Fresh plea in NCLT seeking liquidation of two closed paper mills in Assam

The liquidator for the state-run Hindustan Paper Corporation Limited (HPCL) has submitted a recent plea within the National Company Law Tribunal (NCLT) in search of liquidation of the company’s two closed paper mills in Assam.

The recent software was filed by Kuldeep Verma, liquidator for HPCL, earlier than NCLT’s Bench-II in New Delhi on September 14 – 4 days after Assam authorities despatched a letter to Verma in search of a month’s time for revival of the closed mills and clearances of all due of staff and staff.

Production at HPCL’s Cachar Paper Mill (CPM) closed on October 20, 2015 whereas the Nagaon Paper Mill (NPM) has remained closed since March 13, 2017. Nearly 1,200 staff of each the mills haven’t obtained salaries for over two years.

The matter of liquidation of the 2 paper mills has been pending with NCLT. The ultimate listening to within the case is slated for Monday.

“It would be expedient and in the interest of all stakeholders for the assets of the corporate debtor (HPCL) to be liquidated so as to maximize the realization for distribution among the stakeholders as per law,” the appliance acknowledged.

“The applicant is, in the aforesaid facts, filing the present application praying for issuance of directions permitting the liquidator to proceed with liquidation of the corporate debtor HPCL in accordance with law,” it added.

The software talked about that every one “sincere efforts” for revival of the paper mills “have not yielded any positive result” and granting any additional time wouldn’t be as per authorized provisions or earlier selections of the Supreme Court on the matter.

It was acknowledged that massive bills are being incurred on a month-to-month foundation in the direction of safety prices, insurance coverage premium, important companies for primary maintenance of the paper mills and townships and so forth. and the identical is detrimental to the curiosity of the stakeholders.

On September 10, the Assam authorities had written a letter to Verma in search of a month’s time to revive the mills.

“Government of Assam has always taken a stand that the closed HPCL mills must be revived at the earliest. Due to closure of the mills, over thousands of workers and employees have been rendered jobless. Local economy has also got severely affected,” the letter acknowledged.

“Kindly take up the matter with NCLT to grant one month’s time as the state government is making sincere efforts and pursuing the matter with the central government for revival of the closed mills and clearances of all dues of employees and workers,” it added.