TOSHNIWAL BANDHU Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE claim of the petitioner to a sum of Rs. eight lakhs and odd is not disputed by the respondent Mill, namely, bihar Spun Silk Milk, Bhagalpur an Unit of the Bihar State Industrial Development Corporation Ltd. The Unit has no money to discharge its liability, nor does the Corporation have enough fund to discharge liabilities incurred by the Mills. The Government is able to advance any fund because the government itself does not have sufficient fund to meet the liabilities of so many sick units in the State.

(2.) THE petitioner wants us to take action under the contempt of Court's Act against the Opposite parties for not having complied with the order of this Court directing them to make payment of admitted dues. To this the reply of the Opposite Parties is that though they wish to pay the dues to the petitioner, since no funds are available, they are helpless in the matter. There is no wilful disobedience of the order of this court, and non-compliance with the order of this court is on account of factors beyond their control. They cannot, therefore, be held guilty of contempt of Court.

(3.) THERE is force in the submission urged on behalf of the Opposite parties because from the facts and circumstances of the case, it is quite apparent that they are helpless in the matter. The Government of bihar, however, must take up this matter in all seriousness because large number of sick Units of the Government of Bihar have created a peculiar problem, not only for persons dealing with such Units, but also for this Court. In arge number of cases employees of such Units come to this Court for payment of salary. The Companies/corporation are neither n a position to run the units nor are they in a position to close the units, because closure will involve retrenchment of the employees, and they did not have enough funds even to pay retrenchment compensation. A situation has been created under which no party will get any relief but the liabilities will keep on mounting. In this circumstance, it is now for the government to take a decision to close down these Units once for all. Such financial liabilities may bei met by selling of the assets which these companies may possess. Alternatively, it is open to the petitioner to take steps under the Company law for liquidation of the company and/or to seek appropriate relief from the Company court, in case, liquidation proceeding is pending before any court.