Jharkhand HC stays HEC wind up

The Jharkhand High Court has stayed "any coercive action" related to winding up of the Ranchi-based central public sector undertaking Heavy Engineering Corporation (HEC) till October 14, 2004.

HEC's former chairman-cum-managing director (CMD) GP Pandey, who retired last month, had earlier written to the department of heavy industry of the Union government for winding up the company in accordance with the recommendations of the Board for Industrial and Financial Reconstruction (BIFR).

S Biswas, the lone functional director of HEC, assumed charge as acting CMD recently. HEC then filed a writ before Jharkhand High Court challenging the BIFR order of July 6, 2004, directing winding up of HEC.

The company in its writ petition said the BIFR order should be quashed as it was issued ex parte and at a time when HEC was doing better in terms of profit and work orders for the last three consecutive years.

The petition added the central and the state government had proposed to revive HEC and therefore more time was needed before any decision to wind up HEC was taken.

The court directed the Centre and the Jharkhand government to file a counter affidavit stating the quantum of funds they wished to invest in HEC's revival.

The Court also ordered the Jharkhand State Electricity Board not to snap power to HEC for outstanding power bills till October 14, the next date of hearing. It directed the Provident Fund Commissioner and other government machinery not to seize the HEC bank accounts till October 14.