JUDGMENT

ORDER:- Workmen of Rohtas Industries Limited situated at Dalmianagar in District Rohtas within the State of Bihar sent a letter addressed to Honble the Chief Justice of this Court on 8th of July, 1985, alleging that the Company had four units, namely, paper and boards, cement, asbestos and vegetable ghee plant; the management closed down the Industries with effect from 9th of September, 1984, and have denied employment to about 10,000 employees. It was prayed that there should be immediate restoration of electricity to the colony, payment of salary and wages for the period since closure should be directed and compensation as per the amendment to the Industrial Disputes Act in 1984 and dues under the provident fund account, gratuity etc. should also be directed to be paid. This letter was registered as a writ petition and notice was issued. In the mean time by order dated 22-5-1989, the Patna High Court appointed a Provisional Liquidator under the Companies Act. In the writ proceedings before this Court the employers, the Provisional Liquidator, the State of Bihar and the Union of India have, in due course, appeared.

2. On 27-4-1987*, the Court made an interim order in the matter of payment of arrear-wages by sale of assets. On 22-7-1987**, the Court took note of the fact that the proposal for restructuring of the Company was afoot in terms of its suggestion and stated that claims of the financial institutions would be considered later. On October 28, 1987 the Court stated :

* Reported in (1987) 2 SCC 588.

** Reported in 1987 Supp SCC 462.

"This Court had issued notice to the Union of India and learned Attorney General to ascertain if it is possible to revive the company which has suddenly gone sick. Learned Attorney General states that in the meantime Sick Industrial Companies (Special Provisions) Act, 1985 which received assent of the President on 8th January, 1986 has come into force and a Board in terms of Section 4 thereof has now been constituted. He suggests that a reference may be made to that Board and the Board may be called upon to frame the Scheme as contemplated under Section 18 of the Act for revival of the company and instead of allowing the Scheme to be dealt with further under the Act, the Board may be called upon to submit its Report along with the Scheme for consideration of this Court. 483 He also submits that in the special facts of the case there is no necessity to subject the scheme to a statutory appeal. Counsel for the petitioners agrees that an affort may be made as per the suggestion of the learned Attorney General."

The Central Government made a reference to the Board within one week as Directed by the Court and the Board was given four months time to frame the Scheme. On 7-9-1988, this Court took note of the fact that the State of Bihar was inclined for nationalisation of the Company. The Union of India filed an affidavit that if any proposal is mooted for nationalisation, it would be supported. This Court stated in its order of 7-9-1988 :

"On examining the matter in this background we are of the view that it is in the interest of everyone that the industrial establishment should be revived and sooner it is the better. In these circumstances, we direct that a Committee with the Industries Secretary of the Union of India as its Chairman be immediately constituted to work out the modalities of nationlisation. The Committee should consist of the Secretary, Industries, Government of Bihar, Senior Representatives of the creditor financial institutions, Finance Secretary of Government of India or his representative and representative of Reserve Bank of India. The Committee should examine the matter and submit its report within six weeks ..............."

On 9-8-1989, the Court took note of the, report by saying:

"The report submitted to this Court indicates that three units excepting paper unit are viable and can be revived. On the 13th of December, 1988, this Court considered the report and adjourned the