JCT workers stage protest demanding Rs 30 crore dues

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Hoshiarpur, May 14

Some workers of JCT Limited, Chohal, and their family members staged a protest at factory’s colony compound seeking their dues amounting to around Rs 30 crore, stuck for several months. It was also alleged that their dues were stuck due to non-issuance of NOC by the lead bank of JCT Limited for which they protested against the bank. They said that their wages, provident fund, overtime and other allowances were pending for long. They said that they were facing a lot of problems as many of the workers, especially those who were over the age of 50, have been left in lurch as the management had closed down the factory eight months ago and at this age, no other factory was interested to hire them. The protesters were joined by a large number of women too. They also said that it was difficult for them to live in the factory colony in the scarce supply of electricity and water. Some workers alleged that the factory management was not fulfilling its eight months old promise of clearing their dues.

Bank pressing for insolvency

We have 240 acres of land which we are ready to sell. The machinery is also there. We have the buyers ready to buy this and the letter of intent has already been given by them. In a recent meeting with banks, they wanted some change in resolution plan and desired changes were made, still the lead bank moved to National Company Law Tribunal for insolvency. We and the promoter want to keep this 67-year-old company alive but still the bank is pressing for insolvency. — Samir Thapar, Chairman and managing director, JCT limites

“They had an agreement with us in the month of September last year, in presence of district administration that our dues will be cleared by October 31, 2023. Later, the date was extended to November, 2023, then to February, 2024, and then by the end of March, 2024, but no promise was fulfilled,” said a factory employee requesting anonymity.

When asked about it, Samir Thapar, chairman and managing director of JCT Limited said, “We have not closed the factory but suspended manufacturing”. He said that the workers living in colony were being given electricity through generator. The consortium of banks had agreed with their plan to sell the property and the machinery of the factory but the lead bank was adamant on insolvency procedure, he claimed. “The insolvency procedure has to be adopted when the company is not in a situation to clear its dues but this is not the case with us. We are willing to clear all the dues and balances, but the lead bank has been causing a hindrance in it by not issuing NOC,” he added.

On the amount of balance to be paid, he said that it amounts to Rs 290 crore of the consortium of banks of which the lead bank has to be paid Rs 63 crore. The lead bank has moved to National Company Law Tribunal for insolvency, despite the fact that the resolution and restructuring plan was proposed and other banks of the consortium except the lead bank had agreed to it. On asked about how to pay the dues, he said, “We have 240 acres of land at factory site which we are ready to sell. The machinery is also there. We have the buyers ready to buy this and the letter of intent has already been given by them. In a recent meeting with banks, they wanted some change in resolution plan and desired changes were made, still the lead bank moved to NCLT for insolvency. We and the promoter want to keep this 67-year-old company alive but still the bank is pressing for insolvency”.