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In The Matter Of M/S Champaran Sugar Company Ltd. - MISC. COMPANY APPLICATION No. 2 of 1993 [2006] RD-AH 3799 (17 February 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).


Court No. 9


In the matter of: M/s Champaran Sugar Mills Ltd. (In Liq.)

Hon'ble Sunil Ambwani, J.

I have gone through the Official Liquidator's Report No. 41 of 2006.

Shri Anjani Kumar Misra, learned counsel for Official Liquidator informs the Court that M/s Champaran Sugar Mills Ltd. was wound up by this Court on 5.4.1994 and the Official Liquidator was appointed as Liquidator by virtue of Section 449 of Companies Act 1956.

The Company was running sugar mills at two units namely at Chakia and Chanpatia. The Chakia unit was offered for sale in proceedings of liquidation  in which the  bid of Shri Vishnu Kant Gupta for Rs. 5, 00, 00, 000/- was accepted. Ms/ Hanuman Industries India Ltd. has filed Special Appeal No. 153 of 2001 which is pending. He informs that the matter is now being listed before the bench of Hon'ble Dr. Justice B.S. Chauhan and Hon'ble Mr. Justice Dilip Gupta.

With regard to Chanpatia unit the earnest money of Shri Vishnu Kant Gupta was forfeited. He has filed Special Appeal No. 1057 of 2001 against the order. It appears that by  order passed in Special Appeal, he was allowed to enter in the unit on depositing  Rs. 25 lacs out of total sale consideration of Rs. 2,01,00,000/-. He did not deposit the  rest of the amount within the time fixed by the Court. He had filed a SLP (Civil) No. 7980/2003 against the order dated 7.3.2003, which was dismissed for want of prosecution on 11.7.2003,  after taking statement of learned counsel for the respondent company that the petitioner has not deposited the amount in terms of the order dated 8.5.2003. The order of Supreme Court is quoted as below;


"Learned counsel for the respondent states that the petitioner has not deposited the amount in terms of the order dated 8.5.2003 of this Court.

Learned counsel for the petitioner states  that they are not receiving any instructions from the petitioner. Hence the special leave petitions are dismissed for want of prosecution."

The Official Liquidator informs that Sri Vishnu Kant Gupta is neither running mill nor has deposited the amount and has taken bogus stand before the Court that demand draft sent by him was lost in transit. He has not taken any steps to recover the amount of the lost draft and to deposit the same with the Official Liquidator.

In the meantime there is  labour unrest in both these mills. The latest report sent by the caretaker of sugar mill of the Company (In Liq.) at Chakia  shows that on 13.2.2006 the  Central Ministers  and Ministers of  State  Bihar and some other prominent politicians wanted to hold a meeting inside the mill without permission of the Company Judge or the Division Bench hearing the matter. The Official Liquidator  has to deploy C.R.P.F. to prevent them from storming in the mill. The politicians have given many of assurances to the workers and farmers without giving any proposal to the Court.

The Official Liquidator is permitted to make a request to  the  Division Bench to consider to hear  both the Special Appeals. Shri A.K. Misra, learned Counsel for the Official Liquidator may point out the fact situation and this order to the Hon'ble Division Bench hearing the matter.

Shri Ashish Mohan Srivastava appearing for the Ex Workers, who have been assigned security of the Chanpatia units, points out that due to the delay  caused in these matters, six starvation deaths have taken place in the area.

Dt. 17.2.2006



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