DI CHINI MILL MAJDOOR SANGH THRU SECY & ANOTHER Vs. RAJENDRA ISPAT PVT LTD & 2 OTHERS
LAWS(ALL)-2017-11-19
HIGH COURT OF ALLAHABAD
Decided on November 03,2017

DI CHINI MILL MAJDOOR SANGH THRU SECY And ANOTHER Appellant
VERSUS
RAJENDRA ISPAT PVT LTD And 2 OTHERS Respondents

JUDGEMENT

- (1.) This first appeal under Section 96 of the Civil Procedure Code is directed against the order of the Civil Judge, Senior Division, Court No. 18, Deoria dated 11.10.2017, whereunder issue no.1 with regards to the maintainability of the suit has been decided against the plaintiff and it has been held that the suit is not maintainable. The plaintiff is not satisfied, he has therefore, approached this Court by means of the instant appeal. Facts relevant for deciding the present appeal borne out from the records are as under:
(2.) M/S Cawnpore Sugar Works Limited, Gauri Bazar, Deoria had obtained loan from Industrial Financial Corporation of India (hereinafter referred to as IFCI). From the records which have been made available to the Court, it is apparent that the IFCI was a secured creditor and the properties of M/s. Cawnpore Sugar Works Limited, Gauri Bazar, Deoria were secured for the financial assistance obtained. Proceedings were initiated under the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act) against the units at Gauri Bazar, Deoria with which we are concerned alongwith another unit of Kathkuiyan.
(3.) Janta Chini Mill Mazdoor Sangh and others filed writ petition no. 20805 of 2011 challenging the proceedings initiated under the SARFAESI Act. The writ petition was decided under the judgement and order dated 23.8.2016. Amongst others the writ court specifically took note of the fact that the properties of the sugar mill have already been sold and that the sale proceeds have already been utilized for liquidating the dues of the creditors including IFCI. The writ court took note of the fact that the sugar factory has been sold under the SARFAESI Act in favour of the Rajendra Ispat Pvt. Ltd. It was specifically recorded that the benefit of the judgement in the case of Vishal N. Kalsaria Vs. Bank of India, 2016 3 SCC 762 cannot be extended to the petitioners, which was the union of employees working in the Mill, which had been so sold. The other judgements relied for the purpose of protecting their right of possession by the Mazdoor Sangh, were specifically considered and the matter was decided against the employees represented by the Sangh. The said judgement also provided that it shall be open to the petitioners to proceed with the recovery of their dues (wages etc.), if any, in accordance with law. The Court directed that the purchasers of the unit shall be provided adequate protection for the lifting of the scrap by the authority concerned and all possible assistance as admissible in law be rendered to them by the respondents.;


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