ASIATIC OXYGEN LIMITED Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) THIS writ application was preferred by the petitioners for directions on the respondents to enter into necessary agreement under Sec. 65 of the Bihar Re -organization Act, 2000, with regard to the division of the assets and liabilities of the Bihar State Industrial Development Corporation so that the shares of the Bihar Air Products Limited presently held by the Bihar State Industrial Development Corporation were transferred to the State of Jharkhand. Further prayer was made to direct the State of Bihar as well as the Bihar State Industrial Development Corporation to forthwith revoke, cancel and withdraw the nomination of the persons appointed by them as Director of the Bihar Air Products Limited. Some other prayers connected with the first prayer were also made.

(2.) WHEN the matter was earlier taken up on 6th January, 2005 the parties were directed to reply as to why the Central Government be not directed firstly to decide the issues as division of assets and liabilities under the Bihar Re -organization Act, 2000, was sought for. On 23rd February, 2005, it was informed that the respondents had not taken any steps to wind up the company, i.e., the Bihar Air Products Limited, nor there was any such proposal to wind up the company. It was also informed that a suit had been preferred by the petitioners at Jamshedpur Civil Courts, raising the question of appointment of persons for management of the Company. Counsel for the Bihar State Industrial Development Corporation and the State of Bihar took the plea that the case was not covered under Sec. 65 of the Bihar Re -organization Actor, 2000, as the name of the Company, i. e., Bihar Air Products Limited, had not been shown in the IXth Schedule of the Bihar Re - organization Act, 2000. It was also Informed that the State of Bihar had no share in the Company, namely, Bihar Air Products Limited. Subsequently, when the case was taken up on 2nd May, 2005, the parties produced an order dated 13th September 2004, passed by the Ministry of Home Affairs, Government of India. In the said order, as was noticed by the Court that by an order passed by the Hon ble Supreme Court in WP(C) No. 488/2002, the Central Government had been directed to take a decision on the division of assets and liabilities of the Government Companies and Public Sector Undertakings of the erstwhile State of Bihar in terms of the provisions of the Bihar Re -organization Act, 2000 and in consultation with the Government of Bihar and Government of Jharkhand. In the said order, it was also indicated that the Government of India had thereafter issued orders regarding the division of assets and liabilities in respect of 18 Government Companies listed in the IXth Schedule of the Bihar Re -organization Act, 2000 and certain decisions had been taken. A Monitoring Committee consisting of the Chief Secretaries of the Governments of Bihar and Jharkhand has been appointed to oversee the implementation of the decision taken in terms of the order of the Hon ble Supreme Court and the Bihar Re - organization Act. 2000. The Committee has been directed to meet once in a month and to submit progress report to the Ministry of Home Affairs, Government of India, every month.

(3.) WITH the aforesaid observations, this writ application stands disposed of.