- (1.) This special appeal has arisen from a judgment and order of a learned Single Judge dated 3 April 2015. By the judgment impugned, the learned Single Judge has set aside an order dated 31 December 2008 passed by the Additional Labour Commissioner, withdrawing recovery certificates that were issued under the U P Industrial Peace (Timely Payment of Wages) Act, 1978(act).
(2.) The first respondent which was engaged in the manufacturing of blended yarn and fabrics with a factory at Kanpur, declared a lock out on 15 May 1989. On 17 May 1989, the State Government issued a notification under Section 3 of the U P Industrial Disputes Act, 1947, banning the lock out. On 19 December 1990, a further notification was issued by the State Government imposing a permanent ban. On 21 June 1991, the Additional Labour Commissioner, Kanpur issued twenty two recovery certificates under Section 3 of the Act for the alleged recovery of wages due and outstanding to the workmen. The appellant filed a writ petition challenging the order banning the lock out in which an interim order was passed staying the arrest of the Directors. The appellant also filed a separate writ petition challenging the recovery certificates in which an interim order was passed on 1 November 1991, staying further proceedings for recovery in pursuance of the recovery citation.
(3.) In the meantime, the appellant had moved the Board for Industrial & Financial Reconstruction(BIFR) under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985(SICA), resulting in the registration of its case as Case No.81/90. A scheme for the revival of the Company was sanctioned under Section 18 (4) of the SICA on 12 November 2002. The sanctioned scheme envisaged various concessions including in clause 8.03 on the part of the State Government. Under clause 8.03 (c) of the sanctioned scheme, the following concessions were envisaged on behalf of the State Government: "(c). To withdraw, cancel, drop all cases, proceedings, attachments, show cause notices, recovery certificates/notices/citations and the ban order issued by the State Govt./Local Authorities in relation to lock out and any statutory, power or labour dues and waive all charges and penalties.";