Paper Mill Workers’ Union submits memorandum to CM & PM for rescue of mills from liquidation

May 8: In a memorandum submitted to Sarbananda Sonowal, Chief Minister of Assam, Cachar Paper Project Workers’ Union appealed for immediate intervention to save HPC Paper Mills at Nagaon and Panchgram. The Memorandum signed by Manobendra Chakraborty, President of the Union urged upon the Chief Minister to save the HPC Mills from the ‘proposed liquidation.’

In the said memorandum, the instance of revival of of a similar mill under HPC at Kerela was also mentioned. It was stated, “You may be well aware of the fact that the Hindustan Newsprint Ltd, a subsidiary company of HPC is also having same course but will be saved by Kerala Government as the Government of Kerala intervened at NCLT with a proposal to take over the Industry coming under their State.”

It was mentioned in the memorandum that the two HPC Mills in Assam having asset value of approximately five thousand crores considering present market price, is under process of Liquidation through a Private Liquidator as a consequence of non settlement of Claims of mere Rs. 98 Latch. only of a creditor. The Union also authorised the Chief Minister to pay the claims of Rs 98 lakhs from their pending Salary of 28 months as they were ready to sacrifice the said amount from their due salary to save the industries of Assam, if Government of Assam do not want to bear the responsibility as done by the state Government of Kerala.

Speaking to way2barak, Manobendra Chakraborty said that a similar memorandum was also submitted to the Prime Minister on Tuesday for his immediate intervention. He said, “The matter is most urgent as the stipulated period for Appeal at NCLAT is only 30 days in legal term. We are confident that the issue will be seriously dealt with as committed by the Chief Minister to the people of Assam. In this regard, we too have expressed to extend our cooperation to the state government.”

Mr. Chakraborty furher said, “We have also metioned in the said memorandum that the HPC Paper Mills of Assam having strategic importance for socio-economic development and source of employment for not less than two lakh families should not be allowed to die through liquidation and has to be rescued to protect the interest of the State and for employment of future youth Generation.”

However, it needs mention here that the order copy of the National Company Law Tribunal (NCLT) in this matter is still not available to anyone and as such, it is not clear about the verdict of NCLT as regards the two paper mills. As of now, the only document which is in public domain is the affidavit filed by the Under Secretary to the Government of India wherein mention was made about the non-availability of Rs. 90 crores.

NCLT is a quasi-judicial body in India that adjudicates issues relating to Indian companies. The NCLT was established under the Companies Act 2013 and was constituted on 1 June 2016 by the government of India & is based on the recommendation of the justice Eradi committee on law relating to insolvency and winding up of companies.