WORKERS OF ROHTAS INDUSTRIES LTD. versus ROHTAS INDUSTRIES LTD.

WORKERS OF ROHTAS INDUSTRIES LTD. versus ROHTAS INDUSTRIES LTD.

Due to prolonged denial of employment to about 10,000 families, the unresolved outstanding liabilities, and the risk of asset depreciation, revival of the viable units, with a moratorium on proceedings against company assets and prioritisation of workers' wage payment and creditors’ claims, is paramount and should be directed.

Parties
Petitioner: Workers of Rohtas Industries Ltd.; Respondent: Rohtas Industries Ltd.
Jurisdiction
India
Judgment Date
24 October 1989
Procedural Posture
Writ Petition / Order on Revival and Rehabilitation Directions
Outcome
Pending; specific directions issued for revival and administration.
Legal Topics
Industrial Closure, Rehabilitation of Sick Companies, Nationalisation, Wages and Employee Compensation
Labour and Employment Law Insolvency and Company Law Industrial Closure Rehabilitation of Sick Companies Nationalisation Wages and Employee Compensation

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Parties

Workers of Rohtas Industries Ltd.

Petitioner

Rohtas Industries Ltd.

Respondent

Procedural Posture

Writ Petition / Order on Revival and Rehabilitation Directions

Legal Issues

  1. 1 Whether the viable units of Rohtas Industries Ltd. should be revived instead of liquidation
  2. 2 Entitlement of workers to arrears of wages and compensation
  3. 3 Moratorium on proceedings against the company assets

Ratio Decidendi

Due to prolonged denial of employment to about 10,000 families, the unresolved outstanding liabilities, and the risk of asset depreciation, revival of the viable units, with a moratorium on proceedings against company assets and prioritisation of workers' wage payment and creditors’ claims, is paramount and should be directed.

Court Disposition

Pending; specific directions issued for revival and administration.

Orders

  • State of Bihar to appoint Rehabilitation Administrator from Senior IAS cadre with commercial background.
  • Provisional Liquidator to hand over all company assets to Administrator; untaken assets to vest with Administrator forthwith.