High Court of Judicature at Allahabad
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Triveni Structurals Karmachari Sangh, Naini, Allahabad v. Appellate A.I.F.R., New Delhi & Another - WRIT - C No. 77778 of 2005  RD-AH 2562 (1 February 2006)
Court No. 9.
Civil Misc. Writ Petition No. 77778 of 2005
Triveni Structural Karmchari Sangh ... Petitioner
Appellate Authority of Industrial and
Financial Reconstruction and others ... Respondents.
Hon. Sunil Ambwani, J.
The Triveni Structural Ltd. was declared sick industrial company on its application under section 15(1) of the Sick Industrial Company( Special Provisions) Act, 1985. After three years of reference a scheme of rehabilitation was sanctioned on 28.8.1995 with State Bank of India as the monitoring agency. The Scheme was revived by the Board on 12.9.2001 after noting that the company's performance was well below the projected level and the financial position had worsened with each passing year.
By order dated 12.9.2001 of the Board declared the sanctioned scheme to have failed. The SBI was appointed as operating agency with direction to submit fully tied up proposal for changing of management. This order was passed on 9.11.2001 after giving an opportunity to the Government of India/Company to attempt without any further reference to any scheme.
The operating agency reported on 18.10.2002, that no
concrete proposals have been received even after republication of advertisement on 20.1.2003for change in management, in which the reliefs and concessions extended by Government of India were also mentioned. The operating agency reported that Techno Electric & Engineering Company Ltd. Kolkata has expressed an interest and had requested for exercise of due diligence. It was thereafter submitted on 31.3.2003 that no proposal has been received from the company. Since all efforts to revive the company failed, the Board forwarded its recommendation dated 4.6.2003 to this Court to wind up the company.
The petitioner a Trade Union representing 320 employees filed an Appeal No. 291 of 2003 before the AAIFR. The Appeal was dismissed on 1.7.2005. the Appellate Authority observed that though the counsel for the Government of India Ministry of Heavy Industries pleaded that Government is on the verge of finalizing its views on the revival of appellant company and had requested to stay the order of BIFR to file Government's decision in the matter, since the Government is not the appellant they can always go to the High Court where the winding up is going on, and that there was no reason to interfere with the impugned order. The review application by
the workers union which is petitioner in Writ Petition No. 77778 of 2005 was rejected as the appellate authority was of the opinion that it had no jurisdiction to recall the order.
Sri Rohit Pandey appearing for Sri Satyendra Singh refers to an application filed by Sri P.N. Rai appearing for department of Heavy Industries Government of India dated 16.3.2005 seeking six months time to take a final view in the matter. It was stated in the affidavit of Sri Anurag Srivastava, Desk Officer in the Industries Department, Heavy Industry, Ministry of Heavy Industries, Government of India as follows:
"1. (a) The National Common Minimum Programme (NCMP) of the Government stipulates that while every effort will be made to modernize and restructure the sick Public Sector Companies and revive sick industry, chronically loss making companies will either be sold off, or closed, after all workers have got their legitimate dues and compensation. Department of Heavy Industry is already engaged in an exercise for appraising the fundamentals and capabilities of each Public Sector Enterprise under its administrative control. The correct appraisal is prelude to consideration of the proposal for revival/closure/Joint Venture by the Board for Reconstruction of Public Sector Enterprises (BRPSE) set up on 6.12.2004 under the Ministry of Heavy Industries and Public Enterprises (Department of Public Enterprises) whose recommendation would then be considered by the Government for a final decision regarding the future of the PSEs. A copy of the resolution is enclosed at Annexure-I.
(b) The Government of India will shortly place a proposal on the future of TSL before the BRPSE for its recommendations. After receipt of
the recommendations the proposal will be submitted for the consideration of the competent
authority in Government. All these activities will take some time.
2. In view of what has been stated in paragraph 1(a)& 1(b) above, the Hon'ble Court is requested to allow Government of India six months more time for conveying the final stand on the future of M/S. Triveni Structural Limited (TSL), Naini, Allahabad."
He also refer to the resolution of the Government of India constituting a Board for Re-construction of Public Sector Enterprises to advise the Government all ways and means to Public Sector Enterprises in general and make them more autonomous and professional to reconsider the restructuring, financial, organizational and business and to suggest ways and means for funding such scheme etc.
More than six months have expired but there is no progress in the matter.
The State Bank of India has filed an affidavit of Sri Dheeraj Kumar Stating that the matter was pending with BIFR since 1992 and that as on date i.e. On 20th October, 2003 when the affidavit was sworn a sum of Rs. 19.96 crores is due and payable by the Company to the Bank. This amount includes interest compounded till 30.6.1993 and for a further interest added up liability is approximated to Rs. 105.31 Crores as a secured debt.
Sri Sandeep Saxena had thereafter put in appearance on28.10.2003 with an application dated 20.10.2003 stating that the matter be fixed after the appeals filed by the Triveni Structural Executive Association, Naini, Allahabad and Triveni Structural Karmchari Sangh Naini Allahabad are decided by AAIFR.
Learned counsel for the petitioner shall gave notice to Sri K.C. Sinha Assistant Solicitor General of India and Sri Navin Sinha, Senior Counsel for State Bank of India to appear in the matter tomorrow. Sri Sandeep Saxena appearing for Triveni Structural Ltd. shall obtain instruction from its Managing Director about any proposal of rehabilitation or recommendation made for reconstruction of Public Sector Enterprises pending in the matter.
He will also seek instruction whether the Central Government is still committed by the reliefs and concessions offers by it in its letter dated 13.3.2002 to the BIFR. The Managing Director shall also file the last balance-sheet of the Company in the Court.
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