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

Case No.93/1987
M/s Alluminium Industries Ltd
wh ich , h erein a fter, wou ld be referred to a s th e (SS-05- MD/ CD), (SS-05-
RD) & (SS-05-SD) res pectively. Th e Boa rd a ppoin ted th e SBT a s th e
Mon itorin g Agen cy (MA) to m on itor th e progres s of im plem en ta tion of th es e
reviva l s ch em es . Th e Boa rd fu rth er directed th a t th e m a tter rega rdin g
reviva l of Hirku n d (Oris s a ) & Ku n dra (Kera la ) Divis ion s wou ld be
considered by the Board separately.
4. Appea l n os . 91/ 2005, 15/ 2006, 53/ 2005, 98/ 2005, 120/ 2005,
127/ 2005, 136/ 2005 a n d 1 77/ 2005, were filed by M/ s .Un ited Sh ippers
Ltd. (USL), M/ s .Alu m in iu m In du s tries Em ployees Un ion (AIEU) (Hira ku n d),
Alin d Em ployees Un ion Reviva l Com m ittee (AEURC), M/ s .GVK
Petroch em ica ls Ltd. (GVKPL), M/ s .Alin d Ma ch in ery Divis ion Em ployees
Un ion (AMDEU), M/ s . Ea s t Coa s t Meta l & Min era ls Pvt. Ltd. (ECMMPL),
M/ s . Globa l Corpora tion Ltd . (GCL) a n d M/ s . Vija y Electrica l Ltd. (VEL),
before Hon ble AAIFR, ch a llen gin g th e BIFR s order dt.3.6.05 (i.e. th e order
th rou gh wh ich th e BIFR com m u n ica ted its a pprova l on th e
recom m en da tion of th e MA (SBT) ASC for s a le of th e s ick com pa n y s two (2)
non-via ble u n its viz. Hira ku n d, Oris s a a n d Ku n dra , Kera la ) a n d a ls o
ch a llen gin g th e BIFR s s u bsequ en t ord er dt. 26.7.05 (i.e. th e order by wh ich
three (3) separate schemes were sanctioned by the Board for revival of three
(3) Divisions of the sick company M/s.AIL).
5. Hon ble AAIFR, du rin g its h ea rin g ta ken on 15.11.06, n oted, interalia,
as under :-
(a) Th e a pproa ch of BIFR wa s erron eou s . Th e com pa n y s via ble u n its
s h ou ld be revived a n d th e u n -via ble u n its s h ou ld be dis pos ed-of, a n d th is
should be done under the umbrella of one scheme which would take care-of
in teres t of a ll th e com pa n y s s ta ke h olders . After s a n ction / im plem en ta tion
of th e th ree (3) s epa ra te s ch em es for th ree (3) divis ion s of th e s ick com pa n y
M/ s AIL, th ere wou ld be n o m a n u fa ctu rin g u n its left in th e com pa n y for
revival by the BIFR.
(b) Th e n et effect of th e procedu re a dopted by th e BIFR is th a t a ll th e
assets of the sick company would stand transferred to third parties, but the
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