1 BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION ...

Case No. 149/1994 : M/s JK Jute Mills Ltdorder of th e Boa rd, th e com pa n y filed a n a ppea l before th e Hon bleAppella te Au th ority for In du s tria l a n d Fin a n cia l Recon s tru ction (AAIFR).Th e Hon ble AAIFR vide order da ted 9.2.2001 a llowed th e a ppeal, anddirected th e com pan y/ exis tin g prom oters to s u b m it th eir u pda ted m odifieds ch em e to th e OA. Th e OA wa s directed to exa m in e th e propos a l a n ds u bm it a report to th e BIFR. Th e AAIFR a ls o a ppoin ted PNB a s OA in pla ceof IFCI a s IFCI s du es h a d been paid off.1.3 In th e n ext h ea rin g h eld on 8.5.2001, th e Boa rd directed th ecom pa n y to s ort ou t th e ou ts ta n din g is s u es with PNB, a n d s u bm it a fu llytied up scheme to the OA.1.4 In th e h ea rin g h eld on 5.8.2003, th e Boa rd n oted th a t th ere wa s s tillno fully tied up scheme for their consideration. It therefore formed a primafacie opin ion for win din g u p th e com pan y, a n d a s h ow ca u s e n otice (SCN)was issued accordingly.1.5 Objection s / s u gges tion s to th e SCN were con s idered a t th e h ea rin gheld on 30.10.2003 wh en , a t th e requ es t of th e workers u n ion , th e Boa rdgra n ted th e com pa n y 15 da ys tim e for s ortin g ou t th e is s u e of workersdu es . As th ere wa s n o progres s in fin a lizin g reh a bilita tion s ch em e th eBoa rd, vide order da ted 5.1.2004, con firm ed th eir opin ion for win din g u pthe company.1.6 Ba s ed on th e com pa n y s a ppea l, Hon ble AAIFR vide order da ted5.9.2005 s et a s ide BIFR s order da ted 5.1.2004 a n d directed th e PNB (OA)and the company to submit a draft rehabilitation scheme before the BIFR.1.7 In th e h ea rin g h eld on 28.11.2007 th e Ben ch a llowed 15 da ys to th ecom pa n y to m a ke its s u bm is s ion a s to wh y th e a rra n gem en t en tered in toby th em with M/s Ra in ey Pa rk Su ppliers Pvt Ltd (RPSPL) s h ou ld n ot becon s idered to be Ch a n ge of Ma n a gem en t (COM) th rou gh ba ck door, andwh y th a t a rra n gem en t s h ou ld n ot be n u llified. Fu rth er, a s a greed by th e2