In Brief
Jaipur Udyog Ltd. was declared sick in 1987 and a rehabilitation scheme by Gannon Dunkerley & Co. Ltd. (GDCL) failed. After four decades of litigation, thousands of workers remained unpaid. The Supreme Court appointed a Court Administrator to oversee asset valuation and liquidation, prioritizing verified worker dues over third-party revival schemes. The Court rejected speculative investor offers without formal asset valuation and found GDCL, the managing promoter, had improperly sold company assets without court permission. It held that worker welfare outweighs procedural technicalities in extreme cases of prolonged delay and hardship.
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