(1) ROHTAS Industries Limited (hereinafter referred to as the Company) was running a large industrial undertaking comprising of units for manufacturing cement, paper and board, asbestos, vulcanised fibres and vanaspati at Dalmia Nagar in District Rohtas of the State of Bihar. The Company has three associate companies, namely, Ashoka Cement Ltd., Parshava Mining and Trading Company Ltd. and Dehri-Rohtas Light Railway Company Ltd. The Company was employing about 10,000 workmen. Troubles started in 1982-83 and ultimately the units of the Company were closed with effect from 9/9/1984 resulting in denial of employment to the workmen. A petition (Company Petition No. 3 of 1984 was filed for winding up of the Company before the Patna High court and in the said petition the Patna High court on 22/5/1986 appointed the Provisional Liquidator, During the pendency of the said petition, the workmen of the Company moved this court by filing this writ petition under Article 32 of the Constitution. The petition was entertained by this court with the object of reviving the industry and rehabilitating the workmen. Notice was issued to the State of Bihar and the Union of India so as to enable the court to solve the human problem of unemployment of large number of workmen. While the matter was pending consideration, the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short the Act) came into force. As per suggestion of the learned Attorney General, the court on 28/10/1987 passed an order whereby the central government was directed to make a reference to the Board of Industrial and Financial Reconstruction (BIFR) to frame a scheme under the Act and submit the same to the court. The BIFR submitted a report on 22/4/1988 wherein it was stated that three of the units of the Company, namely, cement, asbestos and vanaspati could be revived but the paper unit could not be revived. Keeping in view the said report of the BIFR as well as the statements filed on behalf of the State of Bihar and Union of India and the memorandum prepared by the learned Attorney General of India filed before this court, the court passed an order dated 24/10/1989 wherein it was observed:

"IF the Company is not revived and gets liquidated, the liabilities would turn out to be far in excess of the assets and notwithstanding first or second charge on the assets, the creditors may not appreciably benefit. This court cannot lose sight of the fact that living to about 10,000.00 families has been denied for over five years and apart from national loss, the workmen have been put to serious jeopardy. In these circumstances, we are satisfied that it is of paramount importance that the Company in respect of the viable units should be revived and allowed to come into production."

(2) THE court directed the State of Bihar to appoint an authorised officer from the senior INDIAN ADMINISTRATIVE SERVICE cadre with appropriate commercial background to be the Rehabilitation Commissioner and the Provisional Liquidator appointed by the High court in the winding up proceedings was directed to hand over to the Administrator all the assets of the Company which he had taken over under order of the court and the several other assets of the Company which had not been taken over the Provisional Liquidator shall vest in the appropriate officer upon being designated and he was entrusted with the power to take such steps as are necessary to take over possession of such assets of the Company. It was also directed that the assets of the Company encumbered with financial and other institutions shall not be available to be proceeded against for a period of one year from the date of the order and there shall be a moratorium for a period of one year in regard to proceedings taken and pending or to be taken against the Company hereafter and limitation shall remain suspended under the said order of the court. The State government undertook to deposit an amount of Rs