Ranchi, Apr 4 (KNN) The office of the Chairman cum Managing Director (CMD) of Heavy Engineering Corporation Ltd (HEC), a Ranchi-based Central Public Sector Undertaking, under the Department of Heavy Industries, Govt of India, has been attached by the Commercial Court in Ranchi for execution of MSE Facilitation Council Arbitral Award.
In compliance with the court’s directive, the court’s Nazir (Official Representative), Zissan Iqbal, along with staff members Satyadev Kumar and Dharmendra Singh, accompanied by Advocate Omprakash Ravi, arrived at HEC’s premises in Dhurva on Wednesday and proceeded make an inventory of items in the CMD’s chamber.
According to case details, HEC had issued a purchase order to Dayachand Engineering Industries Private Limited, a small scale enterprise, in 2012 for the supply of welding wire. While the Muzaffarnagar-based company fulfilled its contractual obligations, HEC reportedly failed to make the complete payment for the supplied materials.
The attachment follows legal proceedings initiated in 2014 when Dayachand Engineering filed an application for Conciliation and Arbitration under the MSMED Act 2006, and execution of the award in the Commercial Court in 2022, claiming that HEC had failed to comply with an arbitrator’s decision regarding payment. A bank account of HEC has already been attached by the court in its earlier order, but despite that no dues were paid to the MSE firm, thereafter the Company had moved the court for attaching the office of the CMD.
According to the annual report of HEC for the year 23-24, In FY 2023-24, the Company bagged orders worth Rs. 24.84 Cr, has an outstanding Order book of Rs.1,225.07 Cr., has 2100 employees, and registered losses to the tune of 275.45 Crores.
It is noteworthy that HEC, established in 1958, has been facing financial difficulties for an extended period. The company specialises in manufacturing and supplying capital equipment and machinery for core sector industries.
The Union heavy industries ministry on 11-Feb-2025 had informed the Lok Sabha that it has not prepared any plans for reviving the ailing Heavy Engineering Corporation (HEC).
(KNN Bureau)
