1 board for industrial and financial reconstruction bench iii case no ...

Case No.93/1987
M/s Alluminium Industries Ltd
th en tak e appropriate action in accord an ce w ith law . If on the bas is of the S IA
report an d the com m en ts of OA and other concerned agencies , th e exis tin g
m an agem en t is not cons id ered tru s tw orth y an d capable of und ertak ing the
revival of the com pan y or the com pany fails to s ubm it a cred ible revival
propos al exactly w ithin th e given tim e, B IFR s hould explore th e pos s ibility of
revival th rough change of m an agem en t. While exploring ch ange of
m an agem en t an opportunity to the w ork ers unions s hould als o be given,
am on g others .
We als o d irect th at u nd er s ection 22A of S ICA, th e exis tin g
m an agem en t w ill not d is pos e of any as s ets of the com pan y till a fin al d ecis ion
is tak en by th e BIFR. If revival is not con s id ered feas ible th rough any of thes e
rou tes , BIFR m ay tak e appropriate action for w in d ing up of th e com pan y in
accord an ce w ith law .
Thus , Hon ble AAIFR, s et as id e th e part of the
im pugned ord er of BIFR d ated 21.04.2009 as relates to s ubm is s ion of DRS by
th e com pany and rem an d ed the cas e to BIFR w ith th e afores aid d irections for
com pliance. S ince this cas e is lingering on und er S ICA for a very long tim e
s ince 1987, Hon ble AAIFR d irect th at BIFR s hould hear th e cas e on w eek ly
bas is w ith ou t any long ad journ m en ts and d ecid e th e m atter pos itively w ith in
s ix m on th s from th e d ate of is s ue of th is ord er.
A copy of th is ord er be
forw ard ed to the B IFR im m ed iately an d parties are d irected to appear before
BIFR on 21.02.2011.
18.2 The Bench obs erved th at parties pres en t in th e hearing had heard the
d irections of Hon ble AAIFR. The Bench als o obs erved th at th e Appeal
(No.138/ 2 009) filed by M/ s Vijay Electricals Ltd (VEL) h as als o been
d is m is s ed by Hon ble AAIFR, accord ingly , th e n am e of M/ s VEL is d eleted
from th e lis t of parties . Ha vin g con s idered th e s u bm is s ion s m a de in th e
hearing and material on record, the Bench issued the following directions :-
(a)
Sta te Ba n k of Tra va n core (OA) is d irected to get a Specia l
In ves tiga tive Au dit (SIA) con du cted on th e a ffa irs of th e Com pa n y for
18