V.K.SHUKLA, CHANDRA TRIPATHI, JJ. - (1.) Janta Chini Mill Mazdoor Sangh Gauri Bazar, Deoria through its Secretary is before this Court, assailing the validity of the proceedings so undertaken under SARFAESI Act, 2002 wherein steps have been undertaken for sale of two Units of the Company i.e. Gauri Bazar, District Deoria and Kathkuiyan, District Kushi Nagar in following terms:- "(I) Issue a writ, order or direction in the nature of certiorari quashing the notice dated 13.01.2011 published in newspaper (Annexure No.4 to this writ petition), notice dated 03.03.2011 published in Hindi Daily Dainik Jagaran dated 08.03.2011 (Annexure-5 to this writ petition) and notice dated 15.03.2011 published in Hindi Daily Dainik Jagaran dated 16.03.2011 (Annexure-6 to this writ petition). (II) Issue a writ, order or direction in the nature of mandamus commanding the respondent no.1 to restrain from proceedings under the provision of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for realization of its alleged dues against the company. (II-A) Issue a writ, order or direction in the nature of mandamus commanding the respondent no.1 to make the payment of the worker dues which has already been quantified and adjudicated and finally decide amounting of Rs. 14.9034. (II-B) Issue a writ, order or direction n the nature of mandamus directing the Deputy Labour Commissioner, Gorakhpur to realise (execute) and distribute the amount which has already been adjudicated by him in different cases to the workers. (III) Issue any other suitable writ, order or direction which this Hon'ble Court may deem fit and proper in the circumstances of the case. (IV) to award costs of the writ petition to the petitioners".
(2.) Brief background of the litigation in question is that M/s Kanpur Sugar Works Ltd was incorporated in the year 1894 as Joint Stock Company and in 1896 a Sugar Refinery Unit was also set up at Kanpur by M/s Beg Sutherland and Company Ltd. Later on M/s Beg Sutherland and Company Ltd. merged with M/s British India Corporation Ltd. on 14.08.1960 referred to hereinafter as B.I.C. B.I.C. was having control over the Company in question. M/s Kanpur Sugar Works Ltd (hereinafter referred to as the Company) was having four units viz. Marhowrah (Bihar), Padrauna, Gauri Bazar and Kathkuiyan (U.P.). The financial condition of the Company was bad and in this background company was registered with the Board for Industrial and Financial Reconstruction, New Delhi (hereinafter referred as BIFR) bearing Case No. 99/92 under Sick Industrial Companies (Special Provisions) Act 1985 (hereinafter after referred to as SICA). The BIFR in its turn proceeded to sanction 1 st scheme viz. SS-98 under which the management of all the four units was to be transferred in favour of M/s Gangotri Enterprises Ltd. (GEL). On account of non-infusion of funds, SS-98 was declared as "Failed" by BIFR in the year 2000 and BIFR directed OA/MA(IFCI) to re-advertise for change of Management of the Company. Subsequently, BIFR sanctioned another revival scheme viz sanctioned scheme-2003 (SS-03) under which management of only two units viz Mahrowarh (Bihar) and Padrauna (U.P.) was transferred in the name of M/s JHV Distilleries and Sugar Mills Ltd (JDSML). Therefore, possession of these two units was handed over by M/s Gangotri Enterprises Ltd to M/s JHV Distilleries and as far as Gauri Bazar and Kathkuiyan units are concerned, BIFR directed that the assets of these units be sold for the payment of balance liabilities of company. In the year 2008, due to non -implementation of SS-03 fully, BIFR vide order dated 08.08.2008, declared the SS-03 as failed.
(3.) Petitioners are submitting that two units namely Khatkuniya and Padrauna have already been sold and given to JHVD SML and JVH and they have taken possession of the Company and dues of IFCI and other secured creditors have already been settled on OTS basis and secured creditors including IFCI have acknowledged of payment being made.;