Learned single Judge of the High Court by his order dated August 5, 1999 dismissed the writ petition and imposed cost of Rs.10,000/- on the petitioner in favour of each of the appearing respondents intervening in the proceedings. Aggrieved petitioners filed appeal before the Division Bench of the High Court which, as noted above, was dismissed by judgment dated Febru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any Limited, the Hindustan Members Steel Limited, Rourkela, the Hindustan Steel Limited, Bhilai and the Hindustan Steel Limited, Durgapur. (iii) One representative of the Ministry of Railways. Notification prescribed various functions of the Joint Plant Committee. Paragraph 8 of the notification would be relevant and is as under: - (8) The Committee may determine, announce and list prices (base prices as well as extras) from time to time of all categories of iron and steel not subject to price control under clause 15 of the iron and steel (Control) Order, 1956. The prices so determined will be ex-works prices. The Committee shall add a fixed element of equalised freight to the ex-works prices announced from time to time in order to ensure that buyers of steel all over the country pay the same railway freight irrespective of the distance from the source of supply. The Committee may take such measures as it considers necessary or desirable to ensure that buyers of iron or steel all over the country pay the same price. This notification was amended by another Notification dated December 27, 1978. Under the heading Functions paragraphs 9A and 9B were inserted, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to their ex-works prices of all or any of the categories of iron and steel and to remit the same to the Committee within such periods as may be specified. (i) an element of price towards the steel Development Fund for financing schemes, projects properties and other capital expenditures for modernisation, research and development, rehabilitation, diversi- fication, renewals and replacement, balancing up additions to capacity, major new investments or any other programme for improving the quantum or technology of efficiency of production of Iron and Steel or their quality. Explanation: The Committee shall perform its functions relating to the Steel Development Fund in accordance with the subject to such orders or directions as may be issued by the Central Government in this behalf from time to time. (ii) an element of price for enabling the Committee to discharge its functions and to implement specific schemes entrusted to it by the Central Government. (iii) an element of price towards the Engineering Goods Exports Assistance Fund. 5. (NO. SC/1/6/91-D.III) ASHOK KUMAR, Jt. Secy. It would be seen that paragraph 9A in the first amended notification was substituted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eel Development Fund to a value of Rs.5073 crore and Rs.381 crore from the Government of India. 2. Provision of Government guarantees with 50% interest subsidy for loan and interest thereon of Rs.1500 crore to be raised by SAIL from the market to finance reduction in manpower through voluntary retirement scheme. 3. Provision of Government guarantee for loan and interest thereon of Rs.1500 crore (including Rs.500 crore already agreed) to be raised by SAIL from the market primarily for meeting repayment obligation on past loans during 1999-2000. 4. To initiate the process of divestment of the following non-core assets while protecting jobs of the existing employees as per milestones to be indicated seprately. (a) Power Plants at Bokaro, Durgapur and Rourkela - 2X60 MW Captive Power Plant-II at the Rourkela Steel Plant and the Central Power Training Institute at Rourkela. - 2X50 MW Captive Power Plant-II at the Durgapur Steel Plant. - MW [2X55 MW plus 12 MW Back Pressure Turbine] Captive Power Plant-I, 3Xz60 MW Captive Power Plant-II and steam generating capacity of 660 MT/hour at the Bokaro Steel Plant. (b) Oxygen Plant-2 of Bhilai Steel Plant. (c) Salem Steel Plant (SSP), Salem. (d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns issued respecting the use of SDF. The petitioner started production only in April 1998 when four years prior to that remittance to SDF had been discontinued. It is not disputed that the petitioner was not a member of the Joint Plant Committee and did not remit any amount towards the corpus of SDF. The question is if in these circumstances the petitioner could advance a claim or exercise a right on the SDF in any manner. It were the members of the Joint Plant Committee who were made bound to add an element of ex-works price and to remit that amount for the constitution of SDF. It has been stated by the first respondent, Union of India, through the affidavit filed by the fourth respondent, Joint Plant Committee, that funds out of SDF were disbursed to the members Steel Plants by the SDF Managing Committee as per directions issued by the Central Government from time to time. It is then submitted that since early 1990's there has been a general recession in the steel industry. SAIL had approached the Central Government for its financial and business restructuring. SAIL had taken over Indian Iron and Steel Company Ltd., a sick company in the year 1978. Indian Iron and Steel Compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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