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TMI Blog1999 (1) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... td., Betia, West Champaran (Samiti, in short), submitted a scheme before this Court seeking permission to run the two factories. Final orders on the said scheme could not be passed, as the same was not found to be comprehensive enough. Besides, the said Samiti had not been able to satisfy the Court regarding the sufficiency of funds which would be necessary to run the two factories which are lying closed for the last several years. However, as the prayer was made that the crushing season was on and the workers and the cane-growers of the said region who were solely dependent upon the running of the two factories are facing starvation and acute financial crises, this Court vide the order, dated 2-12-1997 permitted the said Samiti to run the Chanpatia factory of the company (in liquidation) as an interim measure during the crushing season 1997-98 pending final consideration of their scheme by this Court for running the mills and managing the same. The Court, however, imposed certain conditions on the Samiti, which has been enumerated in the order, dated 2-12-1997. It is on record that for the said crushing season, the factory ran for 65 days. The account duly audited by the charter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al liquidator. I have perused the affidavits filed by the parties including the objections and the report of the official liquidator. 3. It has been submitted on behalf of the applicant that though the Samiti has not been able to follow all the directions given by this Court in the order, dated 2-12-1997 and there were some defaults, yet without there being any major financial assistance, the concerned workmen have by dint of their hard labour and sincere efforts been able to run the factory for 65 days and have produced sugar worth about Rs. 3 crores. Though the factory has not been able to generate profits and has incurred a loss of about Rs. 3 lakhs, yet the workmen and the cane-growers have been paid substantially for the said crushing season. It has further been submitted that the experiment has been successful and similar order s for running the factory may be passed for the current crushing season also. The objectors on the other hand have submitted that the Samiti in question has misutilised the opportunity and there has been misappropriation and defalcation of funds. The allegations are contained in the objections filed on which reliance has been placed. It has also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om these figures which are based on the record, it does appear that even, without obtaining any major financial help from any quarter, the Samiti has been able to run and has been able to pay the major and substantial portion of the dues for the said crushing season to the cane-growers and the workmen. If the factory would not have run, then the work force would have remained idle and not even earned the amount, which they have been able to get by working in the factory. Similarly, the cane-growers have also been benefited as payments of over Rs. 1.86 crores have been made to them though a balance of about Rs. 43 lakhs remained to be paid. There is another, aspect of the matter. If the factory was not run, the machines would deteriorate and gradually become junk. If it is made in a running condition and is used it will be considered to be a running factory and if ultimately the assets are sold, it will fetch better price being in a workable condition. That apart, one other aspect has to be kept in mind. The two factories are situate in a remote and backward area of the State of Bihar. The office of the official liquidator is at Allahabad. The possession of the two factories was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir payments and applications have been made on their behalf to the court. It is known that whether in view of the said situation, the security of the movable properties was being properly looked after. In the absence of substantial proof it is difficult to lay blame on the Samiti. 5. There is another aspect of the matter. The objectors who have filed their affidavit before this court objecting to the running of the Chanpatia factory by and large belong to Barachakia. It has been noticed that the Barachakia factory could not be run, as it requires a conversion from carbonisation plant to sulphitation plant. For the said purpose, a substantial amount, which is estimated to be, more than Rs. 2.5 crore are required. The workman of factory of Barachakia, which is not being run and who are not getting any payment might have some grievance of running the Chanpatia factory where the workers and cane-growers have been able to get at least some payment. It, therefore, appears natural for the workmen of the Barachakia factory to see that Chanpatia factory is also not run and is closed as the same will generate pressure for either the disposal of the two factories or for accepting a scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any machinery or its part is required, the same shall be carried out in the premises of the sugar mill itself and it shall not be taken out of the mill s premises without obtaining the permission of the official liquidator in writing. ( 2 )The Samiti shall deposit the amount of the sugar molasses and press-mud sold, in the bank as and when they are sold and the necessary expenses for the day to day running of the factory shall be taken out from the said bank account. ( 3 )If the stocks of sugar produced is required to be hypothecated to the bank or to other financial institution, necessary information shall be given to the official liquidator and permission obtained from the Court. ( 4 )The Samiti shall apply for the free sale of sugar from the authorities concerned and in case they are required to give any levy by the authorities, the same shall be complied with. ( 5 )The Samiti shall appoint an internal auditor, who shall audit the accounts every week and shall send his report to the official liquidator fortnightly. The name of the internal auditor shall be got approved by the official liquidator before the mill starts running. ( 6 )The Samiti would also give an underta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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