Allahabad High Court
Ram Niwas Pandey vs Chandrika Prasad Tiwari, M.D. U.P. ... on 29 January, 2010
Author: Devendra Pratap Singh
Bench: Devendra Pratap Singh
Court No. - 35 Case :- CONTEMPT APPLICATION (CIVIL) No. - 3004 of 2008 Petitioner :- Ram Niwas Pandey Respondent :- Chandrika Prasad Tiwari, M.D. U.P. Handloom Corp. Ltd. Petitioner Counsel :- S.P. Pandey,S.K. Chaubey Respondent Counsel :- Sc Hon'ble Devendra Pratap Singh,J.
The following order was passed on 17.12.2009 :
"The following order was passed on 23.11.2009 :
"Heard counsel for the parties.
U.P. State Handloom Corporation Limited, Kanpur is a Public Sector Undertaking of the State of U.P. The State has overall control over the Corporation to the extent that the Corporation cannot even sell its properties to raise funds without the approval of the State Government.
The financial slide of the Corporation forced it to float a voluntary retirement scheme to off-load its employees with one time settlement to improve its financial health and cut expenditure.
Large number of employees, including the present applicant, opted for voluntary retirement, however, they were not paid their dues in accordance to the scheme, forcing them to file writ petitions in this Court which were allowed directing time bound payment together with interest and in some cases with penal interest. However, the Corporation due to the financial crunch, could not meet its obligation leading to filing of various contempt petitions before this Court impleading the Managing Director of the Corporation and in some cases the Principal Secretary, in the Department of Handlooms and Textiles.
In the present case, and in several similar cases, the Managing Director has been seeking time now and again for compliance. The Corporation disclosed to the Court that it has decided to sell its unworkable assets to raise finance and after going through procedure it sought approval of the Government but it was rejected and communicated to the Corporation on 5.11.2008. The Managing Director through his letter dated 21.11.2008 again requested for permission to sell the unworkable assets of the Corporation and during its pendency it sought an interest free loan of Rs. Three crores to fulfil its financial obligation and to comply with the directions of this Court in several matters. Permission was granted by the Government vide letter dated 31.7.2009 and advertisements etc. were issued and where-after tenders were opened on 3.9.2009 where-after the approval of the Government was also sought through a letter of even date which has yet not been granted. The Corporation again vide letters dated 5.10.2009 and 14.11.2009 sought interest free loan to enable compliance of the writ judgement of this Court.
On the direction of the Court, the Corporation has submitted a list of 26 contempt petitions which are pending before this Court for enforcement of the writ judgement with regard to payment of dues of the employees. It has also disclosed list of 11 writ petitions where judgements have already been rendered for payment of aforesaid dues.
It was suggested on behalf of some of the applicants that the Government be directed to allow the Corporation to sell its unworkable assets as sought but after hearing the parties, the Court found that distress sale may harm the financial interest of the Corporation and the Government. Instead, taking a holistic view, it is inclined to pass the following orders.
Since different departments have a role to play in carrying out the direction, it would be appropriate to implead the Chief Secretary; Principal Secretary (Finance) and Principal Secretary, (Handlooms & Textiles) Government of Uttar Pradesh as opposite parties today.
The State Government may either make available a sum of Rs.2.5 Crores to the Corporation as interest free loan against the proposed sale of unworkable assets of the Corporation, or, all the opposite parties including the newly added opposite parties shall appear on the next date with their explanations and suggestions.
The Registrar General of this Court is directed to send a copy of this order to the Chief Secretary, Principal Secretary (Finance), Principal Secretary (Handlooms & Textiles), Government of Uttar Pradesh, Lucknow within forty hours. List along with records of contempt petition nos. 2025 of 2008, 2094 of 2008, 2749 of 2008, 2904 of 2008, 2434 of 2009, 2587 of 2009, 419 of 2009, 379 of 2009, 3876 of 2008, 3004 of 2008, 3986 of 2007, 1292 of 2008, 3327 of 2007, 2433 of 2009, 936 of 2007, 3717 of 2007, 522 of 2008, 5404 of 2006, 1429 of 2007, 3476 of 2006, 1431 of 2007, 2291 of 2007, 728 of 2006, 3696 of 2007, 3913 of 2005 and 3562 of 2008 AND the records of decided writ petition nos. 18944 of 2008, 55443 of 2008, 52819 of 2008, 28162 of 2009, 28168 of 2009, 28157 of 2009, 26160 of 2009, 28155 of 2009, 28165 of 2009, 28760 of 2006 and 40718 of 2004 on 17.12.2009 showing the names of counsel for the parties.
List on 17.12.2009."
In pursuance thereof, the Chief Secretary, Principal Secretary (Finance) and Principal Secretary (Textile) have filed their affidavits that interest free loan of Rs.2.5 crores has been sanctioned in favour of the corporation. An affidavit of the Managing Director of the Corporation has also been filed stating that the aforesaid amount has been received by it and the payments are being paid to all the contempt petitioners, but calculations etc. will take time and therefore at least two weeks time is sought to make actual payment. List for further orders in the Week commencing 25.1.2010." In pursuance thereof, affidavit of compliance has been filed today in the different writ petitions.
Let a reply, if any, be filed by the next date.
List on 19th of February 2010.
Order Date :- 29.1.2010 PKG