ASHOK PAPER KAMGAR UNION Vs. DHARAM GODHA

JUDGEMENT

(1.) This petition under Article 129 of the Constitution has been filed by M/s. Ashok Paper Kamgar Union through its President Shri Umadhar Prasad Singh for initiating contempt proceedings against the respondents for violation of orders passed by this Court on 8-7-1996, 1-5-1997 and 31-7-2000 in Writ Petition No. 174 of 1991. Initially the respondents arrayed in the contempt petition were Shri Dharam Godha, Chairman, Nouveau Capital and Finance Ltd. Shri S. Jagadeesan, Joint Secretary, Ministry of Industry, Deptt. of Industrial Policy and Promotion, Government of India; and Shri G.S. Kang, Secretary, Department of Industry, Govt. of Bihar. Subsequently, Shri S. N. Khan, Chairman and Managing Director and Shri R.P. Chhabra, Chief General Manager, Rehabilitation Finance Department, Industrial Development Bank of India, were also impleaded as respondents.

(2.) Ashok Paper Mills was a joint sector company and its shares were held by Government of Bihar, Government of Assam and Industrial Development Bank of India (for short 'IDBI'). The company had two units; one in Darbhanga, Bihar and the other in Assam. The company became sick in the year 1988 and was referred to BIFR. A decision was taken on 15-11-1989 to bifurcate the two units and give the responsibility of administering/taking over the units to the concerned State Governments. The Assam unit was thus taken over by the Government of Assam in 1990. The Bihar unit was, however, not taken over by the Government of Bihar. The petitioner M/s. Ashok Kamgar Union then filed a writ petition under Article 32 of the Constitution in this Court praying that a direction be issued to the Government of Bihar to take over the unit. Initially, it was felt that an appropriate legislation was required to be issued and the State Government also indicated that it would issue an Ordinance. The writ petition remained pending for several years and different proposals were considered by this Court. Ultimately, in the year 1996, the Government of India moved a proposal under which a private party, namely Nouveau Capital and Finance Ltd. (for short 'NCFL') was to take over the unit and a scheme for the said purpose was formulated on 28-6-1996, which was accepted by this Court on 8-7-1996. Since the main grievance of the petitioner is that the terms of the scheme have not been complied with by the respondents, it is necessary to reproduce the main provisions thereof, which are as under:

(3.) Para 1.10 gave details of the works which were to be implemented in Phase II and the capital expenditure required to be invested thereunder was Rs. 478 crores which was proposed to be raised through equity contribution of Rs. 188 crores and Rs. 290 crores term loan from Institutions. Some of the other terms of the scheme which are relevant are being reproduced below :-