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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 17151 (4 October 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.)

Hon'ble Sunil Ambwani, J.


1. Ten claims have been submitted in chambers. The cause shown is sufficient. The delay in filing these claims is condoned. Let these applications be accepted  in the office of the Official Liquidator  after checking and issuing receipt today upto 05.00 PM.


2. Let  the claims submitted by U.P. Power Corporation be considered by the Liquidation Claims Committee within 15 days. It is made clear that the amount can only be disbursed from the sale consideration after the sale is confirmed.

3. The terms and conditions of supply of electricity, after confirmation of sale with the highest bidder, will be a matter of contract between the purchaser and U.P. Power Corporation. Shri S.M.A. Kazmi, learned Advocate General informs the Court that out of the dues of Rs. 76.7470 crores upto March 1999, only Rs. 74.6799 crores were waived by the State Government. The remaining dues are the liability on the company (In Liquidation).


4. Learned Advocate General states that the State Government has, by its Government Order dated 29.9.2006, passed necessary orders with regard to waiver of working capital loan given to the U.P. State Cement Corporation Ltd. (under liquidation) along with interest. He further states that the matter, with regard to waiver of sales tax dues payable by the U.P. State Cement Corporation (under liquidation), and for exemption for next ten years, has been referred to the State Cabinet and is likely to receive its consideration within a week. With regard to royalties, the matter  has already received  consideration of the State Cabinet and necessary orders were passed on 19.9.2006.

5. The Official Liquidator informs that the highest bidder has extended the bank guarantee upto 4.11.2006.  He also informs that a committee of the name of Jan Adhikar Sangharsh Samiti/Gramwasi has made a representation to him to stop the demolitions of the constructions over company land and evictions from company properties.


6. It is made clear that the Court had not passed any order with regard to demolition of any constructions,  and that the Official Liquidator and the District authorities shall not carry out any demolitions.

7. This order, however,  will not come in the way of eviction of rank trespassers and unauthorized occupants over the company properties.

8. The company was wound up on 8.12.1999. After six years the Official Liquidator could invite bids and proposals to the Asset Sale Committee. The highest bid was accepted by the Court on 30.1.2006. The payment of last instalment is now due on 11.10.2006. More than 6000 workmen, who are on the verge of starvation and creditors are about to get their dues,  for which the claims are in the process of finalisation by the Liquidation Claims Committee. The request of the Official Liquidator, that their interest  and the larger public interest not be jeopradised by few squatters, appears to be reasonable. The Official Liquidator is not under obligation to provide alternative accommodations to rank trespassers and unauthorized occupants.

9. In the circumstances, the eviction of unauthorized occupants  shall continue as per  orders of the Court. It is, however, made absolutely clear that ex-workmen or lawful tenants of the company (In Liq.)  shall not be evicted,  until their dues are settled. They may submit their authorizations to the Official Liquidator to save their evictions.

10. The mapping and  demarcation  will continue in accordance with the directions issued earlier. The District Magistrate, Sonbhadra, will submit a time bound programme for the officers of the State Government, occupying company properties.

11. Shri Yogesh Agarwal is present in court. He will disclose the contents of this order before the Court in a PIL which is stated to be filed through him and is coming up for hearing tomorrow

12. Put up the matter again on 11.10.2006 in chambers at 02.00 PM.

Dt.4.10.2006 RKP/-


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