CARON LTD Vs. REGIONAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) Heard learned Counsel appearing on behalf of the Petitioners and learned Counsel appearing on behalf of the respondents.

(2.) Brief facts which are relevant for the purpose of deciding this petition are as under:

(3.) As a result of financial and economical breakdown of the company, a reference was made under Section 15(1) of the Sick Industrial Companies Act, 1985 with the Respondent No. 3. The reference was registered as Case No. 74 of 1998. On 18th May, 1998, the respondent No. 2 declared the petitioner No. 1 - Company as a Sick Industrial Undertaking in terms of Section 3(1)(o) of the SICA, 1985. Further, order was passed directing the petitioner No. 1-Company not to alienate its assets in terms of Sections 22-A of the SICA, 1985. Thereafter the Petitioner No. 1 Company filed proposals for rehabilitation and One Time Settlement was made and a Memorandum of Understanding was entered into with the recognized union on 30.4.2001 and also with landlord of one of the tenanted premises situated at Jogeshwari (W). The respondent No. 2 further passed an order dated 28th March, 2003 for winding up the Petitioner No. 1 - Company under Section 20(1) of the SICA, 1985. Against this order an appeal was preferred by the Petitioner No. 1 - Company and said appeal is pending before the Respondent No. 3. In the meantime on 13.6.2003, the Respondent No. 1 issued show cause notice why the petitioners should not be arrested, Since post of the Chairman of Respondent No. 4 was vacant, the petitioners filed Writ Petition in the Delhi High Court and permission was granted by the Delhi High Court to the Petitioners to surrender the tenancy rights and directed that the amount received by the Petitioner No. 1-Company be deposited with the Bank of India in "No Lien Account".