MADRAS LABOUR UNION, STRAHANS ROAD Vs. BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION, JAWAHAR VYAPAR BHAVAN

JUDGEMENT

(1.) The writ petitioners are Madras Labour Union and B & C Mills Staff Union, filed this writ petition for a direction to the first respondent-Board for Industrial and Financial Reconstruction, to transfer the petition dated 14.5.2014 in Case No.48 of 1993 and all connected records to the second respondent-National Company Law Tribunal, Chennai Branch forthwith and direct the said Tribunal to dispose of the above petition with all connected petitions after giving sufficient opportunity to the petitioners within a time frame.

(2.) The factual matrix required to be considered with relevance to the prayer sought for in this writ petition is that the third respondent-Company became a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985), in the year 1993. Consequently, the third respondent-Company was declared as a sick company under the said Act in Case No.48 of 1993. Sincere attempts were initiated by the first respondent-Board to rehabilitate the third respondent-Company and the entire efforts taken went in vain. A winding up notice was issued and at that point of time, the third respondent-Company filed WP No.14856 of 2003, challenging the order passed by the first respondent-Board and the Appellate Authority. The High Court by order dated 24.11.2003 framed a Scheme and directed the first respondent-Board to sanction the said Scheme under Section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as 'SICA Act').

(3.) The learned Senior Counsel, appearing for the writ petitioners, Mr.N.G.R.Prasad strenuously contended that the third respondent-Company was directed to establish a Textile Mill in Kancheepuram District, within a period of 18 months from the date of order as per the sanctioned Scheme and the same would provide employment to at least thousand workers who left without job. The Scheme was sanctioned by the first respondent-Board by an order dated 23.10.2003. However, the third respondent-Company did not implement the statutory Scheme of establishing a new Textile Mill in Kancheepuram District. The learned Senior Counsel contended that the writ petitioners filed an application on 14.5.2014 for a direction to implement the Scheme and to monitor the same. M.A.No.325 of 2014 filed to expedite the hearing of the application dated 14.5.2014 was also dismissed for non-prosecution on 4.8.2014. Thereafter, the writ petitioners filed WP No.34923 of 2015 and this Court passed an order on 13.10.2015, directing the first respondent-Board to consider the application dated 14.5.2014 on merits within a period of eight weeks from the date of receipt of the copy of the order. Though number of petitions were filed in this regard, it is relevant to point out that the SICA Act was repealed by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 (Act 1 of 2004).