DUMRAON TEXTILES LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner prays for a direction to the respondent authorities to grant exemption from payment of Electricity Duty as well as from payment of A.M.G. charges for a period of seven years from the date of recommencement of production upon rehabilitation on 31.3.2007. Besides this, the petitioner also sought for a direction for grant of benefit under the Industrial Policy in totality.

(2.) Before I take up the grounds on which the petitioner has sought his reliefs, it would be necessary to notice the facts of the case in brief. The petitioner is a registered company under the Companies Act and is engaged in production of cotton and staple fibre yarn. The petitioner unit was started in the year 1968 with installed capacity of 12320 spindles which was subsequently increased to 25960 spin-dies by 1981. Gradually, the net worth of the Mill started eroding and on 31.3.1999, the petitioner made a reference to the Board for Industrial and Financial Reconstruction (hereinafter referred to as "the BiFR") under the provisions of the Sick Industrial Company (Special Provision) Act, 1985 giving rise to BIFR Case No. 52/ 2000. The unit was declared sick on 19.7.2000 and Punjab National Bank was appointed as Nodal Agency for possible rehabilitation of the unit. A draft rehabilitation scheme was prepared on 18.2.2002 which was sanctioned by the BIFR on 6.8.2002. The hearing before the BIFR proceeded from time to time in which the representatives of State Government and the Bihar State Electricity Board also participated. A modified rehabilitation scheme was prepared and circulated and finally approved by the BIFR. on 10.1.2008 and forwarded to the petitioner on 24.1.2008.

(3.) After series of negotiation, an agreement was arrived for restoration of power supply and settlement of the disputed dues. As per arrangement worked out in August, 2008 the electric supply was restored on payment of 10% of the demand due e.g. Rs. 48,53,739/- besides payment of additional sum of Rs. 50,000/-. It was also agreed that with regard to the settlement of old disputed dues, a Committee consisting of four officers of the Board and one representative of the company would be constituted.