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The workers' union has filed two writ petitions and it is mainly concerned with the closure of the sick sugar factory and, therefore, non payment of dues of the workers. It requires no prophet to say that, at present, since the factory is not working, the workers are without work and salary for years together and suffering starvation. The workers' union, which was opposing the sale proceeds of sugar going to the pocket of MSC bank and sale proceeds of the assets going to an independent joint account of the authorised officer of the bank and the liquidator, by the time it filed second writ petition, is impliedly supporting sale of the assets of sick factory in favour of Ratnaprabha Sugars under the hope that, at least by that mode; some amount will be available to satisfy the dues of the workers.

In the second part of the arguments, the details are provided as to how the workers are entitled to an amount of Rs. 12.00 crores and odd, from the sick sugar factory. By relying upon decision in writ petition No. 5639/03 (paperbook page 30 of writ petition No. 5844/07) and the decision of the Industrial Court in a batch of complaints (paperbook page 52 of writ petition No. 5844/07), it is claimed that both the courts have directed the liquidator to satisfy the dues of the workers from the amount that will be available on disposal of assets of the sick sugar factory. According to Shri Shelke, both these decisions have attained finality, as those are never challenged. Even the Government circular (paperbook page 25 of writ petition No. 5844/07), gives priority to the claims of the workers. Reliance is also placed on Section 13((9) proviso (ii) of the Securitizatiion Act, in order to propound that the Securatization Act also takes care of the dues of the workers, because the secured creditor is required to deposit the workmen's dues with the liquidator. By relying upon some reported judgments, it is contended that, the claims of the workers are the priority claims.

In the last part of written arguments, Union of workers has expressed its opposition to lease out the sick sugar factory again (writ petition No. 5844/07) as, such an experiment is already frustrated. The workers have, therefore, opposed the government's decision to lease out the sick sugar factory.

Oral arguments by Advocate Shri Shelke were practically on the same line as the written arguments, except for couple of points in addition. In his oral submissions, Advocate Shri Shelke has supported the contention raised by Advocate Shri P.R.Patil on behalf of Ratnaprabha Sugars that the conditions to be observed before leasing out the sick sugar factory, are not at all adhered to, by the Government. It was also pointed out that even to activate the machinery, which is lying idle for six years by now, it will require an amount of Rs. 11.00 crores. During last six years, nobody has taken cognizance of woes of the workers. Due to fluctuations in the government decision, even the liquidation proceedings could not be completed and, therefore, the workers are not paid any wages since 1996 except for the period during which Vaidyanath was running sick factory, on lease. In any case, by experiment, it is confirmed that this sick factory cannot be run on lease and, therefore, the workers have opposed government decision to lease out the sick sugar factory.

This argument stands countered by the statistics provided by Advocate Shri Dhorde for the bank, as also Advocate Shri V.D. Salunke for other set of members/ cane-growers. According to Advocate Shri Dhorde, dues of the MSC bank, as on 31.12.2007, are about Rs. 40.87 crores. According to Advocate Shri Salunke dues of the bank, as on 31.3.2000, were Rs. 20.67 crores. To his written submissions, Advocate Shri Salunke has annexed, extracts from the annual reports for the years 1993-94 to 1999-2000 and pointed out that during these years, total losses accrued are to the tune of Rs. 21.12 crores. According to Advocate Shri Salunke, even if the factory runs to its fullest strength, income from sugar sale will be Rs. 20.75 crores and interest of the bank on Rs. 22.65 crores, at 14.5% p.a. is Rs. 3.71 crores. Even if we calculate interest at contractual rate of 14.5%, only for two years i.e.1.4.2000 to 31.3.2002 and at the rate of 6 per cent from the date of appointment of the liquidator (15.5.2002 to 15.5.2008), the amount of interest that accrues on Rs. 22.65 crores is Rs. 14.71 crores and thus, the dues payable by the sick factory, as on today (taking into consideration the lowest possible amount), would be Rs. 37.36 crores. In the calculations by Advocate Shri Chandak, amount of Rs. 9 crores is shown to be receivable by karkhana and this amount cannot be said to be readily available. Thus, as on today, if available amount is utilized for satisfying the dues, still karkhana will be short of amount of about Rs. 16.00 crores. In the calculations of Mr. Chandak, he has not shown any dues payable by karkhana towards salaries and allowances of the employees, which according to Advocate Shri Shelke for the Union of the employees and for employees; are to the tune of Rs. 12.26 crores. Thus, total amount that will remain due from karkhana, even after available amount being spent towards satisfaction of existing dues, would calculate to Rs. 28.26 crores. If the dues of the workers are to be paid on priority basis, so that they can be persuaded to continue to work, amount of Rs. 12.26 crores will remain due from the factory towards its creditors and, therefore, interest payable on entire amount of Rs. 28.26 crores will have to be taken into consideration, which calculates 1.68 crores, even at 6 per cent per annum. As a normal business practice, the creditors will be crediting the amount initially towards interest and the balance towards the principal. Even if the sick factory is run on lease in future and entire lease premium of Rs. 3.00 crores per annum is said to be available for satisfaction of debt and interest, that will be sufficient to satisfy only amount of Rs. 1.32 crores per annum (Rs.1.68 crores being towards interest on Rs. 28.26 crores of principal) and hence, in next fifteen years the sick factory, if run on lease, will be in a position to satisfy the debts (principal) to the tune of Rs. 19.80 crores. If principal amount of Rs. 28.26 crores is to be paid in fifteen equal instalments, the factory needs to repay Rs. 1.88 crores per annum and thus, accepting the figures provided by the lawyers to be correct, there does not appear possibility that the factory can repay the outstanding dues and debts within 15 years. And it must not be lost sight of, that we have calculated interest payable, only at 6 per cent per annum as against the contractual rate of interest by MSC bank, at 14.50 per cent per annum and we have assumed that the entire lease premium of Rs. 3.00 crores will be available at the disposal of the sugar factory for satisfaction of its dues. We have also not taken into consideration, the contention of Advocate Shri Shelke for workers union, regarding requirement of Rs. 11.00 crores for activating the machinery of the sick factory, which is lying idle since January 2004.