PROJECT CONSTRUCTION Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE employees of Project Construction Organisation (for short, 'PCO') and its Union being a unit of subsidiary Company of Industrial Development Corporation Orissa Limited (for short, 'IDCOL') have challenged the dis -investment of the entire share by the Government in favour of a private company, i.e., one M/s. Varsha Fabrics Private Limited. The Hirakud Industrial Works (IDC) Officers Association in W.P.(C) No. 3354 of 2005 have also claimed the right of being heard before dis -investment for adequate protection.

(2.) THE grievance of the employees of Project Construction Organisation is that it was set up in the year 1978 as a unit of IDCOL and it was undertaking the works of erection, testing commissioning, ana transmission of electric lines under the State Electricity Board and agencies within and outside the State of Orissa. Thereafter the PCO was merged with Hirakud Industrial Works (for short, 'HIW') on 30.6.1986. The employees of the sick unit (HIW) were almost depending on the profit of the Project Wing (For short, 'PW') after merger. The employees tried their best for separation of the PW (Annexures -3, 4 and 5), but could not succeed. They could know regarding the dis -investment of shares to be transferred in favour of a private company from Annexure -6 dated 30.8.2004. According to the petitioner, the Project Wing being a profit making unit it should not be sold and be given to the petitioner -employees on lease basis. They have also claimed violation of natural justice of not being heard prior to the decision of dis -investment. It ha been averred that the valuation of the assets of Hirakud Industrial Works Limited (for short, 'HIWL') is considerably low being Rs. 5.25 crores and actually the worth of HIWL is Rs. 200 crores with the railway lines. According to them, the project Wing can be very well separated while dis -investing the other two units, i.e., HIW and Hira Cable. In so many words the petitioners have called the decision of dis -investment of the Government of Orissa to be capricious, arbitrary, illegal and, therefore, the opposite parties should be directed not to sell HIWL and, in alternative, to hand over the Project Wing to them on lease. The prayer of officers of HIWL is also similar to the employees of PW.

(3.) THERE is no dispute that the Project Construction Organization (PCO) was an unit of IDCOL which was looking after transmission of lines and sub -stations and was merged with Hirakud Industrial Works as its project unit in the year 1986 in order to give a combined effect of their activities, i.e., supply and erection. As the progress was satisfactory and for the demands of economical liberalization, HIW was converted into a limited company with the nomenclature of Hirakud Industrial Works Limited as a wholly owned subsidiary of IDCOL being incorporated under the Companies Act, 1956 on 18.1.1993 with its registered office at Hirakud in the district of Sambalpur. The function of HIW was fabrication of tower and sub -station structures. The subsidiary was successfully executing valuable orders of State Electricity Board, Power Grid Corporation, Railways, etc. Its project wing has various divisions in different parts of Orissa to execute the erection orders. Hira Cables Works (for short, 'HCW') was a leading manufacturer of AAAC and ACSR conductors. Since this unit was producing wire, it was merged in the subsidiary company HIWL with effect from 1.2.1997. So, the subsidiary company HIWL functions with the aforesaid three units.