Sudhir Narain, J. - (1.) The petitioners seek a writ of certiorari quashing the order of the Board for Industrial and Financial Reconstruction (hereinafter referred to as "the Board") recommending to this court for winding up of U. P. State Cement Corporation Ltd. (hereinafter referred to as "the Corporation"), by its order dated July 2, 1997, and the orders of the Appellate Authority dated February 19, 1998, dismissing the appeal against the said order. The petitioners have further sought mandamus against the State of Uttar Pradesh to contribute the required funds for the revival of the Corporation and make payment of all the dues to the employees of the Corporation and to provide alternative employment to them in case the recommendation of the Board is accepted by this court.
(2.) The facts, in brief, are that the Corporation was originally functioning as an undertaking of the U. P. Government. It was converted into a public limited company in the year 1972. It is manufacturing cement. It has three units. The first unit was set up in the year 1954, at Churk. In 1972, another unit was set up at Dalla with an installed capacity of 4 lakhs t.p.a. Both these units manufacture cement under wet processing technology. In the year 1974, the IDBI along with other financial institutions and banks sanctioned financial assistance to the Corporation to set up a dry process cement plant with clinkerisation unit at Dalla of capacity of 8 lakhs t.p.a. and cement grinding unit at Chunar for manufacture of Portland Blast Furnace Slag Cement of 16.8 lakhs t.p.a.
(3.) The Corporation went on accumulating losses. In September 1991, the loss amounted to Rs. 180,13 crores while its paid up capital was Rs. 68.28 crores. On March 31, 1994, the loss was Rs. 319.81 crores and share capital and reserves were Rs. 68.29 crores. On March 31, 1998, the loss further increased to Rs. 548.85 crores.;