Winding-up of sick industrial company upheld where no viable rehabilitation plan or settlement compliance was shown.

A sick industrial company's winding-up reference was sustained where it repeatedly failed to submit a viable rehabilitation plan or comply with the directed deposit for a one-time settlement. The record showed no concrete revival proposal, no likely improvement of net worth within a reasonable time, and no realistic prospect of meeting financial obligations. On those facts, the statutory opinion that winding up was just, equitable, and in the public interest was supported, and the challenge to the BIFR and AAIFR orders failed. The proceedings were directed to culminate in takeover of the company's assets and records by the Official Liquidator.

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Issues: Whether the sick industrial company's reference for winding up deserved to be accepted and the orders of the BIFR and AAIFR upheld.

Analysis: The company had been declared sick and was repeatedly afforded opportunities to place a viable rehabilitation plan and comply with the directed deposit for one-time settlement. Despite extensions and repeated chances, no concrete revival proposal was submitted, the required deposit was not made, and the materials on record showed that the company was not likely to make its net worth exceed its accumulated losses within a reasonable time or become viable while meeting its financial obligations. In these circumstances, the statutory opinion that winding up was just, equitable, and in public interest was supported.

Conclusion: The challenge to the BIFR and AAIFR orders failed and the company was held liable to be wound up.

Final Conclusion: The proceedings resulted in affirmation of the winding-up opinion, with directions for the Official Liquidator to take over the company's assets and records.

Ratio Decidendi: Where a sick industrial company fails to submit a viable rehabilitation proposal or comply with settlement directions, and the record shows no reasonable prospect of revival or discharge of financial obligations, a winding-up opinion under the statutory scheme is justified.

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