U.P. Financial Corporation Vs. Naini Oxygen & Acetylene Gas Ltd.
EmailAppeal: Civil Misc. Petition No. 5461 of 1988.
IN
Civil Appeal No.568 of 1987.
IN
Civil Appeal No.568 of 1987.
Petitioner: U.P. Financial Corporation
Respondent: Naini Oxygen & Acetylene Gas Ltd.
Apeal: Civil Misc. Petition No. 5461 of 1988.
IN
Civil Appeal No.568 of 1987.
IN
Civil Appeal No.568 of 1987.
Judges: RANGANATH MISRA & MURARI MOHON DUTT,JJ.
Date of Judgment: Apr 27, 1988
Head Note:
SICK INDUSTRY – REVIVAL OF
Appellant-Corporation in possession of the factory – During the pendency of the appeal the appellant-Corporation to undertake repairs of the machinery after the particulars and details are made available by the respondent.
JUDGEMENT:
O R D E R
1. The report of the Industrial Reconstruction Bank of India has been received. Relying on the report, Mr. Shanti Bhushan learned counsel for the respondent No.1 contends that steps for reviving the Company should be taken.
2. The assets of the Company have been taken over by the appellant-Corporation and it is in possession of the factory at present. Until the appeal is disposed of and unless it terminates in favour of the Respondent No.1 it would not be possible to restore possession of the assets to the respondent No.1. Therefore, both parties want that the appeal should be expeditiously disposed of. For that purpose the matter be called on 18th of July, 1988 for direction.
3. In the meantime, Mr. Shanti Bhushan, learned counsel for the respondent No.1 suggests that under the supervision of the appellant-Corporation repairs to the machinery may be undertaken by the respondent No.1. Mr. Kacker on the other hand, suggests that insteed of introducing the respondent into the factory, it would be possible for the appellant-Corporation to undertake the repairs provided the particulars and details thereof are specified. The respondent No.1 is free to provided the appropriate particulars so that the appellant Corporation can undertake the repairs. This may be done within one week.
4. Certain documents of Respondent No.1 are said to be in the custody of the appellant-Corporation since possession of the factory was taken. It is stated that for the drawing up of the balance sheet of respondent No.1 these documents fare necessary. Mr. Kacker says that he has been instructed that all the documents are in the registered office of respondent No.1. In case, however, any such documents are available in the factory, the same shall be allowed to be inspected by the respondent No.1’s officers.
5. The only other suggestion for Mr. Shanti Bhushan to take note of at this stage is that on account of non-payment of the minimum energy charges, electricity supply has been discontinued and for repair is to be undertaken, electricity would be necessary. He suggest that we may ask the Electricity Board to restore supply of electricity on the basis that the current charges alone be paid and clearing the arrears may not be insisted upon. The appellant-Corporation may negotiate with the State Electricity Board for supply of energy during the period the repairs are undertaken and we hope and trust that the Electricity Board would accommodate the respondent No.1 for the purpose of repairs of the factory. In view of the fact that it has become sick industry. The ultimate liability for the expenses to be incurred by the appellant-Corporation in effecting the repairs shall be decided when the appeal is disposed of. Civil Misc. Petition is disposed of accordingly.
1. The report of the Industrial Reconstruction Bank of India has been received. Relying on the report, Mr. Shanti Bhushan learned counsel for the respondent No.1 contends that steps for reviving the Company should be taken.
2. The assets of the Company have been taken over by the appellant-Corporation and it is in possession of the factory at present. Until the appeal is disposed of and unless it terminates in favour of the Respondent No.1 it would not be possible to restore possession of the assets to the respondent No.1. Therefore, both parties want that the appeal should be expeditiously disposed of. For that purpose the matter be called on 18th of July, 1988 for direction.
3. In the meantime, Mr. Shanti Bhushan, learned counsel for the respondent No.1 suggests that under the supervision of the appellant-Corporation repairs to the machinery may be undertaken by the respondent No.1. Mr. Kacker on the other hand, suggests that insteed of introducing the respondent into the factory, it would be possible for the appellant-Corporation to undertake the repairs provided the particulars and details thereof are specified. The respondent No.1 is free to provided the appropriate particulars so that the appellant Corporation can undertake the repairs. This may be done within one week.
4. Certain documents of Respondent No.1 are said to be in the custody of the appellant-Corporation since possession of the factory was taken. It is stated that for the drawing up of the balance sheet of respondent No.1 these documents fare necessary. Mr. Kacker says that he has been instructed that all the documents are in the registered office of respondent No.1. In case, however, any such documents are available in the factory, the same shall be allowed to be inspected by the respondent No.1’s officers.
5. The only other suggestion for Mr. Shanti Bhushan to take note of at this stage is that on account of non-payment of the minimum energy charges, electricity supply has been discontinued and for repair is to be undertaken, electricity would be necessary. He suggest that we may ask the Electricity Board to restore supply of electricity on the basis that the current charges alone be paid and clearing the arrears may not be insisted upon. The appellant-Corporation may negotiate with the State Electricity Board for supply of energy during the period the repairs are undertaken and we hope and trust that the Electricity Board would accommodate the respondent No.1 for the purpose of repairs of the factory. In view of the fact that it has become sick industry. The ultimate liability for the expenses to be incurred by the appellant-Corporation in effecting the repairs shall be decided when the appeal is disposed of. Civil Misc. Petition is disposed of accordingly.
