HPCL paper mill row: JACRU objects to fresh auction notice; moves liquidator

STAFF REPORTER

GUWAHATI: The JACRU (Joint Action Committee of Recognised Unions), Nagaon & Cachar Paper Mills) has objected to the fresh auction notice of the paper mill assets. In this regard, JACRU has moved the Liquidator, HPCL (Hindustan Paper Corporation Ltd). JACRU has demanded a review of the auction notice "to obey the order of the Adjudication Authority".

In the letter, the JACRU requested the Liquidator, Kuldeep Verma, to initiate the ATR (Action Taken Report) within November 30. The organisation further said, "Else, we shall be compelled to initiate appropriate steps for the interest of justice and to protect the national assets along with its workers and employees." JACRU added, "For any unwarranted eventualities, the Liquidator would be held solely responsible."

The fresh auction notice for selling the assets of HPCL on a piecemeal basis was notified on November 25, 2021.

The letter is signed by the president of JACRU, Nagaon & Cachar Paper Mills, Ananda Bordoloi and general secretary Ananda Bordoloi said in the letter, "The fresh auction notice "is in contravention to the earlier order of the NCLAT (National Company Law Appellate Tribunal) on May 29, 2019; the Tribunal's rectified order on July 23, 2019; and the Tribunal's order on April 26, 2021.

Mentionably, the Central Government constituted the NCLAT under Section 410 of the Companies Act-2013 for hearing appeals against the orders of the NCLTs with effect from June 1, 2016.

The JACRU leaders said, "We register our vehement objection on the illegal auction notice dated November 25, 2021. It is in flagrant violation of the NCLAT orders. While the NCLAT order issued on May 29, 2019, ensured that the company remains a 'Going Concern'. The Tribunal's order issued on June 23, 2019, included the Government of India as a party in our case (586/2019) and also ordered to ensure that the company must remain as a 'Going Concern', mentioning that "even if it is handed over to any 'Third Party', the same has to be handed over as a 'Going Concern' along with workers or employees.

"Surprisingly, the Liquidator notified a fresh auction notice on November 25, 2021, minimizing the asset value from Rs 1139 crores to Rs 786.18 crores. The asset also included all core assets and land areas where the heavy industries have been installed with huge modern machinery for the production of high-quality papers.

"Shockingly, the entire land of the core area where have been brought in the auction notice for sale in massive reduced value in the guise of 'Non-Core Assets'.

"What is most objectionable is that after selling the entire core land area, the 'Industrial Assets' — with all its machinery — would become 'Scrap'. The land and the industries would also lose their existence automatically; and, the main intent and obligations of the order issued on May 29, 2019, including the modified order dated June 23, 2019, and the subsequent order dated April 26, 2021, of the NCLT would go in vain."

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