BIHAR STATE SMALL INDUSTRIES Vs. STATE OF BIHAR

JUDGEMENT

(1.) THESE winding up petitions have been taken up for consideration in the light of the request of the Hon ble Supreme Court contained in order dated 18.5.2007, passed in i.A. Nos. 8 and 11 in Writ Petition (Civil) No. 488 of 2002.

(2.) M /s Bihar State Small Industries Corporation Ltd., Bihar, Patna, M/s Bihar State Pharmaceutical and Chemical Development Corporation Ltd., Bihar, Patna and M/s Bihar State Agro -Industries De velopment Corporation, Patna were incorporated as a State Government Company within the meaning of Sec. 617 of the Companies Act with their registered offices situate at Patna in the State of Bihar. As the financial condition of the aforesaid three Government Companies as also other Government Companies became precarious and they were unable to discharge their routine liability, such as, payment of salary and wages to their employees, a Full Bench of this Court in the case of Manikant Pathak & Ors. vs. The State of Bihar & Ors., reported in 1997(1) PLJR 664 directed the State Government Companies unable to pay salaries/wages to its employees within a period of four months to remove political Chairmen from their Board of Directors and further to initiate action for winding up of the Companies. None of the aforesaid Government Companies were in a position to generate resources to meet the expenses of salary and wages. Consequently, in compliance of the directions of this Court, not only the political Chairmen were removed from the Board of Directors but the State Government, as a share -holder of the Companies directed the Companies to take a decision in respect of winding up, whereafter the Board of Directors of M/s Bihar State Small Industries Corporation Ltd., took decision to wind up the Company in their meeting held on 16.5.1998 which decision was also endorsed by the shareholders in their annual general meeting held on 31.12.1998. Similar decisions were also taken in the case of M/s Bihar State Pharmaceutical and Chemical Development Corporation Ltd., as has been stated in paragraph 9 of the Company Petition No. 13 of 1999 but no details thereof has been given in the petition. In the case of M/s Bihar State Agro -Industries Deveiopment Corporation also the State Government, as a share -holder, took decision to wind up the Corporation, as is. evident from paragraph 7 of Company Petition No. 16 of 1999.

(3.) VARIOUS workers as also the employees ' union of M/s Bihar State Small Industries Corporation Ltd., by filing objection petitions, have opposed the prayer to. wind up the aforesaid three Government Companies as according to them the companies have assets not only in the existing State of Bihar/Jharkhand but also at New Delhi, list whereof indicating valuation of the assets amounting to Rs. 5305 lacs and 4523.75 lacs has been placed on record as indicated in Annexure -2 to LA. No. 5618 of 2006 "filed in Company Petition No. 5/99. With reference to letter dated 18.9.2006 and 9.11.2006 issued by the Incharge Sales Manager of Ambapali Bihar Emporium, a unit of M/s Bihar State Small Industries Corporation Ltd. located at New Delhi, as contained in Annexures 3 and 3/1 of LA. No. 5618 of 2006 it is submitted that the said Sales Imporium is earning profit as also meeting the part of the salaries of other employees and with reference to the averments made in the objection petitions including I.A. No. 5618 of 2006 it is submitted that M/s Bihar State Small Industries Corporation Ltd., is viable and ought not to be wound up.