In a move aimed at ending a dispute that has stretched across generations, the Supreme Court has appointed former Madras High Court Chief Justice Manindra Mohan Shrivastava as Court Administrator to verify and oversee the payment of long-pending dues of thousands of employees of Jaipur Udyog Ltd. The exercise, which includes unpaid wages and provident fund claims, has been directed to conclude by August 31, 2026.
The Court stressed that the verification of claims must be conducted in a strictly time-bound manner, with the objective of clearing the liability within four months. The direction comes after years of partial progress and repeated delays in settling payments owed to workers whose claims date back decades.
A bench comprising Justice Rajesh Bindal and Justice Vijay Bishnoi observed that the workers’ dues could be satisfied using funds generated from the sale of assets belonging to Jaipur Udyog Ltd. and its subsidiary, Jai Agro Industries Ltd. However, the Court made it clear that no disposal of assets should take place without proper identification and valuation. Once the valuation exercise is completed and submitted, the Court will determine which properties, if any, should be sold to meet outstanding obligations and reimburse amounts already spent by stakeholders.
The directions were issued in proceedings arising from a petition filed by Uttar Pradesh Bhartiya Mazdoor Sangh. While the union sought revival of the company’s cement unit in Sawai Madhopur and its jute mill in Kanpur, the Court declined, noting that reopening the units after nearly forty years of closure was no longer practical. Instead, it prioritized settlement of long-pending worker dues.
The dispute traces its roots to 1987, when Jaipur Udyog Ltd. was declared a sick company. A rehabilitation plan approved in 1992 placed management in the hands of Gannon Dunkerley & Co. Ltd., which was expected to revive operations. The effort, however, failed. By 2000, continued losses, operational shutdowns and unmet financial commitments led the Board for Industrial and Financial Reconstruction to recommend winding up.
Subsequent legislative changes further complicated the matter. With the repeal of the Sick Industrial Companies Act and introduction of the Insolvency and Bankruptcy Code, the proceedings abated. The Supreme Court noted that neither the company nor the management approached the National Company Law Tribunal within the permitted timeframe, effectively reviving the earlier recommendation for winding up.
At the heart of the dispute has been payment of wages and benefits to workers left unpaid for decades. A mediation exercise estimated dues for employees of the Sawai Madhopur unit at approximately ₹115 crore, excluding interest and provident fund liabilities. While some payments were made over time, substantial claims remained unresolved.
The Court observed that the verification exercise has been ongoing since September 2021 through Court Commissioners, with participation from both the workers’ union and management. Although significant sums have already been disbursed, the remaining amounts must now be determined and paid without further delay. The Court also directed that provident fund dues be calculated with the involvement of the Regional Provident Fund Commissioner, Rajasthan.
Additionally, the Court ordered that workers currently occupying company-provided accommodation must vacate the premises within six months of receiving their pending dues, bringing another lingering aspect of the dispute to a close.
With the appointment of a dedicated administrator and a fixed deadline, the Court signalled its intent to finally conclude a matter that has remained unresolved for nearly four decades.
