SARAOGI OXYGEN LTD. Vs. STATE OF BIHAR THROUGH THE SEE RETARY-CUM-COMMISSIONER, INDUSTRIES DEPARTMENT, GOVERNMENT OF BIHAR, NEW SECRETARIAT

JUDGEMENT

(1.) THE petitioner by this writ application Challenges the order of the Managing Director of the Bihar State Credit and Investment Corporation Limited (hereinafter referred to as BICICO) dated 13.2.2006 (Annexure -1), by which petitioner 'ssettlement under the BICICO 'sOne Time Settlement Scheme -2004 (OTS -2004) was cancelled and petitioner was required to pay substantial additional amount under the said scheme under general categorization.

(2.) BICICO has appeared and filed a counter affidavit and two supplementary counter affidavits and rejoinder thereto has been filed, as such, with consent of parties this writ application is being heard and disposed of at this stage itself. question that appears to arise in this case is whether BICICO having accepted the offer of the petitioner, encashed cheques of worth Rs. 61,69,993/ - and permitted the petitioner to sell hypothecated properties for making the aforesaid payment, can it now retrace and retract from its actions rejecting the said transaction altogether and forcing the petitioner to pay further substantial amount for one time settlement of dues.

(3.) THE facts are not much in dispute, Petitioner had established a small scale industry with funds made available by BICICO. BICICO is a statutory Corporation under the State Financial Act, 1951. Petitioner had a total disbursement under two accounts of Rs. 64.32 lakhs from BICICO. The industry was for bottling industrial gases including Oxygen, which process is greatly dependent on continuous quality of power supply. Right from the beginning, when the industry was set up, it suffered greatly on account of power shortage and consequential dispute with the Bihar State Electricity Board, whereby, ultimately, electricity supply to the petitioner company was discontinued. The petitioner -Company became sick and non - operational. It was unable to pay and liquidate its liability towards BICICO. It accordingly applied to the State Government for being considered as a sick industry for the purposes of rehabilitation. Its application to the Directorate of Industry, Government of Bihar was, inter alia, accepted and registered as a sick unit, but, as is usual, for a period of one year towards consideration of schemes of rehabilitation. This process of rehabilitation, it is not in dispute, carried on and the State Level Committee/Apex Body continued its deliberation in respect of the petitioner unit without there being any effective steps taken by the State or BICICO in this regards for almost a decade. BICICO also happens to be a member of the State Level Committee/Apex Body and was fully aware that the unit was sick and rehabilitation packages were being worked out in 2004.