Order

This Court in this case disposed of on 9th May, 2003 since reported in (2003) 6 SCC 1 issued certain directions. Those directions need not be reproduced herein. Pursuant to or in furtherance of those directions, the State of Bihar has deposited a sum of Rs. 50 crores. The High Court of Judicature at Patna has also constituted a committee headed by Hon’ble Mr. Justice Uday Sinha, a former Judge of the Patna High Court.

2. A report of the said committee has been placed before us, from a perusal whereof it appears that a sum of Rs. 25,98,65,883.00 had been recommended for payment to the employees of most of the undertakings. Payment to Bihar State Sugar Corporation was said to be in the pipeline which came to be about Rs. 17 crores. It has been pointed out that BSIDC and units of other corporations in Jharkhand had not been paid yet and the Committee is left with Rs. 6 crores and odd.

3. An application for clarification has been filed by the Petitioner herein marked as I.A. No. 7 of 2004 wherein it has been prayed that the Jharkhand Hill Area Lift Irrigation Corporation Limited (JHALCO) be treated as successor of Bihar Hill Area Lift Irrigation Corporation (BHALCO) from 15.11.2000 onwards. It has further been contended that employees of Bihar Hill Area Lift Irrigation Corporation Ltd. would be absorbed by Jharkhand Hill Area Lift Irrigation Corporation Ltd., only if they forego their claim of salary for period prior to the respective dates of absorption.

4. A prayer therefore has been made to clarify the order dated 9th May, 2003 as to whether the State of Bihar or State of Jharkhand or both would be required to pay the unpaid salary to the employees of BHALCO.

5. Another interlocutory application being I.A.No. 9 of 2004 has been filed by the petitioner praying therein for a direction upon the Respondent–State of Bihar and/or State of Jharkhand to deposit sufficient sum of money with the Hon’ble Patna High Court so that at least the employees of the corporations listed in the order dated 9th May, 2003 be paid their salaries.

6. Counter affidavits affirmed by Shri Ashok Kumar Choudhary, Chairman, Bureau of Public Enterprises, Government of Bihar, Patna have been filed on behalf of the State of Bihar both in I.A. No. 7 and I.A. No.9 of 2004. In the counter affidavit filed in I.A.No. 7 of 2004, it has been contended that the Government of Bihar will initiate liquidation proceedings in respect of BHALCO and having regard to the offer made by the State of Jharkhand no relief should be granted by this Court to the employees of the said corporation as they may still close to exercise their option to get absorbed in JHALCO.

7. In the counter affidavit filed in I.A.No. 9 of 2004, the State of Bihar has been contended that the direction issued by this Court in its order dated 9th May, 2003 being extraordinary in nature and by way of one time arrangement only, no direction should be issued directing the State of Bihar to make any further payment.

8. The State of Jharkhand has also been impleaded as a party herein and it has filed a counter-affidavit affirmed by one Shri Binod Kumar Verma, Managing Director, JHALCO, Ranchi wherein a contention is raised that BHALCO is still under the control of the State of Bihar. It has further been affirmed that in stead and place of BHALCO, a new corporation known as JHALCO has been incorporated and registered to the Registrar of Companies, Jharkhand on or about 22nd March, 2002. The said JHALCO is, thus, said to be new corporation and nothing to do with BHALCO and in any event, it is not the successor of BHALCO.

9. It is not in dispute that pursuant to or in furtherance of the directions issued by this Court, the Central Government has exercised its jurisdiction under Section 65 of the States Reorganization Act.

10. Union of India has filed an affidavit wherein it has been contended that winding up applications have already been filed by the State of Bihar in relation to the following eighteen companies:

“1.