- (1.) In these proceedings, the Company Court is called upon to decide Applications/Objections/Appeals under Rule 164 of Companies (Court) Rules, 1959 in the matter of the report of the Official Liquidator. Liuir Pradesh adjudicating on the 'proofs of debts' and proposing to distribute the sale proceeds of the assets of the U.P. State Cement Corporation I united in liquidation) wound up by the Court on 8.12.1999 on the recommendation of Board of Industrial and Financial Reconstruction, by the workmen, secured and unsecured creditors, U.P. State Electricity Board, Employees Provident Fund and others. A total amount of Rs. 459 crores received by the Official Liquidator from the sale of the assets of the Corporation (in liquidation) including the reliefs and concessions given by the State Government is under consideration of the Court. The hearing of these objections/appeals started on 3.1.2007 and was concluded on 6.4.2007. THE BACK GROUND
(2.) 'U.P. State Cement Corporation Limited' (in liquidation) a Government Company under Section 617 of the Companies Act; 1956 with the entire paid up share capital subscribed by the Government of UP (GUP) made a reference to Board of Industrial and Financial Reconstruction (the BIFR) under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act 1985 (SICA). The reference was registered on 10.7.1992. The company had accumulated losses to Rs. 180.13 acres as against its paid up capital of Rs. 68.29 crores. The losses increased to 319.81 crores as on 31.3.1994 and to Rs. 548.85 crores as on 31.3.1998. The BIFR declared the company as 'Sick Industrial Company' on 7.10.1992 and appointed the 'Industrial Development Bank of India' (IDBI) as 'Operating Agency'. After exploring all the possibilities of rehabilitation revival, change of management and allowing opportunity to the workmen, banks and financial institutions as also considering the proposals made by Cement Manufacturing Companies, the Board formed an opinion under Section 20(1) of the SICA, to recommend, to wind up the company and for warded the reference dated 2.7.1997 to the High Court. The reference was received in the Company Section of the Court on 16.7.1997 and was registered as Misc. Company Application No. 4 of 1997.
(3.) The notices were issued on 3.9.1997 to the Company to show cause as to why the winding up order may not be passed. Shri Shiv Naih Singh, Advocate filed his appearance for the company. An Application (A-5) tiled by him was put up for orders by office report dated 15.10.1997. On the same date, the Court noticed that the workmen had preferred an appeal before Appellate Authority of Industrial and Financial Reconstructions (AAIFR) which was admitted and that the operation of the order of BIFR was stayed. The matter was adjourned for three months to enable learned Counsel for respondent-company to inform the Court the status of the appeal. The matter was thereafter adjourned from time to time. The appeal, against the order of reference dated 2.7.1997 filed on 8.8.1997, was dismissed by AA1FR on 19.2.1998.;