DTC EMPLOYEES SUPERANNUATION (PENSION) TRUST AND ORS. Vs. U.P. CO-OP. SPINNING MILLS FEDERATION LTD. AND ORS.

JUDGEMENT

(1.) This is a suit for recovery of Rs. 6,79,11,306/ - along with pendente lite and future interest with effect from 01.09.2004 till realisation of the same.

(2.) Defendant No. 1, i.e., UP. Co -operative Spinning Mills Federation Ltd. has been proceeded ex parte on 29.10.2013 and defendant No. 2, i.e., Govt. of Uttar Pradesh has been proceeded ex parte on 31.07.2013. The plaintiff has led ex parte evidence.

(3.) Plaintiff No. 1 is a registered Trust, i.e., DTC Employees Superannuation (Pension) Trust (hereinafter referred to as 'the Trust'). The Trust was constituted for the purpose of disbursement of pension to the retirees covered under the DTC Pension Scheme. The Trust holds the pension fund of the employees, to be put to permissible use and investment so as to generate optimum returns therefrom. The Trust is required to make investments and allocation of the funds available, with varied Central Government approved schemes in compliance of the directions/instructions issued by the Ministry of Labour, Government of India vide its notification dated 19.6.1998. It is stated that defendant No. 1 company, while handing its proposal dated 25.08.1998 to the plaintiffs, represented itself to be an apex co -operative society set up by the Govt. of Uttar Pradesh, consisting of eleven co -operative spinning mills located in various parts of the State and that 95% of its shares were held by the State Government. It was further represented that for the Financial Year 1996 -97, the company has earned a net profit of Rs. 10.00 crores, but in FY 1997 -98 its profit had arisen to Rs. 14.55 Crores by December, 1997 itself.