Hc Allows Housing Board To Pay ₹435 Crore Dues, Real Estate News, ET RealEstate
INDORE: Indore bench of MP high court has allowed an interim application of MP Housing and Infrastructure Development Board (MPHIDB) for paying all dues of Rs 435.89 crore including those of Hukumchand mill workers as agreed in settlement.
Justice Subodh Abhyankar directed MPHIDB to make the entire payment within a period of two weeks from the date of receipt of certified copy of this order. The MPHIDB shall make payment of Rs.6.54 crore directly to labour union as per settlement.
The court took submission of MPHIDB related to dues of creditors, workmen and approval from cabinet on record in its order. It directed labour union, all other parties (banks and other creditors) to provide bank account details for receiving the amount and ordered official liquidator to hand over possession of 42.49 acre of property to MPHIDB free from all encumbrances on ‘as is where is’ basis subject to payment of all the dues.
The court also ordered Indore Municipal Corporation to take necessary steps for passing a resolution in reference to cabinet decision dated October 4 in MIC and parishad for implementation of the aforesaid cabinet decision within the aforesaid timeline.
The court considering the facts about dues of creditors, and thousands of workmen, who either died or are at fag end of their lives waiting for amount after abrupt closure of company in 1991, allowed settlement application as special measure to avoid long wait for sale of property.
The company’s petition was pending with the court for last 22 years from 2001, when it was registered upon recommendation of BIFR.
The court appreciated efforts of respective counsels for the parties, and the officers involved have put in to bring about the aforesaid settlement in the case.
