BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION ...

M/S DATAR SWITCHGEARS LTD.
CASE NO. 260/2001 (D.O.(MA-106)-28.04.2011)
BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION
BENCH-II (Monitoring-II)
Case No.260/2001 M/s DATAR SWITCHGEAR LIMITED (DSL)
(MISC. APPLICATION NO. 106/BC/11 DT. 10.02.2011)
SUMMARY RECORD OF THE PROCEEDINGS OF THE M.A. HEARING HELD
ON 28.04 .2011 BEFORE BENCH-II CONSISTING OF HON BLE MEMBERS
SMT. SAROJ BALA AND Y.K. GAIHA
Present
M/s Datar Switchgear Limited
Name & Designation of the
Representative(s)
S/Shri/Shrimati/Kumari
1. Alok Dhir, Adv.
2. Nilesh Sharma, Adv.
3. Bhuvan Arora, Consultant
Larsen & Toubro (L&T)
IFCI (Applicant)
ICICI (MA)
Bank of India
SASF
1. Rajesh Tawatkar, Rep.
2. Rohit Bhat, Adv.
1. T.R. Srinivasa Rao, Adv.
2. Awadhesh Kumar, AGM
1. Vasant Gurao, Chief Mgr.
2. S.K. Singh, Adv
1. Hari K.G., Mgr.
1. Devendra Singh, Mgr.
SICOM
1. Kanika Sharma, Adv.
1. scheme for the revival of the sick company M/s Datar Switchgear Limited
(DSL) wa s s a n ction ed vide order da ted 05.12.2006(SS-06). Th e cu t-off
da te wa s ta ken a s Ma rch , 31, 2005 a n d ICICI wa s a ppoin ted a s
Mon itorin g Agen cy (MA) to m on itor th e progres s of th e im plem en ta tion of
th e s a n ction ed s ch em e. Cos t of s ch em e a n d m ea n s of fin a n ce were
envisaged as under :
COST OF SCHEME
(Rs. in lakh)
Settlement with secured creditors 12392
Settlement with unsecured creditors 2395
Settlement with unsecured creditors/Claimants or whose
Claims are not accepted by DSL 389
Payment of Employees dues/Statutory dues 586
Total 15762
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M/S DATAR SWITCHGEARS LTD.
CASE NO. 260/2001 (D.O.(MA-106)-28.04.2011)
MEANS OF FINANCE
For Secured creditors
Conversion of Restructured Terms Loan 2633
Issue of Zero Coupon Bonds 8055 10688
For Unsecured creditors (Banks) in schedule XI
Conversion to Restructured Term Loan 479
Issue of Zero Coupon Bonds 1557 2036
Other unsecured creditors in schedule XI A
Conversion to Restructured Term Loan 389
Proceeds from Transferee company (to be deposited in Escrow
Accounts and then to utilized towards meeting cost of scheme) 2400
Funding from promoters 249
Total 15762
2. In th e previou s review h ea rin g, h eld on 30.12.2009, th e Ben ch is s u ed
the following directions:-
a. ICICI (MA) wou ld exa m in e th e cla im s of Sa ra s wa t Co-operative
Ba n k Lim ited, Corpora tion Ba n k , Cen tra l Excis e & Cu s tom s a n d
Ba n k of Ma h a ra s h ta ra , a n d oth er creditors , a n d wou ld s u bm it a
Sta tu s Report in th is res pect a lon g with its recom m en da tion s
keeping the provisions of the Sanctioned Scheme in view.
b. Sa ra s wa t Co-opera tive Ba n k Lim ited, Cen tra l Excis e & Cu s tom
and DIR(R) to submit status of their claims within three weeks.
c. Show Caus e Notic e (SCN) in t e rm s of provis ions u/ s 3 3 , re ad
wit h 3 4 of SICA Ac t , 1 9 8 5 be is s ue d t o Lars e n & Toubro
Lim it e d, Corporat ion Bank and Bank of Maharas htara for non
c om pliance wit h t he provis ions of t he Sanctioned Sc hem e .
Their re s pe c t ive re plie s s hall be s ubm it t e d t o t he Board wit hin
30 days.
d. Ben ch exten d th e Mora toriu m period for s ix m on th s .
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M/S DATAR SWITCHGEARS LTD.
CASE NO. 260/2001 (D.O.(MA-106)-28.04.2011)
3. A SCN wa s is s u ed to BOM, Corpora tion Ba n k a n d M/ s La rs en & Tou bro
for n on com plia n ce of Boa rd s direction is s u ed to th em .
4. Th e com p a n y h a s filed a Mis c. a pplica tion No. 1 6 4 / BC/ 1 0 dt . 1 5 .3 .1 0
a n d requ es ted th a t Sh ow Ca u s e Notice (SCN) is s u ed to it be with dra wn
as it was erroneously issued to it. It has also submitted by L & T in the
Mis c. a pplica tion th a t SCN wa s to be is s u ed to MIDC, EPFO, GOM,
Cen tra l Excis e & Cu s tom s Depa rtm en t a n d Cen tra l Wa reh ou s in g
Corporation.
5. In th e a bove Mis c. a pplica tion h ea rin g h eld on 23.03.2010, th e Ben ch
issued the following directions:
(a) Show Ca u s e Notice (SCN) in term s of provis ion s u / s 33, rea d
with 34 of SICA Act, 1985 be is s u ed to MIDC, EPFO,
Govern m en t of Ma h a ra s h ta ra , Cen tra l Wa reh ou s in g
Corpora tion , Na s ik Mu n icipa l Corpora tion a n d Cen tra l Excis e &
Cu s tom for n on com plia n ce with th e provis ion s of th e
Sa n ction ed Sch em e a n d direction s of th e Boa rd. Th eir
res pective replies s h a ll be s u bm itted to th e Boa rd with in 30
days.
(b) SCN da ted 17.2.2010, is s u ed to M/ s La rs en & Tou bro is
withdrawn/cancelled.
(c) With th is Mis c. a pplica tion No. 164/ BC/ 10 da ted 15.10.2010 is
disposed off accordingly.
6. IFCI Ltd. h a s filed Mis c. a pplica tion No.1 0 6 / BC/ 2 0 1 1 , dat e d
10.02.2011 and has prayed as under:
I. Pa y to IFCI Ltd. th e u pfron t a m ou n t of Rs .206.19 la kh with
interest from 18.12.2006 @ 16% till realization in full.
II. Su bm it a deta iled s ta tu s report before Hon ble BIFR on th e
progress of the Scheme.
III. Su bm it th e deta ils of ESCROW a ccou n t open ed for th e pu rp[os e
of depos itin g th e u pfron t pa ym en t of Rs .17 crore by M/ s L&T
Ltd.
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M/S DATAR SWITCHGEARS LTD.
CASE NO. 260/2001 (D.O.(MA-106)-28.04.2011)
IV. Ca ll for a m eetin g of s ecu red creditors to exa m in e th e progres s
of the scheme.
B.Su ch oth er order th is Hon ble foru m deem fit & proper in th e
interest of justice.
7. In th e h ea rin g h eld on (21.02.2011) h ea rin g, th e Ben ch is s u ed th e
following directions:
(a) All con cern ed pa rties a re a llowed to s u bm it th eir res pective
reply to th e Mis c. a pplica tion to th e Boa rd with a copy to
ICICI(MA) with in a period of fou r weeks, a n d ICICI(MA) to
s u bm it a com preh en s ive report a fter exa m in in g a ll th e a s pects
of the case.
(b) Next date of hearing is fixed on 28.04.2011(Thu).
8. In toda y s (28.04.2011) h ea rin g, th e ld. a dvoca te representin g IFCI
s u bm itted th a t in reply to th e tech n ica l qu ery ra is ed by th e com pa n y,
IFCI h a s filed im plea dm en t a pplica tion to th e Boa rd, a n d requ es ted th e
Ben ch to is s u e s u ita ble direction s to th e com pa n y on pra yers m a de in
th e Mis c. a pplica tion in rega rds to pa ym en t of u pfron t a m ou n t of
Rs .206.19 la kh with in teres t from 18.12.2006 @ 16% till rea liza tion in
fu ll. Ld. Advocate of IFCI a ls o requ es ted th e Ben ch to direct L&T to
s u bm it th e deta ils of ESCRO a ccou n t open ed for th e pu rpos e of
depositing the upfront payment of Rs.17 crores .
9. Ld. a dvoca te repres en tin g th e com pa n y s u bm itted th a t h is clien t h a s n ot
received copy of com preh en s ive report filed by ICICI(MA) a n d requ es t th e
Bench to direct ICICI(MA) to provide the same to them.
10. Ld. a dvoca te repres en tin g L & T s u bm itted th a t h is clien t h a s n ot
received th e copy of report s u bm itted to th e Boa rd by ICICI(MA).
However, h e provided/ s erved th e copy of reply from L&T to IFCI, ICICI,
and to the company during the course of hearing.
11. Th e repres en ta tive of ICICI(MA) s u bm itted th a t in com plia n ce of Ben ch
direction, ICICI h a s s u bm itted th e com preh en s ive report to th e Boa rd
vide letter da ted 21.04.2011. However, in reply to qu ery ra is ed by th e
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M/S DATAR SWITCHGEARS LTD.
CASE NO. 260/2001 (D.O.(MA-106)-28.04.2011)
com pa n y a s well L&T th a t th ey h a ve n ot received th e s a id report,
repres en ta tive of ICICI s u bm itted th a t h e h a s n ot s en t th e copy of report
to a n y oth er pa rty s in ce th e Ben ch direction wa s to s u bm it th e reply to
the Board only.
12. Th e repres en ta tive of Ba n k of In dia (BOI) s u bm itted th a t BOI is n ot a
party in the MA filed by IFCI.
13. Th e repres en ta tive of SASF s u bm itted th a t th ey a re n ot a pa rty in th e
Misc. application hearing.
14. Ld. Advocate repres en tin g SICOM s u bm itted th a t h er requ es t is to
with dra w SCN wh ich wa s is s u ed to th em in a dverten tly a s s h e presumes
that this was a Review hearing.
15. The Bench observed that some of the concerned parties have not received
the copies of the com preh en s ive report s u bm itted by ICICI(MA), a n d h a ve
requ es ted th e Ben ch to provide th e s a m e to th em to en a ble th em to file
th eir res pective rejoinders. Ha vin g con s idered th e s u bm is s ion m a de,
m a teria l on record, a n d ba s ed on fa cts , th e ben ch is s u ed th e followin g
directions:
(a)
ICICI (MA) to exa m in e wh eth er IDBI/ SASF is con cern ed with
Mis c. a pplica tion filed by IFCI a n d to s u bm it s ta tu s report.
(b)
ICICI (MA) to en s u re s ervice of com preh en s ive report da ted
21.04.2011, revis ed/ la tes t com preh en s ive report to L&T,
Company, and to others concerned; within 3 weeks.
(c)
The Company, L&T a n d oth ers con cern ed m a y s u bm it
rejoinders, if any, within further 3 weeks.
(d)
Next date of MA hearing is fixed on 12.07.2011(Tue). The
s a m e be clu bbed with th e Review h ea rin g & ICICI (MA) wou ld
submit status report well in advance.
(Y.K. GAIHA)
MEMBER
(SAROJ BALA)
MEMBER
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