1 BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION ...

M.A.NO. 735 in CASE NO 70/2006
M/S. DUNCANS INDUSTRIES LTD.
BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION
MISCELLANEOUS APPLICATIONs NO. 735 IN
CASE NO.70/2006 IN RE: M/S. DUNCANS INDUSTRIES LTD.
SUMMARY RECORD OF PROCEEDINGS OF THE HEARING HELD ON
29.11.2011 BEFORE THE BENCH CONSISTING OF SHRI NIRMAL
SINGH, CHAIRMAN AND SHRI Y.K. GAIHA, MEMBER
BENCH-I
Present
M/s Duncan Industries Ltd.
SBI (OA)
ARCIL
M/s Kanpur Fertilizers &
Cement Ltd.
CBI
Name & Designation of the
Representatives S/Shri/Ms
Nilesh Sharma, FCA
Sanjay Kathuria, Sr. Exe.
Pradip Kandar, Sr. Exe.
R.C.Panda, Dy.Gen.Manager
Bindu Das, Advocate
A.K.Maini, VP Legal
Manoj K.Aich, Sr.Manager
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1.1 M/s. Du n ca n In du s tries Ltd. (DIL) wa s decla red a s ick in du s tria l
com pa n y in th e h ea rin g h eld on 21.2.2007 a n d SBI wa s a ppoin ted SBI
a s th e Opera tin g Agen cy (OA) with direction s to prepa re a reviva l s ch em e
for it, if feasible. In the hearing held on 29.9.2011, the Bench sanctioned
the scheme.
1.2 ARCIL filed a Mis cella n eou s Applica tion (MA) No. 735 requesting
the Board to insert the following clauses :-
This clause be inserted after clause 20(b) being :
The beneficial in teres t of the exis tin g prom oters of the Duncans
In d us tries Ltd . (DIL) repres en ted by th e equ ity s h ares to be allotted
to th em in the s h are capital of Kanpur Fertiliz ers and Cem en ts Ltd .
(KFCL), th e s pecial purpos e veh icle to w h ich the fertiliz er bu s ines s of
DIL w as propos ed to be h ived off, s hould be trans ferred to th e
S ecured Lend ers , forth w ith upon allotm en t.
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M.A.NO. 735 in CASE NO 70/2006
M/S. DUNCANS INDUSTRIES LTD.
This clause be inserted after clause 20(k) being :
All m on ies pay able by DIL hereund er includ ing an y
reim burs em en ts , if not paid w ith in th e s tipulated period , s ubject to
approval of S ecured Lend ers to con s id er acceptan ce of d elay ed
pay m en t, s h all from th e d ue d ate carry in teres t of 20% per an n u m
com pound ed at quarterly res ts . If s uch am ounts includ ing th e
in teres t at afores aid are not paid w ith in 30 d ay s , the s am e s h all
further carry an ad d ition al in teres t by w ay of liquid ated d am age at
th e rate of 2% per annum in ad d ition to the applicable rate of 20%
as afores aid .
2.1 In th e h ea rin g h eld to-da y (29.11.2011), th e ld a dvoca te a ppea rin g
on beh a lf of ARCIL reitera ted th e requ es t m a de in th e MA a n d requ es ted
to in corpora te th e ch a n ges in th e DRS a s th e s a m e h a s been left ou t
inadverten tly. Sh e fu rth er s ta ted th a t if th e a bove m odifica tion s a re n ot
in corpora ted in th e DRS, grea t preju dice wou ld be ca u s ed to Arcil s in ce
it is th e la rges t s ecu red creditor a n d h u ge pu blic m on ey is in volved in
th is ca s e. Th e Ben ch obs erved th a t th e Boa rd h a s n ot is s u ed th e
s a n ction ed s ch em e yet. Th e h ow a m en dm en t ca n be con s idered. Th e ld
advocate appearing on behalf of ARCIL withdrew the MA No.-735.
2.2 After con s iderin g th e s u bm is s ion s m a de a n d m a teria l on record,
the Bench dismissed the MA No.-735 filed by ARCIL as withdrawn.
(Y.K. GAIHA)
MEMBER
(NIRMAL SINGH)
CHAIRMAN
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