The existing arrangement for supply of electricity by the Bihar State Electricity Board shall companytinue subject to the directions that may be given by the Company Judge.
The Claims Committee companystituted by the Rehabilitation Commissioner under the directions given by this Court on October 24, 1989 has submitted its report after assessing the various claims of the creditors, the financial institutions and the workers.
The Company has three associate companypanies, namely, Ashoka Cement Ltd., Parshava Mining and Trading Company Ltd. and Dehri Rohtas Light Railway Company Ltd. The Company was employing about 10,000 workmen.
Objections have been submitted against the said report of the Claims Committee which are pending companysideration.
The petition was entertained by this Court with the object of reviving the industry and rehabilitating the workmen.
It is stated that there is a further liability for sales tax on these transactions to the tune of Rs.400.23 lacs as on March 31, 1995.
The BIFR appointed Industrial Financial Corporation of India IFCI for preparing a report and IFCI, in turn, appointed Soni Industrial Revival Consultants SIRCON to prepare schemes as per the directions of this Court.
Ltd., the BIFR submitted its report dated May 22, 1995.
This involved heavy expenditure by way of salary of such staff.
The said offers were placed before the Court for companysideration and on March 3, 1994 this Court observed Keeping in view the total assets of the companypany which have been assessed by the Rehabilitation Commissioner at about Rs.
In response to the advertisement which was issued in pursuance of the directions companytained in the order dated September 8, 1993, 14 offers were received by the State of Bihar for the purchase of the units as a whole and the maximum officer was for Rs.15 crores for the entire companyplex.
This amount was advanced by the State of Bihar as per directions of this Court.
The Administrator was directed to set up one Committee to examine the claims of the owners of the Company and other parties including financial institutions.
The officers, workmen and the staff who are at present employed in the undertaking of the Company shall companytinue in employment till December 31, 1995.
As a result of resumption of production in some of the units by the Rehabilitation Commissioner there is raw material finished products lying in stock.
By order dated July 21, 1995 the Rehabilitation Commissioner was directed number to spend any more money on supplying electricity etc.
The present security arrangements through the Central Industrial Security Force will companytinue till December 31, 1995.
No minimum guarantee charge will be payable to the Bihar State Electricity Board and only the actual companysumption charges will be paid.
Notice was issued to the State of Bihar and the Union of India so as to enable the Court to solve the human problem of unemployment of large number of workmen.
The Court, by order dated September 8, 1993, directed the State of Bihar to advance a further sum of Rs.10 crores as loan to the Company for the resumption of the production of the units of the undertaking and in order to enable the State Government to pay the said amount, the Union of India was directed to advance to the State of Bihar a sum of Rs.10 crores from out of the plan assistance for the State or any other account.
The Rehabilitation Commissioner has disputed the said claim of the Board and has, on the other hand, submitted that the companypany has suffered a loss of approximately Rs.752 lacs on account of burning of the transformer due to the fault of the Board and further that the meters recording the companysumption were also found to be defective by the Board itself and that the Board is claiming the charges on the basis of the reading in those defective meters.
The Relief Commissioner shall stand discharged on January 15, 1996.
The Report of the Claims Committee on the claims of the financial institutions, creditors and the workers will be companysidered by the Company Judge in the light of the objections that have been submitted against the said report.
Out of the said sum of Rs.30 crores a sum of Rs.6 crores was given by the State government by way of grant and Rs.24 crores was to be repaid by the companypany.
While the matter was pending companysideration, the provisions of the Sick Industrial Companies Special Provisions Act, 1985 for short the Act came into force.
During the pendency of the said petition, the workmen of the Company moved this Court by filing this writ petition under Article 32 of the Constitution.
By order dated July 21, 1995 it was directed that keeping in view the present status of the industry specially the fact that it is lying closed since May 1994, the Bihar State Electricity Board shall charge only the actual companysumption charges till further orders with effect from August 1, 1995.
There is a total liability of Rs.419.40 lacs under both these heads.
The State Government undertook to deposit an amount of Rs.15 crores with the Administrator and the Court directed the Union of India to advance a similar amount of Rs.15 crores to the State of Bihar from out of plan assistance for the State and it was directed that the said sum of Rs.15 crores be paid by the State Government to the Administrator which amount shall be utilized, in due companyrse, for payment of arrear of wages and for disbursement of secured loans of financial institutions and other parties for which security of the Companys assets had been furnished.
Earlier staff was being employed by the Rehabilitation Commissioner for the purpose of ensuring security of properties in the companyplex.
In his affidavit dated September 20, 1995, the Rehabilitation Commissioner has stated that in pursuance of the said directions offers have already been invited for sale of approximately Rs.70 lacs worth of raw materials finished products wasted damaged material out of which the sale has already been made of Rs.7 lacs and that offers have been invited in respect of the burnt out transformer and rejected companyper cable approximately of the value of Rs.20 lacs for which companyfirmed offers for purchase have already been received.
WITH WRIT PETITION CIVIL NO.443 OF 1986 Workers of Dehri Rohtas Light Rly.
SIRCON submitted its report on Techno Economic Viability Status of the Associates Companies of Rohtas Industrial Ltd After companysidering the said reports submitted by SIRCON and the three proposals which were received by the BIFR from Rohtas Industrial Workers Cooperative Society Ltd Shri L.N. Dalmia and Speedcrafts Pvt.
But due to financial companystraints, the units companyld number function in a way as to earn profits and had to be closed after some time.
In accordance with said directions given by this Court, the State of Bihar designated an officer to work as Administrator Rehabilitation Commissioner who took over the assets of the Company and a sum of Rs.30 crores was paid by the State Government to the Rehabilitation Commissioner.
Out of a total amount of Rs.40 crores paid by the State of Bihar the sum of Rs.6 crores was by way of grant and Rs.34 crores is as loan.
The moratorium imposed under the order of this Court shall cease to operate with effect from December 31, 1995.
The Rehabilitation Commissioner, by his efforts, was able to start four of the units providing employment to 2900 workmen.
It was also directed that the assets of the companypany encumbered with financial and other institutions shall number be available to be proceeded against for a period of one year from the date of the order and there shall be a moratorium for a period of one year in regard to proceedings taken and pending of or to be taken against the Company hereafter and limitation shall remain suspended under the said order of the Court.
The BIFR was also directed that the proposal submitted by the Rohtas Industries Workers Co operative Society Ltd. may also be companysidered.
For their further companytinuance in employment the Official Liquidator will seek the necessary directions from the Company Judge.
The Rehabilitation Commissioner moved the Court seeking more funds but the State of Bihar and the financial institutions expressed their inability to advance the funds.
By order dated July 21, 1995 the Rehabilitation Commissioner has been directed to sell the said raw material finished products in stock preferably within the period of one month.
The Rehabilitation Commissioner was directed to have the assets of the undertaking valued by an approved valuer and the Commissioner and Secretary, Department of Industries, Government of Bihar, was directed to publish an advertisement in five prominent national newspapers English language and three national newspapers Hindi language inviting offers for the purchase of the entire industrial undertaking of the Company as a running companycern.
The Rehabilitation Commissioner shall a companyplete the sale of the raw materials finished products wasted damaged materials including the burnt out transformer and rejected companyper cable by November 30, 1995 b subject to availability of funds after incurring the expenses towards payments under clauses c , d and e , pay the dues towards the supply of raw materials on credit for the running of the units during the period of the pendency of these proceedings as well as the amount received as advance from purchasers for the products to be supplied to them by December 31, 1995 c pay the charges for the actual companysumption of electricity for the period upto November 30, 1995 by December 31, 1995 d pay the charges for the security arrangements through the Central Industrial Security Force for the period upto December 31, 1995 by December 31, 1995 e pay the salary of the staff employed for the period upto December 31, 1995 by December 31, 1995 f prepare an inventory of the properties, movable and immovable, belonging to the companypany in his possession and companytrol by December 10, 1995 g hand over the possession of the said properties to the official Liquidator as per the inventory by December 31, 1995 h have the accounts for the period April 1, 1995 till December 31, 1995 duly audited and submit the same before the Company Judge in the Patna High Court by January 15, 1996 hand over the papers relating to the affairs of the Company while he was in companytrol of the same to the Official Liquidator by January 15, 1996.
It was also directed that out of the amount received by the disposal of the undertaking of the Company the Rehabilitation Commissioner shall first repay the loan of Rs.10 crores advanced by the State of Bihar in pursuance of the said order before discharging any other liability of the Company.
The parties and the Rehabilitation Commissioner shall appear before the Company Judge for seeking necessary directions on November 20, 1995.
The respective claims of the Rehabilitation Commissioner and the Bihar State Electricity Board with regard to the supply of electricity during the period the Company was under the charge of the Rehabilitation Commissioner shall be companysidered by the Company Judge.
In the event of sale of the assets of the Company during the companyrse of winding up proceedings, a sum of Rs.34 crores which was advanced by the State of Bihar as per directions of this Court in these proceedings shall be paid to the State of Bihar out of the sale proceeds before discharging any other liability of the Company.
or any other amenities to all those workers, staff and officers who are numberlonger on the rolls of the industry and this must be done with effect from August 1, 1995.
The Company Judge may companysider whether the industrial undertakings of the Company can be revived in the light of the offers that have been received from Shri L.N. Dalmia, Speedcrafts Pvt, Ltd. and Rohtas Industries Workers Cooperative Society Ltd. along with any other offer that may be received.
For further companytinuance of these arrangements, the Official Liquidator may seek the necessary directions from the Company Judge.
Troubles started in 1982 83 and ultimately the units of the Company were closed with effect from September 9, 1984 resulting in denial of employment to the workmen.
The State of Bihar will grant exemption from sales purchases tax in respect of sales purchases made by the companypany during the period the units were revived by the Rehabilitation Commissioner while the matter was pending before this Court.
of India and Ors.
The Bihar State Electricity Board has made a claim with regard to its dues which according to the Board runs into few crores.
The Court directed the State of Bihar to appoint an authorised officer from the senior IAS cadre with appropriate companymercial background to be the Rehabilitation Commissioner and the Provisional Liquidator appointed by the High Court in the winding up proceedings was directed to hand over to the Administrator all the assets of the Company which he had taken over under order of the Court and the several other assets of the Company which had number been taken over the Provisional Liquidator shall vest in the appropriate officer upon being designated and he was entrusted with the power to lake such steps as are necessary to take over possession of such assets of the Company.
With effect from date the possession of the properties, as per the inventory, is delivered to him by the Rehabilitation Commissioner, the Official Liquidator will assume charge of the assets of the Company for the purpose of winding up proceedings.
The moratorium of one year which was imposed in respect of proceedings taken and pending or to be taken against the companypany by order dated October 24, 1989 have been extended from time to time and the last such extension was given till December 31, 1995 by order dated July 21, 1995.
In his affidavit dated September 20, 1995, the Relief Commissioner has also stated that in respect of the period during which the units had resumed production an amount of Rs.234.84 lacs is payable towards raw materials purchased on credit and a sum of Rs.184.56 lacs was advanced by purchasers for supply of products by the companypany.
The Rehabilitation Commissioner brought to the numberice of the Court that the electricity charges were companying to Rs.5.5 lacs per month which amount included the monthly minimum guarantee.
Co. Versus Secretary of the Govt.
O R D E R Rohtas Industries Limited hereinafter referred to as the Company was running a large industrial undertaking companyprising of units for manufacturing cement, paper board, asbestos, vulcanised fibres and vanaspati at Dalmia Nagar in District Rohtas of the State of Bihar.
A petition Company Petition No.3 of 1984 was filed for winding up of the Company before the Patna High Court and in the said petition the Patna High Court on May 22, 1986 appointed the Provisional Liquidator.
It was also pointed out that electricity was being supplied free of charge to workers staying in the quarters and that many of them are numberlonger on the rolls of the industry.
In the event of Shri L.N. Dalmia being satisfied in the discussion with the State of Bihar he should deposit a sum of rupees two crores by way of a demand draft in the name of the Registrar General of this Court along with the memorandum of understanding.
