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In The Matter Of M/S U.P.State Cement Corporation Ltd. - MISC. COMPANY APPLICATION No. 4 of 1997 [2006] RD-AH 20999 (13 December 2006)


This is an UNCERTIFIED copy for information/reference. For authentic copy please refer to certified copy only. In case of any mistake, please bring it to the notice of Joint Registrar(Copying).


            In chamber


        In the matter of

U.P. State Cement Corporation Ltd. ( In Liq.)        (32)

Hon'ble Sunil Ambwani, J.

1. Present Shri Ashok Mehta for Official Liquidator; Shri S.K. Saxena, Official Liquidator; Shri W.H. Khan for U.P. Power Corporation;  Shri M.S. Pipersania & Shri Anil Mehrotra for State; Shri Navin Sinha, Senior Advocate for JAL; Shri R.P. Singh, District Magistrate, Sonbhadra; Shri V.K. Singh, Chief Judicial Magistrate, Sonbhadra; Shri Haider Beg; Shri Arvind Kumar Dubey, Central Nazir, Judgeship at Sonbhadra; Shri J. Nagar for LIC;  Shri Harendra Pandey; and Shri A.K. Upadhyay.

2. Shri W.H. Khan, appearing for U.P. Power Corporation, has pressed for settlement of the claims of the Corporation. The dues of the U.P. Power Corporation have been considered by the Settlement Claims Committee in its report forwarded by the Official Liquidator. Shri W.H. Khan may inspect the report. The Corporation will be individually communicated with the adjudication of the claims and may raise their objections by 3rd January, 2007.

Possession of the Assets of the Company (In Liq.)

3. Shri Navin Sinha informs that in pursuance of the orders of the Court, the demarcation process of Kajrahat mines of Block I to IV is in process; in Ghurma the demarcation is complete; in Ningha the demarcation process has not started as yet and the demarcation process of Dolomite mines of Bari and Sinduria has not begun as yet.

4. Let the District Magistrate demarcate the limestone and dolomite mines. After demarcation, he will hand over possession of Kajrahat mines (except Block Nos. V to VII) and other limestone mines of Ningha &  Ghurma to JAL. He will also hand over possession of dolomite mines of Bari and Sinduria. The handing over possessions will not entitle JAL of mining operations until all legal requirements are complete. The mining operations shall be carried out only after complying with all  formalities in accordance with the law.

5. Shri R.P. Singh, District Magistrate, Sonbhadra states that it may take some time to vacate the houses in possession of state officers, occupied by the District officers including the houses in possession of Police and Judiciary and Power Corporation. Earlier he had requested for time upto 31.3.2007 for houses in possession of the officers working under him. The Superintendent of Police had expressed his inability to vacate as there is no  alternative arrangement. So far as the employees of U.P. Power Corporation are concerned, the possession shall be handed over as soon as the JAL is ready to take over the responsibility of sub stations. For this purpose, let the District Magistrate; Superintendent of Police; District Judge and Executive Engineer of the U.P. Power Corporation hold meetings and settle  with JAL the effective date, on which the possession may be handed over. In case of any disagreement they may approach the Court.


6. The Official Liquidator states that he has handed over 8 shops at Chunar and is ready to hand over the vacant and abandoned shops. Let the vacant and abandoned shops be handed over immediately. It will be open to those shop keepers, who have deposited dues and electricity charges with the Official Liquidator to negotiate with the JAL for fresh terms of tenancy.

Plant and machinery

7. The Official Liquidator informs that the possession of plant and machinery at Dalla and Chunar has been handed over to JAL. He has offered to hand over the possession of plant and machinery at Churk. The JAL has expressed its willingness to take over possession. Let it be handed over within a week.

8. Shri Navin Sinha informs that the demarcation of free hold lands is complete. The encroachments, however, have not been removed. The District Magistrate may take effective steps with the help of police to remove unauthorized occupants to hand over possession to JAL.

9. It is reported by JAL that there is shortage of land in some areas. Let these shortages be re-assessed and sorted out with the Official Liquidator. The possession of raw material/current fiscal assets shall also be handed over. The Official Liquidator will also issue letter of authority to JAL to receive the bonus shares of U.P. Asbestos Limited.

10. The Court has already issued directions to the Official Liquidator to prepare 100 copies of the report of the settlement claims committee. He states that these copies have been circulated at Churk; Dalla; Ghurma and Chunar. The objections to the settlement of claims be categorized; compiled and submitted to the Court on 3.1.2007. The matter will be listed in Court on 3.1.2007 to be taken over at  10.00 AM. The hearing on objections will begin on that date.

11. Shri Anil Mehrotra, appearing for the State Government, has made some objections with regard to handing over possession of the mines and mining operations. He had made similar objections earlier also. The court cannot allow the oral objections to be made in the proceedings by any party. In case the State Government has any objection, let these be placed by way of the affidavit of the Secretary concerned by 3.1.2007.

12. List on 20.12.2006




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