LAXMINARAYAN INDUSTRIAL COOPERATIVE SERVICE SOCIETY LIMITED & 2 Vs. BARODA RAYON EMPLOYEES EKTA UNION & 13

JUDGEMENT

(1.) Present are letters patent appeals challenging the decision of learned single Judge dated 08.05.2015 passed in Civil Application No.4772 of 2008 in SCA No.134 of 2006, wherein following reliefs were sought:

(2.) Since common questions of facts and law are involved in these appeals, at the request of learned counsel appearing for the parties, they are heard together and following common order is passed.

(3.) Brief facts of these cases are that, as a result of recession during the years 2001 to 2010, appellant Company faced financial crisis and reached to a stage of closure. In their efforts for revival, a corporate debt restructuring scheme came to be formulated for repayment of debts and dues of workers. Accordingly, appellant company approached the Board of Industrial and Financial Reconstruction ("BIFR" for short) under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. The BIFR sanctioned the scheme on 01.06.2006 in consultation with the employees. Under the said scheme, detailed provisions came to be made for revival and rehabilitation of the appellant company. Under the said scheme, various provisions were made, including provisions for investment by promoters, investors, payment to secured creditors of the company under a comprehensive one-time-settlement plan, as provided under the Act. Under this scheme, properties of the company were identified which were to be sold in order to come out of the crisis. Accordingly, some of the assets, i.e. land of the company, have been sold and, out of the sale proceeds, outstanding debts of various credits seems to have been repaid.