NANDGANJ SIHORI SUGAR CO LTD THRU HARI PRASAD EXEC DIRECTOR Vs. EMPLOYEES PROVIDENT FUND APPELLATE TRIBUNAL LAXMI NAGAR ANR

JUDGEMENT

(1.) The petitioner before this Court is a subsidiary mill of U.P. State Sugar Corporation Limited and has two units, one at Daryapur, Raebareli and another at Nandganj, Ghazipur. The petitioner-Company was manufacturing sugar by vacuum pan process and has suffered huge losses, which resulted in a Reference being made to the Board of Industrial and Financial Re-construction, New Delhi in Case No. 601 of 1996. The proceedings of the Board dated 18.03.1996 have been filed as annexure-3 to the petition which show that as per its balance sheet as on 31.10.1992, the Company's accumulated losses aggregated to Rs.4533.33 lakhs and had completely wiped out its net worth of Rs.2311.22 lakhs. The reason indicated by the Company was inadequate availability of sugarcane and higher cane prices fixed by the Government of U.P. The Board considered the Reference for declaration as a Sick Industrial Company in terms of Section 3 (1) (o) of the Sick Industrial Companies (Special Provisions) Act, 1985. The operating agency was appointed, namely, the I.F.C.I. which was to consider the measures specified under Section 18 and 19 of the Sick Industrial Companies Act in relation to the Company and to prepare a Rehabilitation Report keeping in mind the guidelines fixed by the Board. One of the guidelines mentioned was to take into account the reliefs and concessions expected from the State Government, Provident Fund and Employee State Insurance Authority etc., which are covered by the existing policy guidelines of the concerned authorities.

(2.) The Operating Agency came to a conclusion that the Company could not be revived and the State Government in the light of such conclusion stopped the crushing activity of the industrial unit of the petitioner Company at Daryapur, Raebareli since January, 2009. The Voluntary Retirement Scheme was floated and all the employees, permanent and temporary of Daryapur, Raebareli unit as well as Ghazipur unit which had already closed down in the year 1998 were paid their dues.

(3.) During the course of the argument, learned counsel for the petitioner has pointed out that Daryapur, Raebareli Unit of the Company has been sold for a sale consideration of Rs.1/- only to the State Government for establishment of the All India Institute of Medical Sciences, Raebareilly.