BAGALKOT UDYOG LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition impugns the, i) amendment dated 09.01.1981 to the Cement Control Order, 1967; ii) the Cement Control (Regulation of Production) Order, 1981 dated 24.02.1981; and, iii) seeks to prohibit the respondents from acting upon the notices dated 28.06.1990 and 25/26.10.1990 demanding a sum of Rs.69,52,538.80 with interest at the rate of 18% per annum from the petitioners and upon the failure of the petitioners to pay the same, threatening to initiate criminal proceedings against the petitioners. Notice of the petition and the application for interim relief was issued and vide order dated 19.03.1991, the respondents restrained from, initiating any proceedings against or making any recoveries from, the petitioners. Rule was issued in the petition and the interim order made absolute on 18.01.1993. The writ petition thereafter was twice dismissed in default of appearance of the petitioner but restored. The petitioners have filed CM No.1462/2012 for urging additional grounds, facts and circumstances. The counsels have been heard.

(2.) IT is the case of the petitioners:

(3.) THE petitioners by way of CM No.1462/2012 (supra) seek to urge that the petitioner No.1 company was declared sick under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 on 02.06.2000; that a Scheme for rehabilitation and revival of the petitioner No.1 company was sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) on 20.09.2007; that the respondents have not put forth before the BIFR any claim under the Cement Control Order, 1967 qua which the present petition has been filed; that accordingly the rehabilitation scheme does not make any provision therefor; that even otherwise BIFR has ordered payment only of 10% of the outstanding dues, that too without any interest and in six annual installments qua all unsecured and contingent creditors and the petitioners even if failing in the present petition would be liable to pay only 10% of the principal amount of Rs.69,52,538.80.