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In a significant development, the Indore bench of the Madhya Pradesh (MP) High Court has granted its approval for an interim application filed by the MP Housing and Infrastructure Development Board (MPHIDB). The application sought permission to pay off all outstanding dues amounting to a total of Rs 435.89 crore, which includes the obligations owed to the Hukumchand mill workers as previously agreed upon in a settlement.
Justice Subodh Abhyankar, presiding over the case, has issued a directive to MPHIDB, instructing them to complete the entire payment within a period of two weeks from the date of receiving a certified copy of the court order. Furthermore, MPHIDB is to make a direct payment of Rs 6.54 crore to the labour union in accordance with the terms of the settlement.
Recognizing the long-standing financial plight of creditors and the thousands of mill workers, many of whom have either passed away or are nearing the end of their lives while awaiting their dues following the abrupt closure of the company in 1991, the court has allowed the settlement application as a special measure to expedite the resolution of this complex and long-pending case.
It's worth noting that the company's petition has been pending before the court for an astonishing 22 years, dating back to 2001 when it was registered upon the recommendation of the Board for Industrial and Financial Reconstruction (BIFR).
The court's decision came after considering various submissions made by MPHIDB regarding the dues owed to creditors, the rights of workmen, and the requisite approval from the cabinet. In its ruling, the court has also mandated that the labour union, along with all other involved parties, including banks and other creditors, provide their bank account details to facilitate the receipt of the allocated funds.
Additionally, the official liquidator has been ordered to transfer possession of a 42.49-acre property to MPHIDB, ensuring it is free from all encumbrances and delivered on an "as is where is" basis, subject to the complete settlement of all dues.
The court has further directed the Indore Municipal Corporation to take necessary steps to pass a resolution in accordance with a cabinet decision dated October 4, as determined by the Municipal Corporation and Parishad, for the implementation of the aforementioned cabinet decision within the stipulated timeline.
The court expressed its appreciation for the diligent efforts of the respective legal representatives of the parties involved and the officials who have worked tirelessly to reach this settlement in a case marked by extensive delays and complexities.
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