Calcutta High Court
Bharat Process & Mechanicals Eng. Ltd. ... vs Official Liquidator on 6 May, 2016
Author: I. P. Mukerji
Bench: I. P. Mukerji
ORDER SHEET
CA 524 OF 2014
WITH
BIFR 520 OF 1992
CA 400 OF 2013
CA 409 OF 2014
IN THE HIGH COURT AT CALCUTTA
Original Jurisdiction
ORIGINAL SIDE
IN THE MATTER OF:
BHARAT PROCESS & MECHANICALS ENG. LTD. (IN LIQN.)
AND
OFFICIAL LIQUIDATOR
.........
BEFORE:
The Hon'ble JUSTICE I. P. MUKERJI Date : 6th May, 2016.
Mr. R. Deb, Mr. R.Banerjee, senior advocates, Ms. L. Banerjee, Mr. D. Roychowdhury, Ms. U. Chakraborty, Ms. S. Datta...appear.
Mr. M. K. Ghosh, senior advocate, Mr. S.S. Banerjee, Mr. A. Banerjee, Mr. B. Chakraborty, Mr. G. Roychowdhury...appear.
Mr. R. Bachawat, senior advocate, Mr. G.N. Jajodia, Mr. A. Kankani...appear.
Mr. R.L. Mitra...appears.
Ms. S. Das De...appears.
The Court : Let notice of these applications along with all relevant papers be served upon the appropriate departments of the Government of India and Government of Orissa. A copy may also be served upon the Branch Secretariat of the Ministry of Law of the Central Government in Kolkata.
The applicant, TPG Equity Management Pvt. Ltd. has obtained by assignment the debts of UCO Bank, for Rs. 55 lacs. They want an order permitting them to effect revival of the Company [In Liquidation].
Some manganese and iron ore mines in the State of Orissa are the subject matter of controversy. It is submitted by Mr. R. Banerjee, learned senior advocate for the applicant that the Company [In Liquidation] is the lessee of these mines, which is valid till 2020 under the latest enactment. OMDC, a Government of India Undertaking was the agent of the Company for the purpose of operation of these mines. This is denied by Mr. S. S. Banerjee, learned counsel for OMDA, who says that his client is the custodian of the mines on behalf of the Central Government. These issues cannot be resolved unless the Central Government and the Orissa Government are noticed and heard.2
Mr. Bachawat, learned senior counsel represents Deba Prasad Roy, an MLA, who was granted leave by a Division Bench of this court, in a PIL to participate in this proceeding. He submits that according to the averments made in the petition the lease has expired. Attempts to renew it have been rejected by the Government, etc. He very seriously opposes entertainment of this application by the court. He, joined by Mr. S. S. Banerjee, submits that the mining operation in Orissa can only be carried out by a Public Sector Undertaking. Mr. Bachawat adds that in the scheme proposed by Mr. R. Banerjee's client, the control of the Company would ultimately be taken over by them. In that event, the Company would cease to be a Public Sector Undertaking. Even if the court entrusts the affairs of the Company [In Liquidation] to the applicant, they are disentitled in law to operate the mines.
In my opinion, without going into any question it is essential to ascertain the status of these iron and manganese mines. Secondly, if pending Mr. Banerjee's application further steps are taken in winding up, the application would become infructuous.
In that view of the matter, I pass the following interim order :
The Official Liquidator will not take any further steps with regard to the winding up. The status quo regarding the above mines in Orissa will be strictly maintained till the disposal of this application. The status quo relates to operation of the mines does not relate to renewal of any licenses which OMDC has applied for.
This order will not prevent the Official Liquidator to make payment to the workers. Such payment should be made forthwith.
Any renewal of lease, licence, etc. made during pendency of this application will be without prejudice to the rights and contentions of the parties.
List this application on the first available day for assignment matters in June, 2016.
Certified photocopy of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.
(I. P. MUKERJI, J.)
Pkd.
A.R.[C.R.]
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