Case: SUPER BAZAR KARAMCHARI DALIT SANGH Vs. UNION OF INDIA

1. The genesis of this set of proceedings dates back a decade, when steps were initiated for protecting the interests of the employees and other stakeholders of Super Bazar, ae Cooperative Society, through a revival scheme under the supervision of this Court. Super Bazar incurred huge losses on account of irregularities in management and was unable to make payments towards arrears of wages, pensions and other benefits to its employees. It was unable to discharge its liabilities towards other stakeholders as well. Pursuant to an order dated 5 July 2002 issued by Central Registrar ofSocieties, Super Bazar went into liquidation. The order of liquidation was challenged by the Employees Union before the Delhi High Court. Eventually, proceedings came to this Court by way of Special Leave Petitions. In order to preserve the interests of all the stakeholders, this Court constituted ar committee to prepare and submit a comprehensive scheme for revival. The Committee identified three bidders. Out of them M/s Writers & Publishers Pvt. Ltd. ( WPL) was recommended by the Committee for managing the affairs of Super Bazar. On 26 February 2009, this Court accepted the report of the Committee. The bid document submitted by WPL set out its financial capacity and the funds which it would infuse for revival. Under the revival plan, WPL proposed to invest an amount of Rs. 504 crores, comprising of Rs. 102 crores towards share capital, Rs. 276 crores towards working capital and Rs. 126 crores for revival and revamping.    2. The revival scheme was intended to obviate an order of winding up. On 7 May 2008, this Court recorded that all the unions representing the workmen had identified and agreed that the outstanding dues payable to workers amounted to Rs. 54.31 crores, as on 31 December 2007. On 14 July 2009, WPL took over charge of the administration of Super Bazar and began managing the affairs.    3. In a subsequent order dated 13 August 2010, this Court observed thus:(ii) In terms of our order dated 7th May, 2008, an amount of Rs.54.31 crores, being arrears of wages up to 31st December, 2007, was directed to be disbursed by the highest bidder. Rs.55 crores stand deposited by the highest bidder. The sum of Rs.20 crores out of Rs.55 crores which lies with the Registry of the Supreme Court, will be disbursed by the Official Liquidator and the nominee of the Central Registrarin the presence of one Union representative of each Union within four weeks from today. The representative of the highest bidder will also remain present in the said meeting. It is made clear that the workers will sign the receipt of payment, which will be adjusted towards the arrears of Rs.54.31 crores.(iii) As far as the balance amount is concerned, we are directing the highest bidder to file an affidavit containing an Undertaking that within a period of eight weeks, from the date of constitution of the Board of Directors after the elections, the balance amount will be disbursed to the workers. This will cover arrears of wages up to 31st December, 2007.

Court's reasoning:
Prima facie we find that verification made in the CAG report is pertinent to the present matter and has to be given careful consideration. The glaring irregularities in accounts pointed out by the auditors and verified by the CAG require careful scrutiny. The absence of an opportunity to the Union of India before this Court on the earlier occasion and the written instructions issued by the former Official Liquidator preventing the counsel from appearing have effectively prevented full facts being placed before this court. The affairs of Super Bazar implicate the interests of diverse stakeholders and the public interest. Full facts must be placed before the Court to enable it to decide.Moreover, the conduct of the earlier Official Liquidator in purporting to issue instructions for the release of Rs. 35 crores to WPL, after he had ceased to hold charge is a circumstance pressed in aid of the submission that there was a calibrated effort to prevent full facts from emerging before this Court. In our view, the interests of justice require that a full hearing be given to the Union of India, the CAG, the present Official Liquidator and to WPL as well before a final determination is made of what, if any amount is due to WPL. Other stakeholders including the employees union and the association of creditors should also be heard. We are satisfied from the material on record that vital interests of all stakeholders are involved and that a full perspective of the matter was not presented to the court as a result of the written instructions given by the earlier Official Liquidator to the Counsel not to appear. Whatever may have been his motive in doing so, full facts should, but have not emerged before the court as a result of the absence of key stakeholders. In such a situation, it is the duty of the Court to prevent a miscarriage of justice and to set down proceedings for hearing afresh on the basis of the position as it obtained before the passing of the order dated 17 May 2018.Hence, we are of the view that the order dated 17 May 2018 of this Court should be recalled. We order accordingly.In view of the fact that the order dated 17 May 2018 stands recalled, the Contempt Petitions filed by WPL fore of the said order do not survive.