( 1 ) THE U. P. State Sugar Corporation Limited, is owned and controlled by the State Government. The Corporation is running and managing various sugar mills in the State of Uttar Pradesh. It suffered recurring losses. On 31. 3. 1992, its accumulated losses aggregated to Rs. 37,159. 98 lacs, which completely wiped out its net worth. The reasons for losses included, outdated equipment, high prices to cane growers, high power tariff, inadequate modernisation and overstaffing. It had 10448 workers, in its units besides managerial and supervisory staff. With losses mounting to Rs. 58,604 lacs far in excess of its net worth of Rs. 46740 lacs, on 31. 3. 1995, the Corporation filed a petition before the Board of Industrial Finance and Reconstruction. On 21. 8. 1995, the Board declared the Corporation as a sick industries company within the meaning of Section 3 (1) (O) of the Sick Industries (Special Provisions) Act, 1985. The BIFR on its hearing dated 30. 7. 2001 sanctioned a rehabilitation scheme submitted by the Corporation for revival/ rehabilitation of its units. It was proposed that the 11 closed units shall be transferred to newly created subsidiary company of the